MUMBAI: Lotus Chocolate Co’s profits have soared, with the confectioner reporting a 240 per cent surge in annual profit to Rs 1,722.72 lakh for the financial year ended 31 March 2025.
The Hyderabad-based chocolate maker saw its revenue nearly treble to Rs 57,375.03 lakh, up from Rs 20,003.13 lakh in the previous year, according to the audited financial results approved by the company’s board on Monday.
The firm’s earnings per share jumped to Rs 13.42 from Rs 3.84 in the previous fiscal year, giving investors plenty to cheer about. The results suggest Lotus’s recipe for growth is hitting the sweet spot with consumers across India.
The company’s balance sheet reveals a substantial expansion in scale, with total assets ballooning to Rs 27,034.45 lakh from Rs 7,309.62 lakh. A significant portion of this growth appears in the company’s inventories, which jumped more than sevenfold to Rs 8,061.50 lakh, and trade receivables, which soared to Rs 13,308.49 lakh from Rs 2,689.51 lakh last year.
The chocolate maker has been on an aggressive expansion drive, with borrowings surging to Rs 14,837.71 lakh from Rs 528.80 lakh. This debt-fuelled growth strategy appears to be working, with the company’s equity rising to Rs 5,953.27 lakh from Rs 4,245.35 lakh.
The results incorporate the amalgamation of Soubhagya Confectionery Pvt Ltd, a wholly owned subsidiary that was merged with Lotus following approval from the National Company Law Tribunal in August 2024.
The final quarter results tell a different story. Despite Q4 revenue more than doubling to Rs 15,745.39 lakh compared to Rs 6,581.79 lakh in the same period last year, the company’s quarterly profit plummeted by 65 per cent to Rs 141.55 lakh from Rs 400.27 lakh.
This stark contrast between revenue growth and profit decline in Q4 appears to be driven by several factors. Cost of materials consumed surged 152 per cent to Rs 13,124.71 lakh, while finance costs skyrocketed to Rs 299.62 lakh from Rs 22 lakh. The company also saw its other expenses double to Rs 1,082.85 lakh.
Adding to the quarterly squeeze, Lotus faced a tax expense of Rs 51.12 lakh, compared to a tax benefit of Rs 251.25 lakh in the same quarter last year—a swing that further eroded the bottom line.
Despite a dip in performance in the final quarter, the overall annual figures suggest Lotus Chocolate is successfully unwrapping new growth opportunities in India’s increasingly sweet-toothed market.
Mumbai: For the mushy lover in me, alphabetically, ‘L’ stands for ‘Love’, then what does ‘S’ stand for? According to the new campaign of Cadbury Dairy Milk Silk, ‘S’ stands for ‘Love’. Some days back, Mondelez India, which is a part of Mondelez International, a multinational confectionery, food holding, beverage and snack company revamped the look and shape of its flagship premium chocolate, ‘Cadbury Dairy Milk Silk’ through an elaborate digital campaign.
The campaign, which has been put in place by Ogilvy India, opens with various renditions of love amongst couples, and shows the progression of how Cadbury Dairy Milk (CDM) Silk as a name has now been revamped to a symbol of love – ‘S for Silk’, how from a letter it now holds the infinity of love (the infinity sign gets converted inversely into the shape of an ‘S’), and how with a new look and shape of the brand, one could indulge in the new language of love.
Ever since its launch in 2010, Cadbury Dairy Milk Silk has continued to cater to the young generation through its personalised innovations and heartfelt messaging. “Over the years, the brand underwent a few rounds of packaging upgrades while remaining largely consistent in terms of brand architecture and personality. But for the first time, Silk is undergoing a bold visual identity upgrade to further strengthen its consumer connect and dial up premiumness,” reveals Mondelez India vice president of marketing Anil Viswanathan.
