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Raw Pressery faces a headwind; ITC, Paper Boat in line for a buy-out

3 min read
raw presery

The cold-pressed fresh juices and milk smoothies brand Raw Pressery is facing a negative impact with a shift in consumer preferences for economical brands.

The premium juice producer in the market, Raw Pressery is in the news! Talks are on with firms like ITC and Paper Boat to divest stake or get on board a strategic investor for the premium juice brand. Backed by key investors – Alteria Capital, Sequoia Capital, Saama Capital, and DSG Consumer Partners two years ago, the health beverage brand was able to raise Rs. 200cr. However, with changing market trends and consumer preferences, Raw Pressery is facing turbulent challenges ahead.
According to a newspaper report, the sale is being valued between Rs. 150 and Rs. 200 cr.

Founded by Anuj Raykan, the inception of Raw Pressery can be traced back to 2013. The juice brand entered the market by selling premium packaged juices and smoothies. In a bid to have a go at it, consumers picked the brand off the shelf. The company did plan to diversify into the fresh foods segment but Raw Pressery did not manage to break up space and remained a niche premium player in the market.

The contenders –
ITC is a strong contender for the buy-out. Being one of India’s largest packaged foods company, it crossed Rs 10,000 crore in sales in FY 2019-20. As the company now seeks to reduce its dependence on its flagship business, a premium juices brand fits into its stated objective and helps to build a diversified portfolio. ITC’s presence in the packaged beverage market is evident with its product ‘B-Natural’. Operating in the mass-premium segment, the company seeks competition with Dabur’s Real and Pepsico’s Tropicana.

What happens when ITC buys out the premium juice brand is a question well asked. A probable buyout will give ITC a distinct mark in the premium, healthy juices space. For FY 19, ITC’s food business contributed 80% of the company’s overall FMCG sales. In the juices segment, ITC is a relatively new player with its brand B-Natural. Hector Beverages backed ‘Paper Boat’ is another strong contender for the buy-out. Paper Boat marks its space in the market with ethnic flavored and fruit-based drinks. Banking on high nutrition, traditional taste and eye-catching packaging alongside hygiene, Paper Boats aims to capture the market with the taking over of Raw Pressery. Co-founder Neeraj Kakkar declined to comment.

About Raw Pressery –
Raw Pressery is a health food and beverage start-up from Mumbai.
Founded by Anuj Raykan, the company marked its foray into the market with its products claiming to have multiple health benefits. It aims at giving juices that are a blend of ingredients to help you trim, glow, shield, build, run, and flush. Raw Pressery marked its foray in the market with Mumbai and Pune. Up to 70% of its customers are women in the age group of 20- 60 and the balance is men aged between 30-45 years.

The juices are available in 250 ml bottles starting from Rs 150, which explains why it was placed in the premium beverage segment.
With strong players contending for the buy-out, will the future of the premium beverage in Indian markets be cold-pressed or interesting and juicy?

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