INDIA – Parle Agro, a homegrown beverages firm, has made a foray into India’s dairy segment with the launch of flavored milk products under the ‘Smoodh’ brand.
The flavored milk products are packaged in 85ml packs are available in two choices, chocolate milk, and toffee caramel. Retailing at a recommended price of Rs10, the new product aiming to target consumers across all age groups, the company said in a statement.
Parle Agro says the diversification is backed by in-depth research on the potential of flavored milk in India.
Research published by FNB news revealed that flavored milk products which accounted for 43 percent of dairy drink introductions in India in 2016 are predicted to increase up to 71 percent by 2028.
The report noted that the great taste of the flavored milk is expected to continue fueling market growth in the near future, despite growing awareness about the unhealthy amounts of sugar.
In order to achieve the full potential of the segment, the FNB report notes that players in the flavored milk market need to introduce healthy varieties of flavored milk products such as the ones enriched with minerals and vitamins.
“With this offering, Parle Agro is gunning to grow the branded flavored milk market in India from the current Rs 800 crore to Rs 5,000 crore in the next four years,” the company said.
Nadia Chauhan, joint managing director, and chief marketing officer of Parle Agro, said: “Years of dedicated R&D (research and development) have gone into developing this incredible product. And, like all Parle Agro products, I am extremely happy and delighted to finally launch it in the market for our consumers to experience.”
Entering the dairy market with flavored milk instead of conventional fresh liquid milk is probably a wise strategy as India’s fresh milk market is currently saturated with big dairy giants including Amul, Mother Dairy, and Kwality limited.
Recently French dairy giant Lactalis also introduced its global dairy brand Lactel in the Indian market further enhancing competition in the country’s dairy sector.
Lactalis is currently eyeing a turnover of Rs 4,500 crore (about US$602.7 million) in the 2021/22 financial year and has committed to double its investments in India to ₹100 crores (US$13.4 million) from the next fiscal onwards to increase its market share.
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