The Rs 7,500-crore Godrej group will soon take on chocolate major Cadbury India in the malted drinks segment in India. After the recent entry of Dabur into this sector, Godrej Industries is now test marketing Hershey?s Chocolate Drink in Chennai to start with.
Godrej is introducing the global brand?a chocolate syrup?in bottles, the first of its kind in India.
With this launch, Godrej will directly compete with Cadbury?s Bournvita, GSK?s Horlicks and Nestle?s Milo (chocolate powder) in the 1,500-crore branded milk beverages sector.
The Godrej group has roped in advertising major Lowe India to design a communication strategy for the new chocolate drink.
On the company?s new initiative, Adi Godrej, chairman of the Godrej group, said: ?After studying the response to our new launch in Chennai, we will introduce it in other Indian cities. This product comes in bottles and is priced on par with existing brands in this sector.?
It was in April 2007 that Hershey?s, America?s leading chocolate and confectionery maker, joined hands with Godrej Beverages & Foods to launch a joint venture in India. After introducing Hershey?s chocolate drink, Godrej is planning to launch a slew of variants of the same brand.
Interestingly, Gujarat Cooperative
Milk Marketing Federation Ltd forayed into the chocolate milk segment with the launch of Amul Koko in September 2007. A month later, Dabur also entered this segment with the launch of Chyawan Junior.
According to industry analysts, the market for malted drinks will witness a lot of action in the next two months with increasing competition.
?The sector is expected to register double-digit growth this year. At present, Cadbury?s Bournvita and GSK?s Horlicks dominate the segment and Godrej?s entry will be bitter news for these players. We will soon witness a major battle between swadeshi and videshi players in this segment,? said a Mumbai-based analyst.