The FDA’s final rule stipulates that water, tea, and coffee with fewer than 5 calories per serving automatically qualify for the “healthy” label. This move is backed by growing scientific evidence of tea’s antioxidant-rich profile and its potential health benefits, such as improved heart health and reduced inflammation.

In a statement, the ITA highlighted that the FDA’s decision is a significant boost for the global perception of tea, particularly Indian tea. The recognition not only underscores tea’s nutritional value but also empowers consumers to make informed choices about their beverage consumption.

“This is a pivotal moment for the tea industry,” the ITA noted in a media release. “The recognition by the FDA validates the health benefits of tea and reinforces our commitment to promoting Indian tea as a nutritious and healthful beverage choice.”

With the global demand for healthier dietary options on the rise, the ITA and its member companies are committed to maintaining high standards of quality and promoting the benefits of Indian tea worldwide. This endorsement positions Indian tea as a preferred beverage for health-conscious consumers, both domestically and internationally.

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Speaking at the National Beverage Conclave, IBA Chairperson C.K. Jaipuria highlighted the burden of the current tax regime, particularly on zero-sugar products. “We have made representations at all levels to the government, including the GST Council, but taxation remains a bottleneck at all levels,” he said.

Recent media reports suggested that a Group of Ministers (GoM) has recommended increasing GST rates on aerated beverages, cigarettes, and tobacco to 35%. While the Central Board of Indirect Taxes and Customs (CBIC) has dismissed these reports as speculative, the possibility of a hike has alarmed the beverage industry.

Jaipuria emphasized that the industry “cannot afford even half a percent increase” and reiterated the need for the cess to be waived. “The biggest roadblock for the industry is the taxation structure. We are hoping that by March 2026, when the 12% cess is scheduled to be removed, the tax rate will return to 28%,” he said.

The IBA believes the high tax rate not only impacts manufacturers but also discourages innovation and growth in the beverage sector. The association has consistently advocated for a more balanced tax structure to support the industry’s sustainability and competitiveness.

With the GST Council yet to announce any official changes, the beverage industry remains hopeful for a reprieve that could ease the tax burden and stimulate growth.

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The drink, which contains no added sugar, harnesses the health benefits of dates, a fruit revered in the Middle East for its richness in fibre, antioxidants, and essential minerals like magnesium and potassium. Described as a healthier alternative to conventional sodas, Milaf Cola promises not to compromise on flavour.

Made from locally sourced premium dates, Milaf Cola adheres to international food safety standards and aligns with Saudi Arabia’s vision for sustainable production and economic diversification. The beverage’s eco-friendly production process supports local agriculture and positions dates as a versatile ingredient for modern consumption.

Milaf Cola: A Threat to Global Cola Giants?

The innovative drink is being touted as a potential disruptor in the global soft drink market, traditionally dominated by brands like Coca-Cola and Pepsi. By offering a healthier, sugar-free option with a unique regional twist, Milaf Cola could cater to health-conscious consumers and those seeking alternatives to sugary sodas.

Festival attendees praised the drink for its flavour, with one describing it as “like drinking sunshine, if sunshine tasted like dates and happiness.”

Encouraged by its initial success, Thurath Al-Madina has announced plans to introduce Milaf Cola to regional and international markets, hoping to redefine global perceptions of dates.

“Milaf Cola is just the beginning,” a company spokesperson stated. “We aim to revolutionize how dates are consumed worldwide with a range of innovative products.”

With its blend of health benefits, sustainability, and a distinct flavour profile, Milaf Cola is setting the stage for a new era in the soft drink industry. Whether it can rival the dominance of traditional soda giants remains to be seen, but its unique proposition is already creating a buzz.

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The GoM, led by Bihar Deputy Chief Minister Samrat Chaudhary, also suggested tax rate changes for 148 items. These recommendations include lower GST rates for essential goods and higher rates for luxury items.

Proposals under consideration are to put aerated drinks at a 35% GST rate.

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, is set to review these proposals in its December 21 meeting. Final decisions will determine whether the GoM will continue periodic rationalization.

