Amul is heating up the country's frozen yoghurt battle. India's numero uno food brand is entering the category with Flaavyo, which is being launched across the country later this month.

Being offered in mango and strawberry flavours, Amul is pricing Flaavyo at Rs 30 for a 125 ml cup, officials said. This is less than half the price of such products currently available in the market.

Cocoberry, the domestic yoghurt chain, sells at around Rs 80 for 100 gm, while Red Mango, which says 90 per cent of its ingredients are imported, sells its probiotic product at Rs 89 per 100 gm.

Flaavyo is the latest addition to Amul's probiotic portfolio of products that includes dahi and lassi. “We are introducing products that are contemporary, healthy, and fashionable and which appeal to the younger generation,” said Mr R. S. Sodhi, Managing Director, Gujarat Co-operative Milk Marketing Federation Ltd, which owns the Amul brand. The idea is to promote consumption of milk and milk products among the youth, he added.

In the last few months, a slew of foreign brands such as the US-based Red Mango, Canadian company Kiwi Kiss and Singapore-based Berrylite have launched frozen yoghurt chains in the country.

Now, at Amul Parlours, the healthier dessert will be served up as an option. Amul had already launched fresh yoghurt in select markets such as Mumbai last year, which had seen a tremendous response.

Price advantage

“It is a realistic price and we don't believe in charging supernatural profits,” said Mr Sodhi. Moreover, such aggressive pricing would help create barriers for other major players entering the category.

Flaavyo will also be available in 500 ml family packs and 5 litre bulk packs. Amul plans to introduce more flavours in the near future. Amul will be riding on its brand and distribution network to expand the reach of Flaavyo.

Technopak estimates the Indian packaged yogurt market at $135 million in 2011, growing at a compounded annual growth rate of 18-20 per cent. It is poised to touch $260-280 million by 2015. This includes the frozen yoghurt business as well. With Amul's entry the category could see an accelerated growth than initially projected.

The foreign players are also expanding their retail outlets. Red Mango plans to invest $3 million-$5 million in the country in the next two years and plans to open about 25-30 outlets in major cities through the franchise route. Berrylite plans to invest as much as $200,000 in India and plans to target about 150 stores in five years. The South Korean brand Yogurberry also plans to open around 100 outlets in India in the next five years. Cocoberry which runs 35 outlets is targeting around 300 in 45 cities over the next three years.

> vishwa@thehindu.co.in

Related Topics
comment COMMENT NOW