Britannia Loses Market Share For Its Major Brands

Indians spend more on biscuits than on toothpastes, skin-care products, shampoos and instant noodles put together, and Parle Products has surged ahead of Britannia Industries to become a clear leader in the Rs 11,000-crore-plus market, say Nielsen data.

The country spent Rs 11,295 crore on biscuits in the 12 months ended March 2010 compared with Rs 2,300 crore on toothpastes, Rs 3,500 crore on skin-care products, Rs 2,400 crore on shampoos and Rs 1,300 crore on instant noodles. And in the first half of the current financial year, it has already spent Rs 6,320 crore on biscuits, according to The Nielsen Company, the country’s largest market researcher.

The largest piece of this big and growing cookie now belongs to Parle Products. The Mumbai-based, Rs 5,000-crore company, promoted by Vijay and Sharad Chauhan, has close to 45% share of the biscuits market while Nusli Wadia’s Britannia Industries has about 38% share.

For years, the two largest cookie makers were neck-and-neck with about 35% share each in the market.

Nielsen data shows that Good-Day’s share dropped from 31.6% in 2009-10 to 27.8% in the April-September period, while Parle 20-20’s share increased from 11.3% to 17.9% during the same period. Parle also managed to push its share in the Rs 3,312-crore glucose biscuit segment where Parle G now accounts for more than three-fourths of the category.

The share of Britannia’s Tiger glucose slipped from 12.2% in 2009-10 to 11.7% in April-September this year, while the share of the third significant player in the category, ITC’s Sunfeast glucose, remained constant at 8.8%
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In salted crackers, Britannia Time Pass is the only major brand that lost share, to 10.6% in the first half of current fiscal from 11.3% in the whole of last year, the Nielsen data shows.

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Parle surges ahead of Britannia to become leader in the Indian biscuit market - The Economic Times

Parle Vs Britannia - Parle Leads The Pack

Article in  TOI

MUMBAI: More consumers seem to be munching on Parle biscuits while sipping on their hot cuppa, which is probably why the company is said to have toppled Britannia Industries' numero uno position to become the largest selling biscuit company in India.

Last year, the Vijay and Sharad Chauhan-controlled Parle Products, which makes the ubiquitous ‘Parle-G' glucose biscuits, had attained volume leadership in the market. Now, with a total turnover of around Rs 4,000 crore coming from biscuits, Parle Products has emerged as the clear market leader, with a difference of almost Rs 1,000 crore. Britannia Industries reported a turnover of Rs 3,400 crore for the financial year 2009-10, with biscuits contributing around Rs 3,000 crore.

The Rs 5,000-crore Parle Products, which also makes confectionery products, draws 80% of its turnover from biscuits. Although Britannia Industries has disputed the fact that Parle has become the market leader, the cookie seems to be crumbling a bit for the Wadia-owned company. Going by the turnover numbers, Parle leads with a margin of Rs 1,000 crore over Britannia.

While the Chauhans did not respond to a TOI query, at least two people familiar with the matter confirmed the development. Parle Products' annual share (moving average total) in biscuits, sources told TOI, stands at around 45% as against Britannia's 38%. Historically, the biscuit pie was made up by one-third of Britannia, one-third of Parle Products and one-third of the balance share where other smaller brands lost or gained share.

In response to an email sent to Vinita Bali, MD, Britannia Industries, a company spokesperson said, "Britannia continues to lead the biscuit market in all categories except glucose, where it lost some share about a year ago and has partly recovered that. However, glucose as a category within the overall biscuit market has declined."

"Britannia has a large and diverse portfolio ranging from health & nutrition (e.g. NutriChoice Digestive, NutriChoice 5 Grain, etc.) on the one hand to delightful & indulgent products on the other (e.g. GoodDay, Treat, Bourbon, etc.), while Parle largely dominates the discounted glucose segment, whose share is declining in the overall biscuit market," the spokesperson said.

Britannia also said that The Nielsen Company, which tracks sales and market share numbers, does not cover all points of sale. "The growth rate it reflects for Britannia is, in fact, lower than the actual growth rate, by 3-4%. Relative position of Britannia and Parle, in terms of annual turnover, has remained constant over the last few years as per annual results declared by both the companies," the spokesperson said. 

Source : Times Of India 

Indian Biscuit Industry  Review 

Britannia Vs Parle – Battle for the market continues

Britannia and parle the two food majors of India in the field of biscuits and bakery products . fighting it out in market for the share of consumers pocket and market dominance .In yester years it was market segments which both have dominated and not much was seen to disturb that arrangement.Parle with its Parle G , Kraxkjack and manaco where as Britannia has Good day , Marie gold , Creams
Britannia dominated the premium segment of biscuits where as parle dominated the mass ,low premium biscuits ,things were pretty predictable but for the
entry of new players have changed that status .Now that ITC and Priya gold are trying to break into their market and have established them selves as important players in biscuit market . These two major biscuit producers has are now forced to innovate products by the consumers to create brands which could be differentiated .
Both are trusted brand are ranked in top brands for biscuit ,both have a long history of brands . The Major difference though is that where Britannia is revenues from bakery products is around 90 % ,share of biscuit sales is around –80% for parle
Recently two categories has seen major ad war are bourbon and salty snacks . Parle has come up with new bourbon under its hide and seek umbrella brand .Pitching against Britannia s popular bourbon which has 70% market share of the bourbon biscuits . Parle upped its TV ads by roping in Hritik roshan . Similarly Parle has re jigged its Krack Jack biscuits to Britannia's 50- 50 eating up its market share . Krack Jacks with new packaging and TV ads of Krack and Jack promoting the brands . It would be interesting to see what impacts these would have on the sales of these two biscuits .
PARLE VS BRITANNIA
Business

Description	Britannia	Parle
Established	1896	1929
Nature of business	Public ltd	Family run business
No of manufacturing units	5 own ,40CMU	8 own units ,60 CMU
Market share ( value)	32.80%	32.94%
Ads Major methods	Cricket events and players	Celebrities endorse ment
New areas of promotion	Environment	Health and wellness

IMPORTANT BRANDS PITCHED AGAINST EACH OTHER

Category	Britannia	Parle	Leader
Glucose	Tiger	Parle -G	Parle-G
Marie	Marie Gold	Parle Marie	Marie Gold
Salty snacks	50-50	Krack Jack	Krack Jack
Choco chips	Good day	Hide n seek	Good day
Milk	Milk bikis	Milk sakhti	Milk bikis
Bourbon	Bourbon	Hide n Seek	Bourbon
Nice	Nice	------	Britannia Nice
Multi grain	Nutri choice	-----	Nutri choice
Cream	Cream Treat	Kreams	Cream treats
Cookie	Good day	20-20	Good day

So the battle for market share continues and advantage is for consumers who will get better product from both these biscuit majors .

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