The ice cream market in India is estimated to be around INR 25 billion, of which over 40 belongs to the organized sector growing at about 15. Amul leads the pack with about 36-38% market share (5% of its total revenue), followed by Mother Dairy, Kwality walls, and Vadilal. These players not only have to fight the small local and cottage industry players, but also the fact that the Indian cuisine itself offers a large variety of desserts which are still preferred by most Indians. Due to this reason, the per capita consumption of ice creams in India is about 250ml per annum, 1. 4% of that in US, and 13% of the world average, which can be seen as a huge opportunity in this sector in India attracting new regional and national entrants.
However, an issue is the seasonal nature of this industry in India, especially true for the northern parts of the country. Bulk of the sales happen during the summer months of April-July, while the sales witness a significant dip during winter months of November-February. Additionally, the seasonality of events like marriages affects sales in a big way, although institutional sales provide some cushion. But what makes the situation worse is low supply of electricity, especially during the high demand summer months that affects the ice cream stocks. Once the ice cream melts, it is non-saleable, and drives retailers not to carry enough stocks – not an optimal situation given the not so favorable situation of cold chain in India.
With the latest mandate for HUL to increase its foods revenue, they might also be focusing on out-of-home footprint through ice cream parlors, ice creams being a high growth category for HUL growing at about 31% last year. On one hand where Amul is trying to increase its reach by adding retail outlets to the tune of 15k to its base of 70k outlets, on the other hand HUL is focusing on new product launches and television campaigns for consumer activation.
Half the market is driven by impulse purchase, and rest by family consumption at home and in-parlor sales. There are niche players in the parlor business, with Nirula’s being an established player in the north, and Naturals in the west; and then there are premium players like Baskin Robbins. Location is key here like in any retail business, to ensure enough footfalls and an optimal rental profile for sustained outlet level profitability.
Brands are coming out with pro-biotic and low fat ice creams targeting the health conscious consumers, and also new manufacturing processes, which reduce air content in ice creams giving more value for money to the consumers; but the acceptance for such products is still to be put to a proper test in the market.
Overall, the ice cream market is heating up. What is to be seen is that for whom this heat helps in increasing revenues & profitability of players, or melts the aspirations in the sector.
TRENDS:
Both the leading players in terms of value sales in 2010 – Amul and HUL’s Kwality Walls – have well developed ice cream fast food chains. It helped to propagate their respective brand names, due to their comfortable seating facility and high-quality service. Conversely, their brands have received publicity via in-store promotions. Leveraging on their presence in consumer foodservice, other brands such as Baskin Robbins and Natural, also operate through a range of retail stores.
The current value growth of 23% in 2011 exceeds the review period CAGR of 21%. Due to greater brand awareness, penetration of ice cream parlors and better infrastructure year 2011 enjoyed considerable growth in volume sales. However, the substantial increase in unit prices seen over the same year also added to value growth, as it surpassed all the y-o-y growth rates seen in the review period. Brands operated by the top three ice cream players enjoyed a considerable following amongst consumers in urban India, as both grocery retailers and kirana stores recorded appreciable growth in value sales in 2011.
Current value sales of single portion dairy have shown the fastest growth in 2011, closely followed by bulk dairy ice cream. These two categories have the highest current value CAGRs. They also have the most variants across product types and flavors in India. The two categories combined are expected to account for a 92% share of value sales of ice cream in 2011.
The 6% increase in current unit prices in 2011 was the highest for any year. It is due to price increase for raw materials such as milk powder and milk solids. The union budget for 2011-2012 presented an additional 1% excise duty on ice cream in India, and hence warranted a further increment n retail prices in the calendar year 2011.
The popularity of ice cream flavors remained largely unchanged over the review period. Vanilla, chocolate and strawberry continued to account for the majority of ice cream value sales, whilst butterscotch and fruity flavors were also popularly amongst certain groups in urban India. Some flavors inspired by “ Indianised” food preparations include kesar, pista, kaju, and kulfi.
Leading Flavors for Ice Cream 2006-2011
ranking
2006
2007
2008
2009
2010
2011
Vanilla
1
1
1
1
1
1
Chocolate
2
2
2
2
2
2
Strawberry
3
3
3
3
3
3
Butterscotch
4
4
4
4
4
4
Mango
5
5
5
5
5
5
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources.