CDM Silk is undoubtedly one of the leading products from Mondelez’s portfolio. Talking about the market share that the brand CDM Silk holds in the chocolate segment, Viswanathan adds, “CDM Silk virtually created the premium segment in the chocolate category. It currently holds approximately 74 per cent share of the premium segment within the chocolate category (as per MAT 20 Nielsen data).”
The revamped look, co-incidentally, makes it just in time for the festive season
Considering that CDM Silk is one of the most loved brands in the country currently, Mondelez’s detailed research led to the refurbishment of the look and shape of the brand. Viswanathan emphasised, “Over the last decade, Cadbury Dairy Milk Silk has been synonymous with the celebration of young love. The new generation is constantly on the lookout for richer, innovative and fulfilling experiences that make their everyday moments special. And the change in packaging was done to manifest this expectation and the brand’s promise to offer the ultimate premium indulgent experience visually as well.”
The exuberant packaging exhibits vibrant colors to highlight variants along with tempting visuals that signify premium indulgence. Along with this, the refreshed mould designs carry an ‘S’ engraving across every cube of the silk bar as part of its holistic design revamp strategy. “Perfectly embodying the role of CDM Silk as the most special chocolate for all special occasions through design and the proposition for Love’,” points out Viswanathan.
The new look and shape of CDM Silk, co-incidentally, are timely for the festive season. Talking about whether the move was intended to be this way, Viswanathan clarifies, “Cadbury Dairy Milk Silk is loved by consumers all year round, but it enjoys incremental love, especially during special occasions. However, the timing was aligned from the perspective of our brand plans and goals rather than just targeting the festive season, in the hope of making our consumer’s ‘me’ and ‘we’ moments even more special.”
The creative thought and execution
Having a chat with the creative agency behind the campaign and talking about the new ‘S’ for Love proposition for CDM Silk, Ogilvy India chief creative officers Kainaz Karmakar and Harshad Rajadhyaksha say, “Cadbury Dairy Milk Silk has always been about young, innocent love. The bold new packaging design now has a single letter ‘S’ standing out in gold. We wanted to create a campaign line that not only captures the essence of what Silk stands for but also stays memorable. ‘S’ for Love does that beautifully.”
As we all know, CDM Silk’s brand positioning has always been about love and romance, since its inception and clearly, it continues to be so. Could there be any particular reason behind that? “CDM Silk is a premium chocolate, a special formulation that is more of an experience than just a new taste,” asserts Rajadhyaksha.
Delving further into the creative thought of the campaign, Karmakar says,“’S’ for Love is a campaign that reinstates the relationship CDM Silk has with love. The brand implements every effort to make love special. With ‘S’ for Love, we want every couple to understand that if someone has gifted you a CDM Silk, it is a gesture of love.”
I first saw the new look and shape campaign of CDM Silk on Spotify, and I simply loved it! Karmakar and Rajadhyaksha chime that they equally loved creating the campaign too. Mondelez experiments with various types of media for CDM Silk and talking about the execution of the campaign, they say that the campaign has a digital as well as OOH spectrum. “So apart from the launch of video and outdoors, we have exciting influencer activations and a host of social media engagements coming up.” They add that the campaign also has a phase II with a TVC and a subsequent digital campaign around it that the team is super-excited about. Followed by a high decibel 360-degree marketing campaign which introduced the identity of the brand, the campaign is set to utilise multi-media robustly till the end of 2022.
Strategy forward and innovations
Viswanathan seems well-focused on the way forward for the brand. “We want to stand for the ultimate premium indulgent experience, not just within the category but in our consumer’s world. Thus, our efforts are geared towards continuously turning more and more consumers into CDM Silk lovers – increasing market penetration on the back of elevated brand and product experiences,” he mentions.
