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Cadbury India to consolidate existing Adam's brands

29-October-2004
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Cadbury India to consolidate existing Adam's brands

Cadbury India may expand its product portfolio by adding other brands of Adams - the company it acquired globally - into the country next year. The new launches could include Adams' chewing gum brands Trident and Dentyne, and bubble gum brand Babbaloo.

In 2002, the parent company of Cadbury India, Cadbury Schweppes Plc, had acquired Adams from Pfizer to become the joint leader in the overall confectionery market since Adams had four power brands - Halls: medicated confectionery; Trident: sugar-free gum; Dentyne: ice chewing gum; and Bubbas: bubble gum range.

Halls is already in India. "This year, we will consolidate the Adams' brands already present in India - Clorets and Halls. But next year, we may diversify into chewing gums and bubble gums by launching Adams' brands in these categories," the Director Marketing, Cadbury India Ltd, Mr Sanjay Purohit, said here.

At present, the company claims 70 per cent share of the Indian chocolate market with brands including Dairy Milk, Five Star, Perk and Celebrations. It is also present in the sugar confectionery and milk food beverage categories.

Late last year, the company was hit by a controversy on worm infestation in its products. This resulted in about 20 per cent decline in sales across products during the peak festival gifting season. Mr Purohit said as per ORG data, the company has "levelled to pre-controversy levels only in September this year. But we hope to close the year with double digit growth rates". He said the new, double layered packaging that the company adopted after the controversy meant an additional cost of up to Rs 10 crore in packaging and Rs 15 crore in new machinery, but cost increases have not been passed on to the consumer. Mr Purohit said the company was planning to invest between Rs 35-40 crore next year in various activities but declined to give specifics. Meanwhile, the company also announced the launch of its Rich Dry Fruits Collection - a range of premium chocolate gift boxes. It comes in three formats and is priced Rs 200 upwards for each box.

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