Sticks are expected to be the most popular format in impulse ice cream in 2011. Its ease of handling, judicial pricing and wide spread availability across retail channels helped to propagate the format. This format also saw the most variety in terms of flavors in impulse ice cream in 2011. However, cones is gradually catching up with sticks, as more domestic brands explore the format.
Both impulse and take-home ice creams are highly reliant on other grocery retailers- including push carts, bicycles and dairy products retailers- for retail sales in India. The push carts and bicycles are stationed near strategic locations such as residential complexes, educational institutions and tourist destinations. These two channels, along with dairy retailers, are equipped with individual chillers and freezers, and usually operate as individual franchisees. Take home ice creams, however, also sources a significant proportion of its retail value sales from kirana stores, as this serve as a convenient alternative channel for buying bulk ice-cream meant for family consumption.
Historically ice cream consumption was limited to summer months, when consumers looked for respite from the heat whilst on-the-go, or wanted to treat their families on special occasions. However, it gradually became popular as a dessert option. This puts such products in competition with traditional Indian desserts, which thrive on an unbranded and branded presence throughout the country.
CATEGORY DATA
Table 1 Sales of Ice Cream by Category: Volume 2006-2011
million litres
2006
2007
2008
2009
2010
2011
Frozen Yoghurt
–
–
–
–
–
–
Impulse Ice Cream
44. 33
53. 32
63. 22
72. 04
81. 71
93. 24
– Single Portion Dairy Ice Cream
34. 02
41. 46
49. 81
57. 59
65. 67
75. 42
– Single Portion Water Ice Cream
10. 3
11. 86
13. 4
14. 44
16. 04
17. 83
Retail Artisanal Ice Cream
–
–
–
–
–
–
Take-Home Ice Cream
32. 38
39. 95
48. 04
56. 4
66. 01
77. 63
– Take-Home Dairy Ice Cream
32. 38
39. 95
48. 04
56. 4
66. 01
77. 63
— Bulk Dairy Ice Cream
31. 78
39. 32
47. 38
55. 74
65. 3
76. 85
— Ice Cream Desserts
0. 59
0. 62
0. 65
0. 66
0. 72
0. 78
— Multi-Pack Dairy Ice Cream
–
–
–
–
–
–
– Take-Home Water Ice Cream
–
–
–
–
–
–
— Bulk Water Ice Cream
–
–
–
–
–
–
— Multi-Pack Water Ice Cream
–
–
–
–
–
–
Ice Cream
76. 7
93. 27
111. 25
128. 44
147. 72
170. 87
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
Table 2 Sales of Ice Cream by Category: Value 2006-2011
Rs million
2006
2007
2008
2009
2010
2011
Frozen Yoghurt
–
–
–
–
–
–
Impulse Ice Cream
5, 982. 35
7, 271. 44
8, 864. 91
10, 606. 47
12, 593. 48
15, 415. 87
– Single Portion Dairy Ice Cream
4, 952. 82
6, 076. 16
7, 498. 48
9, 089. 33
10, 893. 74
13, 472. 34
– Single Portion Water Ice Cream
1, 029. 53
1, 195. 28
1, 366. 43
1, 517. 14
1, 699. 74
1, 943. 53
Retail Artisanal Ice Cream
–
–
–
–
–
–
Take-Home Ice Cream
3, 589. 85
4, 448. 09
5, 396. 88
6, 495. 06
7, 779. 25
9, 595. 42
– Take-Home Dairy Ice Cream
3, 589. 85
4, 448. 09
5, 396. 88
6, 495. 06
7, 779. 25
9, 595. 42
— Bulk Dairy Ice Cream
3, 463. 07
4, 313. 52
5, 254. 71
6, 348. 96
7, 620. 23
9, 416. 90
— Ice Cream Desserts
126. 78
134. 57
142. 17
146. 09
159. 02
178. 51
— Multi-Pack Dairy Ice Cream
–
–
–
–
–
–
– Take-Home Water Ice Cream
–
–
–
–
–
–
— Bulk Water Ice Cream
–
–
–
–
–
–
— Multi-Pack Water Ice Cream
