Target: Top of the pyramid

Tuesday, August 9, 2011

Mainstream food brands, which have long milked the bottom of the pyramid to drive volumes, are now eyeing the top end to build value.

Last month, Hindustan Unilever’s coffee brand Bru stepped up its regular brew portfolio by bringing to market Bru Exotica, a super premium coffee in three variants: Brazil, Columbia and Kilimanjaro. GlaxoSmithKline’s Horlicks too bolstered its premium credentials with the launch of Horlicks Gold at a 30 per cent premium to the base variant, in select markets across India. Horlicks Gold is an enriched version of the regular Horlicks with better taste and aroma.

In India, premiumisation in the FMCG space is not new but has largely been driven by personal care and household care brands, claims an IMRB study. Industry observers say this is because the perceived value of a personal care brand is much higher than food brands. Categories like anti-aging and toothpaste for sensitive teeth are niche areas which personal care brands have exploited to drive premiumisation. It is only now that food companies are more actively latching on to the trend and the reasons are many.

Source: Business Standard (link opens in a new window)