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Debabrata Das

New Delhi, Oct. 1 Premium chocolate maker Lindt is growing its marketing and distribution activities in India. The company started operations (Phase 1) earlier this year in Delhi and Mumbai. Phase II will entail the company moving into cities such as Bangalore, Chennai and Hyderabad.

According to Ms Shradha Nichnai, Lindt Business Head, India, Phase II should start by next year. The company has tied up with the Narang Group for marketing and distribution of its products. The Narang group also does the same for energy drink brand Red Bull.

“Lindt is looking at a quality approach and increase in distribution. For this purpose we have set up special coolers (branded refrigerators) in select retail stores to stock our products. We are also working to provide customers with special thermal bags to ensure that the temperature is maintained even after sale to the customer,” Ms Nichnai told Business Line.

In order to overcome the lack of cold chain facilities in the country, Lindt has also set up two warehouses in Mumbai and Delhi.

“We would look to build more as we begin moving into other cities. Warehousing facilities are essential to ensure quality,” added Ms Nichnai.

Lack of a proper cold chain has also proved to be a deterrent for other premium brands coming into India. Mars India’s Director Corporate Affairs, Mr Nitin Kulkarni, said, “Lack of cold chain facilities in India is a major problem.”

Lindt though is entering the Indian market with 50 SKUs. Ms Nichnai said that the company will also bring out seasonal SKUs towards the end of the year to coincide with the Christmas season.

The company is entering the Indian market at a time when the consumption of chocolates in India is still relatively low in comparison with global markets. The domestic players, however, continue to remain bullish about the industry.

Nestle India, which claims that its Kit Kat brand is No 1 in the ‘light eating’ segment, said, “Chocolate consumption has evolved in India and is no longer restricted to kids but straddles age-groups. The Indian consumer is also becoming increasingly conscious about health and wellness. Innovation and renovation has made the chocolate and confectionery portfolio even more relevant to the emerging lifestyles,” said a Nestle India official.

More Stories on : Strategy | Food & Dairy Products

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