–
–
–
–
–
–
Ice Cream
9, 572. 20
11, 719. 53
14, 261. 79
17, 101. 53
20, 372. 73
25, 011. 29
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
Table 3 Sales of Ice Cream by Category: % Volume Growth 2006-2011
% volume growth
2010/11
2006-11 CAGR
2006/11 Total
Frozen Yoghurt
–
–
–
Impulse Ice Cream
14. 12
16. 03
110. 34
– Single Portion Dairy Ice Cream
14. 85
17. 26
121. 66
– Single Portion Water Ice Cream
11. 11
11. 58
72. 98
Retail Artisanal Ice Cream
–
–
–
Take-Home Ice Cream
17. 59
19. 11
139. 78
– Take-Home Dairy Ice Cream
17. 59
19. 11
139. 78
— Bulk Dairy Ice Cream
17. 69
19. 31
141. 8
— Ice Cream Desserts
9. 13
5. 65
31. 62
— Multi-Pack Dairy Ice Cream
–
–
–
– Take-Home Water Ice Cream
–
–
–
— Bulk Water Ice Cream
–
–
–
— Multi-Pack Water Ice Cream
–
–
–
Ice Cream
15. 67
17. 37
122. 77
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources.
Table 4 Sales of Ice Cream by Category: % Value Growth 2006-2011
% current value growth
2010/11
2006-11 CAGR
2006/11 Total
Frozen Yoghurt
–
–
–
Impulse Ice Cream
22. 41
20. 84
157. 69
– Single Portion Dairy Ice Cream
23. 67
22. 16
172. 01
– Single Portion Water Ice Cream
14. 34
13. 55
88. 78
Retail Artisanal Ice Cream
–
–
–
Take-Home Ice Cream
23. 35
21. 73
167. 29
– Take-Home Dairy Ice Cream
23. 35
21. 73
167. 29
— Bulk Dairy Ice Cream
23. 58
22. 15
171. 92
— Ice Cream Desserts
12. 26
7. 08
40. 8
— Multi-Pack Dairy Ice Cream
–
–
–
– Take-Home Water Ice Cream
–
–
–
— Bulk Water Ice Cream
–
–
–
— Multi-Pack Water Ice Cream
–
–
–
Ice Cream
22. 77
21. 18
161. 29
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
COMPETITIVE LANDSCAPE
Amul accounted for 36% share of retail sales in value terms in India in 2010. It has an extremely diverse range of products, spanning from economy to premium offerings. The company’s expansive outlet and cold chain network for all its dairy products helped the operations of its ice cream business. Other players such as HUL and Mother Dairy Fruit and Vegetable also had appreciable brand equity, as the top three players were responsible for a combined 67% share of value sales of ice cream in 2010.
Whilst there was minimal movement in the retail value shares of all players in 2010, Mother Dairy Fruit & Vegetable outpaced other manufacturers, as it closed on second-placed Hindustan Unilever. The rapid expansion of its retail network of exclusive dairy outlets and aggressive promotional campaigns in major metropolitan cities such as Delhi and Mumbai led to consumers being more aware of the company’s flagship brand, Mother Dairy.
Ice Cream Company Shares 2006-2010
% retail value response
2006
2007
2008
2009
2010
Gujarat Co-operative Milk Marketing Federation Ltd
35. 77
36. 89
36. 76
36. 53
36. 33
Hindustan Unilever Ltd
–
17. 39
17. 36
16. 94
16. 72
Mother Dairy Fruit & Vegetable Ltd
12. 32
12. 57
13. 32
13. 55
13. 81
Vadilal Industries Ltd
10. 1
9. 49
9. 23
9. 45
9. 6
Hatsun Agro Products Ltd
5. 91
5. 54
5. 63
5. 81
5. 93
Devyani Food Industries Pvt Ltd
–
–
5. 2
5. 13
5. 24
Punjab State Cooperative Milk Producers Federation Ltd, The
1. 77
1. 83
1. 38
1. 22
1. 12
Universal Dairy Products Pvt Ltd
5. 04
5. 04
–
–
–
Hindustan Lever Ltd
18. 08
–
–
–
–
Others
11. 02
11. 25
11. 12
11. 37
11. 24
Total
100
100
100
100
100
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources.
