Dabur eyes Rs 500 crore sales turnover from Real juice

BS Reporter / New Delhi February 21, 2007

Dabur Foods, a 100 per cent subsidiary of FMCG company Dabur India, aims to achieve a sales
turnover of Rs 500 crore by 2010 from its flagship juice brand Real.

Towards this, the company will invest Rs 100 crore over three years. Of this, Rs 70 crore will be
utilised for expanding manufacturing lines in Jaipur, Siliguri and Nepal.

Currently, Dabur Real contributes Rs 175 crore to the kitty of Dabur Foods, which has an overall
turnover of Rs 225 crore. The other brands of Dabur Foods are Active, Coolers and Hommade.

To ensure sustained growth of Dabur Real, the company was evaluating the jams and jelly
market and also cut-fruits and fruit syrup market though no immediate announcements in these
categories were expected, Amit Burman, CEO, Dabur Foods, said.

“Over the past 10 years, Real has had a compound annual growth rate (CAGR) of 33 per cent.
Our focus over the next three years will be to achieve a CAGR of 25 per cent, thus increasing
turnover from the brand to Rs 500 crore by 2010,” Burman said.

Dabur has also done a packaging and design makeover of its Real brand. Explaining the
rationale behind the new packaging, Sanjay Sharma, general manager, sales and marketing,
said: “The new look has a two-fold agenda - to retain the loyalty of our current consumer base
and to attract more consumers.”

The Rs 350 crore domestic branded juice market is growing at a CAGR of 25 per cent. According
to a study by AC Neilson, Dabur Real has nearly 57 per cent market share, while Tropicana is a
distant second with 25 per cent share.

To cater to the demands of the exports market, the new manufacturing lines would also cater to
the markets in the West Asia and African countries, Burman said.

Other article

Fruit juice segment poised for 30% growth

Saturday, March 04, 2006
Sabyasachi Samajdar, New Delhi

The branded fruit juice market in India is estimated to be worth Rs 500 crore organised
fruit beverage market (nectars, drinks and juices combined) and the segment is growing
at about 30 per cent per annum. Big players like Dabur, Pepsi, Godrej and Parle Agro are
already in the market and in view of the swift growth in the market, newcomers like
Surya Foods and Agro, Mother Dairy, Ladakh Foods, Pioma Industries have come into
the market with new products in the recent years.

Amit Burman, Chief Executive Officer, Dabur Foods, told Food & Beverage News in an
interview that the market share of Dabur's Real Fruit juice is now 60 per cent. No doubt
Dabur's Real Fruit juice is the market leader followed by Pepsi's Tropicana. The two
major fruit juice makers in India, Tropicana and Dabur are going all out to tease Indian
taste buds with ethnic flavours. However, Godrej's Jumpin is slowly achieving its space
in the fruit juice market. Godrej Industries Foods Division has introduced fruit juices
under the Xs brand, which earlier only consisted of nectars. Parle Agro's Frooti and N-Joi
too are doing well in the market. Delhi NCR-based Surya Foods and Agro Ltd,
manufacturers of Priyagold biscuits, has forayed into the juices segment. Mother Dairy
has recently launched the Safal brand of juices. Safal is currently available in orange,
mixed fruit, grape and an orange-apple combination. Ladakh Foods, makers of the Leh
Berry seabuckthorn berry drink, has now launched an apple-peach combination juice and
a mixed fruit variant. Ahmedabad-based Pioma Industries, makers of the Rasna brand of
soft drink concentrates, test marketed a diluted mango juice in Andhra Pradesh recently.
There are now racks filled with fruit juices, nectars and drinks.

