Rasna acquires Jumpin from Hershey's to expand into ready-to-drink category
Rasna did not disclose the amount it paid for the 100% acquisition of the brand. However, it indicated that independent agencies have valued the brand at Rs 350 crore.
Instant beverage maker Rasna on Monday said it has acquired the brand Jumpin from Hershey's India to expand into the ready-to-drink category.
Rasna did not disclose the amount it paid for the 100% acquisition of the brand. However, it indicated that independent agencies have valued the brand at Rs 350 crore.
Piruz Khambatta, Rasna's chairman, said the company has acquired only the brand from Hershey's and not the manufacturing asset. It will be using the same manufacturing facility going ahead.
According to an official statement, Jumpin was originally launched by the Godrej Group and was subsequently managed by Hershey's India.
Khambatta said Jumpin has advantages like its heritage, perception as a family brand, which is not in the energy drink category, and a pioneering one as well, having used a tetra pack for the first time in India.
The chairman said brands stagnate like a heritage building needs to be redone to make them contemporary, adding that Jumpin will be relaunched by Rasna with the same brand name.
Under its new owners, Jumpin will be launched in PET bottles and tetrapacks with sizes starting from 125 ml and the price band from Rs 10 onwards, he said, adding that it will come in lemon, litchi, guava, and mango flavours.
Rasna is targeting to have a revenue of Rs 1,000 crore in over two years, he said, adding that the overall market size is Rs 1 lakh crore and the company is conservative in its expectations.
Before shutting down during the Covid pandemic, Jumpin was doing about Rs 150 crore of revenue per year through limited geography sales, he said.
Rasna has its own distribution network and also strengthens the same, he said, adding that distribution will start from next month onwards.
Asked about reports of slowdown in consumption growth, Khambatta said the mass offerings of the kind done by Rasna are not facing any troubles, but it is the premium category, which is witnessing stress.
In the future, Rasna may contemplate entering the milk-based beverages segment, he said, clarifying that this will not be a milkshake, but a drink having some component of milk.
He said the company is in talks to acquire a health company, whose offerings also include snacks.
Khambatta also welcomed the moves to restrict sugar consumption, like the one at the school level.
He said distribution chains in the northern region, which were impacted due to the conflict between India and Pakistan, have come back to normal now as life is getting back to normal.