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“We have set a sales target of Rs 100 crore”
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Monday, 25 February, 2013, 08 : 00 AM [IST]
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fiogf49gjkf0d  Naturell India with its RiteBite brand garnered 60 per cent market share in the past. Now with the introduction of the meal replacement Max Protein Bar, the company is eyeing a bigger market share. Vijay Uttarwar, president & CEO, Naturell India Pvt. Ltd in an email interaction with Nandita Vijay reveals the company’s plans. Excerpts:
Is Naturell Inc. California, the parent company of Naturell India?
Naturell Inc. California is an associate company into research and development. Naturell India itself is the parent company, operating pan-India with Mumbai as its headquarters.
When did the Indian operations commence and how did the first product RiteBite Nutrition Bar perform in the country?
Naturell India started its business in 2006 for nutritional bars under the brand name of RiteBite. Nutrition bars were an unheard concept in India and we were the first company to enter the space. Under the Ritebite brand we launched flavours of choco delight, fruity choco and merry berry. There was an overwhelming response as it was widely accepted by the masses and available at all the leading outlets, and also served by the hotel and airline industry. As of now, there are over 15 variants under RiteBite brand.
Now that you have launched Max Protein bars what is your action plan to make this a successful product?
Max Protein Bar is formulated by nutritional experts. It is loaded with 20 gram protein, 5 gram fibre, 21 vitamins and minerals, electrolytes, Omega 3 and amino acids, which help regain energy levels and rebuild muscles. The bars are targeted at all health-conscious and busy people as meal replacements.
The action plan to make it a successful product would be to capitalise on the three variants of Max Protein bars: Choco slim with zero added sugar with high protein and low carbs; choco fudge which is high fibre; and honey lemon in tangy flavour. We would ensure its availability at all access points.
We are highlighting the meal replacement because it is balanced in nutrition and also as post-workout meal. For instance, a single bar of Max Protein which contains 20 gram of protein is equal to consuming half litre of milk or 3 eggs or 3 cups of dal.
What are the marketing efforts to promote the brand?
RiteBite is the pioneer brand in nutritional industry having a market share of more than 60 per cent. We have set a sales target of Rs 100 crore to be achieved within 5 to 7 years. Therefore, the focus is on retail branding, consumer awareness, sampling, schemes to generate new trials, loyalty membership programmes, sporting events, marathon, cyclothon besides, call on to convince gym trainers and dieticians.
What is the competition in the space and what is the Naturell India edge in the market?
Granola bars or cereal bars are a popular snack today, available in most supermarkets and key outlets. But until five years ago, it was unknown to most Indians. One would have to walk into a swanky store that shelved imported goodies, to try one of these. But we have been the first to introduce the concept of granola bars in the country in 2006 and been successful with the RiteBite brand. Today there are many competitors who have entered the market. However, RiteBite holds over 60 per cent of the entire granola or cereal bar market. Naturell India has an edge over others in terms of quality as the company is ISO 22000: 2005 certified. The wide range of offering in varied flavours catering to different market segments, taste, availability and price ensure we have an advantage.
As a single consumption, don’t you feel that pricing of Rs 90 per bar is high? Would you be able to justify the high pricing?
Protein shake consumed during post-exercise is priced between Rs 60 and Rs 100 per scoop which needs to be mixed with water or milk. International protein bars are from Rs 200 to Rs 300 each and contains around 20 to 25 gram of protein. The comparison proves that RiteBite is far more affordable and, in fact, these are expensive compared to our offer and we can say the cost is competitive is proved as reasonable because it is a meal replacement bar.
The product has already been marketed by Naturell Inc. California, what has been the success there?
As mentioned earlier, Naturell Inc. California is associate company but focusses only on R&D. Therefore, Naturell India is responsible for manufacturing, marketing, brand building and distribution of nutrition bars across India.
Would Naturell India only look at domestic market or extend its efforts to cater to the South Asia region?
Naturell India mainly serves for domestic markets but in the global arena specially the EU and US, it is positioned as high protein and meal replacement bars.
What could be the estimated market size for energy bars in India and the growth rate?
Current market size for nutritional bars in India is approximately Rs 50 crore and is expected to grow at 30 per cent annually.
How would you describe the current scene for these bars and when the product is priced high, would the economic slowdown deter consumer purchase?
Nutritional bar is becoming a fast-growth category, particularly among cash-rich middle-class Indians. Rising awareness and affluence have made these products accessible to a larger segment of the population. Changing lifestyles and the modified eating habits of India’s growing urban population have propelled its processed food industry. 30 million upper- and middle-class Indians consume packaged food and 200 million more are projected to do so in the next three years. Many companies in the food sector have jumped on the bandwagon to provide healthier alternatives. Today the opportunities are plenty, the consumer is hungry for health & lifestyle products and therefore our growth drivers are in place.
What are the challenges you see in the market to drive the sales of the protein-packed and energy- enriched bars?
The company has horizontally diversified the RiteBite variant portfolio with many flavours, catering to unique taste and preferences such as sugar-free for diabetics, and working women and now with Max Protein Bars as a replacement and post-workout meal. The company would overcome the challenges by increasing consumption of RiteBite through awareness programmes to target young working professionals in 20-35 age group. It is also expanding its retail outlet distribution network to improve RiteBite awareness and availability to targeted consumer groups.
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