Discussing the innovations that one could look forward to about the brand CDM Silk, Viswanathan explains, “With consumer-centricity at its core, Mondelez India believes in empowering consumers with more choice, driven through unique innovations across brands. Thus, over the last decade, the brand has pioneered first-to-market product innovations and introduced new eating experiences in the form of Silk Bubbly Bubblegum, Silk Mousse, Silk Red Velvet Oreo, etc. As the consumer palate continues to evolve with exposure to emerging trends and products, we aim to adapt and accelerate the innovation engine to match the growing expectations.”
I’m all set to dive into the enticing experience of the new CDM Silk, and Viswanathan only avows further on a concluding note, “You will hear more from us on this in the future.”
Mumbai: As the country gears up to celebrate Diwali, Cadbury Celebrations has rolled out a new campaign “#ShopsForShopless” to celebrate the power of communities coming together through technology-enabled solutions. The launch will be supported by a 360-degree communication campaign with amplification across media touchpoints.
The campaign’s goal is to empower and support those who do not own permanent stores.
After promoting local businesses for the last two years that were impacted by the pandemic, the brand has elevated the festive fervour by extending a helping hand to local hawkers. The brand will be leveraging QR code technology through which users can scan a Cadbury Celebrations pack to identify nearby hawkers and the products sold by them. It’s a seamless interface wherein consumers can also promote and set up a virtual shop for their locally known hawkers by adding simple details like vendor name, phone number, and a few product images onto the website. Once registered, anyone can shop for the products via a phone call, SMS, or even a video call. Thus, enabling hawkers to continue their business without the hassle of finding a new spot every day, through their shop on the internet!
Weaving purpose into one more heartwarming campaign, this effort will promote thousands of hawkers across the country.
Speaking about the campaign, Mondelez India vice president of marketing Anil Viswanathan said, “Right from gifting to indulging in sweets, Cadbury Celebrations, over the years, has found its sweet spot across festivities and become an intrinsic part of family celebrations. After our previous “#NotJustCadburyAd,” which was recognised and lauded globally for supporting small business owners, we wanted to take the act of generosity a step further this year. Looking beyond small businesses, we collectively realised how Diwali is an important period for hawkers, but their business is often affected due to having no permanent spot to sell their products. Building on this insight and keeping purpose at the core of our strategy, we conceptualised “#ShopsForShopless,” an effort to give hawkers a permanent virtual store. We hope our latest tech-enabled effort strikes an emotional chord with the audiences, leading them to participate in small acts of generosity for a brighter and sweeter Diwali.”
Ogilvy chief creative officer Sukesh Nayak added, “Diwali is an important period for hawkers, but their business is often affected due to lack of a permanent spot/shop to sell the products. So, building on our generosity platform, this campaign is going beyond small businesses. It is an effort to give hawkers, who have no space, a permanent virtual spot to sell their products. To execute this idea, Ogilvy partnered with DeltaX to develop a tech platform which can help connect buyers to hawkers near them. We hope this tech-enabled solution connects at an emotional level with millions of our customers, making them scan the box to connect with hawkers near them and help make their Diwali sweeter too.”
“As OneWPP, we are attempting something very audacious this year during Diwali. This will be a seamless tech platform to connect buyers to the unorganised retail owners, who we often refer to as hawkers or street vendors in this country. This tech infrastructure will not only make our generosity campaign more inclusive, but with the “#ShopforShopless” campaign it can potentially transform the way we shop in the future,” said Wavemaker India chief client officer & office head – West Shekhar Banerjee.
Mumbai: Under the Madbury campaign, Mondelez India has introduced two new limited-edition flavours created by the consumers.
After winning consumer hearts throughout the country during the last two editions in 2021, the brand was on the look-out for the most unique combinations with Cadbury Dairy Milk that represented “Meethin Yaadon Se Bani Yeh Cadbury.” The brand has selected two winning flavours, ‘Crispy Rabdi’ and ‘Crunchy Cola,’ after rigorous consumer testing.
The launch of the winning flavours will be amplified through digital films, outdoor and print.
