<p>With the merger of US-based Kraft Foods Group and H J Heinz Co last week, the new company, Kraft Heinz Company, has become the fifth largest food and beverages conglomerate in the world. <br /><br /></p>.<p>However, the question is whether the new company’s positioning will help boost sales in India. Kraft Foods, as of now, does not have a strong presence in the country. Heinz, on the other hand, offers tomato ketchup and tomato chilly sauce in India. After acquiring the former foods division of Glaxo India, it took under its umbrella brands like Complan, Glucon D, Glucon C, Sampriti Ghee and Nycil. <br /> <br />Mumbai-based FMCG analyst Amnish Aggarwal said that Heinz did really well initially; however, in the past few years, Delmonte, Kissan, Maggi and other private ketchup brands have been dominant. With regard to Complan, he said it has not been doing well either. “In the last couple of years, PediaSure has gained much popularity. And Horlicks has always been the market leader, and remains to be so,” Aggarwal said.<br /><br />He also said that Kraft cheese is available in very few supermarkets, and Amul, Govardhan and even Britannia are the most sold brands currently. On the merger, he said, “It is definitely going to help them in the India market as their range of products has become wider, but they will have to face strong competition from indigenous products.”<br /><br />Speaking on international packed-food and beverage brands, Deloitte Haskins and Sells partner Ashesh Jani said, the penetration of such brands in the Indian market is approximately between 10 and 20 per cent. They are still on a brand-building spree here and are a niche brand of good quality products, he said. Even so, global brands have innovative packaging and advertisements that pull up their market share. But, the brands are not recognised by a majority of the Indian population, he added.<br /><br />Talking about the merger, he said that unless the products by the new brand appeals to the Indian palate, they would not make inroads into the market. “They have to localise the products, only then will their market share increase,” he added. <br /> <br />However, Brand Union Managing Director Arvind Hegde said, once the new brand enters the market, it would grow rapidly because people here enjoy premium, lifestyle foods. <br />“Kraft and Heinz are powerhouses. They are innovative and would increase their product range to suit the local tongues, just like many other foreign brands. A late entry is not a problem for such huge companies,” Hegde said.<br /><br />According to a release by the new company, it will have revenues of approximately $28 billion with eight over $1-billion brands and five brands between $500 million-$1 billion.<br />DH News Service</p>
<p>With the merger of US-based Kraft Foods Group and H J Heinz Co last week, the new company, Kraft Heinz Company, has become the fifth largest food and beverages conglomerate in the world. <br /><br /></p>.<p>However, the question is whether the new company’s positioning will help boost sales in India. Kraft Foods, as of now, does not have a strong presence in the country. Heinz, on the other hand, offers tomato ketchup and tomato chilly sauce in India. After acquiring the former foods division of Glaxo India, it took under its umbrella brands like Complan, Glucon D, Glucon C, Sampriti Ghee and Nycil. <br /> <br />Mumbai-based FMCG analyst Amnish Aggarwal said that Heinz did really well initially; however, in the past few years, Delmonte, Kissan, Maggi and other private ketchup brands have been dominant. With regard to Complan, he said it has not been doing well either. “In the last couple of years, PediaSure has gained much popularity. And Horlicks has always been the market leader, and remains to be so,” Aggarwal said.<br /><br />He also said that Kraft cheese is available in very few supermarkets, and Amul, Govardhan and even Britannia are the most sold brands currently. On the merger, he said, “It is definitely going to help them in the India market as their range of products has become wider, but they will have to face strong competition from indigenous products.”<br /><br />Speaking on international packed-food and beverage brands, Deloitte Haskins and Sells partner Ashesh Jani said, the penetration of such brands in the Indian market is approximately between 10 and 20 per cent. They are still on a brand-building spree here and are a niche brand of good quality products, he said. Even so, global brands have innovative packaging and advertisements that pull up their market share. But, the brands are not recognised by a majority of the Indian population, he added.<br /><br />Talking about the merger, he said that unless the products by the new brand appeals to the Indian palate, they would not make inroads into the market. “They have to localise the products, only then will their market share increase,” he added. <br /> <br />However, Brand Union Managing Director Arvind Hegde said, once the new brand enters the market, it would grow rapidly because people here enjoy premium, lifestyle foods. <br />“Kraft and Heinz are powerhouses. They are innovative and would increase their product range to suit the local tongues, just like many other foreign brands. A late entry is not a problem for such huge companies,” Hegde said.<br /><br />According to a release by the new company, it will have revenues of approximately $28 billion with eight over $1-billion brands and five brands between $500 million-$1 billion.<br />DH News Service</p>
