Priced more than double the conventional Sugar Free, at Rs 135 for 100 pellets, Zydus is trying to position this as a premium product for consumers who are looking for 'natural' products. According to Elkana Ezekiel, managing director, Zydus Wellness, both North and South India are big markets for herbal products, and Sugar Free Stevia has a good chance to gain traction in these areas.
The company has already gone to market around five weeks back, and is now trying to gauge the consumer feedback. It has already done a survey to understand what motivates the use of natural products amongst today's consumers. While Ezekiel did not wish to comment on the sales of Sugar Free, or the market size, he claimed that the brand enjoyed a 92 per cent market share in the segment.
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"However, household penetration of such products is still quite low, around 15 per cent. Hence, the future growth for us would come from household penetration," he said. As for the herbal sweetener (or natural alternative to sugar) category, Ezekiel feels the market does not yet exist. According to industry sources, Sugar Free currently is around Rs 250-280 crore in turnover and is growing at around 10-12 per cent.
Zydus would be making the Sugar Free Stevia at a third party plant at Sanand.
Stevia is a herb that grows mainly in South America, particularly in Brazil and Paraguay, and the locals have been using the herb for centuries to naturally sweeten their food and beverages. The reason behind Stevia's sweetness is that its leaves contain natural sweet compounds called steviol glycosides. The purified leaf extract of Stevia is 200 to 300 times sweeter than sugar (sucrose) in the same concentration. It has been approved for use in 70 countries around the world as a safe sugar substitute. In Japan it is being used since the last 40 years and has more than 40 per cent share of the sweetener market.
Stevia is valued because it has zero calorie and zero glycemic index apart from having health benefits like reducing blood pressure. Zydus Wellness claimed that some experts also believe that it may reduce blood sugar levels and fight diabetes by improving the function of the hormone insulin.