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Deccan Herald » Economy & Business » Detailed Story
The Healthy way to make profits
Eat healthy and snack smart, is the mantra of busy consumers today. Health food is in and junk is fading out. In tune with global trend, Indian FMCG companies are focussing on the health & wellness food segment to bring in the moolah, finds out Chanda P Kumar.


Busy schedules, long working hours and tackling traffic snarls, defines the daily routine of most urban Indians nowadays. Weekends, meant to relax, is infact stressful with all the shopping, movies and partying that the metros offer. Thereby, inorder to live life to the fullest the urban yuppie today has to find ways and means at keeping a healthy and fit body. While some manage to squeeze-in time to hit the gym or do power yoga, many people are increasingly looking for the ‘health’ factor in the food and beverages they consume.

Health and wellness factor is the new unique selling proposition of most FMCG companies nowadays. Even firms, which glorified carbonated drinks or potato wafers, are now introducing products to attract the health conscious consumer.

Hectic lifestyle

Companies including Nestle, ITC, Pepsico, Dabur, Hindustan Unilever and Britannia among others in the past few months have rolled out products on the health platform. Leading the way is Nestle India, which recently introduced CereVita range of multigrain breakfast cereal and Nesvita range of low-fat dahi with probiotics. “Our consumer insights in the area of digestion showed that many of us are increasingly being affected by weakened digestion. Since probiotics have been scientifically proven to benefit digestion, we introduced Nesvita, a healthy low-fat dahi with probiotics,” says Mayank Trivedi, General Manager [Dairy], Nestle India.

According to industry experts, due to hectic lifestyles and the rising rate of diseases, consumers are now demanding for products that are healthy and convenient at the same time. In tune with this, companies are extending their portfolio with focus on healthier offerings this year.

Growing awareness

ITC, though a relatively new entrant in the packaged food industry in India, has taken on the health segment quite early. Last year it’s foods division  launched Sunfeast Sachin’s FitKit Vitamin & Protein enriched biscuits and Sunfeast Sachin’s Fit Kit Multi-grain biscuits. Widening its portfolio the company recently launched Sunfeast Benne Vita Flaxseed biscuits expanding its health biscuits portfolio.

The goodness factor is that the Flaxseeds biscuit are enriched with proteins, calcium and other minerals, the company said. Another FMCG giant, Hindustan Unilever Ltd, entered the health food segment with the introduction of Amaze Brainfood, a range of nutritional snacks for children. Fortified with iron, iodine and omega-3 oils Amaze Brainfood is available in three different formats- Bars, Bites and Smart Mix in various flavours.

Although the market size of the health & wellness food segment is not clear, FMCG companies are very bullish and see more products being launched in this category. “Continuing economic growth is impacting lifestyles and there is growing awareness that healthy eating is important and consumers are looking for options that are tasty, nutritionally balanced and healthy,” says the spokesperson of Nestle India.

Another brand which has brought healthy breakfast offerings to the Indian table is Good Earth, of Avesta Good Earth, which is a wholly owned subsidiary of Avesthagen.

Good Earth in July last year launched its range of muesli breakfast cereal, whole wheat cracker and muesli snack bars. According to a media report the health & wellness food segment is expected to grow by 15 per cent.

Focus area

While healthy food seems to be a focus segment for FMCG firms, the two areas where Indian companies are making efforts to give healthier alternatives are in the sugar-free and low-fat segments. Pepsico, the manufacturers of Frito Lays’ range of products i.e. Lay’s, Kurkure, Uncle Chipps and Cheetos, has now started cooking their products in the healthier Rice Bran Oil (RBO). “We have made our core product range healthier, encouraging the consumers to ‘snack smart’. Our core products are now being cooked in Rice Bran Oil, which reduces saturated fats by 40 per cent,” explains the spokesperson of Pepsico India.

In the biscuit category, one of the key initiatives, which Britannia has undertaken is to have its entire range of biscuits with “zero trans fats”. “Currently, most of our brands are manufactured without trans fats. This includes Tiger, BMG, Treat, 50-50, 50-50 Chutkule, Good Day and Little Hearts,” says the spokeperson of Britannia.

On the sugar-free front, Amul last year launched its range of Pro-biotic Ice-cream as well as Pro-biotic Sugar Free Ice-cream, which help in digestion, improve the immune system and build stronger bones. The Amul pro-biotic ice-cream also won ‘The International Dairy Federation Marketing Award (2007)’ in  October last year at World Dairy Summit in Ireland.

Good Earth had earlier said that in phase two the company would bring out functional foods, which offers health benefits to address problems like diabetes, cardio-vascular diseases, osteoporosis or obesity.

Fizz is out

Gone are the days of colas and other carbonated drinks. We now see our supermarket refrigerators stacked with branded fruit juices, flavoured milk & yogurt and buttermilk too. Fruit juice brands are increasing by the day and the market is currently flooded with brands including Dabur’s Real Activ, Coco Cola’s Maaza and Minute Maid, Pepsi’s Slice and Tropicana. According to industry estimates, the branded fruit juice market is estimated at over Rs 1200 crore.

PepsiCo India recently launched ‘Tropicana Twister’- its international fruit drink brand in India. “The fruit drink targets the young adults who are on the lookout for natural refreshment on the go. We will continue to invest in this area in the near future,” says the spokesperson of Pepsico India. Even the milk and yogurt category is seeing new offerings from companies like Nestle, Amul and Britannia across segments such as flavoured milk, soya milk, flavoured yogurt and pro-biotic curd. FMCG companies are taking on the health and wellness wave by introducing a slew of food products too woo urban India, which is high on health, and experts believe this segment is bound to grow and become more competitive in the near future.

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