Jelly segment has growth potential, says Perfetti

Managing a segment such as confectionary at a time when inflationary pressures are rising can be a tough call. Nikhil Sharma, Marketing Director, Perfetti Van Melle India, however, feels that higher sales volume, among others, can play a key role in yielding the right value for all stakeholders in the Rs 5,500-crore confectionary market in India. Edited excerpts from an interview:

How have you managed rising costs? Have you hiked product prices?

We are tackling rising costs by managing economies of scale and focusing on selling higher volumes, as also a little bit of value engineering. It is challenging to hike prices in a segment such as confectionary. But, we are taking the first few steps. We have taken some price hike on brands such as Creamfills and lollipops. But, these are relatively smaller brands in our portfolio. We hope to graduate the industry and the category to higher price points so that we can offer more value to the consumer.

Are there plans to bring your new international products here?

We have lots of products in the pipeline with higher price points. We are looking at new categories. I cannot discuss specifics at this stage. But as far as bringing products from our international portfolio is concerned, we have certain challenges. Our international products are largely sugar-free, which is a segment still evolving here. Also, a lot of our international products are non-vegetarian based. And India’s climate is also very different than Europe or the US, our other key markets. So, we take inspiration from our international products, which are then tailor-made for India. In fact, a lot of product concepts developed for India have been taken to other geographies. So, we have done some reverse innovation.

What are the new categories in the candy segment that have potential to grow?

The jelly segment has been doing well. Unlike Europe, where the jelly segment is well-defined, in India, we have created a new segment with the product and it is gaining market share. Other players are also entering this space. We believe this is one segment which will see some traction in the future. Also, the lollipop segment is relatively small here and its consumption is largely driven by kids. In Europe, this segment is more synonymous with youth. We are trying to change the mindset in India with our communication.

meenakshi.v@thehindu.co.in

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