Pepsi and Coca-Cola are in shock after PM Modi’s comment at Startup India summit

During the ambitious Startup India, Standup India launch, Prime Minister Narendra Modi questioned that why can't 2 per cent natural juice be mixed in aerated drinks?

“This will provide farmers a market for their produce," Modi had said.

It seems that this idea by the prime minister has not gone well with the cola industry as they say it will hurt the companies, adding it would be impossible to implement in all fizzy beverages.

Industry experts say that cola manufacturers were already the receiving end due to GST and this new idea would harm their trademark formula. Instead, people in the industry said there can be more juice-related drinks in the market.

The cola industry is already under pressure due to Food Standards & Safety Authority of India’s (FSSAI) existing rule that a juice drink will qualify if it has minimum of 10 per cent fruit juice or pulp content, barring lime for which limit is 5 per cent.

Experts say adding fruit content will also reduce the shelf life of the fizzy drinks.

"If all the above happen, the soft drinks industry will become sick. The other challenge is that adding juice will radically reduce the shelf life of fizzy drinks. Aerated drinks have a shelf life of four-six months, but juices come with a shelf life of one to three months at the most," one of the people told ET.

As per reports, beverages sector is already reeling under stalled growth of the Rs 14,000-crore due to a slew of reasons, including unseasonal rains.