Rediff.com« Back to articlePrint this article

Cadbury plans big overhaul

October 17, 2003 09:57 IST

Cadbury India, the local arm of British chocolates and beverages giant Cadbury Schweppes, is planning a major overhaul of its business in India.

The company is restructuring its confectionery portfolio, reviewing the fledgling vending business, and splitting its sales and distribution set-up.

The company has already withdrawn the Frutus and Gollum brands, and is de-emphasising the Googly brand, which could soon be withdrawn as well.

The Halls and the Clorets brands, which came into its portfolio with Cadbury's global acquisition of Pfizer's confectionery business, will soon be re-launched to take on market leader Procter & Gamble's Vicks and Perfetti's Chloro- mint. Pfizer's Chicklets will also be re-launched.

The company will also put more emphasis on old brands like Eclairs and the newly launched Chocki. Cadbury India Managing Director Bharat Puri told Business Standard: "Chocki, developed indigenously, will be the first brand to be taken to other international markets. We have begun exporting to 10 countries such as Sri Lanka, Egypt, Kenya, South Africa and Bangladesh."

Puri added that there had been a continued thrust in the area of product innovation and had been emphasising the think-global-act-local concept.

Its other new products include Delite, a food drink brand and Bites, a snack product. These brands could also be taken to other international markets, Puri added.

The company has also begun reviewing its hot chocolate vending machines business. Puri said, "We are still seeing whether there exists a critical mass in that category."

The company has installed over 50  vending machines in Mumbai and Pune.

"And so far, we  have got a mixed response from consumers. We are still reviewing the business model in another three months. Depending upon it (the review) we may take a decision," Puri added.

The company is also in the process of splitting its sales and distribution force into two set-ups -- core business and mass markets. The core business team will look after chocolates and malted drinks, while mass markets would look after the confectionery business.

Arijit De & Reeba Zachariah in Mumbai