Our focus brands like Hershey's, Sofit will grow 50% this year: Herjit S Bhalla

After introducing its iconic 'Kisses' chocolate in India, global confectionery major Hershey has now entered the biscuits segment with its 'Made in India' and 'Made for India' protein cookies under the Sofit brand. Herjit S Bhalla, MD, Hershey India Pvt Ltd, in an interview with Ashish K Tiwari, talks about the reasons for widening the Sofit brand portfolio and more. 

What led to the introduction of Sofit cookies?

Our strategic intent is to further drive Sofit growth by building a 'better for you' snacking portfolio across different categories. Over the years, Sofit has established a very unique proposition that offers consumers the goodness of proteins, omega-3, fibre and vitamins in delicious flavours. We were looking to enter a much larger category and biscuits being the largest snacking category – with urban India market size of close $2.8 billion, growing at 10% – I would say we are sitting on a gem as far as brand Sofit is concerned. We believe brand Sofit is the best fit for us as it gives us a unique proposition in the market. Our understanding is that discerning Indian consumers appreciate a quality and differentiated product that also gives them good value.

But there are products in the market making similar claims.

The biscuit market currently has a white space for protein cookies and that's where our offering perfectly fits in. What's available in the market today is either protein supplements like Threptin or digestive cookies. What we are offering is a delicious tasting protein cookie made using multi-grains like wheat, soy and oats. And it's free from trans fats and maida (refined flour), which adds to the uniqueness. 

Will the target market be strictly urban?

While the rural India market size could be similar to urban, our focus clearly is the premium end of the market in urban India. We are targeting working professionals and that market in India is almost $800 million, but growing at a much larger rate of 17%. That's 1.7 times the growth rate of the biscuit market in the country.

What's the share of healthy snacking in the overall $800 million urban India market?

I actually don't want to be in the space of healthy part and focus more on the 'better for you' aspect which covers the larger gamut. I am not looking at going down a particular segment or a health supplement positioning. Sofit Protein Cookies is a substitute for a snack you would have during the course of the day.

But you will still have to compete with the likes of Britannia, Mondelez, Patanjali for market share.

Yes, absolutely. But the honest truth is that it's such a large market and growing so fast. And for us, it's really about giving consumers a differentiated product and that's where we are saying that our protein cookies are unique compared to what's available in the market. And we would not want to get clubbed into a smaller size of the pie and would rather operate in a larger segment where we get consumers to patronise the brand.

What's the marketing and promotional budget/plan for this product?

Last year, Hershey committed investment of $50 million in India over a course of five years. This is the first year of those five years. We are investing appropriately behind our focus brands like Hershey's, Brookside, Sofit and Jolly Rancher. These brands are growing nearly 50% this year. Our endeavour now is to sustain and grow it at an accelerated pace. We have had two back-to-back big launches in the chocolates and now cookies category. We are going to have the relevant support behind both cookies and Hershey's Kisses going into this year and next.

Are you selling these protein cookies in other markets as well? Will you export to other markets?

No. This is a product which is made for/in India. We are currently going to be selling it in urban markets across the country through modern trade, general trade and e-commerce, in two pack sizes - 150 gram and 100 gram. Yes, there is an opportunity of taking it abroad. But the reality is that this is a very strong brand sitting in a really nice space in the market. And now it's really important for us to extend this brand and the 'better for you' proposition across categories.

What's the sugar component in the ingredients? Are you planning a stevia variant?

We have sugar but it's lower compared to products from competitors by about 25%. At the moment we are going with sugar but in a reduced quantity. It basically follows Hershey's 'better for you' theme, something that can replace indulgent biscuits/snacks one would have during the course of the day. This, along with a balanced overall diet, will give consumers the required additional energy.