In a step towards the consolidation of Kraft and Cadbury in India following the $19.7-billion acquisition of the latter by the US-based foods major, the chocolate maker has integrated Kraft brands Tang and Oreo into its system.
The two products, being distributed by Universal Corporation and Barakat Foods, two local distributors, will now be pushed by Cadbury India. “The two will be a part of the Cadbury India portfolio,” says Anand Kripalu, president, South Asia & Indo-China, Kraft Foods, and managing director, Cadbury India.
The third Kraft brand, Toblerone, available in India through the import route and distributed locally, will not be a part of the Cadbury system for now. “That will continue to be available through the import route,” says Kripalu. “Toblerone is produced in Switzerland. There are no plans to locally manufacture it.”
Cadbury has three flavours of Tang — orange, lemon and mango — in the market, while Oreo is available as a dark chocolate-colour biscuit with vanilla cream, priced at Rs 5, Rs 10 and Rs 20, while Tang is available in sachets (Rs 4-5 each) and pouches of 200g (Rs 35) and 500g (Rs 80).
Tang is manufactured at the Kraft plant at Hyderabad, says Kripalu, while Oreo is being produced by Punjab-based Bector Foods “We have taken over the operations of the plant at Hyderabad,” he says. “So, the manufacture of Tang is under our direct supervision. Cremica (Bector Foods) is a third-party manufacturer, but the production of Oreo is happening under the specifications given by us.”
Both products, says Kripalu, will be aggressively pushed by the company. “We have no immediate plans to launch any more Kraft brands for now.”
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But, say industry sources, beside biscuits and beverages, Kraft’s famed dairy products may be launched at some stage in the future. Kripalu declines to indicate anything at this point. Kraft cheese, salad dressings, etc are already available through the import route. Says Kripalu: “There are a range of Kraft products that are available through the import route here. That will continue.”
Meanwhile, Tang and Oreo would benefit from Cadbury’s wide network of stores. “Cadbury reaches 1.8 million stores in the country,” says Kripalu. “And, we are constantly growing our reach. So, yes, the two products will benefit from this exercise.”