04 Apr 2019
Posted in Consumer
Amul’s foray into packaged juice segment opens doors to new age health-conscious consumers in India, says GlobalData
Following the recent news that Indian dairy giant Anand Milk Union Limited (Amul) has entered the packaged food juices segment by launching new brand ‘Tru’ in four flavors – Mango, Orange, Apple and Lychee, in collaboration with Almond Branding,
Sumit Chopra, Consumer Research Director at GlobalData, offers his view:
“While innovation has always been in the DNA of Amul, its business model relied more on higher milk procurement, continuous expansion and new product development. The company had been scouting for opportunities to diversify beyond its core ‘milk & milk products’. With focus on operational efficiency, it divided its distribution network into four different verticals – ambient, chilled, frozen and fresh. Amul plans to leverage the brand’s pan-India distribution network including 10,000 dealers and 10 lakh retailers to diversify into new categories. The company expanded its product portfolio with chocolate-based products over the last couple of years and now in collaboration with Almond Branding launching packaged fruit juices under the new brand ‘Tru’.
“Despite being strongly positioned in the market it serves and reported a turnover of over US$4.8bn in last financial year, Amul was firming up plans to offer healthier, more nutritious fruit juices at competitive prices vis-à-vis competitors. The move seems more of a strategic effort and broad push as it opens doors to new age health-conscious consumers. It reflects an emerging trend for portfolio consolidation and the company’s commitment to not losing its focus on its core categories and directing investment in the categories where it feels confident. The calculative move to offer ‘Amul Tru’ in 200 ml pet bottles is expected to create excitement around its brand and allows it to compete with existing established brands such as Real and Tropicana.
“Amul’s entry into the fast-growing fruit-based beverages space comes at a time when companies such as Dabur, ITC, PepsiCo and Patanjali are scaling up presence in the category by launching new variants and products with improved formulation. Despite this, it will be interesting to see how Amul’s move will shake up its rivals and further put competition in the soft drinks sector.”