Real juices from Dabur Foods

Dabur Foods introduced for the first time in the Indian market Cranberry juice - Real
Cranberry Nectar. An innovative product from Dabur Foods' portfolio, Real Cranberry
Nectar is exotic fruit juice nectar, available in 1-litre packs. According to sources, Real
Cranberry offers the exotic flavour and nutritive value of cranberries, rich in vitamins,
minerals and antioxidants, which make it a healthy beverage. Dabur Foods' flagship
brand, Real offers the largest range of fruit juices, which are an assortment of traditional
Indian and international flavours - orange, mango, tomato, pineapple, mixed fruit, grape,
guava, litchi and cranberry. Real Fruit Juice is a packaged, 100 per cent preservative-free
fruit juice brand offering consumers the great taste and wholesome nutrition of freshly
squeezed juice in a hygienic and attractive pack. Dabur Foods is the only juice company
in India and among the top 5 companies in the world to use the latest spin cap tetra pack,
cold fill technology and spill-proof double seal cap for packaging. Real Fruit Juice is
India's first and only packaged Fruit Juice brand to get SGS (Societe Generale de
Surveillance) certifications for high safety standards used in packaging that conform to
the stringent HACCP and GMP standards. The brand has also won the award for 'Highest
sales growth achieved by a brand' in the non-dairy category. Dabur Foods also launched
preservative-free fruit juice a sub-brand Real Junior in 2004, targeted at kids below six
years - creating an age-specific market segmentation. This is claimed to be a first of its
kind segmentation in the Indian fruit juice market in keeping with Dabur's marketing
strategy of segmenting the market with customised fruit juices. Real Junior has two
flavours - mango and apple, enriched with calcium, in 125 ml packs for children below
six years. The vibrant packs with animated fruit characters are intended to appeal to
children by highlighting the taste and nutrition of Real Junior. Dabur Foods has a
portfolio of nine variants under the Real brand, which offers the largest range of fruit
juices - an assortment of traditional Indian and international flavours - orange, mango,
tomato, pineapple, mixed fruit, grape, guava, litchi and cranberry. To expand the choice-
set of juices for consumers, Dabur Foods has constantly been introducing innovative
variants like Real Activ Orange Carrot - India's first fruit-vegetable juice. The company
has also launched multiple-size options to kids like Real Fruit Juice School packs that
suit varied consumption needs and occasions. Dabur Foods had launched "India's first"
packaged, fruit-plus-vegetable juice, Real Activ Orange Carrot, a blend of juicy oranges
and sweet carrots. A nutritious powerhouse to boost the health. This powerful combo
brings together the taste and nutrition of orange, with the beta-carotene rich carrot juice
that is recognised by health experts as the 'wonder juice'. Packed with high amount of
antioxidants Vitamins A, C and E, Real Activ Orange Carrot juice provides instant
rejuvenation to body and also strengthens the immunity levels. Real Activ Orange Carrot
juice is a delicious and convenient way to include more vitamins and minerals in your
diet. Carrot juice, also known as the 'miracle juice,' is beneficial for eyes, skin and the
digestive system. Orange juice provides energy, relieves nausea and also helps in
improving resistance of the body. Real Activ is targeted at health conscious young
executives for whom fitness is a way of life and is available in orange and apple flavours.

Pepsi's Tropicana

Tropicana has launched a sub-brand Tropicana Tropics and is introducing new flavours
mango nectar, guava pulp and litchi juice under this brand. It may be recalled that Pepsi
had launched mango and litchi flavours earlier under its fruit drink brand 'Slice' in
returnable glass bottles. Tropicana juices have 80 per cent fruit pulp content. At present
Tropicana has about seven flavours in the market - apple, pineapple, orange, apple
orange, grape and mixed fruit. The company is now working on building the same
capacities for other fruits like guava, pineapple, papaya pulp, grapes and pomegranate.
PepsiCo teamed up with Punjab Agri Export Corporation for a joint citrus cultivation
project in 2003 in Punjab. The company was looking for a similar deal with pineapple
farmers in Kerala. Dabur Foods is going local with a vengeance with its fruit juices. It is
also aiming to expand its market by introducing juices with a lower price tag. The
company has launched a new brand 'Coolers' in four variants - green mango,
pomegranate, jamun, and water melon with one litre of Cooler priced at Rs 50. Coolers
like Tropicana Tropics also contains only 20 per cent of fruit pulp against over 80 per
cent in Real variants.

According to sources, Tropicana Pure Premium orange juice is made from one thing -
Orange. Original with no pulp, Homestyle with some pulp, and Grove stand with lots of
pulp. Also look for the Calcium fortified products: Calcium plus Vitamin D with no pulp,
and Grove stand (Lots of Pulp) with Calcium. Tropicana Pure Premium is the orange
juice brand.

