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Cadbury India is taking steps to increase investment towards building a cold chain for its premium chocolate portfolio. After witnessing a ‘worm scare’ in its chocolates a couple of years ago, it is making sure there are enough visi-coolers for its premium offerings.
“While all our chocolates can be put in the cold chain, it is mandatory for premium chocolates. Today, we have 78,000 stores where we have set up cold chain facilities, which is crucial for our premium brands,” says Chandramouli Venkatesan, Director, Snacking, Cadbury Kraft Foods.
Considering chocolates are more susceptible to weather conditions and can become a ‘molten mess’, Cadbury has become more vigilant at its points of sale. “One of our biggest investments has been the cold chain. We have invested both at the back-end, in transportation infrastructure, storage infrastructure and in the front-end stores by supplying massive visi-coolers in heavy numbers so that product integrity is maintained. This is the biggest intervention we have done for the premium category, added Chandramouli.
At the same time, the chocolate major is making sure its premium portfolio has restricted distribution compared to its mass offerings. It may enjoy a distribution network of 1.5 million outlets but not all brands are available at all these outlets.
“Distribution is a combination of both our ability to distribute and the consumer’s demand. So it is not like all the chocolate brands reach the 1.5 million outlets. A brand such as Bournville sells in just about 40,000 stores because it is a premium niche brand. So distribution is not like if you are already present, then you can sell your brand there,” claims Chandramouli.
Meanwhile, Cadbury is slowly taking its premium Kraft brands such as Oreo biscuits to the rural market. “While we are focusing on the premium segment, we are also increasing penetration in rural and small towns. Oreo is already selling in the rural markets,” he said.
Gearing up for the festival season, the company is giving an added impetus to its premium gifting brand Cadbury Celebrations. It has launched a Cadbury Connect campaign which encourages people to express, interact and celebrate the festival season together.
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