After conceding there has been a slowdown in business, the Rs 8,500 crore Britannia Industries launched ‘Wonderfulls,’ a new cookie range aimed at leveraging the “experience” of ‘Good Day,’ its largest brand that contributes Rs 2,600 crore in revenue. The food major continues to bet on Tamil Nadu, in particular, as 20 per cent of Britannia’s biscuit business is from this state.
“Britannia has the highest market share in TN. Three-fourths of our biscuits sold are from this state. It is the largest premium biscuit market (70 per cent),” noted Ali Harris Shere, VP, Marketing, at the launch conference of the mid-premium range of cookies. It continues to look at ways to stay competitive in the premium cookie (over Rs 400 per kg) segment, the market size of which is pegged at Rs 4,000 crore.
Observing that the mid-premium segment (Rs 200 to Rs 400 per kg pricing) offers a “big opportunity,” he said, Good Day is the second largest biscuit brand in India, with daily sales breaching a crore mark. Consumed by 40 crore people, Britannia would like to cash in more on its largest brand in terms of turnover contribution.
Double-digit growth over the last three years has instilled confidence in the biscuit major, that is now targeting its latest launch to fetch about 10 per of revenues in the Good Day category. It has invested Rs 40 crore in its existing plant at Oragadam, where its current production capacity is to 400 to 500 tonnes a month.
On the impact of GST, Shere said while the company has been preparing its back-end in this direction, it is awaiting for the final rates to know how its margins will be hit.
Britannia will spend “significantly” to promote its new brand Wonderfulls, that has Bollywood diva Deepika Padukone as its brand ambassador. It has deployed Danish German technology to offer this three-variant cookie range, that is focused on premium consumers. Shere’s reasoning for brand positioning is the category growth of 23 per cent last year and the Indian consumers’ aspirational tastes.