Jumpin, Xs from Godrej

The foods division of Godrej Industries has been one of the pioneers in the fruit drinks
and fruit nectar categories in India. It offers two well-known brands - Jumpin and Xs.
Jumpin - this range of fruit drinks is available in four flavours: mango, pineapple, apple
and orange. It comes in an innovative baseline pack design that is trendy and easy to
hold. Flavour retention is high and freshness of taste is never lost. Jumpin can be enjoyed
straight or in a punch or cocktail. It is available in slim packs of 200 ml in trays of 27
(straws provided). Also available in 1000 ml packs. Xs - this brand comes in three
flavours: mango, litchi and orange. Xs contains high-quality fruit pulp, which makes it
tastier and more filling than ordinary fruit drinks.

It can be served straight and also makes a great cocktail mix. Available in packs of 200
ml in trays of 27 (with straws). Also available in 1000 ml packs. The foods division of
Godrej Industries has made a mark in the exports market. Jumpin and Xs beverages,
manufactured at India's largest singly located plant, a state-of-the-art facility that has ISO
9002 and HACCP certification. This plant uses the latest machinery; it has a rigorous
testing procedure, and is manned by a qualified and experienced team of microbiologists
and food technologists. The world-class Mandideep plant, near Bhopal in the northern
Indian state of Madhya Pradesh, was ISO-9002 certified in May 1995 and is the first
facility in its category to get the 'quality management system certification'.

Frooti, N-joi from Parle Agro

Parle Agro Ltd is betting on 'N-Joi' - positioned as 'real fruit, real milk' - to further slice
open the virgin fruit-milk beverage market. The Mumbai-based company launched N-Joi
- initially an Alphonso mango with fresh dairy milk variant. The company has 11 Tetra
Pak facilities in the country. Initially, the western and southern markets will meet
supplies from the Mumbai plant. Parle Agro's Frooti is reported to be over Rs 250-crore
turnover. Frooti's marketshare is claimed to be 85 per cent in the tetrapak segment and 29
per cent in the mango beverage category (including bottles and tetrapak). Mango fruit
beverage is estimated to account for 91 per cent of the sales of all fruit juice variants
while orange juice accounts for only 3.1 per cent. Further, under the N-joi brand
umbrella, the company launched half-a-dozen milky-fruity variants, including peach-
milk, strawberry-milk, pineapple-milk, banana-milk, and cheekoo-milk. Frooti remains a
dominant mango fruit beverage brand.

Freshgold from Surya Foods & Agro

Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the
juices segment. It has set up a state-of-the-art manufacturing facility in Noida, Uttar
Pradesh, with an investment of Rs 25 crore. The plant has a capacity of producing 1.5
lakh litres of juice per day. Branded `Freshgold', the one-litre juice in cartons is available
in supermarkets and malls in and around Delhi for Rs 60. B P Agarwal, Chairman, Surya
Foods and Agro Ltd, said that though the juices are currently available only in the
northern markets, the company has a plan to launch it in the south in near future.

Leh Berry from Ladakh Foods

Ladakh Foods is building a portfolio of products from fruit juices to jams and sauces,
based on the little-known seabuckthorn berry, which grows in the Ladakh region. That
may seem like a risky gamble. But Ladakh Foods doesn't think so. It launched Leh Berry
a couple of months ago. Its first fruit juice in Delhi and it's selling it in the more affluent
parts of town. Since January the drink has also been on shopshelves in cities like
Hyderabad, Nagpur and Pune. According to company sources, the juice will be
competing with established players as Tropicana and Real. Leh Berry believes it has the
advantage of a fresh taste. But its competitive edge may well lie in its positioning.
Ladakh Foods is marketing Leh Berry as a nutrition drink (it prefers not to use the word
health, with its bitter, medicinal associations), based on the chronicled nutritional
properties of the seabuckthorn fruit. Ladakh Foods' target of capturing at least 7 per cent
of the market share within a year and 20 per cent by 2006-end is ambitious, company
sources added.

