1.Parle Agro introduces Frooti Fizz, supported by communication campaign

Parle Agro launched Frooti Fizz, an extension of its flagship brand Frooti. With the objective of widening the existing Fizz portfolio, the launch was supported by an integrated communication campaign, FrootiGoFizzy, which sought to refresh the fruit plus fizz category it created in 2005 with the launch of Appy Fizz which continues to dominate the category.

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The product and the campaign will connect to the young consumers who are looking for alternatives to synthetic drinks and are gravitating towards healthier options like fruit-based drinks. The campaign will move the expansion of Parle Agro’s fizz portfolio forward by creating an offering to the large set of mango drink consumers with Frooti Fizz.

While building its fruit juice-based fizz portfolio to Rs 4,000 crore by 2022, Parle Agro also aims to increase its market share within the mango-flavoured beverage space by adding innovation in the mango category with further solidifying the position of Frooti.

The #FrootiGoFizzy campaign builds an elevation in the level of fun in one’s life with its bubbly and exciting experience, conveying how Frooti Fizz is different, with a unique combination of mango and fizz. The 360-degree campaign, conceptualised by Sameister  and Walsh at a budget of Rs 100 crore, includes a new television commercial for its mass reach.

2.Guiltfree Industries to sell Indian and western packaged snacks 

The RP- Sanjiv Goenka Group has started a new company called Guiltfree Industries. Guiltfree will sell Indian and western packaged snacks, cereals, juices and beverages that will be launched under the ‘Too Yummy’ brand next month. The group owns the Spencer’s Retail chain and already sells gourmet foods at some of their retail stores but the new launch is aimed at making living affordable beyond retail. Guiltfree Industries is planning to launch new products every few months and the products will be sold through retail chains, e-commerce and from neighbourhood stores.

Initially Guiltfree will begin with introduction of khakra, makhana in the snacks section, breakfast cereals like cornflakes and juices and fruit based beverages. They will be positioned as affordable healthy foods. The foods are likely to be low calorie so consumers can have guilt-free snacking. There is huge scope for penetration in this segment and so the field is wide open to allow new consumer themes to find a place. The new company could tap into the Hindustan Unilever talent pool as it is looking for marketing professionals. Some executives from Spencer’s Retain are also likely to be asked to join the Guiltfree team. 

3.Britannia and Chipita of Greece sign joint venture 

FMCG major Britannia Industries has recently entered into joint venture with Greek firm Chipita SA for producing and selling ready-to-eat croissants in India. Britannia will hold 60 per cent of the total share capital of the joint venture company while the rest will be held by Chipita. The investment in the joint venture ‘Britchip Foods Ltd is likely to be Rs.100 Crores. The joint venture will develop, produce and sell ready-to-eat croissants and any other product the parties agree to. The parties will also enter into additional agreements such as technology license, brand license, support service and distribution pacts. Both companies will be entitled to appoint the Directors in their agreed equity proportion. The board of Britchip will have a minimum of five and maximum of ten members. Britannia has the right of first refusal in case Chipita intends to sell its stake after the expiry of lock in period of ten years.

4.Mother Dairy aims at a 20% growth from its health segment 

Mother Dairy’s milk portfolio which accounts for a little over 70 per cent of its annual earnings could fall to around 60 per cent by 2018-19. However, sales of its value added dairy products could pick up. With the aim of accelerating the growth in this segment by 20 percent, the Delhi-based Mother Dairy Fruit & Vegetable could enter the health foods segment. Value added dairy products category like ice-cream, cheese, yoghurt, buttermilk and cottage cheese is the fastest growing category for Mother Dairy. In the health segment low-calorie foods are gaining traction so the company is likely to diversify into low calorie value added products.

The company has invested around Rs.15 crore in research and development to come up with new health foods and low-calorie product lines. Mother Dairy’s research team has found that women in the 11- 59 years age group are deficient in calcium, iron and Vitamin-D which could possibly be a new consumer segment. Since the company is targeting an annual turnover of Rs.10,000 crore by the end of the next two financial years, they are likely to boost up their Dailycious liquid milk brand which until recently focused solely on powdered milk. In Bengal, government law does not allow them to sell liquid milk under the Mother Dairy brand and so they use the name Dailycious brand in the state. Since the eastern market is poised to grow by 10-12 per cent in the coming 10-15 year they are looking for growth opportunity and brand expansion there.