The campaign secured over 3.2 million entries from consumers from over 5,000 locations across the country. The participants were allowed to choose from 100 ingredients across eight categories, and crispy rabdi, biscuit tea, crunchy cola, tiramisu, and banoffee were just some of the delectable combinations tested before announcing the winning flavours.
‘Crispy Rabdi’ is a perfect blend of authentic rabdi flavour with crispy butterscotch nuts, and ‘Crunchy Cola’ is a fizzy cola flavour with crunchy Cadbury Gems, created by Omkar Madhav Awate from Pune and Mughda Satish Kulkarni from Ahmednagar, respectively, made the cut from millions of entries.
Speaking of this democratic campaign, Mondelez India vice president – marketing Anil Viswanathan said, “At Mondelez India, we believe there is an innovator hidden inside every Indian, and with each edition of the Madbury campaign, we aim to shine a spotlight on such unique creations and the nation’s increasing appetite for experimentation. As a brand that is constantly on the look-out for new ways to engage with our consumers, “Meethin Yaadon Se Bani Yeh Cadbury” has proven to be the perfect gateway of innovation powered by nostalgic memories and a way to truly be a part of the Cadbury Dairy Milk family. A campaign ‘of the people, by the people and for the people’, Madbury will continue to provide consumers the opportunity to create a Cadbury chocolate that will satiate the diverse snacking palate of the nation. We are thrilled with the love the campaign has received since its inception, and we look forward to building a deeper bond with our consumers.”
Mumbai: Mondelez India’s Cadbury Fuse has rolled out a new marketing campaign with WWE champion The Great Khali to support its newest ‘bhaari’ proposition.
The new campaign “Cadbury Fuse, Bhaari Hai” aka “It’s Heavy” showcases the product as a substantial snack catering to hunger pangs throughout the day.
To bring alive ‘Bhaari’ ness of the campaign, the brand has on boarded former WWE World HeavyWeight champion, Dalip Singh Rana aka The Great Khali.
Setting the new proposition in action, the TVC opens with two students discussing hunger pangs hitting them through what seems like a never-ending science lecture. While all the students continue to work on their assigned tasks, one of them is seen sending out a text message seeking help. The film then cuts to a shot of The Great Khali walking in, to his rescue, revealing the Bhaari/Heavy Cadbury Fuse as he reaches the student. The ad ends with Khali feeding the student Cadbury Fuse, a snack that satisfies Bhaari Bhook.
In addition to the TVC, the campaign is supported by high decibel digital and innovative outdoor initiatives. This includes capitalizing on the ongoing social media trend of block transition reels, select disclaimer videos on YouTube and impactful on-ground activations, all emphasizing on the ‘Bhaari’ness of the product.
Speaking about the campaign, Mondelez India president (marketing) Anil Viswanathan said, “The role of snacking has evolved considerably over the past couple of years. Consumers are constantly on the lookout for snacks that are not only indulgent but also filling at the same time. Our premium countline brand, Cadbury Fuse has been bridging that gap in consumers’ lives ever since its launch in 2016. With this new proposition, we aim to recapitulate Cadbury Fuse as a substantial, filling snack, that reigns in hunger pangs while providing a great taste experience. With The Great Khali on board, we are excited to see India’s favourite HeavyWeight champion help us manifest the Bhaari messaging behind the latest campaign”
Talking about the execution and idea behind the campaign Ogilvy chief creative officers Kainaz Karmakar and Harshad Rajadhyaksha, said “In the new campaign for Cadbury Fuse we put the spotlight on what the product delivers best – it’s a bhaari snack, stuffed with peanuts, chocolate and caramel, making it the most wholesome answer to hunger. To exaggerate the ‘bhaari-ness’ we use Khali as the carrier and the feeder.”
“The director, Abhinav Pratiman has delivered the humour just right. Khali is almost apologetic about the disruption his entry causes. The subtle chaos in the chemistry lab, the reaction of the students and the professor will make people want to see the commercial every time it plays,” they added.