Ice Cream Brand Shares 2007-2010
% retail value response
Company
2007
2008
2009
2010
Amul
Gujarat Co-operative Milk Marketing Federation Ltd
27. 79
27. 78
26. 96
26. 55
Mother Dairy
Mother Dairy Fruit & Vegetable Ltd
12. 57
13. 32
13. 55
13. 81
Vadilal
Vadilal Industries Ltd
9. 43
9. 19
9. 41
9. 56
Arun
Hatsun Agro Products Ltd
5. 46
5. 56
5. 75
5. 88
Wall’s
Hindustan Unilever Ltd
5. 95
5. 91
5. 72
5. 55
Cream Bell
Devyani Food Industries Pvt Ltd
–
5. 2
5. 13
5. 24
Cornetto
Hindustan Unilever Ltd
5. 19
5. 11
5. 05
4. 97
Max
Hindustan Unilever Ltd
2. 38
2. 31
2. 13
2. 14
Verka
Punjab State Cooperative Milk Producers Federation Ltd, The
1. 83
1. 38
1. 22
1. 12
Cream Bell
Universal Dairy Products Pvt Ltd
5. 04
–
–
–
Cornetto
Hindustan Lever Ltd
–
–
–
–
Max
Hindustan Lever Ltd
–
–
–
–
Wall’s
Hindustan Lever Ltd
–
–
–
–
Others
Others
24. 36
24. 25
25. 08
25. 18
Total
Total
100
100
100
100
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources.
Two of the top three players in ice cream, Gujarat Co-operative’s Amul and Mother Dairy Fruit & Vegetable, source a significant proportion of retail sales from their respective dedicated dairy outlets. These two players, along with regional dairy cooperatives, continued to use their outlets as marketing tools, as they had in-store promotions and displays to attract consumers’ interest. Individual ice cream fast food chains, such as Swirl’s by Hindustan Unilever and Amul scooping parlors by Gujarat Co-operative, also added to brand awareness in ice cream in India. Regional manufacturers such as Vadilal Industries and Havmor Ice Cream invested in the expansion of production capacity in 2011, as they looked to develop a national retail network for their product ranges. The latter also organized brand-building activities and offered home delivery services in order to attract consumers in West India.
Hindustan Unilever is the only significant international manufacturer of ice cream in India. Regional dairy product manufacturers such as The Punjab State Cooperative Milk Producers Federation and Karnataka Cooperative Milk Producers Federation complemented the national leading players mentioned above, as domestic brands enjoy appreciable recognition amongst consumers. Non-cooperative manufacturers such as Vadilal Industries and Devyani Food Industries tapped into regional demand to generate sales through traditional kirana stores in 2010 and 2011. As for multinational brands such as Baskin-Robbins and Haagen-Dazs, retail sales were largely limited to supermarkets/hypermarkets in 2010.
Regional manufacturers were particularly active in terms of launching new products in late 2010 and 2011. Havmor Ice Cream introduced a non-alcoholic but whisky-flavored ice cream, as well as diet products for premium clients in 2010. The former found some popularity amongst consumers hosting parties and wedding receptions. It also added new flavors in the form of Hawaiian Nuts and Choco-Biscotti in 2011.
Vadilal Industries utilized its enhanced production capacity to come up with innovative brands in 2011. Whilst Badabite targets the sticks format in single portion dairy ice cream, Gourmet caters to bulk diary ice cream with the relatively new tub packaging in India. The company also consolidated its presence in the cone format with brand Flingo in 2011. Amongst the leading players in ice cream, Gujarat Co-operative launched several flavors in dairy ice cream, such as guava and thandai, highlighting the willingness to incorporate local taste preferences into its portfolio. Mother Dairy Fruit & Vegetable introduced new flavors (rose and paan) for its range of kulfi products in 2011. Adding to the wave of products aimed at diabetic or health-conscious consumers, Karnataka Cooperative Milk Producers Federation launched sugar-free ice cream in 2010.