In recent tax adjustments, the GoM had earlier suggested reductions in GST for essential items, such as packaged water (20 litres or more), which is reduced from 18% to 5%.

Meanwhile, Chandigarh reported a 20% increase in GST collections for November 2024, reaching ₹253 crore compared to ₹210 crore in the same period last year. October collections also saw a 16% year-on-year increase. These measures underline the government’s dual focus on revenue generation and ensuring essential goods remain affordable.

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“The decision to categorize fruit-based, non-caffeinated sparkling drinks under the sin tax, raising GST from 12% to 40%, had a massive impact on our business, which relies on specific price points,” Chauhan said.

Parle Agro reported a net profit of ₹22 crore for FY24, with revenue declining 12% year-on-year to ₹3,210 crore, as per filings accessed by business intelligence platform Tofler.

To counter the higher tax burden, Parle Agro reduced the serving size of Appy Fizz from 160 ml to 125 ml. “When serving size reduces, the perceived value to consumers decreases as well. This impacted sales significantly,” Chauhan explained.

Appy Fizz, a key challenger brand in the beverage sector, contributed over 40% to Parle Agro’s portfolio but faced challenges in maintaining growth momentum. The company also dealt with high unsold inventories, particularly in Kirana stores, according to an FMCG distributor.

The company’s flagship products, Frooti and Appy Fizz, compete with Coca-Cola’s Maaza and Minute Maid, PepsiCo’s Slice and Tropicana, and Dabur’s Real.

Despite market trends favouring no-sugar and low-sugar beverages, both Frooti and Appy Fizz have limited offerings in these segments, noted industry analysts.

Chauhan highlighted Parle Agro’s investment of over ₹600 crore in the dairy category, which she believes will drive long-term growth. She also expressed optimism about the increasing circulation of ₹20 coins, which could enhance sales of Appy Fizz, priced at ₹20.

“Appy Fizz is already seeing 30-40% growth over the previous year,” she said.

Meanwhile, rival Hindustan Coca-Cola Beverages (HCCB) reported a robust 247% increase in net profit for FY24, reaching ₹2,808.3 crore, with revenue rising 9.2% to ₹14,021 crore.

All carbonated drinks in India are subject to a 28% GST plus a 12% compensation cess, resulting in an effective 40% tax rate—the highest among packaged food and beverage products, according to the Indian Beverage Association (IBA).

While the tax aims to curb unhealthy consumption, Parle Agro contends it disproportionately affects innovative fruit-based sparkling beverages like Appy Fizz.

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A Legacy of Innovation

Coca-Cola’s Freestyle machines, first introduced in 2009, have revolutionized how fans experience soft drinks. These bright red dispensers allow users to create custom combinations of their favourite Coca-Cola beverages, providing exclusive access to unique flavours. They are a staple at locations like Wendy’s, Firehouse Subs, and Universal Studios.

Earlier this year, Coca-Cola debuted five exclusive Freestyle flavours to celebrate the Paris Olympics. Now, the brand is back with a tropical-inspired lineup to brighten the season.

The Tropical Holiday Flavour Lineup

The limited-edition offerings include:

• Coca-Cola Tropical – A blend of fruit flavours, described by one Redditor as “a mix of cherry, pineapple, and orange.”
• Sprite Pineapple – A tropical twist on the classic lemon-lime soda.
• Sprite Cherry Pineapple Punch – A new mash-up flavour combining tart cherry and sweet pineapple, available for a limited time only.

All three flavors are offered in full-sugar and zero-sugar versions, catering to diverse preferences.

Fan Reactions and Availability

The announcement has sparked excitement among soda enthusiasts. Social media is abuzz, with fans expressing delight over the new flavours. Instagram user @Markie_Devo confirmed the lineup’s arrival at Burger King and Firehouse Subs.

Fans have praised the flavours, with one commenter asking, “Why are these not offered in cans?!” Others hope to see the tropical blends return for the summer, citing their unique and refreshing profiles.

