The battle for the breakfast table just got fiercer with Dr Oetker launching Germany’s No. 1 muesli, Vitalis Crunchy, in India. If all goes well, Vitalis could vie for shelf space in Indian kitchens with Kellogg’s cornflakes and Quaker Oats in three-four years.
The Rs 500-crore breakfast cereal market is dominated by cornflakes, which is a Rs 400-crore category; other cereals like muesli and oats add up for the rest but are growing faster (in double digits) than cornflakes (in single digits).
The Germany company is banking on the goodness of muesli and its unique roasting process to create a new segment in the market. “It’s an alternative form of cereal which keeps up the energy level through the day,” says Oliver Mirza, MD, Dr Oetkar India.
“The cornflakes customer is different. They like it for its lightness, convenience (easy and fast to eat), and crispiness. Muesli consist of raw flakes, which takes time to digest. Vitalis offers the benefits of cornflakes (it’s crispy) and is more healthier,” says Mirza.
“What’s unique about Vitalis is that it is 100 per cent crunchy. Our unique roasting process ensures crunchiness till the last bite,” adds Mirza. He expects Vitalis to create a niche in the breakfast cereal market and do sales of Rs 50-crore in three to four years.
The muesli market is around Rs 75 crore, but Mirza expects it to double to four years. But Vitalis will have to compete not only with entrenched rivals like Kellogg’s, Bagry’s India, Quaker Oats but also rich traditional breakfast items like idlis, dosas or parathas.
“The Indian breakfast market has evolved considerably in the past few years. In today’s fast paced urban lifestyle, consumers seek convenience, taste as well as nourishing goodness from their breakfast. Hence, traditional breakfast options are slowly moving towards the weekend menu. We aim to bridge this gap,” Mirza said at the launch on Wednesday that was endorsed by Brazilian actor Giselli Monteiro who has acted in a few Hindi movies.
Vitalis Crunchy will be available in four variants and has been priced aggressively at Rs 189 for a pack of Rs 375 grams. Initially, it will be available in 5,000 retail stores in Mumbai, Pune, Kolkata, Chennai, Hyderabad, Bangalore, Delhi & NCR. In the second phase, the brand will be launched in tier-II cities like Indore and Bhopal. The muesli is being imported from Germany, and if it does well, it could be processed in India.
Vitalis will ride on the distribution network of the Rs 83-crore Dr Oetker
India, which directly serves 15,000 retailers. In the first phase, the company will be targeting 5,000 of these outlets in key metros. The Oetker Group had acquired Fun Foods in 2008 for Rs 110 crore.
It makes spreads and mayonnaise and Italian sauces under the dual brand of Dr Oetker Fun Foods. Vitalis’ success could encourage the group to bring in other products.
“With the launch of Vitalis muesli, we will be able to further reinforce our brand positioning as one of the most trusted purveyors of European cuisine. In Europe we have built this sub-category of 100 per cent crunchy muesli over years and have been able to garner a huge pie, making us the market leaders with a share of 22.1 per cent market share,” Mirza says.
In India, Mirza feels it will create a new category of 100 per cent crunchy muesli, driven by new consumer base and facilitate the breakfast cereal market growth. “The success of Vitalis will certainly provide the impetus to launch our other international products in the years to come,” he says.
These include frozen food, beer (Radeberger) and wine (Furst von Metternich, Adam Henkell). It also owns a bank (Bankhaus Lampe).
