Emami Shakes Honey Category

India: Emami has made an entry under its Zandu brand in packaged honey category. Honey segment is said to be fast growing and less cluttered and this entrant can fasten the growth of this segment which has been growing in single digit so far.

Country’s honey segment is estimated to be around INR 6.5 billion in category sales and is dominated by Dabur with the market share of 60-65 %. The market has positive outlook as Baba Ramdev’s Patanjali has created enough awareness in this segment with competitive pricing while highlighting the health benefits of consuming honey.

When it comes to pricing, Patanjali prices its products at a 40 % discount over Dabur while Emami’s Zandu has been priced at 35 % premium. This pricing strategy will benefit consumers in terms of more chocies with different product segments.

According to TechSci Research, Emami’s entry will make this a bigger market and its premium pricing will create new customer segment. Emami claims that its products will be sugar free which no other player has claimed ever. This move will put Dabur and Patanjali under pressure and we expect to see some new product ranges from them. Emami also enjoys good distribution and sales channel which comes at par with that of Dabur and Patanjali, which will help the company to compete in this segment.