Sri Lanka Ceylon Cold Stores expands fizzy drinks business

Dec 12, 2007 (LBO) – Ceylon Cold Stores has invested 800 million rupees to expand its carbonated drink making line to increase production and introduce different pack sizes to compete with other producers. The company says its ice cream has also captured half the market share in Maldives while soft drinks are exported to Europe, Africa and USA. The company, a unit of John Keells Holdings, which sells under the Elephant House brand name, has released new pack sizes to the market of 200 milliliter glass and 500 milliliter plastic bottles.

"The plant running at capacity can produce 600 bottles per minute," Amila Silva, national sales manager, John Keells Holdings, told LBO.

Commissioned two months ago, the plant usually runs at 70 percent capacity which during times of high demand increases to around 90 percent.

Elephant House and Coca Cola hold around 80 percent of market share for carbonated or fizzy drinks in Sri Lanka.

Unlike Coke which has just launched a new fruit drinks range, Elephant House does not planned to venture into the fruit drink market.

This is because fizzy drinks sales are thriving in Sri Lanka and a considerable amount of investment is also needed to diversify.