 "Health, fitness oil the premium track")
As consumers get more conscious about health and more discerning about the food they eat, edible oil companies are cashing in on the opportunity. By launching a range of new oils, increasing their marketing spends and catering to global dietary trends, companies such as Adani Wilmar (Fortune), Vimal Oils and Foods (Vimal) and Mother Dairy (Dhara) are driving their brands up the value chain.
A quick reality check: Healthy oils still have a negligible share in the overall 23 million tonne demand for edible oils annually in India, about one per cent or so. However, most big players sense double digit growth opportunities in this segment and believe that this is the time to create their premium portfolio. Take Gujarat-based Vimal Oils and Foods. The company has increased its ad budget by five times, from around a crore about a year back to about Rs 5 crore now. The Rs 3,000 crore company has chosen a simple narrative to spread awareness about healthy oils. The company asks consumers to keep using different oils instead of just one all the time. Jayesh Patel, chairman and managing director, Vimal Oils says, "Every oil has its own unique health benefits. We decided to ask our consumers to use different kinds of oils in rotation; for example, if someone is using rice bran oil, it is advisable to change it with corn oil, soya oil, groundnut oil or any other oils after every two or three months."
Vimal, interestingly, has begun its marketing campaign even before launching a healthy variant. It says that it plans to launch its olive oil brand by the end of the year and has tied up with a refinery in Spain for the purpose. "Olive oil is expensive, but it is widely accepted as healthy oil. We thus plan to sell it in metros for starters," Patel said adding that the company planned to invest around Rs 3 crore for the project.
Olive oil sales are growing at a fast clip, clocking 25 per cent growth in India for the past few years, said a Mumbai-based analyst. But it is still a negligible fraction of the overall edible oil demand at around 12,000-15,000 tonnes and the bulk of olive oil sold in the country is imported.
Leading players like Adani Wilmar see 15-20 per cent growth in the healthy oils category in the next one year or so. The company is looking to maximise its reach here by segmenting the category further. It has launched a niche brand Fortune VIVO, targeted at diabetics. It already has rice bran oil in its portfolio, but the company refused to divulge the share of healthy oils in its portfolio.
The company is gearing up for promotional activities. "We are reaching consumers with each and every available touch point. We have launched a special website www.oilfordiabetes.com which addresses common queries around diabetes," said Angshu Mallick, chief operating officer of Adani Wilmar.
Source: Euromonitor
Nielsen estimates the total edible oil market (consumer pack, up to five litres) at three million tonnes per annum, Giri said. "At Dhara, we have largely focused on the first type of value addition," he added. While Mother Dairy did not wish to share details, it said marketing spends have been steadily going up. Giri added, "We conspicuously display the benefits of the type of oil on the packaging. Secondly, depending on the brand's variant strategy, the benefits are highlighted in other forms of communication." All companies are also engaging in below the line (BTL) activities to more actively engage with consumers (both current and potential) and explain the benefits of switching to these healthier options.
