Consumers are more aware now
Beverage brands and packaged food Companies like Mondelez and CavinKare are reducing the level of sugar and salt in their products because of the pressure from global and national regulators. Moreover, consumers are more aware of their health than ever before, looking for better and healthier snacking options.
Mondelez, a confectionery brand recently launched Cadbury Dairy Milk bars with 30% less sugar. In June 2019, CavinKare, FMCG company announced Cavin’s Milkshake Lite under its milkshake brand with “no added sugar”. Similar events were seen last year when PepsiCo had introduced new Kurkure Multigrain packs with 21% lesser sodium and two of Lay’s chip variants were reintroduced with lesser salt content.
Eat Right India movement to increase awareness
In 2018, the Food Safety Standards Authority of India (FSSAI) launched the Eat Right India movement to increase awareness amongst the consumers. Many companies pledged under this movement such as Hindustan Unilever, Nestle, MTR, Britannia, Dabur, and Haldiram to reduce sodium and salt level in their products by up to 5% period of next six years.
Anil Viswanathan, Director- Marketing (chocolates), Mondelez India, said, “From a scientific lens, it’s difficult to reduce a significant portion of an ingredient and still maintain the same taste and quality.” It took 18 months of intense research for CavinKare to introduce its Milkshake lite in the market. 70-year-old Cadbury’s formula to match the same taste of the chocolate with its less-sugar variant made them what they are today.
Ankur Bisen, Senior VP, Technopak Advisors points out, “Since these behemoths have established themselves on the back of products with high sugar and salt content, it will be difficult for them to shift to healthier products overnight. This current phase is one of transition.” Bisen believes market readiness is more important than any formulation. The consumers are shifting towards healthier options, adoption, and production of such will happen at a similar pace.
Rajat Wahi, partner, Deloitte Consulting India said, “It is still a very new category, and one does not find a large variety of these products in mom-and-pop stores yet.”
BP Ravindran, business head – beverages and dairy, CavinKare said, “This is a slow burn category. Therefore, we are focussing first on sampling, in-store and mall activations, and other BTL marketing initiatives.” Neither Mondelez nor CavinKare is advertising their products at that level. Whereas, PepsiCo is heavily dependent upon its social media campaign to reach out to the consumers rather than using the traditional advertising methods.
“Wahi Swaad, Wahi Mithass” Mondelez’s stands
Viswanathan said, “We see the launch as not that of an SKU but of a platform. At this stage, our focus will be to build awareness and drive trials for this new platform.” Mondelez who prefers to spend a huge amount on advertisement prefers outdoor, in-door, and digital visibility of its 30% less sugar variant Cadbury Dairy Milk. The company uses the slogan “Wahi Swaad, Wahi Mithaas” to represent its stand in the market.
Further, he said, “Not all consumers are aware of the risks of consuming packaged foods high in sugar and salt. Brands will need to convey the health benefits and long-term positive impact of low sugar and salt products, especially since a lot of consumers are children and the youth.”
