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SmithKline plans to introduce Viva and Maltova

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SmithKline plans to introduce Viva and Maltova

SmithKline Beecham Consumer Healthcare is not content with focus on Horlicks and its primetime consumers alone. 18 months after it bought over Viva and Maltova from Jagajit Industries, it plans to introduce in the markets the new improved versions of these health drinks with the aim of hooking the low end consumers.

The company has no plans of hiking prices of Viva and Maltova. SBCH would prefer generating volumes first by targeting the product at the low-end consumers.

Viva and Maltova will be used as flankers to SBCH existing brands, Horlicks and Boost. Being popular in the north, Maltova will help garner the much needed market share in a market where health drinks are not so popular as they are in the east and the south. Since malt-based white market is losing market share, the brand will help scoop up the desired result.

SBCH took time to put its name on these two products because after buying out the Viva and Maltova brands, it found that these products did not actually have the ingredients that were listed on their lables. The research team of the company reformulated the nutrient content to avoid future problems.

According to industry sources Horlicks is a hugely popular brand for SBCH but that is not enough to propel future growth. New segments, extension of existing segments grows the market and that’s what the company is trying to do with Viva and Maltova.

Since Horlicks and Boost are premium category products, there is a disenchanted lot, which is not able to afford such high price points.

Viva and Maltova will help lure this lot to the SBCH fold by offering more or less the same food value at a lower price. The health drink market is estimated at 100,000 tonnes per annum.

Horlicks has about 50 per cent market share while Boost has another 10 per cent. Viva and Maltova together has 8 per cent while Nestle’s Milo and Cadbury’s Bourvita has a 5 per cent and 13 per cent respectively.


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