Juices maker Dabur, packaging company Tetra Pak, bottling companies Pearl Drinks and Bengal Beverages, energy drink maker Red Bull, and drip and sprinkler systems firm Jain Irrigation Systems too have joined the association, while about 30-40 others including Bisleri International, Parle Agro, Amul, Godrej, bottlers, vendors and suppliers are expected to join in due course.
“Non-alcoholic beverages are on a growth trajectory but so far there has not been a comprehensive organisation representing the industry. We felt it’s time,” said Arvind Varma, secretary general of the association. He said the organisation will be the non-alcoholic beverages industry’s single point of interaction with the food safety authority and ministry of health.
It will help members deal with challenges such as complying with the food safety authority guidelines, double taxation, VAT, state-level controversies like allegations of water depletion, sugar imports, spurious drinks and more.
“IBA’s formation has been triggered by the two cola companies, Coca-Cola and PepsiCo, since they are the one’s facing maximum flak from regulators — whether it’s VAT in Delhi, charges of water depletion in Kerala or being perceived as only making sugary fizzy drinks by health activists,” said an official directly involved with the association.
Earlier this year, the Delhi government increased VAT on soft drinks from 12.5% to 20% on the category, but companies have not increased prices for fear of impacting demand. They have been lobbying with Delhi CM Shiela Dixit for a rollback because they believe the current taxation would ‘reverse their growth cycle’.
Several beverage makers, bottlers and suppliers ET spoke to said they would join the IBA.
The Indian Soft Drinks Manufacturers Association (ISDMA), represented by the two cola companies, is also being merged with the IBA.
“We are in the process of inviting all affiliates and stakeholders of the non-alcoholic beverages industry to join us,” said CK Jaipuria, president of IBA’s managing committee and a leading bottler of PepsiCo.
The IBA is being set up on the lines of global organisations such as American Beverage Association (which represents 220,000 people accounting for over $110 billion of sales) and British Soft Drinks Association.
Source: Economic Times
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