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Dabur Foods offers a Real Twist on its 10th year
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Saturday, 28 April, 2007, 08 : 00 AM [IST]
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Bosky Christopher
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ts 10th year of operation, Dabur Foods, the market leader in the fruit juices in India, has announced its foray into the fruit drink segment with the launch of Real Twist. Amit Burman, CEO, Dabur Foods Ltd, has set himself an ambitious target of reaching Rs 500 crore in three years. Excerpts from an interview with Bosky Christopher:
Brief on Dabur's existing product portfolios and expansion into the new segments and markets.
Dabur Foods is today among the few success stories in the processed food sector in India. We were the first Indian company to introduce packaged fruit juices to the Indian consumer. Today, we are market leaders in the sector with our flagship brand 'Real' commanding a 57% market share. Our regular segmentation of product categories like 'Real Twist' in the fruit drinks segment, 'Activ' and 'Coolers' has widened our appeal and made us the most trusted brand among our consumers.
We are also the fastest growing brand and constantly innovating to give our customers a wide range of choices. Our flagship brand 'Real' offers consumers 11 variants like Orange, Mango, Pineapple, Mixed Fruit, Grape, Guava, Tomato, Litchi, Cranberry, Mausambi and now Apple.
Having established brands like 'Real', 'Activ' and 'Coolers', we are also making a contribution to the fruit processing industry through third party units as well as setting up India's first multi processing unit in Siliguri. Spread over 11 acres, this state-of-the-art plant has a high capacity to process seasonal fruits like pineapple, litchi, guava, mango and grape all through the year and processes 192 MT of fruits per day.
Explain the brand positioning at Dabur Foods in fruit drink and fruit juices segment. A major player in the fruit juices in India, are you aiming to be one in fruit drinks segment as well? What is your market share in both segments?
Of the Rs 1,500-crore non-carbonated drinks market, fruit drinks comprise about Rs 1,250 crore, while the rest are fruit juices. The growth is at 45% in the fruit drinks segment while the juices segment is seeing a growth of over 30% per annum. Over the next three to four years, we can expect the industry to grow at a CAGR of 25%. Our flagship brand Real is the market leader with 57% market share in the packaged fruit juice category. We have recently entered the fruit drinks segment with the launch of Real Twist. Our aim is to become a major player in this segment as well.
Dabur Foods has been targeting the health and calorie conscious consumers with its ACTIV range of juices. How much does this growing segment account for the total Dabur Foods' profits? Will the company be expanding its range in the segment?
ACTIV is a range of 100% juices with no added sugar and targeted at young adults. Our flagship brand Real commands a market share of 57%, of which 12% share is occupied by Real-ACTIV.
As part of our expansion of this segment, Dabur Foods has recently launched the first 'Real ACTIV fruit based soya beverages'. This variant combines the taste of fruits and the goodness of soya - which is known as one of the best sources of vegetable proteins. Targeted at the health conscious consumers, the fruit soya beverage is available in 3 mouth-watering flavours - Real ACTIV Apple Kiwi Soy, Real ACTIV Black Currant Soy and Real ACTIV Peach Apricot Soy. Priced at Rs 82, the ACTIV Fruit Soya is available in 1-litre pack across India.
Dabur Foods has set an ambitious target of Rs 500 crore by 2010. How do you plan to zoom the turnover?
Dabur Foods' vision is to achieve a Rs 500 crore turnover by 2010. Our aim is to become one of the leading players in the Indian fruit processing industry. This will be achieved by tapping the company's wide-ranging expertise from procurement to processing to new product development and delivery to consumers. Over the next three years, we will continue to delight our consumers with high-quality products and services and offer a wide range of delicious and innovative blends of Indian fruits and variants.
In order to achieve this vision, the five focus areas for Dabur Foods are:
Multi-brand strategy to create new brands and new categories: Dabur Foods will focus on building a strong independent identity for each of its brands like ACTIV and Coolers. Under the brands, the company will have new flavours and products added to its portfolio to target specific need areas of the consumer.
Enhancing distribution and visibility: In line with the changing retail scenario and the new profile of 'on-the-go' consumers, Dabur Foods plans to scale up its presence in the Indian market by making its brands available at an arm's length. The company will focus on driving distribution in smaller towns and cities through introduction of innovative channels of visibility to increase consumption of fruit juices. It will also expand the reach and depth of its services in the food services segment by aggressively targeting corporates, call centres, hospitals, schools, religious institutions etc.
Become a leading processed fruit exporter: India has the potential to move up the value chain. From being the world's second largest producer of basic fruits and vegetables, the country has the potential to carve out a significant presence in the global fruit-processing sector.
Building capacities across supply chains: The foods business requires a specialized supply chain to ensure that the freshest product reaches the consumer. Dabur Foods is looking at scaling up its presence in the fruit processing industry with significant investments in the Siliguri processing plant and upgrade capacities to produce innovative products and packaging forms.
Knowledge centre for all fruit product categories: The company plans to build, maintain and update their R&D knowledge database providing information on all fruits ansd vegetables, processing & packaging technology while building in house competencies to prepare their own special blends.
In its 10th year of operation, comment on your growth philosophy or passion for growth that looks for new innovations - in products, packaging and retailing.
Over the years Réal has innovated and met consumer needs proactively. It has launched new variants and segmented the category to ensure its dominance in the category. It has also kept pace with the changing times by evolving its look to be at par with the design architecture currently prevailing in the market.
As part of our 10-year celebration:
#.We have re-launched Réal with a new logo and design, in order to refresh our brand identity. The new refined modern look depicts the natural goodness of the juice from freshly plucked fruits. Our new evolved look has a two fold agenda - to not only retain the loyalty of our current consumer base but also to attract more consumers.
#.We have also launched another innovation in the form of Real Twist - which offers 3 innovative variants like Mango Orange, Mango-Pineapple, Mango-Apple.
Merger and acquisitions is the toast of the season. List the number of potential acquisitions Dabur is eyeing in both domestic and overseas markets
None.
What about the competition from PepsiCo's Tropicana and Ladakh Foods' Leh Berry in the 100% packaged juice segment in India, estimated to be worth around Rs 500 crore?
While the com
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