Indian Brands to kraft strategy to take on Kraft Food Inc

Mumbai: With the proposed foray of Kraft Foods Inc into India, the branded processed foods sector will soon witness a major tussle between Indian and international players. To take on new rivals, Gujarat Co-operative Milk Marketing Federation (GCMMF) and Godrej Hershey Food & Beverages Ltd (GHL) are drawing up fresh game plans which include extension of distribution network & product portfolio and modern trade retail initiatives.

For instance, after launching Hershey’s chocolate syrup in domestic markets, Godrej Hershey’s is planning to launch its other global brands (including chocolates) in India. “We are evaluating different options in our supply chain management. Also, we are looking at the launch of Hershey’s brands which are relevant to Indian markets,” said Vivek Mathur, managing director of GHL.


On the other hand, Amul is extending its distribution network to reach out to a wider target audience across the country. “We will consolidate our product portfolio and improve the availability of our brands across the country,” said RS Sodhi, chief manager of Amul.


Meanwhile, Nestlé India is getting ready to launch a host of brand building exercises to promote its flagship brands, Munch and Kit Kat, in India. “Nestle is currently fine-tuning its advertising strategy to woo consumers. The company will soon launch new mass media campaigns to promote its chocolate brands in India,” informed industry sources.


US-based Kraft’s $19.7-billion acquisition of Cadbury Plc now pits the world’s second-largest food company against global rivals such as Nestle and Hershey’s in the Indian market too. Recently, Irene Rosenfeld, chief executive , Kraft Foods Inc, has said owning UK-based Cadbury would enable the American confectionery giant to expand its footprint into the developing market, including India.


According to industry analysts, Kraft Foods will utilise Cadbury’s existing distribution network to push its own allied products such as Kraft cheese in India. At present, Kraft’s has no major presence in India except for its three brands––powdered flavoured drink Tang, chocolate brand Toblerone and biscuit brand Oreo.

On Godrej’s strategy, Vivek Mathur, said: “We are planning introduce many initiatives in modern trade channels. Also, we are planning to expand our distribution in premium general trade channels.” GHL (formed in 2007), a joint venture between The Hershey Company (USA) and Godrej Group, at present, operates in multiple categories such as confectionery, beverages and grocery items. In its portfolio, GHL has brands like Hershey, Mahalacto, Nutrine, Jumpin & Sofit.




Source : http://www.financialexpress.com/news/Branded-food-cos-ready-to--Kraft--fresh-battle/578241/

Author :Lalitha Srinivasan