MUMBAI, March 16: Britannia Industries, after its initial success in the dairy product segment, is gearing up for another offering in the market-the cheese spread. Retailers here confirmed that the new product was expected to make its debut shortly, but could not indicate the exact date. It is most probably due for a launch sometime in April.Britannia has also introduced its new butter in Delhi and sources say it is likely to be confined to this region for sometime. However, the cheese spread may be simultaneously launched throughout country. "There is a growing market in the cheese category and Britannia has a winner in its hands," sources said.
The company's cheese slice and cubes, which have been in the market since July last, have been doing well. However, the exact impact in terms of market share could not be ascertained.
Although Britannia's 400 gm tin is marginally dearer than Amul cheese, it has not stopped customers from buying the product, retailers said. "At the end of the day, it is qualitythat matters, not price," they added.
Industry observers said the success of Britannia cheese could be partly attributed to the fact that it contains processed cow milk, unlike Amul cheese which is manufactured using buffalo milk. Besides, it is supported by strong advertising too. The company's television advertisement stresses on the nutritional value of each cheese slice. Each slice is apparently made from one glass of milk, offering an attractive alternative to the reluctant milk drinker. Britannia's thrust in this area comes atop media reports that the company's partner, Groupe Damone of France, which holds a 22 per cent stake in the company, is likely to introduce its own yogurt, flavoured milk and other beverages in the domestic market.
Britannia sources its dairy products from the Maharashtra-based Dynamix Dairy Industries. The company sees enormous potential in this segment which is growing at around 20 per cent annually. The domestic cheese market has an estimated size of 7,000 tonnes and isvalued at Rs 120 crore. Industry watchers believe the growth rate is especially high considering the obvious lack of choice in the market.
Britannia is reportedly aiming at a 25-30 per cent market share in dairy products during the next two years. The company's bakery products contribute to around 95 per cent of its turnover, estimated at Rs 750 crore in 1997 and targeted at Rs 1,800 crore by 2001. Its share in the organised-biscuits market is close to 40 per cent. At present, the company has 35 brands under its belt. Unconfirmed reports say that Amul may also increase its cheese-making capacity at its plant in Anand, Gujarat.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
