Mondelez expands Bournvita to fill in more revenues
3 min read
Mondelez India is all set to foray into the breakfast cereal arena by rolling out the all-new ‘Bournvita Fills’. The launch of this crunchy and nutritious breakfast cereal focuses on positioning health at the apex. The target audience of the easy-to-eat breakfast cereal is kids. Mondelez’s cereal manages to incorporate the right set of nutrition without compromising on the taste of this morning snack.
The maker of billion-dollar brands, Mondelez, stated that they will resort to high-decibel marketing campaigns to propagate the reasonably priced Bournvita Fills. Maharashtra, Telangana and Andhra Pradesh are a part of its first test-launch. Hitting the rod when it is hot, Mondelez has planned to introduce Bournvita Fills in Indian markets when consumers are having a growing appetite for ready-to-eat products and are concerned about sugary foods. Indian consumers are now more inclined towards traditional Indian foods and savories. Preferences are switching away from the Western pattern of snacking habits. Indians today are leaning towards health and wellness for their snacking needs.
The close competitors of the latest entrant include MTR, Hindustan Unilever, Nestle & Marico. The rivals of Mondelez have already made an entry into the Rs 3,000 crore breakfast market segment. Mondelez: A name well-known popularly known as Cadbury in India, Mondelez is the country’s largest chocolate-maker since 1990. In 2016, the company had the biggest share of the chocolate confectionery market in India at around 49%. It was triumphant in beating the global giant of the food and beverage industry – Nestle. Mondelez’s product portfolio is quite diverse. It spans several consumer sectors including biscuits, confectionery, cheese, grocery, and convenient meals.
Being the second-largest player with a market share of nearly 14% in the health food drinks (HFD), Mondelez recently penetrated into the cake segment.
Financial Performance: The financial result of Mondelez (2019)
- Revenue: $25.87B
- Operating Income: $3.843B
As per reports of 2019, Mondelez India accounts for less than $1B revenues for the $26B business of Mondelez International. Surprisingly, the market share of its flagship brand – Cadbury Dairy Milk in the Indian subcontinent is the highest globally. In 2019, Tofler reported Mondelez’s net profit at a whopping Rs 462 crore, a 42% YoY rise. Other players in the market: Bournvita Fills will be soon out on shelves among a host of competitors namely Kellogg Co., Nestle, PepsiCo, Bagrry’s India Ltd & Marico. In 2017-18, amongst all players, Kellogg’s India dominated the country’s packaged breakfast cereal market with a share of 56%. Kellogg’s revenue stood at $3.465B for the quarter ended June’20; 0.12% YoY surge.
Nestle India, a star performer and close competitor of Mondelez posted a net profit of Rs 486.6 crore for the quarter ended June’20; an uptick of 11.14% and its revenue was up by 2% at Rs 3,041.45 crore. Baggy’s offers a wide array of delicious and high-nutrient breakfast cereals. The brand grew 60 times in 18 years. In 2018, it earned revenue of Rs 120 crore across 70,000 retail outlets pan India. As per the predictions of industry experts in 2018, the size of the total category of breakfast cereals in India was recorded at $200M and has been growing since then.
Will the nutrient-packed cereal by Mondelez ‘fill’ the hearts of the target audience?
