Season's special: Ready-to-drink flavoured milk
With consumers slowly but surely moving away from carbonated soft drinks to healthier options, the staid Rs 300-crore ready-to-drink flavoured milk market has suddenly become the flavour of the season.
By Surbhi Goel, TNN |
NEW DELHI: With consumers slowly but surely moving away from carbonated soft drinks to healthier options, the staid Rs 300-crore ready-to-drink (RTD) flavoured milk market has suddenly become the flavour of the season. And everyone, from global milk beverage biggies such as Hershey and Nestle India to Indian dairy majors such as Gujarat Cooperative Milk Marketing Federation (GCMMF) and Mother Dairy have gone on a launch overdrive. There is even talk that cola majors, Coca-Cola and PepsiCo, are desperate to expand their portfolios to include more ‘good-for-you’ products.
Amrit Foods is foraying into the flavoured milk category with the launch of Gagan Café brand. Nestle India has just extended its Milkmaid brand into milkshakes, Milkmaid Funshakes, in a few south Indian markets and will go national in the next three to four months. Godrej Hershey is working on launching Hershey’s multi-flavoured milk beverages in India next year.
GCMMF has just extended its Amul Kool brand to a chocolate variant and Mother Dairy is extending its eponymous brand to flavoured ready-to-drink milk. Reliance Retail is also learnt to be readying for a foray into the dairy business. Currently, ready-to-drink milk beverage market is fragmented amongst hundreds of city and regional labels such as Aarey’s popular brand Energee in Mumbai and Milkfed’s Verka in Punjab.
According to Mother Dairy CEO Paul Thachil: “Shift in consumer preference towards healthier alternatives is changing the composition of the food & beverages industry and that is making milk-based beverages carve a niche for itself.”
Interestingly, rich Indians’ willingness to pay a premium for healthier beverages such as RTD flavoured milk is also fuelling launch activity amongst bottom line sensitive marketers here.
It is no secret that unlike other food-based fast moving food products, margins in liquid milk are low, typically just 3-5%. According to Mayank Trivedi, GM, dairy division, Nestle India; “It was our expertise in milk products that we successfully forayed in flavoured milk segment. Milk beverage has now become a key area for us.”
In India, we will be position our products at the premium end, and will utilise shelf space in premium outlets such as Reliance and Subhiksha.” Amrit Foods is launching Gagan Cafe in ‘premium’ low-fat milk flavours such as coffee hazelnut, caramel, vanilla and cappuccino.
A 200 ml disposable bottle of Gagan cafe is priced at Rs 20 Globally, Coca-Cola offers Swerve and chocolate drink, Choglit, as a healthy alternative to carbonated drinks while PepsiCo offers Quaker Milk Chillers. Coca-Cola India maintains that the company is not foraying into milk-based beverage.
According to the company’s spokesperson: “We are looking at a variety of beverage opportunities and will get back to you as and when we have anything further to add in the dairy business.” BM Vyas, managing director, GCMMF says: “We want consumers to shift from synthetic drinks to real and nutritional drinks — across age groups.”
Amrit Foods is foraying into the flavoured milk category with the launch of Gagan Café brand. Nestle India has just extended its Milkmaid brand into milkshakes, Milkmaid Funshakes, in a few south Indian markets and will go national in the next three to four months. Godrej Hershey is working on launching Hershey’s multi-flavoured milk beverages in India next year.
GCMMF has just extended its Amul Kool brand to a chocolate variant and Mother Dairy is extending its eponymous brand to flavoured ready-to-drink milk. Reliance Retail is also learnt to be readying for a foray into the dairy business. Currently, ready-to-drink milk beverage market is fragmented amongst hundreds of city and regional labels such as Aarey’s popular brand Energee in Mumbai and Milkfed’s Verka in Punjab.
According to Mother Dairy CEO Paul Thachil: “Shift in consumer preference towards healthier alternatives is changing the composition of the food & beverages industry and that is making milk-based beverages carve a niche for itself.”
Interestingly, rich Indians’ willingness to pay a premium for healthier beverages such as RTD flavoured milk is also fuelling launch activity amongst bottom line sensitive marketers here.
It is no secret that unlike other food-based fast moving food products, margins in liquid milk are low, typically just 3-5%. According to Mayank Trivedi, GM, dairy division, Nestle India; “It was our expertise in milk products that we successfully forayed in flavoured milk segment. Milk beverage has now become a key area for us.”
ADVERTISEMENT
A Mahendran, mentor director, Godrej Hershey Foods & Beverages: “Our products will surely be on the premium side, both on price and quality. And we’ll Indianise as well as launch international flavours.” According to Amrit Corp managing director AK Bajaj: “Globally flavoured milk is among the fastest-growing dairy sectors particularly in mature markets. In India, we will be position our products at the premium end, and will utilise shelf space in premium outlets such as Reliance and Subhiksha.” Amrit Foods is launching Gagan Cafe in ‘premium’ low-fat milk flavours such as coffee hazelnut, caramel, vanilla and cappuccino.
A 200 ml disposable bottle of Gagan cafe is priced at Rs 20 Globally, Coca-Cola offers Swerve and chocolate drink, Choglit, as a healthy alternative to carbonated drinks while PepsiCo offers Quaker Milk Chillers. Coca-Cola India maintains that the company is not foraying into milk-based beverage.
According to the company’s spokesperson: “We are looking at a variety of beverage opportunities and will get back to you as and when we have anything further to add in the dairy business.” BM Vyas, managing director, GCMMF says: “We want consumers to shift from synthetic drinks to real and nutritional drinks — across age groups.”
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
