Chocolate maker Mondelez has stripped down sugar content by 30% in a new variant of Cadbury Dairy Milk, India’s largest chocolate brand, making it the first in the Rs 10,000-crore domestic chocolate market to do so. The existing Cadbury Dairy Milk will continue to sell in its current form.
India and UK are the first two markets of Mondelez to do so. “We are empowering consumers to snack right; this is the first time ever we are doing something like this,” Mondelez India president Deepak Iyer said.
The 70-year-old Cadbury Dairy Milk, the company’s oldest and biggest brand in the country by value and volume, contributes 50% to Mondelez’s India business.
The move is in line with Mondelez’s global commitment to reduce sugar and national food regulator FSSAI’s ‘eat right’ initiative for packaged foods companies.
“We believe this could be category defining. The challenge was to get the taste right,” company director marketing (chocolates) Anil Viswanathan said. He said the product, with no artificial sweeteners, has been reformulated with ingredients such as fiber.
Talking about the consumption outlook, Iyer said: “The government has a strong second mandate; it augurs well for the economy in the long-term. We expect more reforms. If you are invested in India, you can’t be invested for a quarter or one year. Over the longer term, it’s looking good.”
He said rural markets contribute 20% to Mondelez’s sales. “Two years back that number was 12%; the growth has been led by focus on direct distribution and expansion of coverage of coolers,” he said.
India was one of the fastest growing markets for Mondelez Internationalin 2018, clocking double-digit organic net revenue growth on the back of new launches and increased distribution. For the $26 billion global chocolate confectionery maker, India contributes under $1 billion by revenue.