Glucon D has been the market leader in energy drinks and one

of the first energy drink to be introduced in India. Glucon D

was introduced by Heinz and was followed by Glucose D by
Dabur. Finally both of these energy drinks have received a
competitor in the form of Glaxose D.
In fact in 2006, Heinz had even gone to court against Dabur
for naming its product Glucose D which was too similar to the
copyrighted name by Heinz Glucon D. However the courts
ruled in the Favour of Dabur and allowed the product Glucose
D.
Now Unilever has introduced Glaxose D which is targeted at
the same market where Dabur and Heinz are reigning
currently. With the deep pockets that unilever has, we are sure
it will attack the distribution channel of Glucon and Glucose D
and try to establish a strong brand connection with Glaxose D.
COMPETITON

With the mercury rising, competition is also heating up in the estimated Rs 600
crore glucose drink market in India with the likes of Rasna and GlaxoSmithKline
Consumer Healthcare entering the category and existing players expanding their
portfolio.
Soft-drink concentrate maker Rasna today announced its entry into instant energy
drink category by launching 'Rasna Glucose-D', on the heels of GlaxoSmithKline
Consumer Healthcare (GSKCH) launching two new brands -- Boost Glucose and
Glaxose D.
Even, Dabur Ltd that sells Dabur Glucose-D in the country has plans to launch new
variants, such as litchi, of the drink powder this season.

"We have made a concerted effort to deliver healthy products to the market and
with Glucose-D, we intend to take it forward," Rasna International Chairman and
Managing Director Piruz Khambattasaid.
The company has launched the product in three flavours in convenient packaging
for consumers.

Similarly, GSKCH has launched a new glucose drink under different brand names --
Boost Glucose in North and West India and Glaxose D under Horlicks brand for East
India.

Despite the new entrants, Hienz India is still the market leader in the category with
Glucon-D brand, which it had bought from GSKCH way back.

Another significant player, Dabur India said it is adding more flavours to its glucose
drink offering.

"Dabur currently enjoys about 25% share of the total market that is currently
estimated at around Rs 600 crore annually. We will launch new flavours this
summer," Dabur India Marketing Head (Health Supplements) Praveen Jaipuriar told
PTI.

He said the category overall is growing at an annual rate of about 25%, while
Dabur's product range has seen CAGR of about 45% in the last two years.
From phasing out ready-to-eat business to offering one of the biggest price-
offs for its flagship brand Complan, SeemaModi, the first woman managing
director of Heinz India, is putting together a freshly-planned foods recipe to
kick-start growth.

Modi has few other options. After all, she picked up the reins - in July 2012
-- at a time when the Indian subsidiary of US food maker HJ Heinz Co
posted its lowest sales growth in a decade along with a dip in net profits.
Sales grew 5 per cent in fiscal 2012 -- much lower than the industry
average of 15-17 per cent - even as profits were lower by 12 per cent (see
graphic).

For starters, Modi is shedding several smaller businesses that make up

less than 5 per cent of the portfolio. Heinz India is gradually withdrawing
over half a dozen food products including biscuits, muesli and south Indian
mixes from retail shelves, according to two officials working at leading
supermarkets.

But Modi, a seven-year veteran at Heinz, has had bigger things to worry
about after coming to India six months ago from the Indonesian outpost
where she was marketing director. The main concern is that Heinz's
mainstay milk food drink brand, Complan, which account for over 65 per
cent sales, has not had much success in its attempt to inch closer to
category leader GlaxoSmithKline's Horlicks, controls close to half of the
market. Complan's share has remained under 20 per cent for the past few
years while GSK continues to lead the Rs 4,000-crore malted drinks
category with over 65 per cent share with brands such as Horlicks and
Boost.

In other categories, Dabur's Glucose D has been closing in on Heinz's

Glucon D in the Rs 600 crore powder glucose drinks category. Heinz
Glucon D, which pioneered the category in the country, has a 55 per cent
share, while Dabur's Glucose D has seen its share jump from 15 per cent
about three years ago to 26 per cent now. And in ketchups, Heinz trails
Nestle and Hindustan Unilever by far.

Says the head of a rival company that Heinz competes directly against:
"Heinz has lost out on two key factors: lack of innovation; and competition,
which has stepped up significantly." For instance, GSK has taken Horlicks
through variants that address specific needs: like Horlicks for women,
diabetics, toddlers, school-going kids and so on.

