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GlaxoSmitKline relaunches Viva, Maltova

04-December-2002
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GlaxoSmitKline relaunches Viva, Maltova

GlaxoSmithKline Consumer Healthcare Limited (GSK), has relaunched Viva and Maltova. They were acquired by GSK in early 2000. The company expects these brands to come into their own by the next year.

The acquisition of the two brands for a sum of Rs 86.25 crore from Jagatjit Industries in 2000, has not been in line with the company's expectations. Both brands have, in fact, together dropped market share around seven per cent of the Rs 1,300-crore health food drinks market at the time of acquisition, to under three per cent. According to company sources, GSK had to sort out some problems with the ingredients.

However, the delayed relaunch was not disastrous from a business point of view as both brands were part of its portfolio which has blockbuster brands such as Horlicks and its variants and Boost.

Both brands, which are strong in regional pockets, will essentially act as flanking brands and are not expected to cannibalise GSK's two chief brands. According to company sources Maltova was a more chocolatey drink than Boost and is positioned against Nestle's Milo and Cadbury's Bournvita.

The Rs 967-crore GSK has seen sales plunge by 9.4 per cent in the first nine months of this calendar year.

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