Mondelez eyes bigger bite of biscuits market

Mondelez, the country's largest chocolate maker, on Tuesday entered the mass market biscuits segment with Cadbury Bournvita.

The initiative is an attempt to capture a bigger share of the Rs 25,000-crore biscuit market.

AIMING HIGH

•  Move to capture Rs 25,000-crore biscuits market in the country
•  Entered Biscuit market with Oreos in 2011
•  Biscuits market is growing at 7% per annum

Mondelez entered the biscuits market with Oreo in 2011 and has catered to the premium segment so far. The growing importance of the market led the confectionary major to expand its biscuits portfolio, Chandramouli Venkatesan, managing director, Mondelez India Foods, said.

"India is one of the top five markets in the world and holds significant future growth potential," he said, adding the new venture was a strategic intervention. The Indian biscuits market is growing at seven per cent per annum, according to Nielsen. At this pace, the market has the potential to grow to Rs 35,000 crore by 2020.

"Oreo was a premium offering, priced at Rs 200 per kg. This is our mainstream product," Venkatesan said.

"Half the biscuits in India are eaten between 6 am and 11 am. Bournvita will target that segment," said Chella Pandyan, associate director, marketing, Mondelez India. Mondelez plans to make the biscuits available in two million outlets that stock its products.

It has set aside an unprecedented 10 million packs of biscuits for sampling in 2016.