Britannia to bolster dairy business ahead of Danone's entry
Britannia is expanding the dahi/yoghurt portfolio after hitting the market with a normal product. Yoghurt is core to Danone’s dairy business globally. New brand faces
By Sushmita Mohapatra & Boby Kurian, TNN |
BANGALORE: Cookie major Britannia is focused on bolstering the dairy business at a time when its estranged co-investor Group Danone is readying independent India business plans in the same space. The Rs 2,200 crore company is digging into the large domestic dahi/yoghurt segment and seen stepping up interest in its dairy portfolio consisting of other milk derivatives.
Britannia is expanding the dahi/ yoghurt portfolio after hitting the market with a normal product. It has now added low fat variant and could be exploring flavored or probiotic products going forward. Dahi or yoghurt is core to Danone’s dairy business globally.
The French food giant, an investor in Britannia but in exit mode currently, is working on tapping India’s dairy market, which ranks amongst the world’s biggest in terms of percapita consumption.
Britannia, however, distances its ongoing focus on dairy segment from Danone’s proposed foray. “Our dairy business is growing at 18%, and could have grown faster but for limitations in sourcing milk. Further, we believe that dahi market, which is on a growth curve, is ripe for the brand play now,” Vinita Bali, MD of Britannia, told ET.
Britannia’s dairy business, in joint venture with New Zealand’s Fonterra, reported a turnover of Rs 130 crore last year. The company is joining rivals Nestle amnd Amul in pushing the brand action in the domestic dahi space, which is hugely dominated the traditional home-made consumption.
Britannia has been innovating quite a bit in the cheese segment where it is a clear leader with over 70% market share, Ms Bali said.
“We have consistently innovated with products like cheese spreads, cube cheese, shredded cheese among others. Our consumer research shows that despite the fact that products by competition may be nearly 25% cheaper, our brand is still preferred,” she added. The company’s dairy portfolio also include ghee, whiteners and butter.
However, it is not going to be an easy road for Britannia as it works on the dairy porfolio. The company is developing competent back-end facilities to expand its dairy market.
The focus on dairy should be seen in the context of the company’s non-biscuit portfolio- also consisting of rusks, cakes and breads, is growing upwards of 40%. “This year we are investing in building capacities for our non-biscuit portfolio with production facilities for cakes already up and rusks lined up,” Ms Bali explained.
Britannia’s combined non-biscuit portfolio contributed roughly Rs 330 crore in FY’07.
Meanwhile, the company claimed that its biscuit business was back in market share grabbing mode with the latest industry figures showing that Britannia’s value share of 38% inching up once again.
Britannia is expanding the dahi/ yoghurt portfolio after hitting the market with a normal product. It has now added low fat variant and could be exploring flavored or probiotic products going forward. Dahi or yoghurt is core to Danone’s dairy business globally.
The French food giant, an investor in Britannia but in exit mode currently, is working on tapping India’s dairy market, which ranks amongst the world’s biggest in terms of percapita consumption.
Britannia, however, distances its ongoing focus on dairy segment from Danone’s proposed foray. “Our dairy business is growing at 18%, and could have grown faster but for limitations in sourcing milk. Further, we believe that dahi market, which is on a growth curve, is ripe for the brand play now,” Vinita Bali, MD of Britannia, told ET.
Britannia’s dairy business, in joint venture with New Zealand’s Fonterra, reported a turnover of Rs 130 crore last year. The company is joining rivals Nestle amnd Amul in pushing the brand action in the domestic dahi space, which is hugely dominated the traditional home-made consumption.
Britannia has been innovating quite a bit in the cheese segment where it is a clear leader with over 70% market share, Ms Bali said.
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“We have consistently innovated with products like cheese spreads, cube cheese, shredded cheese among others. Our consumer research shows that despite the fact that products by competition may be nearly 25% cheaper, our brand is still preferred,” she added. The company’s dairy portfolio also include ghee, whiteners and butter.
However, it is not going to be an easy road for Britannia as it works on the dairy porfolio. The company is developing competent back-end facilities to expand its dairy market.
The focus on dairy should be seen in the context of the company’s non-biscuit portfolio- also consisting of rusks, cakes and breads, is growing upwards of 40%. “This year we are investing in building capacities for our non-biscuit portfolio with production facilities for cakes already up and rusks lined up,” Ms Bali explained.
Britannia’s combined non-biscuit portfolio contributed roughly Rs 330 crore in FY’07.
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Meanwhile, the company claimed that its biscuit business was back in market share grabbing mode with the latest industry figures showing that Britannia’s value share of 38% inching up once again.
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