Wavemaker chief client officer head West Shekhar Banerjee added, “What you will see is the synergy of three heavyweight champions. The Great Khali, Cadbury Fuse, and power of precision content targeting. This is a very creative use of custom intent and AI driven search content, helping us in hijacking every piece of content around snacks with Khali like a bolt from the blue, establishing Fuse as a Bhaari snack.”
Mumbai: With people spending a lot more time indoors, Chocolate brand Cadbury Dairy Milk has rolled out an all- new campaign ‘Fridge Mein Meetha, Toh Ghar Meetha’ that highlights everyday slice-of-life occasions where consumers open their refrigerators for smaller moments of indulgence.
The campaign created by Ogilvy India features a series of six relatable nuggets that nudge Indian consumers to stock up their favourite chocolate to make their everyday moments sweeter.
The ad films capture moments and familiar situations that India has only gotten more privy to in the last two years with the pandemic creating newer snacking occasions. From indulging in the middle of work, midnight cravings to getting over the heat of spicy food or bribing our loved ones with a bar of Cadbury, these shorties seek to strike a chord with every consumer.
“It is a campaign that picks up from how our lives have evolved. Today, we have found the time to discover the moments of joy at home that we didn’t earlier. The in-home consumption focused campaign lands this point beautifully, if there is a Cadbury in the fridge it has the sweetness to make every moment of our lives even sweeter,” said Ogilvy India chief creative officer Sukesh Nayak.
Commenting on the launch of the campaign, Mondelez India vice-president – marketing Anil Viswanathan stated, “Our latest campaign ‘Fridge Mein Meetha, Toh Ghar Meetha’ spotlights occasions where a bar of Cadbury Dairy Milk can turn otherwise mundane moments to sweeter ones and how these happen every day and in every home. As a snacking leader, we want consumers to stock up Cadbury Dairy Milk in their refrigerators and create category growth opportunities beyond instant consumption. We believe that brands that engage with consumers while they nest at home will have a deeper connection and help build lasting relationships.”
The media agency behind the campaign, Wavemaker India chief client office and head – West Shekhar Banerjee commented, “We are very excited about this initiative as it unlocks a huge growth opportunity for the category. One of the toughest tasks for marketing is to create new habits and we’ll be putting to test our behavior change framework based on four pillars of Containment, Continuity, Conversion & Content. This is just the start of our journey.”
Determined to influence a forever spot for itself in every Indian household, this ‘Fridge Mein Meetha, Toh Ghar Meetha’ ad is set to build a deeper cultural connection through a multi-year high decibel disruptive marketing campaign. Forging a relationship across all generations, the brand has planned various touch points- advertisements, pack interventions, interactive online and offline retail strategies, digital etc.
Mumbai: Chocolate brand Galaxy from the portfolio of Mars Wrigley has launched its new campaign starring actor and playback singer, Shruti Haasan.
With the new brand proposition, ‘Chocolate so smooth, pleasure lasts’, the brand has tried to innovate and localise for Indian consumers using the Galaxy global signature recipe.
The new ad film urges the audience to pursue their passion and choose pleasure for themselves. In the ad film, the actor is feeling swamped and exhausted with work, when she chooses to take a break and picks up Galaxy chocolate from her table. It is when Haasan eats a piece of chocolate that she experiences a shift in her mood. Feeling enthused she reaches for her drum sticks and begins to play. It is at this moment that her surroundings change, and her energy and mood reflect in the room through wonderful color trails and ripples depicted in the film. The film ends with the voice-over that says, ‘Chocolate so smooth, pleasure lasts’.
The film has been released in seven languages including Hindi, Tamil, Telugu, Malayalam, Kannada, Marathi & English.
“We are delighted to embark on the journey of launching a made in India portfolio with the global signature recipe giving an elevated chocolate experience to consumers in India. And Shruti Haasan seamlessly reflects the brand persona,” Mars Wrigley India director-marketing Varun Kandhari said. “For over 60 years, Galaxy has helped consumers enjoy an unmatched consumption experience that helps them escape the monotony of daily life and this is depicted in the film.”
