Mumbai, Feb 22: Amidst the pre-launch hurly burly for Heinz India'smuch-awaited maiden brand -- Heinz Tomato Ketchup -- the company hasextended its white malted beverage brand Complan, to include biscuits in theIndian market. This is the first time that the US-based Food major HJ Heinzis making a foray into the biscuits category any where in the world.The company has launched Complan cream biscuits in two flavours, vizchocolate and milk cream, priced at Rs 15 for 100 gm packs and Rs 8.50 for50 gm packs.
In that, Complan is following in the shoes of competitor and leading whitemalted beverage brand Horlicks. Promoted by Delhi-based SmithKline BeechamConsumer Healthcare (SBCH), Horlicks was extended to include glucosebiscuits two years ago. Early-last year, SBCH introduced a biscuit under itsbrown beverage brand Boost as well.
Says Birla Sun-Life head of research K Ramachandran:``Health beverage brandsalready have established reputations of being healthy and nourishing. Lineextensions under these brand names hence receive instant credibility andrecall.''
The idea of capitalising on the health beverage brand rub off in pushing thenew product extensions in the market works well. Take the example ofHorlicks and Boost biscuits, which have been doing exceedingly well in theRs 2,000 crore branded biscuits market. According to analysts, Horlicks hasreported an average growth rate of 25 per cent in the past three years asopposed to the industry growth rate of 10-15 per cent. This, in the absenceof substantial advertising support.
Moreover as yet another Mumbai based analyst says, ``Complan Biscuits is alogical extension of the mother brand as the company will not have to investin a distribution network and incremental brand building initiatives toestablish the new introduction.'' Complan has a 12 per cent share of the Rs850 crore health beverage market. SBCH dominates the pie with a 63 per centmarket share. Around 88 per cent of SBCH's turnover accrues from Horlicksand Boost, while the balance 12 per cent is from the biscuits segment.
Heinz India began its operations in the Indian market five years ago withthe acquisition of Glaxo's foods division for Rs 210 crore. It acquired, asa result, brands such as Nycil powder and Glucon besides Complan. Thecompany plans to launch the first product from its international portfolioviz, Heinz Tomato Ketchup in India early next month.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.