Britannia to put in Rs. 100 crore to restore cream biscuits range

Britannia is planning to invest Rs. 100 crore for refurbishing its creams portfolio where it has brands like Treat, Bourbon and Pure Magic, enjoying margins at 10% compared to the average biscuit margins in other categories.

Ali Harris Shere, Vice-President, Marketing, Britannia, said, “We want to increase our share in the creams segment from 35% to 50% in the next two years. The first step is to re-stage brands like Treat with new variants and advertising with a Rs. 50-crore investment and then the rest of the creams portfolio for brands like Bourbon and Pure Magic, which can go up to Rs. 100 crore.”

Ali added, “Being the market leader in the creams segment, we are revamping our creams portfolio to strengthen our position where we have competition from ITC and Mondelez (Oreo).”

Britannia has a sales turnover of Rs. 7,500 crore from the biscuits portfolio and is a market leader with a 58 per cent share in the premium segment, which is devoid of categories such as glucose and crackers.

“We are giving our consumers a ladder to shift to premium brands since we have SKUs (stock keeping units) at similar price points across our brands. We expect someone buying a Rs. 5-Tiger brand to upgrade to Good Day at the same price point but lesser grammage,’’ added Shere.

Britannia has also managed to double its distribution in the past three years from 7.5 lakh to 15 lakh outlets, reports Business Line.