Market Update
PEPSI TAPS LOCAL TRADITIONS
TO REVERSE FORTUNES IN JAPAN,
SAYS GLOBALDATA
A
merican beverage giant
PepsiCo, through its partnership
with local distributor Suntory
Beverage & Food, is all set to launch
a new variant – Pepsi Japan Cola –
exclusively for the Japanese market as
part of plans to reverse its fortunes in
the country.
Katrina Diamonon, Consumer
Insights Analyst at GlobalData, offers
some valuable insights into how the
non-alcoholic beverages category as a
whole can reignite consumer interest
amidst growing health consciousness
globally:
“As soft drinks struggle to maintain
market share amidst intensifying media
scrutiny of sugar-sweetened beverages,
and corresponding consumer efforts
to make healthier choices, tapping
into local food traditions is a strategy
that may indeed be emulated in other
markets depending on the success of
this new beverage.
“Pepsi Japan Cola contains ingredients
such as salt and the Japanese citrus
fruit yuzu, both of which cater to
local taste preferences. Both flavours
can also effectively offset the
cloyingly sweet taste that is often
typical of non-alcoholic carbonated
beverages. Additionally, the new
variant is available in a zero-calorie
version to broaden its appeal among
the calorie-conscious. From an
emotional perspective, the product’s
timely April launch coincides with
Japan’s Cherry Blossom festival, a
significant annual event in Japanese
culture – and one that perhaps
warrants celebration with a Japan-
centric drink.
“ L o c a l l y- m a d e p r o d u c t s e x u d e
tradition and authenticity, which
are traits that have the potential to
offset the questionable nutritional
credentials of soft drinks. Indeed,
according to GlobalData’s 2018 Q3
Consumer Survey, over half (56%)
of Japanese consumers associate
high-quality food and drinks with
those that are locally-sourced. This
implies that local connotations alone
can enhance the perceived quality of
a product.
“The notion of thinking global and
acting local is one that has never
been more relevant to non-alcoholic
beverages. The category is in need
of an image makeover, and any steps
brands can take to reinforce local
identity, foster reassurance and
create emotional resonance should be
vigorously pursued.”
* Source: www.globaldata.com
Drink Asia
9
July-August 2019
Pepsi Japan
Cola contains
ingredients
such as salt
and the
Japanese
citrus fruit
yuzu, both of
which cater
to local taste
preferences