PRODUCT PROFILE

The Indian Confectionary Market:

The Indian Confectionary Market is divided in three categories:

• Candies & Toffees.

• Gums (chewing gum & bubble gum).

• Mints.

Candies and toffees are the mainstay of the market. Not so long ago, they accounted for unto
65% of all confectionary sales in the country. The contribution is now down to around 45%.
Traditionally, candies have had to make do with low product innovation and inconsistent
advertising support. The market place has strong brands like Parle’s Kismi, Melody, Poppins and
Mango Bite, Ravalgaon’s Mango mood and Pan Pasand, Lotte Coffy Bite and Lacto King,
Nutrine Maha Lacto and Candyman launched by ITC recently. Perfetti started its innings in
candies with Alpenliebe which it calls a deposited candy. The different taste was quickly
accepted by the consumers. It then followed with Alpenliebe Lollipop and Alpenliebe
Creamfills. These were candies with a swirl inside. The inspiration for these products was taken
from the success of Perfetti’s liquid filled chewing gums launched earlier in the country. Perfetti
has a share of almost 20% in candies. A criticism often hurled over Perfetti that though it is the
market leader, it does not have a presence in the Éclairs, a category dominated by Cadbury. The
category accounts to about 12 to 13% of the confectionary market. Silencing this criticism
Perfetti did enter the category with Chocoliebe.

In the gums market Perfetti has a share of about 55%. The major factor that differentiates
Perfetti’s brands from the competitors in category is the liquid in the centre of the gums. Perfetti
has a presence in each of the three sub-segments: Center Fresh and Center Shock in chewing
gum, Center Fruit and Big Babol in Bubble Gum and Happydent in Functional gum. Perfetti has
also been successful in creating a space between candies and gums with Mentos- a category
called Chewy. The major competitors in the segment have been Boomer and Orbit.
In the Mint category Perfetti has Chlor-Mint, which is now endorsed by Salman Khan. This
unique category where the consumers are not children but adults who consume it to freshen up
their breath. Industry says that this category is stagnant, in spite of the presence of major players
like Nestle (Polo) and (ITC Minto Fresh). The category is also under constant attack from gums
which carry mint properties. Chlor-Mint sales have grown at a fast clip.

Principal Competitors

Nestlé S.A.; Kraft Foods North America Inc.; Mars Inc.; Cadbury Schweppes PLC; Hershey
Foods Corp; HARIBO GmbH und Company KG; Ferrero S.p.A.; Chupa Chups SA; Oy
Karl Fazer Ab; Masterfoods Veghel B.V.; August Storck KG.

Perfetti Van Melle’s brands in India:

• Alpenliebe.
• Alpenliebe Creamfills.
• Alpenliebe Lollipop.
• Big Babol.
• Center Fresh.
• Center Fruit.
• Center Shock.
• Chlor-Mint.
• Chocotella.
• Fruittella.
• Happydent White.
• Protex Happydent.
• Mangofilz.
• Marbles.
• Mentos.
• Chocoliebe.
Perfetti Van Melle India has a large portfolio of 16 brands. Of these, it has decided to actively
promote ten: Center Fresh, Center Fruit, Big Babol, Happydent, Alpenliebe, Creamfills, Chlor-
Mint, Chocoliebe, Mentos and Marbles. These ten brands fetch the company almost 80% of the
total sales revenue. Like in other FMCG categories, in the Confectionary market about 12 to
13% of the sales revenue is spent on advertising and brand promotion.

Principal Subsidiaries:

Dimpex S.A. (Switzerland); Frisk Int. Nv (Belgium ); Gelco S.R.L.; Gum Base Asia Ltd. (Hong
Kong); Gum Base Co. S.P.A.; Gum Base Shanghai (China); La Giulia Ind. S.P.A.; Perfetti
Confectionery Co. Ltd (China); Perfetti Confectionery Vietnam Ltd; Perfetti Cr S.R.O. (Czech
Republic); Perfetti Do Brasil; Perfetti Gida San. Ve Tic. A.S. (Turkey); Perfetti Hellas S.A.
(Greece); Perfetti India Ltd.; Perfetti S.A. (Spain); Perfetti S.P.A.; Perfetti South Africa Pty Ltd
(South Africa); Perfetti Van Melle Benelux BV (Netherlands); Pt. Perfetti Indonesia; Sulá Gmbh
& Co. Kg (Germany); Van Melle Export B.V. (Holland).