Sharing her experience on the association, Shruti Haasan said “We often get so occupied with our daily tasks and deadlines that we forget the things that make us truly happy. For me, music has always been an important part of my life – it makes me more confident and content. The new campaign brings together my love for chocolates and music, and I love the way it has been portrayed.”
On the campaign, AMV BBDO, said, “In a fast-paced world where pleasure is often an afterthought or a frowned upon indulgence, this spot, under the masterful eye of Bharat Sikka, seeks to reconnect with it while holding Galaxy center stage.”
The new campaign comes further to the announcement of the first local production unit for Galaxy in Pune.
MUMBAI: Mondelēz International has finally launched its newest global research, sevelopment and quality technical centre in India located in Thane, Maharashtra.
The India Technical Centre has been set up with an investment of $15 million and will support new products and technologies for the company’s global brands in chocolate and beverages.
The India hub joins nine other Mondelēz International Technical Centres around the world that are already in operation, including East Hanover, New Jersey, in the United States; Curitiba in Brazil; Bournville and Reading, both in the UK; Wroclaw in Poland; Singapore; Suzhou in China; Saclay in France and Munich in Germany.
The Indian Technical Centre will also focus on consumer science, packaging and productivity. This is part of the company’s strategy to invest $65 million in developing a global network of state-of-the-art technical hubs strategically positioned around the world.
The chocolate giant has launched few products in the past specially for the Indian consumers to cater to their need and taste. Fuse, Cadbury Lickables, Dairy Milk Silk and the timeless 5Star, were all made in India first and later replicated in other parts of the world.
The Thane Centre will collaborate on innovations with multiple countries within the company network. “As we accelerate consumer-centric growth across both our global and local heritage brands, innovation plays a crucial role,” says Mondelez India Managing Director Deepak Iyer.
Spread across an area of 12000 sq meters, the Thane Technical Centre will be equipped with multiple technical capabilities, such as a pilot plant, a packaging creative studio and a range of laboratories for technical research and development. The team of around 150 scientists, developers, engineers, analytical chemists and other specialists will closely collaborate on innovations across the globe. The site is a zero water discharge facility, zero waste to landfill and has 100 percent rain water harvesting.
India is the fastest growing market in the world for Mondelez and has the highest chocolate market share amongst all other countries for the Cadbury maker. Mondelez EVP for AMEA region Maurizio Brusadelli states that Indian market accounts for $900 million for Mondelez.
However, it will be a challenge for Mondelez to sustain its growth with newer products and companies entering the market. Recently, Hershey International also launches its iconic Hershey’s kisses in India that will be Made in India specifically to cater the Indian consumers. But Mondelez does not see that as a challenge and rather considers it as a healthy competition. Deepak says, “We always want competition in the market. The average chocolate consumption in India is very low as compared to other parts of the world. We hope that with our competitors we can continue to grow the category.”
Mondelez has been present in India for over 70 years. The company introduced Cadbury Dairy Milk and Bournvita in India in 1948 and since then has been a leader in the chocolate category in the country.
The company operates in the chocolate, beverages, biscuits and candy categories in India with brands like Cadbury Dairy Milk, Cadbury Dairy Milk Silk, Cadbury Celebrations, Cadbury Bournville, Cadbury 5 Star, Cadbury Perk, Cadbury Fuse, Cadbury Gems, Cadbury Bournvita, Tang, Cadbury Oreo, Bournvita Biscuits, Halls and Cadbury Choclairs Gold.
Headquartered in Mumbai, the company has sales offices in New Delhi, Mumbai, Kolkata and Chennai and manufacturing facilities at Maharashtra, Madhya Pradesh, Himachal Pradesh and Andhra Pradesh in addition to a vast distribution network across the country.
