‘Love it or hate it, but you can’t ignore it’—the edible oil market is a staple that remains essential across global and local kitchens alike. Despite mixed health research on oils, cooking without them is nearly impossible, especially in Indian cuisine, where oils hold a central role. As more and more consumers have become aware of health, oils such as olives and avocados have seen a rise in demand. At the same time, regional oil preferences are believed to have stayed strong—mustard oil in the north and east, peanut and sesame oils in the west, and coconut oil in the south, among others. However, experts believe that with rising commodity prices and inflation, affordable oils like sunflower and soybean are becoming more widespread, especially due to their accessibility and large-scale production.
The edible oils market is projected to reach $34.75 billion in revenue in 2024, with an anticipated annual growth rate of 4.94% (CAGR 2024-2029), as per market research firm Statista. Globally, India stands as the largest contributor, generating the highest revenue at $34.75 billion for the year, highlighting its central role in the worldwide edible oils industry.
Bunge India, a subsidiary of global agribusiness and food company Bunge Limited, is a key player in India’s edible oil market. With brands like Dalda, Gagan, Hudson Canola oil, and now Fiona, Bunge India offers a range of oils catering to diverse consumer preferences across regions. The company’s revenue from operations declined 18.8% to Rs 7,175.48 crore in FY24 from Rs 8,837.19 crore in FY23, as per regulatory filings assessed by Tofler. The company posted a net profit of Rs 59.06 crore in FY24 from a net loss of Rs 24.67 crore in FY23.
In a conversation with BrandWagon Online, Vinay Shrivastava, vice president and business head, Bunge, talks about the company’s new brand Fiona, strategies to expand, and advertising plans, among others. (Edited Excerpts)
What was the rationale behind launching a new brand like Fiona in an already competitive market, and how has it been performing so far?
Bunge has primarily been an oil company in India, and our latest introduction is the Fiona brand. This is the first homegrown brand we’ve launched in India, beginning in Karnataka in 2021. The journey has been positive, and Fiona has performed well.
In the past year, our volume has grown approximately 2.6 times, driven by an increase in trials and brand energy parameters. After launching in Karnataka, we expanded to Orissa in November 2023. Recently, we also launched Fiona in Andhra Pradesh and Telangana.
Before Fiona, most of our brands in India, like Dalda and Gagan, were acquired. With Fiona, we’ve created something homegrown, and it’s already showing results. Over the past year in Karnataka, Fiona’s volume has grown, and our direct reach has nearly doubled. This growth is supported by trial numbers and an improvement in brand imagery parameters.
What’s working for Fiona is a consumer proposition focused on health with taste, a ‘ Vito Protect Formula,’ a 360-degree marketing campaign, and a distribution network we’ve established for the brand.
Can you tell us more about the marketing strategy for Fiona? Given the competitive landscape, what is the marketing strategy you have followed?
Our core consumer proposition is ‘health with taste,’ which we believe meets a growing consumer demand. Fiona stands out with its unique ‘Vito Protect Formula.’ Unlike most edible oils, which lose vitamins during cooking, Fiona allows for over 50% vitamin transfer from oil to food during cooking, making it a healthier choice.
In terms of media strategy, we are focusing on a mix of television, print, outdoor, and digital platforms to ensure strong visibility across all channels. Currently, digital media plays a key role in building the brand. We are actively using platforms like Facebook, Instagram, and Google’s Display Network to communicate our consumer proposition.
What is the split between online and offline distribution?
Distribution is critical for Fiona’s success, intending to make the product as accessible and convenient for consumers as possible. Fiona is available across general trade, modern trade, and e-commerce platforms like Flipkart and Amazon, ensuring consumers can find it through their preferred channel.
While offline channels provide a wider reach for us, Fiona’s presence on online and modern trade platforms ensures accessibility across all touchpoints, making it easy for consumers to find and purchase the product.
