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Hershey, the $7.4-billion American multinational, is test-marketing Indian soya brand Sofit in its home market in a different avatar — as a seed-based protein bar in the snacking category.
It had acquired the Sofit brand after buying out the Godrej Group from their joint venture, Godrej Hershey, in 2012.
Praveen Jakate, Chairman & Managing Director, Hershey India, said: “We want take Sofit to the US to make it bigger. The brand has a proposition which can work in the US market.
“In the US, we are testing different forms of Sofit, like seeds coated with protein which can be made into a snack. We want to capitalise on the legacy of the Indian brand since soya can be a platform to grow and do things, as it is a source of protein.”
Pepsico currently dominates the US snacking market with a 14.6 per cent market share while Hershey is the number two player at 7.5 per cent, followed by others like Mars and Kellogg’s.
However, Hershey is the leader in the US confectionery market, where it also has the rights to brands like Nestle’s KitKat and Cadbury.
The Pennsylvania-headquartered firm recently said India has emerged as its fastest growing market, clocking net sales growth of 16 per cent, and that it is planning to invest $50 million over five years in the country.
However, it is yet to launch its iconic brands like Reese’s and Hershey chocolates in the Indian market. Instead, it has chosen to initially launch its syrups, spreads and brands like Jolly Rancher lollipops and Brookside chocolates.
Steven Clay Schiller, President International, Hershey, said: “We want to make India an export hub and want to import and export our products into India. We should be able to sell without having trade barriers which will make it easy to do business.”
About 15 per cent of Hershey’s turnover comes from international markets, Canada, Mexico and Brazil being its key markets.
“For us, China has slowed down as a market where we have been for the past 12 years, while India is a growth driver. We had pulled out of China for many reasons in the past. But we re-entered in 2007 and have been focusing on the wedding and gifting segment,” Schiller said.
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