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Nestle goes premium

SUMMARY Nestle looks at stirring up the premium chocolate space with the

launch of Alpinoa brand that the company believes will create newconsumption occasions

Nestle has finally entered the premium chocolate category in India by launchingAlpinothe chocolate bonbons made popular in Brazil. While the premium chocolatebrand retains its classic taste, when it comes to appearance, Nestle has Indianised it sothat it looks somewhat like the Indian laddoo, albeit wrapped in a golden sheet of paper.

The Swiss FMCG company is hoping that Alpino will be able to take on Toblerone whichCadbury launched in India last year as well as Ferrero Rocher. Cadbury also has

Bournville and Cadbury Silk which it markets as luxury chocolates. While there areexisting players in the market we believe that we have made a great entry into thecategory because of the uniqueness of the brand proposition which will helps us tocreate new consumption occasions in the premium category, said Mayur Bhargava,general manager, chocolate and confectionery, Nestle India.

According to industry estimates, the chocolate market is worth R 5,500 crore, of whichthe premium segment accounts for 30% share. Cadbury India continues to lead with67% market share, Nestle has a market share of 23.5%, while other players includingFerrero International make up the remaining. Interestingly, the premium chocolatecategory is growing at a much faster rate that is, 30% annually compared to that of the

regular category.

The chocolate category has grown at a healthy 21% over last year, and the premiumsegment with 43% value growth is the driving force behind it. The growth of thepremium category is attributed to the manufacturers focussed efforts within moderntrade, and the sustained used of investments in efficient cooling systems in traditionaltrade. said Vijay Udasi, executive director, Nielsen India. The premium segment isexpected to continue its growth rate. This available opportunity as well as the entry ofinternational players in the last couple of years, indicates an increase in competition inthis space, and makes it a category to look out for, he added.

Alpino rides on the brand proposition of sharing and is targeted at couples in the 17-70years age group, says the company. Interestingly, each pack, priced at R 25, comeswith a tray that has messages such as Apposite attract, Awesome twosome, and Mineyours, written on it. The pack has two bonbons placed on a tray with a message writtenon it. Then when you open the sticker, once again each bonbon carries a differentmessage. We have 150 different messages which we will continue to renovate andinnovate with time, explained Bhargava.

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Nestle is embarking on a high-decibel campaign to market the brand. The television adcampaign created by ad agency JWT will focus on relationships and the importance ofsharing. Additionally, the company will roll out activations in cinema theatres which itfeels is a perfect place to attract couples apart from creating displays at point-of-purchase (POP) and point-of-sale (POS). A digital campaign will also be launched and

the brand will be promoted on Nestle Indias social media pages. Traders too will bemade to sample the product as we believe that the trade needs to win and understandthe product first, so that they can sell it to consumers. Alpino will be available across30,000 outlets in 50 towns by the end of this month,added Bhargava.

According to Bhargava, the launch of Alpino is the companys first step into the premiumchocolate category in India and it plans to expand on the brand to build its premiumportfolio in the country.