Don’t Miss Out

The Tropical Holiday Freestyle Flavors are available for a limited time. If you’re near a Freestyle machine, don’t miss the chance to experience these exclusive drinks before they disappear. Whether it’s the vibrant Coca-Cola Tropical or the bold Sprite Cherry Pineapple Punch, these flavours promise a sip of tropical paradise during the colder months.

Catch them while you can!

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Available in three flavours—Mocha Cream, Vanilla Cream, and Caramel Cream—the drinks are tailored to meet the tastes of coffee lovers who seek more than just flavour in their caffeine fix. “We’re thrilled to bring STōK Cold Brew Energy to the boldest coffee drinkers out there—delivering the coffee-forward flavour our brand fans love with a boost of caffeine,” said Brittney Polka, Danone’s vice president of ready-to-drink beverages.

The new line-up is currently available at 7-Eleven and Speedway convenience stores, with a nationwide rollout planned for 2025.

As the ready-to-drink beverage market continues to expand, products that combine coffee and energy drink qualities are gaining traction. STōK’s latest release joins a rising trend, following in the footsteps of brands like Throne Sport Coffee, which launched earlier this year with NFL star Patrick Mahomes as a lead investor. Both brands aim to cater to consumers seeking a caffeine boost with functional ingredients, signalling a growing shift in consumer preferences for hybrid beverages.

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Reliance’s Campa brand has made inroads with competitive pricing and attractive trade margins, a move disrupting the duopoly enjoyed by Pepsi and Coca-Cola in India. With Campa priced at ₹10 for a 200 ml bottle and ₹20 for 500 ml, compared to Coca-Cola and Pepsi’s 250 ml bottles at ₹20, Reliance is aggressively positioning itself in the market. In response, PepsiCo’s largest Indian bottling partner, Varun Beverages, hinted at creating products to address this competitive pricing.

Coca-Cola, meanwhile, is scaling up the distribution of its ₹10 returnable glass bottles in tier-2 markets and evaluating the expansion of regional brands like RimZim, which offers unique flavours aimed at local preferences. This allows Coca-Cola to protect the value and margins of its flagship brands without diluting brand equity.

Reliance is not only competing on price but also enticing distributors with higher trade margins of 6-8%, compared to 3.5-5% offered by PepsiCo and Coca-Cola. Tata Consumer Products’ MD, Sunil D’Souza, noted the significance of Reliance’s pricing strategy, stating that despite similar retail prices, Campa’s favourable trade margins create a competitive edge that impacts industry dynamics.

As competition intensifies, both Pepsi and Coca-Cola are likely to deploy regional promotions and strategic pricing adjustments to retain their market share amid Campa’s ascent in India’s soft drink landscape.

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“India experienced particularly intense monsoons in multiple states, which impacted volume growth in the country,” said Coca-Cola CEO James Quincey during an investor call. While specifics on India’s sales performance were not disclosed, the company’s unit case volumes in the broader Asia-Pacific region saw a 2% decline for the quarter.

Despite this setback, Coca-Cola remains optimistic about a rebound in the coming months as seasonal weather normalizes and consumer demand for beverages is expected to pick up.

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PepsiCo now anticipates a low single-digit growth in organic sales for fiscal 2024, down from its previous 4% forecast. CEO Ramon Laguarta attributed the adjustment to ongoing inflationary pressures and tight household budgets, which have led to smaller portion purchases and more visits to mass retailers instead of convenience stores.

The company also reported a surprise decline in third-quarter revenue, in part due to a recall of Quaker Foods products over concerns of salmonella contamination. This impacted organic revenue in the Quaker Foods North America segment, which fell 13%, following an 18% drop in the second quarter.

While international markets in Latin America, South Asia, and Europe had previously offset some of the weaknesses in North America, PepsiCo is now facing volume slowdowns in these regions as well, driven by geopolitical tensions and macroeconomic challenges.

Despite the setbacks, PepsiCo’s efficiency measures helped grow margins by 111 basis points. Adjusted earnings of $2.31 per share beat estimates of $2.29, and the company maintained its annual adjusted profit forecast. However, net revenue for the quarter ended September 7 dipped 0.6% to $23.32 billion, missing analyst expectations of $23.76 billion.

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