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Dabur REAL: fruit drink leader (expansion & diversification)

Dabur India Limited (Dabur) launched Réal in 1997. It is currently India's most trusted brand for packaged fruit juices despite growing competition. It leads the market in the 100% juice segment with a 43.5% share, according to data. Dabur India has also forayed into the packaged milk fruit-shake market under its Real brand.

Réal Fruit Power has been the consumer’s preferred choice for packaged Fruit juices. It is this love that has made Réal Fruit Power the No. 1 juice brand in India. For six consecutive years, in the juices category, we have been named the ‘India’s Most Trusted Brand.’

Réal Fruit Power today has a selection of 14 exciting fruit juice variants — from exotic Indian Mango Juice, Guava Juice, Amla Juice & Litchi Juice to exotic favorites — Pomegranate, Tomato, Cranberry, Peach, Plum, Apricot & Grape, along with classics — Cherry, Pineapple, Apple and Mixed Fruits.

The range is varied, and Real often markets them, according to festivals, and occasions.

Made from best quality fruits, Réal Fruit Power has NO added preservatives; hence it offers both: an amazing taste and also FRUIT POWER – the power to stay ahead. Even PFNDAI (Protein Foods & Nutrition Development Association of India) endorsed Réal’s ingredients to produce only the finest quality of fruit juice in India.

It comes to you in an aseptic 6-layered Tetra Pak. The Tetra Pak guarantees the juice gets all of the fruit’s goodness and nutrients when it reaches you.

THE RÉAL PHILOSOPHY

They believe that fruits can be fun, colourful, juicy, delicious and exciting.

Our ongoing endeavor is to bring the goodness of fruits and health to your home, without compromising on the HAPPY

With Réal, be assured that “HEALTHY IS HAPPY.”

Market Scenario

Dabur India Limited (Dabur) is a century-old company and a well-known brand in India in the health and wellness products. It launched Real fruit juices in 1997. Real was a pioneer in its category and faced several challenges in the initial years. People were apprehensive about the quality of the product and also did not like the taste. Soon, the company understood that the Indian palate preferred sweetened fruit juices and modified the product accordingly. Moreover, the company gave special care to the packaging to maintain the purity and freshness of the product. In addition to this, Dabur segmented the market in several categories for more effective penetration. Also, the company launched new advertising campaigns from time to time to retain customers’ interest.

As of 2013, Real was the market leader in the branded and packaged fruit juice category in India. However, competition increased by several notches in this category. This is because Coca-Cola launched Minute Maid and Hindustan Unilever extended its Kissan brand to fruit juices in the recent past. It remained to be seen whether Dabur Real will be able to sustain its leadership position in the future.

Fruit Drink Sector

In the 100% juice segment, Tropicana had a 41.5% market share (retail volume) in 2016, up from 40% in 2015. Dabur India’s Real juice leads the market with a 43.5% share, according to data compiled by market research firm Euromonitor International.

Dabur Foods is a 100 percent subsidiary of FMCG company Dabur India. It aims to achieve a sales turnover of Rs 500 crore by 2010 from its flagship juice brand Real.

Towards this, the company will invest Rs 100 crore over three years. Of this, Rs 70 crore will be utilised for expanding manufacturing lines in Jaipur, Siliguri and Nepal.

Currently, Dabur Real contributes Rs 175 crore to the kitty of Dabur Foods. In fact, Dabur Foods has an overall turnover of Rs 225 crore. The other brands of Dabur Foods are Active, Coolers, and Hommade.

Real is an over 15-year-old brand of Dabur and has a dominant share of the branded fruit juice market in India.

Further Expansion & Changes

To ensure sustained growth of Dabur Real, the company was evaluating the jams and jelly market and also cut-fruits and fruit syrup market though no immediate announcements in these categories were expected, Amit Burman, CEO, Dabur Foods, said.

“Over the past 10 years, Real has had a compound annual growth rate (CAGR) of 33 percent. Our focus over the next three years will be to achieve a CAGR of 25 percent, thus increasing turnover from the brand to Rs 500 crore by 2010,” Burman said.

Dabur has also done a packaging and design makeover of its Real brand. Explaining the rationale behind the new packaging, Sanjay Sharma, general manager, sales and marketing, said: “The new look has a two-fold agenda – to retain the loyalty of our current consumer base and to attract more consumers.”

The Rs 350 crore domestic branded juice market is growing at a CAGR of 25 percent. According to a study by AC Neilson, Dabur Real has nearly 57 percent market share, while Tropicana is a distant second with a 25 percent share.

To cater to the demands of the export market, the new manufacturing lines would also cater to the markets in West Asia and African countries, Burman said.

Venturing into Milk Shake industry

Around Rs. 900-1,000 crore per annum is the estimated milkshake market in the country.

FMCG major Dabur India said that it has forayed into the packaged milk fruit-shake market under its Real brand.

The company said it has test-launched the new product in select markets of Delhi and Punjab and plans to roll out in other parts of the country soon.

“With the launch of Real Fruit Shakes, we aim to not only extend brand Real to give our consumers more choices but also make the experience of having milk more enjoyable and nutritious for kids,” Dabur India General Manager-Marketing (Foods), Praveen Jaipuriar, said in a statement.

About the Real Fruit Shakes

The brand — Real Fruit Shakes — has been test-launched with a single variant, Mango Shake, and will be offered to consumers in two packings, 200 ml for Rs 25 and 1 liter for Rs 105.

The company plans to extend the Real Fruit Shakes range shortly with the addition of other fruit and milk combinations, Jaipuriar added.

Real Fruit Shakes is currently being test-launched in Delhi and Punjab and the initial response is encouraging.

Dabur plans to soon launch the brand in other parts of the country too to cater to the demand for healthy and tasty milk-based drinks for kids,” the company said.

Earlier, Dabur India expanded its packaged food business by launching fruit juice-based drinking yoghurt, under its Real Activ brand.

Read more: Case Study on Frooti


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