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Emami enters packaged honey category under its Zandu brand, charges 35% premium

15-January-2016
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Emami enters packaged honey category under its Zandu brand, charges 35% premium

Indian consumer goods firm Emami has entered into packaged honey category under its Zandu brand. Interestingly, the product is priced at a 35 per cent premium and claims to have no sugar, something which no other player has claimed ever. According to reports, Emami’s entry will make this category a bigger market, and its premium pricing will create a new customer segment. 

This fast growing category, yet less cluttered space, has seen lot of traction since the entry of Patanjali, which has priced its products at a 40 per cent discount over Dabur.

Currently honey is estimated at close to Rs 6.5 billion in category sales, and so far, Dabur has a dominant share of 60-65 per cent. But Emami’s extensive distribution and sales channels, which level up to Dabur and Patanjali, will help it compete in this segment. Moreover, it will be interesting to see the competition with Emami’s extensive consumer products spilling into Ayurveda, with leading celebrities such as Amitabh Bachchan and Parineeti Chopra endorsing its brands.

Emami manufactures products under various categories namely Hair Care, Skin Creams, Talcum Powder and Ayurvedic health care products, the company acquired Zandu brand in 2008 for Rs 700 crore.

 

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