Fast-moving consumer goods (FMCG) major Dabur is readying a range of honey products, including flavoured honey and honey spreads, to counter the competition from Baba Ramdev’s Patanjali Ayurveda.
During a conference call with analysts over the last fortnight, the Dabur management has confessed that competition from players, including Patanjali, is hurting business.
Patanjali sells honey at almost half the price of Dabur — Rs 70 against Dabur’s Rs 122 for 250-gram pack.
The new range of Dabur honey fruit spreads will be launched within this week in four variants — strawberry, plum, exotic berries and kiwi. It also plans to roll out spice-based honey later.
While Dabur Honey leads the segment with a market-share of about 60%, the company’s quarterly growth has been significantly impacted in the last one year. “The company was registering a healthy double-digit growth, quarter-on-quarter, of 10% to 15% till the quarter ended September 2015. The sales plunged, mainly due to Patanjali’s cheap honey offerings, pulling down the growth to just 5% quarter-on-quarter,” said a source familiar with Dabur’s financials who do not wish to be identified.
“The launch of Dabur honey fruit spreads will mark a new first for both Dabur and the food industry in India,” said Sanjay Singal, marketing head, foods, Dabur.
Last December, Patanjali had sounded the war bugle with an advertisement, which displayed a bottle of honey, similar to a Dabur bottle, and claimed that the price of Patanjali’s product is much cheaper than other brands. Dabur responded by launching a counter ad claiming its honey to be approved by the food regulator.
According to market estimates, branded honey is a Rs 600-crore category, and has been growing 15% to 20% year-on-year. The segment has seen entry of players such as Emami, which has positioned its Zandu Honey on the quality plank, and Patanjali, which has been pitching its honey on competitive pricing. Dabur, on the other hand, has been talking about purity.
Dabur has also launched honey in new packaging — squeezy bottles that offer higher convenience for consumers.
