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Wednesday, Sep 20, 2006

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Dabur plans greater focus on beverages

Debdatta Das

New Delhi , Sept. 19

Dabur Foods Ltd has embarked on an aggressive growth strategy to boost its performance in the various processed foods categories where it has a presence, with special focus on beverages.

"We plan to turn Real Activ and Coolers into Rs 100-crore brands each," said Mr Amit Burman, CEO.

Plans are also on to add three new variants to Activ, which has fruit/vegetable juices under the Real brand name and is targeted at the young, fitness-conscious consumer.

Coolers, a fruit-based beverage, positioned as a summer drink, will also see two new variants being added to the existent portfolio of aam panna, watermelon-mint, lemon-barley and rose-litchi by next summer.

Pomegranate will be added as a variant under the Real Nature Fresh fruit juice and nectar category by December 2006.

The three brands - Nature Fresh, Activ and Coolers - have very different target audiences, which is reflected in their marketing campaigns, in their packaging and size.

Dabur is also looking at reformulating its Mango Twist mango nectar, currently available in mango-papaya and mango-orange variations, and re-introducing it into the market.

"The idea is to tap into the Frooti drinkers category, mostly children, by offering them a little more than just a mango drink with added nutrition value, that will also keep their mothers satisfied," said Mr Burman.

Dabur is also looking at entering the ready-to-eat segment by mid-2007.

"We are actually looking for a formula that will preserve the content without us having to add preservatives."

On exports and sales in the international markets, the company mostly does institutional sales, apart from retailing through specific retail chains like its tie-up with the Australian retail chain, Woolworth, to sell Real.

"We plan to double our exports this year from Rs 15 crore last year," Mr Burman said.

In the domestic market, the company will spend 12-13 per cent of its turnover on marketing its products to keep pace with rapid expansion plans.

Related Stories:
Dabur Foods to scale up its operations
Dabur to expand food services business

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