Dabur is expanding its fruit juice brand, Real, and thereby foraying into the snacking category. It has introduced three new sub-brands under the Real franchise, one of which is snacks.
Dabur chief executive Mohit Malhotra said, “In the long term, our intent is to grow Real from a power brand to a power platform.
The snack sub-brand is called “Real Health,” under which Dabur said it is launching healthy snacking options, starting with chia seeds and roasted pumpkin seeds.
Dabur will be expanding this to cover more premium and value-added healthy snacking products and superfoods like Real Fruit Power, which will focus on fruit-based beverages and low-priced and value-added fruit drinks.
Malhotra added, “We are on course to make Real fruit drinks a Rs 100-crore brand next year. Furthermore, Dabur has launched Real Milk Power, which will have milk-based beverages in its portfolio, such as Real frappes and milk shakes.
Dabur management said it has already gained 1% share in the milk shakes market with this brand, adding that it intends to steer clear of commoditized dairy products and instead focus on value-added packs. The company reported a 2% increase in net profit to Rs 504.35 crore for the December quarter amid higher-than-expected inflation.
Dabur said it lessened the impact of inflation through a mix of price increases and cost-saving initiatives. In fact, the company, despite macro-economic headwinds, gained share across its portfolio.
Dabur’s investments in distribution footprint expansion in rural India helped drive growth even in a challenging environment, with rural demand for Dabur outpacing urban demand by 500bps, Malhotra said.
He added that there was a “marked revival” in discretionary spending by consumers. The company’s foods and beverages business grew 38% year-on-year.
However, moderation in demand for health supplements that grew in the month after COVID dragged down growth for the company’s healthcare portfolio. It’s Chyawanprash and Honey reported muted growth in the December quarter, the company said in its earnings presentation. The overall health supplement business was down 8.3% during the quarter.