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Thursday, February 11, 1999

Dabon to introduce second cheese brand 

Tina Edwin  
New Delhi, Feb 10: Dabon International, the 50:50 joint venture between Dabur India and Bongrain of France, is gearing up to launch a second cheese brand in the country as a part of its expansion and diversification strategy.The company plans to launch variants of cheese such as mozzarella and cooking cheese under the proposed second brand during this calender year.

Dabon is also finalising plans to launch cheese slices under the Lebon umbrella. The slices are scheduled for launch around August, once the seasonal milk crisis due to fall in milk production is over.

Slices is the fastest growing segment for the cheese products market and is currently, dominated by Brittania and Amul. Dabon is understood to be negotiating deals to import cheese slicing machinery.

Sources added that the company would add other milk products such as flavoured milks and yoghurt to its portfolio after two years.

However, the company would not enter segments such as butter, milk powder and condensed milk as these accordingto the company, are commodity products.

Dabon entered the Indian cheese market in September 1998 with a range of cheddar cheese products such as cheese cubes, spreads and blocks.

The products were first rolled out in Delhi and subsequently in other bigger cities such as Mumbai. The company claims to have already cornered a 10 per cent share of the Delhi cheese market.

Sources added that the company was planning a major brand building exercise during the year. The company would also be tapping the institutional consumers such as hotels and airlines during the next few months. Contracts for bulk supplies are due to be tied up in March, sources said.

Dabon is planning to position cheese as a ``snack food'' which can be an ``anytime bite'' in major advertising campaigns. The logic behind the campaign would be to promote the usage of cheese. The company expects this positioning to expand the cheese market substantially. At present, cheese is consumed primarily in urban areas of Delhi and Mumbai.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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