Safal juices from Mother Dairy

Mother Dairy has launched packaged fruit juices under the Safal brand. This is nearly 20
years after it launched its 'Safal' brand of processed Encouraging small and medium scale
units in export promotion efforts. Enlisting the involvement and support of the State
Governments in India for promotion of India's foreign trade. Providing trade information
services through electronic accessibility at Business Information Centre, the ITPO
sources added.

He also said that a comprehensive range of services is provided to the overseas buyers.
"We inform and advise them of product availability, price structure, reliable structure,
delivery schedules, quality control status and special information that an overseas buyer
may need," he said.

A catalyst with a selective integrated approach to exports, Aahar concentrates on specific

buyers in overseas markets, specific exports and specific products. It is this micro or
pinpointed approach to export promotion which marks it out from other export promotion
exhibition in the country. For foreign visitors and exhibitors the ITPO sources said,
"Arrive in India and leave the rest to us to fix appointments with Indian exporters,
organise visits to manufacturing units, arrange display of products for foreign companies,
locate suitable manufacturers to carry out modification and product adaptation, identify
manufacturing units for export-oriented joint ventures; and supply data on capacity,
equipment, quality control, etc.".

ITPO sources informed that 90 per cent of Aahar 2005 participants have expressed their
willingness for repeat participation in Aahar '06 and also achieved their target.

The venue of Aahar 2006 is Pragati Maidan, New Delhi, Halls 8, 9, 10, 11, 12 & 12A.
The timings of the business visitors 10.00 am to 7.00 pm and for the general visitors
10.00 am to 7.00 pm.

Ot ar

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The American Marketing Association defines marketing as "the process of planning

and executing the conception, pricing, promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy individual and organizational objectives."
Marketers use an assortment of strategies to guide how, when, and where product
information is presented to consumers. Their goal is to persuade consumers to buy a
particular brand or product.
Successful marketing strategies create a desire for a product. A marketer, therefore,
needs to understand consumer likes and dislikes. In addition, marketers must know what
information will convince consumers to buy their product, and whom consumers perceive
as a credible source of information. Some marketing strategies use fictional characters,
celebrities, or experts (such as doctors) to sell products, while other strategies use specific
statements or "health claims" that state the benefits of using a particular product or eating
a particular food.

Impact and Influence

Marketing strategies directly impact food purchasing and eating habits. For example, in
the late 1970s scientists announced a possible link between eating a high-fiber diet and a
reduced risk of cancer . However, consumers did not immediately increase their
consumption of high-fiber cereals. But in 1984 advertisements claiming a relationship
between high-fiber diets and protection against cancer appeared, and by 1987
approximately 2 million households had begun eating high-fiber cereal. Since then, other
health claims, supported by scientific studies, have influenced consumers to decrease
consumption of foods high in saturated fat and to increase consumption of fruits,
vegetables, skim milk, poultry, and fish.
Of course, not all marketing campaigns are based on scientific studies, and not all health
claims are truthful. In July 2000 a panel of experts from the U.S. Department of
Agriculture supported complaints made by the Physicians Committee for Responsible
Medicine that the "Got Milk" advertisements contained untruthful health claims that
suggested that milk consumption improved sports performance, since these claims lacked
scientific
Companies often use characters to appeal to young consumers. Ronald McDonald first
appeared on T.V. in 1963, portrayed by Willard Scott. The clown is known worldwide,
and according to McDonald's, is the most recognizable figure next to Santa Claus.
[Photograph by Tim Clary. AP/Wide World Photos. Reproduced by permission.]
support. In addition, the panel agreed with the physicians' claim that whole milk
consumption may actually increase the risk of heart disease and prostate cancer, and
recommended that this information be included in advertisements.
The tremendous spending power and influence of children on parental purchases has
attracted marketers, and, as a result, marketing strategies aimed at children and
adolescents have increased. Currently, about one-fourth of all television commercials are
related to food, and approximately one-half of these are selling snacks and other foods
low in nutritional value. Many of the commercials aimed at children and adolescents use
catchy music, jingles, humor, and well-known characters to promote products. The
impact of these strategies is illustrated by studies showing that when a majority of
television commercials that children view are for high-sugar foods, they are more likely
to choose unhealthful foods over nutritious alternatives, and vice versa.

