Chocolate lines such as “Kisses and Hugs” are the famous brands from the group but officials remained tight- lipped about the prospects of them coming to India.
Will tap emerging markets to offset the impact of high commodity pricesMUMBAI: It is time to find out whether Indians have a sweet tooth for Hershey’s. The first of its products — a milk mix — has been test-launched in Chennai and will be rolled out nationally in a few months.
Other products in categories such as dessert/ice cream toppings, chocolates and sugar confectionary are slated to be introduced in the price-sensitive Indian market.
David West, president and chief executive officer, Hershey Co, said: “We will introduce products that will suit Indian tastes. For example, Hershey’s milk mix is a product from our US portfolio but its taste has been adjusted. It is also fortified considering that this works really well with Indian consumers. All are products which will be modified specifically.”
Price accessibility and taste will be the two key factors for products being launched in the country. It looks to gain an edge and capture the market through Godrej’s distribution reach and its own mix of great brands.
The products will be manufactured locally, apart from few exceptional ones which may be imported. These will be priced in line with market levels.
A manufacturing facility is being set up in Himachal Pradesh which will become operational by April, said A Mahindran, director, Godrej Hershey Foods and Beverages Ltd (GBFL); this will the third plant for GBFL.
The Hershey team is on an India tour, one of the firsts that the new president has undertaken.
China, another potentially big market for the confectionary and chocolate giant, is next on the list. In India, the US firm will operate through a joint venture with Godrej Beverages and Foods Ltd. Almost a year after the JV was announced, the first signs of any kind of activity have begun to show.
Along with price hikes, the US chocolate maker plans to tap potential markets globally such as China and India to nullify the effect of rising commodity prices. Hershey Co has launched Bliss premium chocolates in the US recently and will soon be out with another line in association with Starbucks.
Chocolate lines such as “Kisses and Hugs” are the famous brands from the group but officials remained tight- lipped about the prospects of them coming to India.
Reuters adds: The chocolate maker is also overhauling its supply chain, cutting jobs and outsourcing production of some products amid aggressive competition from Mars Inc. “Costs are up pretty much across the board, so to the extent that we can, we manage our input costs,” said West.
“We continue to monitor the situation,” he said in reference to the high cost of commodities such as cocoa, which has jumped to multi-decade highs helped by a speculative frenzy.
Hershey is also betting on a new premium chocolate candy, Bliss, to recapture market share lost to rivals such as Mars. It is also developing a new line of chocolates with Starbucks Corp to help it gain ground in the premium segment.
“The market in premium and dark chocolates is growing fastest and consumer response to Bliss has been very positive,” said West.
s_tanvi@dnaindia.net 
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}