MUMBAI: Go to any store in India and ask the person to hand you a Cadbury. You are for sure to get a bar of Dairy Milk, wrapped in purple cover, in your hand. Such has been the company’s branding that chocolate has become synonymous with Cadbury, although it is a brand with many candies.
Cadbury Dairy Milk (CDM) was the first chocolate bar to have higher milk content than earlier ones when it was launched in the UK in 1905. By 1914, it had become Cadbury’s bestseller. But how did it become India’s favourite?
Cadbury India, now known as Mondelez India, began its operations here right after independence, in 1948, by importing chocolates.
In the land of gulab jamun and rasgulla, chocolate was an alien and expensive. Dairy Milk turned out to be a rather failed launch for the company. None but the crème de la crème could afford to buy an imported chocolate. Also, in the 70’s and 80’s, the brand was only available in certain areas and its ads usually showcased a working man coming back home with a chocolate bar in his pocket for his child. Dairy Milk was relegated as a product for children only.
In the 80’s, Cadbury decided to manufacture Dairy Milk in India just to ensure that the production cost comes down and it’s available at a cheaper price point for Indians. But, other chocolate makers were still selling at lower prices. With sales dipping, the team was desperate for a communication strategy.
India’s ad-man Piyush Pandey from Ogilvy & Mather came to the brand’s rescue in 1991. He suggested that the brand needed a revamped identity and target the younger generation and adults. Ogilvy created the first iconic campaign for Cadbury titled, “Kuch meetha ho jaaye” in 1993 which continues to remain the favourite jingle of every 90s kid.
The campaign worked like a charm and Dairy Milk soon became every youth’s favourite chocolate. Suddenly, all these grownups — these responsible, serious grownups — had CDM bars in their hands. Batsmen, referees, grandfathers, policemen, teachers, pregnant women, college friends, lovers— the target group for Cadbury had changed and it was okay for adults to indulge now and that too in public.
There was no looking back. Since then, Dairy Milk has continued to remain every Indian’s go-to chocolate.
Through the years, Dairy Milk has been known for its loveable advertisements that make you want to sing along and do a little jig yourself. In the last decade, Dairy Milk has been positioned as something ‘meetha’ (sweet) — a strategy to counter traditional Indian sweets and the reach of local sweet shops. It comes as no surprise that Cadbury Dairy Milk is the most sold chocolate during festivals and special occasions.
Mondelez attributes the company’s strategy of constant innovation and evolving with Indian consumers as reasons for its growth. “In the beginning, we were just trying to say that chocolate is a nice treat for kids but today Dairy Milk is a mass brand and it is a part of everyone’s heart. We have made a huge change in communication right from talking to kids to being occasion specific to now a casual consumption product,” says Mondelez International associate director for chocolate equity, India and South East Asia Nitin Saini.
According to a recent market research report titled Branded Chocolate Market in India, the chocolate market is projected to grow at a CAGR of 17.8 per cent between FY 2017 to FY 2022. In the branded chocolate segment, Mondelez India has a whopping 65 per cent market share and its closest competitor is Nestle with 20 per cent market share.
Another aspect that works in favour of CDM is that it has few competitors in its category. Mars Inc’s Galaxy is the closest you can get but while CDM is available for Rs 10, Galaxy starts at Rs 25. The product’s success has even spawned cheap imitation chocolates at lower prices.
In the early 2000s, the company roped in star Amitabh Bachchan to promote it. Very soon, news about worms in CDM packets started leaking out and the company saw a 30 per cent dip in sales. The company lost no time in launching an aggressive campaign for its new tighter packaging which cost 10-15 per cent higher but did not hike the rates. It didn’t take long for consumer confidence to be back.