Inappropriate Advertisements
Attempts to sell large quantities of products sometimes cause advertisers to make claims
that are not entirely factual. For instance, an advertisement for a particular brand of bread
claimed the bread had fewer calories per slice than its competitors. What the
advertisement did not say was that the bread was sliced much thinner than other brands.
Deceptive advertising has also been employed to persuade women to change their infant
feeding practices. Advertisers commonly urge mothers to use infant formula to
supplement breast milk. Marketing strategies include
One strategy used by advertisers is to feature a celebrity in their advertisements or on
their packaging. The implicit message is that the celebrity endorses the product, uses the
product, and may even depend on the product for success.
[AP/Wide World Photos. Reproduced by permission.]
giving women trial packs or coupons for several months of free formula. Often, women
are not aware that supplementing breast milk with formula will reduce or stop their milk
supply. When the samples and coupons are no longer available, women may try to
"stretch" the formula by mixing it with water, unaware that diluting the formula places
their infant at risk for malnutrition . Many groups have objected to the use of marketing
strategies that include free formula and coupons, and infant-formula manufacturing
companies have been forced to modify their marketing practices.
Other marketing strategies involve labeling foods as "light," meaning that one serving
contains about 50 percent less fat than the original version (or one-third fewer calories).
For example, a serving of light ice cream contains 50 percent less fat than a serving of
regular ice cream. As a result, consumers mistakenly believe that eating light food means
eating healthful food. However, they fail to realize that a serving of the light version of a
food such as ice cream can still contain more fat and sugar than is desirable.
Food labels with conflicting information often confront consumers. For example, labels
claiming "no fat" do not necessarily mean zero grams of fat. Food labeling standards
define low-fat foods as those containing less than 0.5 gram of fat per serving. Therefore,
consuming several servings may mean consuming one or two grams of fat, and people
are often unaware of what amount of a food constitutes a "serving." In addition, foods
low in fat may be high in sugar, adding additional calories to one's daily caloric intake.
Too often, consumers mistakenly translate a claim of "no fat" into one of "no calories."
Other examples of conflicting claims include labels advertising foods as "high in fiber,"
without specifically indicating the presence of high levels of salt, sugar, or other
nutrients . Also, labels advertising dairy products as high in calcium , and thus offering
protection from osteoporosis , are often missing information relating to the high fat
content and its possible contribution to the risk of heart disease.
Consumers are also misled by food comparisons. For example, one fruit drink may be
advertised as containing more vitamin C than another, when in reality neither of the
drinks are a good source of the vitamin. In addition, labels on some fruit drinks claim that
the product "contains real fruit juice" when, in reality, the fine print reveals that one
serving contains "less than 10% fruit juice."

Recommendations for Responsible Food Marketing

Consumers rely on product advertisements and food labels for nutritional education. The
American Association of Advertising Agencies states that responsible food marketing
strategies should: (1) avoid vague, false, misleading, or exaggerated statements; (2) avoid
incomplete or distorted interpretations of claims made by professional or scientific
authorities; and (3) avoid unfair product comparisons. Advertisers must also consider the
long-term consequences or potential for harm stemming from their claims. While these
recommendations are important in developed countries, they become even more critical
in international marketing campaigns.
It is also important for consumers to recognize their role in evaluating health claims and
product comparisons. While advertisers are aware of the need for truth in advertising,
sometimes their desire to sell products over-shadows an accurate disclosure of product
attributes. Advertisers should bear in mind that inaccurate or vague health claims have
the potential to cause economic hardship, illness, and even death. Lastly, marketing
strategies used in developing nations should be subjected to the highest standards of truth
in advertising.
SEE ALSO E ATING H ABITS ; H EALTH C LAIMS .

