Dabur enters snacks category under Real brand - Economic Times

Packaged consumer goods maker Dabur has entered the snacking category by extending its fruit juice brand Real. It has introduced three new sub-brands under the Real franchise, one of which is snacks, the company said in an investor call on Thursday.

“In the long term, our intent is to grow Real from a power brand to a power platform,” Dabur chief executive Mohit Malhotra said in the investor call.

The company, which also makes chyawanprash and Vatika hair-care products, has so far sold only fruit juices and nectars under Real.

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. “We will be expanding this to cover more such premium and value-added healthy snacking products and superfoods,” Malhotra said.

The other one, Real Fruit Power, will focus on fruit-based beverages, low-priced and value-added fruit drinks. “We are on course to make Real fruit drinks a Rs 100-crore brand next year,” Malhotra said.

Additionally, Dabur has launched Real Milk Power, which will have milk-based beverages under its portfolio such as Real frappes and milk shakes. The 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 commoditised dairy products and instead will focus on value-added packs.

The company reported 2% increase in net profit to Rs 504.35 crore for the December quarter amid higher-than-expected inflation. Dabur said it mitigated the impact of inflation through a mix of price increases and cost-saving initiatives.

Malhotra said despite macro-economic headwinds, the company gained share across its portfolio. “Our 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," he said.

He added to “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 months post-Covid dragged down growth for the company’s healthcare portfolio. Its Chyawanprash and Honey reported muted growth in the December quarter, the company said in its earnings presentation. The overall health supplements business was down 8.3% during the quarter.

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Dabur enters snacks category under Real brand - Economic Times
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