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Cadbury India has been one of the fastest growing packaged food companies in
India. It is a fully owned subsidiary of Kraft Foods (covered by US analyst Terry
Bivens). In India, Cadbury began its operations in 1948 by importing chocolates. It
today has five company-owned manufacturing facilities at Thane, Induri (Pune),
Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and four sales offices.
Currently, Cadbury India operates in four categories - Chocolate Confectionery, Milk
Food Drinks, Candy and Gum.
Recently it announced its foray in biscuits segment through the launch of Oreo brand
from the global portfolio of its parent. It is looking to manufacture the products
locally and introduce it at affordable and popular price points. This is amongst the
initial steps towards introducing Kraft Foods global portfolio in India whereby it will
leverage Cadbury’s wide distribution network to market and sell in order to garner
higher share of fast growing packaged foods market.
Table 17: Product launches by Cadbury India
2006 Bournvita 5Star Magic : a caramel variant of Bournvita
CDME Crunch - A hard shell eclair with Dairy Milk centre
Fruity Gems : A fruit flavoured range
2007 5Star Fruit & Nut
Ulta Perk : a hollow wafer with chocolate filling inside
BUBBALOO : centre filled bubble gum
2008 Cadbury Lite : smooth milk chocolate with no added sugar
Cadbury Dairy Milk Shots - LUP format at Rs2
Bournville - Dark Chocolate variants
Bournvita ++ - Bournvita relaunch with enriched vitamins and minerals
Halls - Relaunch of mint variant
Bubbaloo flavour variants to keep consumer excitement high
2009 Perk with Glucose Energy - Rs 2 and Rs 5 price packs
Bournvita Li’l Champs - Nutritional Supplement
2010 Cadbury Dairy Milk Silk chocolate
2011 Oreo Biscuits
Source: Company reports.
Cadbury has 70% share of India’s chocolate category. This strong position
combined with insights into the Indian consumer has enabled them to innovate,
introduce new products and build participation in the foods category. For e.g. their
Shots product launched in July 2008 (consists of two small balls of chocolate coated
with candy) priced at Rs2 was well received by consumers and within a year of its
launch this constituted 3% share of chocolate market. Such affordable, good quality
and widely distributable products are best way to enhance penetration levels (rural
penetration of chocolates is <10%). In India, the average consumer eats just over 50
grams of chocolate per year. This is compared to around 400 grams for the BRIC
markets as a whole and around 5 Kg for Western Europe.
Cadbury India has nearly doubled its turnover in India over past three years. Besides
expanding its product portfolio, this company has focused on expanding the usage
occasions for chocolates. They have been advertising chocolates as substitute for
local sweets which are consumed substantially during various festive occasions in
India. This differentiated product positioning has indeed helped company to garner
higher volumes.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Cadbury India has been one of the fastest growing packaged food companies in
India. It is a fully owned subsidiary of Kraft Foods (covered by US analyst Terry
Bivens). In India, Cadbury began its operations in 1948 by importing chocolates. It
today has five company-owned manufacturing facilities at Thane, Induri (Pune),
Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and four sales offices.
Currently, Cadbury India operates in four categories - Chocolate Confectionery, Milk
Food Drinks, Candy and Gum.
Recently it announced its foray in biscuits segment through the launch of Oreo brand
from the global portfolio of its parent. It is looking to manufacture the products
locally and introduce it at affordable and popular price points. This is amongst the
initial steps towards introducing Kraft Foods global portfolio in India whereby it will
leverage Cadbury’s wide distribution network to market and sell in order to garner
higher share of fast growing packaged foods market.
Table 17: Product launches by Cadbury India
2006 Bournvita 5Star Magic : a caramel variant of Bournvita
CDME Crunch - A hard shell eclair with Dairy Milk centre
Fruity Gems : A fruit flavoured range
2007 5Star Fruit & Nut
Ulta Perk : a hollow wafer with chocolate filling inside
BUBBALOO : centre filled bubble gum
2008 Cadbury Lite : smooth milk chocolate with no added sugar
Cadbury Dairy Milk Shots - LUP format at Rs2
Bournville - Dark Chocolate variants
Bournvita ++ - Bournvita relaunch with enriched vitamins and minerals
Halls - Relaunch of mint variant
Bubbaloo flavour variants to keep consumer excitement high
2009 Perk with Glucose Energy - Rs 2 and Rs 5 price packs
Bournvita Li’l Champs - Nutritional Supplement
2010 Cadbury Dairy Milk Silk chocolate
2011 Oreo Biscuits
Source: Company reports.
Cadbury has 70% share of India’s chocolate category. This strong position
combined with insights into the Indian consumer has enabled them to innovate,
introduce new products and build participation in the foods category. For e.g. their
Shots product launched in July 2008 (consists of two small balls of chocolate coated
with candy) priced at Rs2 was well received by consumers and within a year of its
launch this constituted 3% share of chocolate market. Such affordable, good quality
and widely distributable products are best way to enhance penetration levels (rural
penetration of chocolates is <10%). In India, the average consumer eats just over 50
grams of chocolate per year. This is compared to around 400 grams for the BRIC
markets as a whole and around 5 Kg for Western Europe.
Cadbury India has nearly doubled its turnover in India over past three years. Besides
expanding its product portfolio, this company has focused on expanding the usage
occasions for chocolates. They have been advertising chocolates as substitute for
local sweets which are consumed substantially during various festive occasions in
India. This differentiated product positioning has indeed helped company to garner
higher volumes.
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