October 2008
In an attempt to avoid a possible legal wrangle, PepsiCo India is planning to alter the branding of its Tropicana Twister Apple Rush juice brand from next year onwards, sources told ET.
The move is aimed at steering clear of a possible litigation case involving PepsiCo and US-based organic juice company Apple Rush Company Inc. In May, Apple Rush Company had alleged that the soft drink maker had ‘copied’ its brand name and had threatened to drag the latter to court at that time.
It is not clear whether the Illinois-based Apple Rush company actually filed a legal case against PepsiCo India over the controversy.
The PepsiCo spokesperson declined to comment on the matter. Apple Rush Co president Robert Corr said in response to an email query by ET: “PepsiCo has ignored any communication about this issue when we attempted to get a response from them.”
Apple Rush Company had raised objections to PepsiCo India introducing an apple-flavoured juice sub-brand in the country under the same brand name, alleging that the development amounted to ‘an unfair business practice’. In the US, none of Tropicana Twister’s variants are called Apple Rush.
For the Indian cola and snacks major, a controversy involving one of its good-for-you products is the last thing it would want especially at a time when the company is betting heavily on portfolio transformation to healthier beverages and snacks.
The company has flagged off a relaunch exercise for its Tropicana pure juices and aims to double share in the branded fruit juice market. But it is the fruit-based juice drinks market, (Tropicana Twister and Slice) that is growing faster than pure juices. Both Twister sub-brands – Apple Rush and Orange Thrill – are currently being advertised on mass media.
Unlike the specialised pure fruit juices market which has few players, the more mainstream juice-drinks segment has a slew of players competing for market shares. These include market leader Frooti from Parle, Minute Maid and Maaza from Coca-Cola and Twist from Dabur, in addition to PepsiCo’s own brands.
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