Whilst the brand Mother Dairy relied on print advertising for its ice cream products, Gujarat Co-operative and Hindustan Unilever extensively used mass media to drive advertising campaigns in 2010 and 2011. Gujarat Co-operative also promoted the brand Amul through partnerships with television shows such as “ Amul Comedy Ka Maha Muqabala” in 2011. Hindustan Unilever continued its trend of accompanying new launches with highly visible advertising; such as the new variants for its cone format brand Cornetto in 2011. Apart from using social networking site Facebook and television advertisements, the brand also engaged youngsters with an acting contest called “ Cornetto Luv Reels”.
There were no significant packaging innovations in ice cream in 2011.
The average unit prices of the ice cream products offered by regional players are marginally lower than those of national players, such as Gujarat Co-operative and Hindustan Unilever. Thus, most offerings by these national manufacturers are in the standard price segment, whilst water-based ice creams are considered to be economical products. However, both regional and national players have a wide product range, allowing them to cater to consumers looking for premium ice cream with internationally popular flavors and sugar-free features. In 2011, certain brands, such as Baskin-Robins and Haagen-Dazs, were priced at levels consistently higher than any other brands operating in India, and thus saw a limited consumer following. Owing to the additional cold chain storage and transportation requirements, ice cream had a negligible private label presence in 2011.
AMUL ICE CREAM
ABOUT THE BRAND
AMUL was formed in 1946 as a dairy cooperative. It is managed by an Indian cooperative organization, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). Amul has an annual turn over of US$2. 2 billion(2010-11).
The acronym stands for Anand Milk Union limited.
Amul spurred the White Revolution in India spear headed by Dr. Verghese Kurien. This in turn made India the largest producer of milk and milk products in the word. It is the world’s largest vegetarian cheese brand. Amul is the largest food brand in India and world’s largest pouched milk brand.
Amul Ice Cream was launched on 10th March, 1996 in Gujarat.
1997: Amul ice cream entered Mumbai
1998: Amul ice cream entered Chennai
1999: Rolled out across India.
2001: Achieved the No. 1 position in the country
2002: Entered Kolkata and Delhi.
MARKET SHARE:
Amul ice cream has a market share of 38% against the 9% market share of HLL, thus making it 4 times larger than its closest competitor.
LOGO
http://www. amulicecream. in/Images/logo_new. jpg
SLOGAN
. Amul ice cream was launched on the platform of ‘ Real Milk. Real Ice Cream’ given that it is a milk company and the wholesomeness of its products gives it a competitive advantage.
PRODUCTS
STICKS
CONES
CUPS
TAKE-HOME
Customised
HEALTH-BASED
Frostik
Tri Cone
Sundae
Offerings at Scooping Parlor
Sugar Free Probiotic
Dollies
Fundoo Balls
Prolife Ice Cream
Candies
Kulfi
DISTRIBUTION AND PROMOTION
Amul Ice Cream has a pan India presence across 800 towns. Its distribution network can be categorized into the following
Retail Outlets
Amul caters to the retail markets through fast moving consumer goods outlets. These could be in grocery shop, medical shop, FMCG shop, departmental store, mall etc. Amul offers HAMARA APNA DEEP FREEZER as a freezer module.
HAMARA APNA DEEP FREEZER
http://www. amulicecream. in/amul_partner_clip_image002. jpg
Amul Preferred Outlets(APO)
APO works on the franchisee model where by the shop has a wide range of all Amul products.
There are 6000 APOs across 1400 towns in India at high streets, residential areas, Railway Stations, Bus Stations, Educational Institutions and a whole lot of Centres of Excellence.
http://amul. com/files/cms/parlour2. jpg
Scooping Parlors
In order to cater to customized offerings, currently Amul has Scooping Parlours across the country including Mumbai, Chennai, Delhi, Bangaluru, Thane, Pune, Kolkata, Nagpur, Ahmedabad and Coimbatore.
http://www. amulicecream. in/amul_partner1_clip_image004. jpg
Ice Cream Business through Vending
The most common medium for the ice cream business is the push-cart. Amul has designed HAMARA APNA PUSH CART (HAPC) module, wherein prospective parties can buy push-carts from approved suppliers at reasonable rates.
