Tata Consumer set to launch sports drink, steers clear of cola wars

Tata Consumer Products is doubling down on functional innovation and strategic niche-building as it prepares to launch a new sports drink within the next two weeks, a move that underscores its aversion to the carbonated beverage wars and preference for differentiated plays in India's crowded FMCG space.

“We have consistently maintained that we will not go up against the majors,” said Sunil D’Souza, MD & CEO, Tata Consumer Products. “We will not get into carbonated drinks.”

Instead, the company is focusing its NourishCo segment on purposeful hydration and wellness beverages. Alongside the sports drink debut, Tata Consumer is also relaunching its energy drink and developing a pipeline of functional drinks aimed at younger, health-conscious consumers.

This product-level innovation is part of a broader strategy to drive double-digit top-line growth and faster EBITDA margin expansion. "We are targeting rapid scale and better profitability," said D’Souza, noting that key acquisitions like Capital Foods and Organic India are now accelerating after a slow start.

The company is also using existing brands in inventive ways, from launching rusk under Soulfull to exploring affordable noodles and Korean food under the Ching’s umbrella. “I will never play mainline noodles, but there is a differentiated play to be had,” said D’Souza, suggesting a keen eye for whitespace in saturated categories.

To boost visibility, Tata Consumer is investing in high-impact endorsements. Organic India is set to rope in a top Indian celebrity, while Tetley green tea’s new L-carnitine-infused version will be backed by another well-known face.