Now that Tang and Oreo have been launched, what action standards have you set for the two?
Tang is a grocery item. Something that the mother picks up when she goes shopping and then comes homes and prepares it. We intend to explode the distribution on Tang. With Oreo, the objective is to make it one of India’s favourite biscuits. We will build the brand on special family moments.
Given that chocolates are also part of the 5-10-10 philosophy that Kraft has for emerging markets, what prevented you from taking on the distribution of Toblerone?
This comes back to the power of focus. Our portfolio is strong enough to help us achieve the objective we have on chocolates. As and when we see there is an opportunity with Toblerone, we will think about it. Tang and Oreo are big new plays that we have taken over. The timing we felt was not appropriate with Toblerone.
How do you propose to move on the manufacturing front?
Tang is being produced at our plant in Hyderabad, while Punjab-based Bector Foods is the third-party manufacturer for Oreo. The existing system can handle ramp-ups in production. That is not an issue.
Will more products from the Kraft system make their to India?
Just because we launched two products in quick succession that doesn’t mean we will dive into further launches. We have to invest significantly and make these products a success.
What does Kraft bring to the table?
Kraft has brought sheer investment power to the table. They have allowed us to play on a much wider canvas. The third thing is that we have now embarked on a journey of enhanced systems and processes. The culture is very empowering. A lot of the support that we get is based on what we ask. In the end, we are looking to build Cadbury from a pure-play confectionary and Bournvita business to a foods company. The first seeds have been sown.
