ITC enters into luxury chocolate market

India: India’s leading FMCG company ITC has entered into super premium chocolate segment under the brand name Fabelle which would be sold through boutique stores in its luxury hotels. These chocolate will be sold at a price from above INR1,000 and would be manufactured in Bengaluru. The company has been trying to enter the luxury chocolate segment since past 10 years, but were unable to do so due to the time taken by the company in final selection of the products.

The company’s senior management has been involved in the final selection of fabelle chocolates. The company has been trying to enter the luxury chocolate category by first launching the premium category chocolate and would be focusing on competing with Mondelez and Lindt. The company is planning to enter this segment from the top end and move down.

According to TechSci Research, the company’s entrance into the luxury chocolate segment is expected to increase the competition in the India’s chocolate market. Moreover, this move is also anticipated to benefit the company as it has been trying to increase its presence into the non-tobacco business. The company’s declining sales is also expected witness an improvement following this move.

According to a recent report published by TechSci Research, “India Chocolate Market Forecast & Opportunities, 2020”, chocolate market in India is projected to surpass US$ 17 billion by 2020. In 2014, Consumer chocolates segment dominated the Indian chocolate market, and this trend is expected to continue over the course of next five years. Product innovations, strong marketing strategies and increase in variety of products are driving consumer chocolate sales in India. Over the last few, apart from children, adult population has emerged as the key consumer segment for chocolate companies in the country. Consequently, manufacturers have been launching new and innovative chocolate products such as sugar-free and organic chocolates to lure adult consumers. In terms of regional sales, Northern India accounted for the largest share in 2014, followed by the Southern, Western and Eastern regions of the country.