How do you plan to convince consumers to choose Fiona over other brands endorsed by celebrities, and what is your advertising strategy?
We have a strong consumer proposition with Fiona’s ‘Vito Protect Formula,’ which provides a credible reason for consumers to choose our brand. Additionally, we have brought Rashmika Mandhanna on board as a brand ambassador. Her association has added value to Fiona, particularly in the South Indian markets, where we are seeing strong brand traction and a positive response to her endorsement.
Which demographics and regions contribute the most to Fiona’s sales?
The best part about Fiona so far is that sales and trial numbers are fairly consistent across different regions and demographics. We are ensuring that the product is available widely, both in urban and rural areas. For example, in Karnataka, which is a more mature market for us, Fiona is available everywhere from larger cities like Bengaluru, with over a one million population, to smaller towns with populations of 3,000-4,000.
This broad distribution, combined with our marketing efforts, has helped drive uniform demand across various population strata. We are seeing strong acceptance of the brand, whether in major cities or smaller towns, which has been beneficial for Fiona’s growth and reach.
Can you tell us more about Fiona’s product range? What categories and types of products does the brand offer?
Bunge has a strong portfolio of brands across various oil categories. Fiona is our homegrown brand, while we’ve also acquired well-established brands like Dalda and Gagan. We offer a range of oils, including soybean, sunflower, mustard, and cottonseed, and have a presence throughout the country with different brands tailored to specific regions.
For example, Dalda is a prominent brand in the north and west, Gagan has a strong presence in Punjab and Haryana, and Chambal is well-known in Rajasthan and western UP. We also offer canola oil under the Hudson brand, which we acquired from Dalmia Mills around seven to eight years ago. This spread allows us to cover a wide spectrum of oil products across India.
Could you tell us about Fiona’s pricing strategy in the competitive oil market? How do you balance quality and affordability?
Oil pricing is quite dynamic, primarily due to fluctuations in commodity prices. Our approach at Bunge India is to offer the best quality oil at an affordable price. We aim to make quality oils accessible to consumers, ensuring our products remain competitive and affordable in the market. While pricing may adjust with market conditions, our core principle remains affordability without compromising on quality.
Can you share some insights into the edible oil market and how Fiona is positioned to capitalise on current trends?
The biggest trend in the edible oil market is the demand for healthier options, which spans across most segments. In response, we launched Fiona with its Vito Protect formula to provide both health and taste. Additionally, there’s a strong preference for sunflower oil, as it is considered a lighter option. Fiona includes a sunflower oil variant to meet this demand. So, Fiona addresses both the health and taste needs of consumers, aligning with current preferences in the market.
What are Bunge India’s strategic priorities for Fiona over the next two to three years?
Since its launch in Karnataka in 2021, Fiona has expanded to Orissa, and more recently, Andhra Pradesh and Telangana. Going forward, we plan to explore new markets and continue offering consumers a better choice with Fiona. Additionally, we aim to expand the product range under the Fiona brand, starting with other oils beyond sunflower, to provide consumers with more options. Our focus will be on growing the Fiona brand, reaching more markets, and offering a wider variety of products.
How does Bunge ensure that its brands, which fall under similar categories, don’t cannibalise each other as the company expands and innovates in the market?
Each brand under Bunge India has a unique proposition. For example, Gagan, with its tagline ‘Khao Gagan, Raho Magan,’ resonates strongly with consumers, especially in the North. Fiona, on the other hand, was developed with a focus on health and taste, which was identified through extensive consumer research. Before launching, Bunge spent over a year researching to determine the right consumer proposition. The key insight was that consumers wanted a health-focused product with a strong reason to believe. This led to the development of the Vito Protect formula, which ensures better vitamin transfer from oil to food, promoting both health and taste. The success of this proposition in Karnataka led to further consumer testing in Andhra Pradesh and Telangana, where it received even higher acceptance, prompting a successful launch in those markets.