Hershey eyes a bigger share of Indian chocolate market

For Steven Schiller, President-International, The Hershey Company, there is probably more potential in India than any other market where the chocolate maker has operations. He reckons that going forward growth for the company in India is going to be robust, with its four core brands growing at 50 per cent currently.

“At Hershey, our international business is key to our overall success, and India is a critical part of that success. It’s one of the several international focus markets where we are making measured investments. India offers significant growth opportunities given its demographic and economic potential and the expected consumption growth rates in the years ahead,” said Michele Buck, President and Chief Executive Officer, The Hershey Company.

Buck and Schiller were in Mumbai to launch its chocolate brand ‘Hershey’s Kisses’ in India on Wednesday. Herjit Bhalla, Managing Director at Hershey India, termed it the biggest launch since they entered the Indian market ten years ago.

India investment

Hershey’s Kisses will be initially launched in the South, available across modern trade, large general trade and e-commerce. “The southern States constitute around one-third of the chocolate market. We have followed this in the past and it has delivered good results and we are sticking to this winning formula,” said Bhalla.

When asked about the $50-million investment plan in India for the next five years that was declared last year, Schiller said that it (the investment) is going into a number of areas such as infrastructure — in building manufacturing capabilities and equipment to manufacture chocolates in the “high quality food standard” way — and hiring more people as they expand. “We have invested more in our brands and that will continue over the next several years as a part of overall commitment,” he added.

Importing into India

However, he felt that importing into India is “very hard.” He pointed out that most other countries would then have tariffs to bring products out of India into their countries. He felt that if India can continue on the path of being stronger in doing business with, it will make it easier for products to flow in and for products to flow out.

“We now have wonderful infrastructure here that I would love to make work even harder and ship more products to more places. And by the same token, I have got infrastructure in other places which would allow me to bring in some new products faster to be able to try with the Indian consumer and today, the barriers to that are a little bit tough…If we can lower these barriers, we will have much more growth and opportunities in India,” Schiller said.

Source:-https://www.thehindubusinessline.com/companies/hershey-eyes-a-bigger-share-of-indian-chocolate-market/article25251948.ece

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