Virginia Jones Noland

Bibliography
Belch, George E., and Belch, Michael A. (1995). Introduction to Advertising and
Promotion: An Integrated Marketing Communications Perspective. Boston: Irwin.
Boyle, Marie A., and Morris, Diane H. (1994). Community Nutrition in Action. St. Paul,
MN: West Publishing.
Chetley, Andrew (1986). The Politics of Baby Foods: Successful Challenges to an
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Connor, John M., et al. (1985). The Food Manufacturing Industries: Structure,
Strategies, Performance, and Policies. Lexington, KY: D.C. Heath.
Elder, John P. (2001). Behavior Change and Public Health in the Developing World.
Thousand Oaks, CA: Sage.
EPM Communications (1998). "TV Is the Most-Often-Used Source of Health
Information." Research Alert 16:7.
Goldberg, Jeanne P., and Hellwig, Jennifer P. (1997). "Nutrition Scientists in the Media:
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Jeffrey, D. B.; McLellarn, R. W.; and Fox, D. T. (1982). "The Development of Children's
Eating Habits: The Role of Television Commercials." Health Education Quarterly
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Mathios, Alan D., and Ippolito, Pauline M. (1998). "Food Companies Spread Nutrition
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Nestle, Marion. (2000). "Soft Drink 'Pouring Rights': Marketing Empty Calories to
Children." Public Health Reports 115:308–319.
Sutton, Sharon M.; Balch, George I.; and Lefebvre, Craig (1995). "Strategic Questions
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Taras, H. L., et al. (1998). "Television's Influence on Children's Diet and Physical
Activity." Journal of Developmental and Behavioral Pediatrics 10:176–180.
Taylor, Anna (1998). "Violations of the International Code of Marketing Breast Milk
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Internet Resources
Baker, Linda (2000). "Breast-Feeding vs. Formula Feeding: Message in a Bottle."
Available from <http://www.zipmall.com/bab-bott.html>
Center for a New American Dream. "Just the Facts About Advertising and Marketing to
Children." Available from <http://www.newdream.org/campaign/kids/facts.html>
Infant Feeding Action Coalition (INFACT) Canada (2002). "Infant Foods and Health
Claims." Available from <http://www.infactcanada.ca/claimsfall1998.htm>
Medical College of Wisconsin. "Health Claims on Food Labels: What Do They Really
Mean?" Available from <http://healthlink.mcw.edu/article/974663611.html>
Optimal Wellness Center (2002). "USDA Confirms Milk Ads Make False Health
Claims." Available from <http://www.mercola.com/2001/oct/3/milk_ads.htm>

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Réal has been the preferred choice of consumers when it comes to packaged fruit juices,
which is what makes India's No. 1 Fruit Juice brand. A validation of this success is that
Réal has been awarded ‘India’s Most Trusted Brand’ status for four years in a row.
Today, Réal has a range of 14 exciting variants - from the exotic Indian Mango,
Mausambi, Guava & Litchi to international favourites like Pomegranate, Tomato,
Cranberry, Peach, Blackcurrant & Grape and the basic Orange, Pineapple, Apple &
Mixed Fruit. This large range helps cater different needs and occasions and has helped
Réal maintain its dominant market share.
A research conducted by Blackstone Market Facts even pointed out that Réal was
preferred by over 50% of the respondents. What’s more, Réal was liked for being the
better tasting juice - a category where likeability is primarily driven by taste.
Made from best quality fruits, Réal does not have artificial flavours and
preservatives, and offer your kids not just great taste, but also FRUIT POWER - the
power of fruits… the power to stay ahead. Loaded with the power of Vitamin C, Réal
fruit juices have all the necessary nutrients that keep you active all day long.
Réal is endorsed by PFNDAI
The nutritional contents of Réal Fruit Juices & Nectars are endorsed by PFNDAI --
Protein Foods & Nutrition development Association of India.
Protein Foods Association has been in existence for about forty years. It has gained
credibility in health and food professionals such as physicians, nutritionists, dieticians,
food scientists and technologists, etc. as an unbiased body, almost of the stature of an
NGO. Even government officials have high regards for the association. So when the
association lends its logo to any product, the product is accepted by them to deliver the
nutritional contents as claimed by the manufacturer.
Accolades for Réal
• India's No. 1 Fruit Juice brand
• Voted as a Superbrand
• Voted by consumers as the most trusted fruit juice brand for four years in a row
• Réal awarded the Reader’s Digest Trusted Brand Gold Award 2009 in the food and
beverages category