Companies

Heinz India enters malt drink category; goes for healthy ingredients like ragi, soya

Purvita Chatterjee Mumbai | Updated on January 16, 2018 Published on October 26, 2016

First off the block is Heinz Power Sprouts, a multigrain health drink with ‘power sprouts’ created for the local market.

Post the merger with Kraft Foods, Heinz’s Indian operations are now being revamped with new products.

Among the first off the block is Heinz Power Sprouts, a multigrain health drink with ‘power sprouts’ created specifically for the local market. Taking a cue from Patanjali, the MNC is adding healthy and natural ingredients such as ragi and barley, along with soya and wheat, to the health drink.

Heinz had acquired Glaxo’s OTC portfolio with strong brands such as Complan and Nycil to enter the FMCG category in India. Currently, more than 50 per cent of the company’s sales turnover (almost ₹2,000 crore) is contributed by its largest selling milk solids brand, Complan.

“Heinz Power Sprouts will supplement Complan in the malt food segment and the company will now have a multi-brand strategy addressing different consumers,” said Jagdeep Kapoor, Managing Director, Samsika Marketing Consultants. “The impact of Patanjali is also making MNCs such as Heinz include ingredients like ragi and sprouts in its malt drinks, which is all about having an ethnic type of nutrition.”

With Heinz Power Sprouts, the company is likely to follow a multibrand strategy in the malt food drink segment, akin to its MNC peer GSK, which also has two brands under Horlicks and Boost.

Heinz is also present in the ketchup category, but faces immense competition from market leaders including HUL (Kissan) and Nestle (Maggi).

In 2009, Heinz had invested ₹120 crore in a manufacturing facility at Sitarganj in Uttarakhand. A capex of ₹200 crore had been planned every year.

Last year, Kraft and Heinz merged into Kraft Heinz Company, the third largest food and beverage company in North America and the fifth largest in the world.

Kraft’s extensive food portfolio is expected to help Heinz expand its presence in the category in India.

Published on October 26, 2016
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