Following the news on 10th June 2019 that Mondelez has launched a new variant of the Dairy Milk chocolate with 30% less sugar in the UK and India simultaneously as part of its strategy to expand its portfolio in the premium (health & wellness) segment,
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, offers her view:
“GlobalData’s report, ‘Country Profile: Confectionery in India’, reveals that Mondelez leads in the Indian confectionery sector with a value share of 16.9% and volume share of 10.3% in 2018. The rationale for the new product launch is clear as the company is looking to tap into the high growth premium category at a time when there is growing consumer inclination towards ‘health and wellness’ as well as reduced sugar products. GlobalData forecasts the sales of chocolate with ‘health and wellness’ claims to increase at a compound annual growth rate of 16.8% between 2018 and 2023 in India.
“Mondelez India Foods (erstwhile Cadbury India) seems to be bullish on its long-term growth prospects in India and therefore has chalked out a two-pronged strategy to further grow its business. The company is not only betting big on portfolio expansion in the premium segment to boost prospects in urban centers but also expanding its direct distribution in rural areas to lure new consumers. The strategy is part of the company’s larger focus to embrace innovation in line with evolving consumer trends and millennials. The company seems to have taken a cue from major food and beverage giants, which are reinventing their portfolios and offering healthy and nutritional products with reduced sugar content.”