Mondelez has a strong distribution network in India and it is only growing every year. You visit a chemist shop, a drug store, a general store, supermarket, airport or a small pan-bidi shop, they all have a dedicated set of CDM bars to offer. In 2017, the chocolate giant had over 1000 distributors and 7000 sub-stockists who distributed products to small general stores and other retailers. Rural sales contributed about one-fifth of Mondelez’s sales in the same year which was 10 per cent higher than a year before. Mondelez currently has 350,000 outlets in 40,000 villages and sees the next phase of growth coming from hinterlands.
Though Dairy Milk cuts across all age groups and class, that seems to be changing now as chocolate and hazelnut confectionery, Ferrero Rocher, has come to be the latest favourite of the young and elite. Priced at Rs 430 for 12 pieces, the company faces a stiff competition from Dairy Milk that is India’s favourite festive gifting option. Come Diwali or Raksha Bandhan, and we see television and digital screens filled with Cadbury ads about making relationships stronger with something ‘meetha’.
Not only has CDM managed to break into a difficult market but has even maintained its lead. Riding on the back of extensive marketing, communication and distribution networks, it will take a gigantic effort to dethrone it.
MUMBAI: There’s never been a better time for fitness brands with the younger generation becoming more and more health conscious. With almost sedentary lifestyles, people are opting for healthier eating and exercise options to stay fit.
Brands are ensuring their communication shows their commitment to health but the challenge lies for brands that have stuck for a decade with high sugar and salt content and are now finding it difficult to change that perception.
The answer: either promote the product for its taste and goodness or alter its key ingredient to make it more appealing for the health conscious consumer. Recently, world’s largest food and beverage company Nestle announced that it will further cut the amount of sugar, salt and saturated fats in its products as it tries to improve the image of packaged foods.
The move may also be viewed as a safeguard measure by Nestle against the recently accounted sugar tax in the UK, wherein soft drink companies will now be required to pay a levy on drinks with added sugar. Nestle has Nesquik, Nestea and MILO in its drinks portfolio. The new tax was designed to curb rising levels of obesity in the UK.
Nestle and its rivals (Mondelez and Mars) are under pressure from a shift in consumer preferences towards healthier food and away from processed products such as instant noodles and frozen pizza. The maker of KitKat chocolate bars and Maggi soups is responding with healthier products and is also moving into higher growth categories, such as coffee, pet care, bottled water and infant nutrition.
It also confirmed its commitment made in 2014 to reduce saturated fats by 10 per cent in all relevant products that do not meet World Health Organisation recommendations. Nestle chief executive Mark Schneider remarked, “The trend towards healthier foods is to be observed worldwide. Combining the convenience of packaged foods with healthy good nutrition, that is where our sweet spot is.”
Nestle spent 1.72 billion Swiss francs ($1.71 billion) on R&D last year. The company launched over 1000 new products last year to meet the nutritional needs of children and wants to further enhance products for kids with fruits, vegetables, fibre-rich grains and micronutrients. Reformulating recipes to make its products healthier is part of Nestle’s effort to keep its products attractive for consumers. This year it launched a new Milkybar white chocolate bar that has 30 per cent less sugar.
Although the F&B giant has decided to take the healthier route in UK, it wouldn’t come as a surprise if it decides to alter the ingredients in all its operating markets to reach more consumers. India has lately become the playing field of all major brands and the move may or may not be implemented here, as the Indian chocolate industry was worth Rs 78 billion at the end of 2016 and is predicted to reach Rs 122 billion with a compounded annual growth rate of 16 per cent by 2019.
According to the 2016 Euromonitor International report, the chocolate confectionery market in India is projected to grow at around eight per cent per annum between 2016 and 2021 to reach Rs 16,200 crore (on constant value) from Rs 11,256 crore in 2016, backed by better retailing across rural areas.
Given Indians’ love for sweets, whether or not global giants tweak their recipes here will not impact sales. A consumer in rural India will buy a product, regardless of the alteration of ingredients, because he has little knowledge about the health aspect. However, consumers in urban and metro cities are the ones who are cautious and tweaking the sugar and salt quantity is likely to get them to add the product to their basket.
