Nestle goes the ‘Milky’ way, brings down sugar content in milkybar
MUMBAI: Nestle IndiaBSE -0.36 % has cut the amount of sugar in its Milkybar chocolate and increased milk as part of its wider strategy to create healthier products and add wholesome ingredients.
The percentage of milk in the reformulation has increased by 8 per cent to one-third of the chocolate bar, which helped reduce sugar by 10 per cent, said Nikhil Chand, general manager (chocolate and confectionery) at Nestle India.
“It’s not just calories but also controlling portion sizes that we are doing across portfolio,” Chand said. He said more than half of Nestle’s chocolate portfolio have 50 calories per pack. “The dimensions that we are looking at are nuts, fruits cereals, whole grains and we constantly evaluate how they can fit into our products and is relevant,” he said.
In March, the world’s biggest foods company had said it is reducing salt and sodium content in its Maggi noodles, cutting sugar in Kit Kat chocolate and dairy products, and stepping up portion control across markets including India.
Nestle brands Kit Kat and Munch have nearly 65 per cent of chocolate-coated wafers segment, which in turn accounts for one-fourth of the chocolates segment worth Rs 7,500 crore.
Rival Mondelez controls three-fourth of the overall category with sales thrice as big. Experts feel Nestle’s focus on the wafer chocolate category would limit its growth opportunity in what remains a relatively nascent category in India.
“We believe Nestle underestimated the willingness of Indian consumers to adapt and change preferences from traditional sweets to premium chocolates,” a recent Morgan Stanley report said.
But Nestle has been fighting back. It’s chocolate division grew 11 per cent in the first half of 2017, as the firm stepped up innovations and relaunched a few brands.
While Munch Nuts and Kit Kat Duos have done well, Alpino premium chocolate that competes with Italian brand Ferrero Rocher remains a work in progress, analysts said.
Source: Economic Times Published on 14/09/2017