The Hindu Business Line : Gaining a foothold

Are graveyard shifts, long working hours, stress and odd eating patterns playing havoc with your tummy? If yes, try probiotics! A global fad among the health- and fitness-conscious, probiotic products are slowly but steadily climbing up the food cha rts in India. Though the market is yet to blossom, leading companies such as Amul, Nestle, Mother Dairy and Yakult Danone are initiating the Indian consumer into probiotics, and testing waters in the space. Some pharmaceutical majors, too, are understood to be eyeing the segment, though with caution. While players are still coping with hiccups in the form of lack of adequate facilities such as cold storage and cold distribution chain, mandatory to keep the products’ shelf life intact, they are not shying away from introducing a newer range of products in the urban retail space.

So what are probiotics? Probiotics are good bacteria found in food products or supplements that can beneficially affect our health by improving the balance of the bacteria in the gut. They are available in fermented milk drinks and some yoghurts, as well as in supplements such as tablets, capsules or sachets. These products are generally considered safe for all ages and help protect from the tummy bugs.

According to a recent survey by Euromonitor International, Indian consumers are opening up to the consumption of probiotic products.

The survey notes that branded yoghurt, curd, cultured milk and lassi are all growing at rates above 14 per cent. Japanese global probiotics leader Yakult has entered the Indian probiotics market with a 50:50 joint venture with the French food major Danone. The venture, which has set up a Rs 136-crore factory in Rai in Sonepat, Haryana, hopes to sell one million bottles a day of its health drink by 2010.

Says Kiyoshi Oike, Managing Director, Yakult-Danone India (YDI), “The market in India is still at a very nascent stage. We hope to drive up sales by creating awareness.

Owing to the health benefit, there is a huge demand for probiotic food products globally. Most major dairy companies have a presence in this market which is estimated at $14 billion globally,” he said.

On the benefits of the drink, he said, “Yakult is the only probiotic drink that contains more than 6.5 billion beneficial bacteria which help in boosting immunity and aiding digestion when consumed on a daily basis.”

The company is grabbing the consumer’s attention through door-to-door sampling and seminars besides introducing Yakult Ladies. The Yakult Ladies retail the health drink at various points of sale.

“These women visit homes and talk to potential customers about the benefits of our probiotic drink. Currently, we are selling through 150 retail outlets in Delhi,” Oke said.

Yakult, for instance, uses its own trucks for distribution even while educating shopkeepers about proper storage.

In the pharma space, Ranbaxy Pharamceuticals will be marketing probiotic dietary supplement Probi in India. Ranbaxy will actively market launch the dietary supplement among gastroenterologists and other gastro specialists. Dairy heavyweight Amul, a pioneer in introducing the probiotic range of lassi and ice-creams in India, said its probiotic products are gaining acceptance among the masses.

Observing that there’s barely any awareness of probiotics, R. S. Sodhi, Chief General Manager, Amul, said, “We hope that the probiotic segment will contribute about 10 per cent of our overall sales in the next two to three years.”

Speaking on the distribution challenges, he said, Amul is using its existing distribution channels to market its probiotic range. “We have been spending heavily on awareness of the probiotic range,” he added.

Another player in the probiotic range, Mother Dairy India Ltd (MDIL) has introduced its probiotic range of curds called Pro-Vita in October last year. The dairy major is also targeting the BPO crowd and doctors to create awareness about the product range.

Paul Thachil, Chief Executive Officer, MDIL, said, “Probiotics is delivered mainly through fresh dairy. So adding it to our kitty was a natural extension.”

Elucidating that its tagline for advertisements is ‘Happy Tummy to U’, Thachil said the response to the B-Active range of curd and lassi was good and the company plans to roll out more products in the category.

“We already have a market share of 15 per cent in the probiotic range. Currently, we are looking to increase the number of point of sales,” he said, adding the probiotic range will be extended to other parts of the country soon.

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