The push-cart comprises eutectic deep freezer , cycle, canopy. This is also an effective medium for advertisements.
http://www. amulicecream. in/amul_partner1_clip_image006. jpg
USP
The entry of Amul into Ice Cream
http://www. amulicecream. in/Images/aboutamul_history_box1_topleft3. jpg
For any new player to enter this market, three things are critical:
http://www. amulicecream. in/Images/aboutamul_history_bullet. jpg
Decentralized manufacturing facilities
http://www. amulicecream. in/Images/aboutamul_history_bullet. jpg
Efficient cold chain
http://www. amulicecream. in/Images/aboutamul_history_bullet. jpg
Growing market
http://www. amulicecream. in/Images/aboutamul_history_box1_topright. jpghttp://www. amulicecream. in/Images/aboutamul_history_box1_middle2. jpg
http://www. amulicecream. in/Images/aboutamul_history_box1_bottomleft. jpg
http://www. amulicecream. in/Images/aboutamul_history_box1_bottommiddle. jpg
http://www. amulicecream. in/Images/aboutamul_history_box1_bottomright. jpg
Kwality Wall’s
ABOUT THE BRAND
1956: Kwality, the original Indian company, was founded by Pishorilal Lamba and was the first in the region to import machinery for the mass production and sale of ice cream on a commercial scale.
1994: Wall’s range of frozen desserts was launched.
1995: In view of the growth potential of the frozen confections market, Kwality entered into an agreement with Lever, and has since been known by its current umbrella name.
It has its presence in India, Pakistan, Malaysia and Sri Lanka.
MARKET SHARE
Kwality Wall’s has a market share of 16. 7% in 2010 and ranks second in the ice cream industry (Source: Euromonitor International)
LOGO
SLOGAN
A treat for every occasion.
PRODUCTS
Sticks
Cones
Cups
Take Home
Customised
Health Based
Feast
Cornetto
Selection
Swirls
Fruttare
Shahi Delights
Chill Grill
Paddle Pop
Zippers
Kulfeez
DISTRIBUTION AND PROMOTION
Retail Outlets
Swirl’s Parlor
Swirl’s is a concept of frozen dessert parlors from Kwality Wall’s that provides fresh, fun and a unique ‘ made-for-me’ consumer experience. The first store was incepted in 1994 in Netherlands, and since has been successfully launched across the globe.
In India, Swirl’s has been operational since 2004 with the opening of its 1st outlet in NCR region
The essence of the Swirl’s parlor is “ Create your own” frozen dessert.
Currently Swirl’s parlors are present in three formats.
Shop
Kiosks
Shop in shop
Business Through Vending
USP
MOTHER DAIRY
ABOUT THE BRAND
Mother Dairy was set up in 1974 under the Operation Flood Program, a wholly owned company of the National Dairy Development Board(NDDB). Mother Dairy manufactures, markets and sells
Milk and milk products under the Mather Dairy brand(Milk, Cultured Products, Ice Creams, Paneer and Ghee)
Dhara range of edible oils
Safal range of fresh fruits and vegetables, Frozen vegetables, Processed Fruit and Vegetable products, Fruit Pulps and concentrates in bulk aseptic packaging and fruit juices at national level.
Mother Dairy markets 3. 2 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. It undertakes its marketing operations through around 14000 retail outlets and over 845 exclusive outlets of Mother Dairy.
Mother Dairy Ice creams, launched in the year 1995, have shown continuous growth over the years.
MARKET SHARE
Mother Dairy Ice Cream has a market share of 13. 8% in 2010 and ranks third in the ice cream industry (Source: Euromonitor International)
Mother Dairy Ice Cream has a market share of approximately 62% in Delhi and NCR.
LOGO
ttp://upload. wikimedia. org/wikipedia/en/0/03/Mother-Dairy-logo-2006-01-16. jpg
SLOGAN
Piyo Pure
PRODUCTS
Sticks
Cones
Cups
Take Home
Customised
Health Based
Bars
Cones
Cups
Fruit Classics
Sugar Free
Ice Candies
Indian Classics
Kulfis
Western Classics