Cadbury has been

relentless with its marketing strategy for Bournvita.
And even pharma company Abbot has got into the game with a 'balanced'
nutritional product for children called PediaSure. While Complan have been
aggressively focusing on advertising, industry watchers feel that similar
aggression is lacking in the market place.

"Innovation in existing brands to stay relevant to current consumers should

be looked at. Investment in connecting with consumers at the last mile or
point of purchase is critical in the wake of aggressive competition,"
suggests Devendra Chawla, president of Food Bazaar.

Mohan V, director - corporate affairs at Heinz India, maintains that the

parent, HJ Heinz Co, remains committed to emerging markets where it has
significantly grown its business. "Emerging markets now contribute close to
24 per cent of our revenues from about 9 per cent in 2005. India along with
China, Indonesia and Brazil are significant contributors to this growth."

To be fair, the company had grown more than 28 per cent between 2009
and 2011 and had been posting double-digit profit growth, too. While Heinz
India contributes just 2 per cent to Heinz's $11.6-b global sales, it has
invested over $100 million in the country between 2006 and 2011, when N
Thiruambalam was MD.

So what exactly went wrong last year? At a time when consumers are
looking at cutting down on discretionary spends, Heinz's higher price tag
has worked in favour of its rivals. For instance, GSK's Horlicks is priced at
between Rs 164 and Rs 190 for a 500 gm pack across variants; Complan
sells for between Rs 192 and Rs 218 for the same quantity. Heinz seems to
have realised this. "The company is planning to offer a discount of over Rs
15 on its half kg pack, its highest price-offs in recent times, " said a
distributor to modern retail stores.
EMAMI

Emami expects the category to grow 117 per cent to Rs

1,300 crore from the current Rs 600 crore in the next
five years.
Get ready for a charged up battle in the Indian glucose drink market. Kolkata-based
Emami is gearing up for a head-on clash with established players like Heinz and
Dabur. After soft launching its glucose brand called Zandu Gluco Charge early this
year, the FMCG major is looking for a phase-wise launch across the country,
competing with brands like Glucon D of Heinz and Glucose D by Dabur.

According to analysts, the Rs 550-600 crore category is growing at 16 per cent per
annum. The category, however, is dominated by Glucon D, which holds 55 per cent
share, followed by Glucose D (25 per cent). The other players are GSKCH-Boost
Glucose and Glaxose D.

Emami has launched its brand in West Bengal, which has a high per capita
consumption, and is on the lookout for new horizons. "The initial consumer and trade
response from West Bengal has been quite encouraging. Apart from this, Uttar
Pradesh, Maharashtra, Bihar, Andhra Pradesh and Tamil Nadu are also big in the
consumption of glucose," says Saroj Chakraborty, chief executive officer, Emami
Biotech.

But it may not be an easy ride for Emami, as other new entrants like Glaxo
Smithkline and Rasna are also in the race. "Competition is very fierce in the
segment. The emphasis still remains on distribution-and-push strategy rather than
demand-generated pull strategy. The reason: consumers still prefer ready-to-drink
over to-be-made. Also, Glucon-D is already generic in the industry and traditionally it
has always been difficult to break the generic product," says Krunal Mehta, vice-
president, brand management, Angel Broking.

However, Emami through its products like Himani Sona Chandi Chyawanprash,
Boroplus, Navratna, Fair and Handsome and Fast Relief had proved in the past that
it is possible to take on generic products. Analysts say that the ready-to-drink
concept could be one way of taking on the giants in a big way.
The Emami brand variants "Classic, Orange and Pineapple" are also aggressively
priced to beat competition. While Classic 100 gram is priced at Rs 21, the other two
variants cost Rs 26.

The brand is targeting the value-added energy positioning even through its tag line,
"Energy se bharpur, Bimariyon se rakkhey dur", highlighting the vitamin C content in
its brand.

While accepting that it would be a tough battle ahead, Chakraborty says the focus
for a new brand in an old category is to ensure a high degree of trials, for the
consumers to feel the difference . As long as this is done well, market-share is a
derivative."

Emami expects the category to grow 117 per cent to Rs 1,300 crore from the current
Rs 600 crore in the next five years, where all the brands have space to grow. "With
the deep pockets that Emami has, I am sure it will attack the distribution channel of
Heinz and Dabur and try to establish a strong brand connection with Gluco charge.
Emami's initial test marketing and product positioning gives the perception of a very
healthy competition," Mehta adds.
http://www.afaqs.com/news/story/34830_Emami-set-to-charge-up-glucose-drink-market

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heinz