Chocolate brands in a bitter fight

With Diwali just less than a week away, Gujarat is witnessing a boom in chocolate sales and a stiff competition among the leading brands.

Cadbury India Ltd and Gujarat-based Amul are in the forefront of the competition and the companies have launched various schemes to lure the sweet-toothed.

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The recent allegations against Cadbury has given an initial advantage to Amul, which has also launched moderately priced gift packs and three new varieties for the festive season.

Both the chocolate giants expect the sales to go up considerably. Cadbury is targeting a sales of over Rs 50 lakh (Rs 5 million) by the month end and Amul sees a three-fold increase in sales with a festive season turnover of over 80 lakh (8 million).

R S Sodhi, general manager (marketing) Amul, said with the launch of 'Rejoice' packs, the sale of chocolates have shot up three-fold.

"We are not charging anything extra for the gift wrapping. The three packs at MRPs of Rs 100, Rs 150 and Rs 200 contain chocolates worth that amount," Sodhi said.

In addition, the company has launched three new varieties of chocolates, all of which are selling well, he said.

On the negative publicity that Cadbury has earned over the presence of worms in chocolates, Sodhi said Amul chocolates are being sold completely sealed from the very beginning.

"Sales in this festive season are three times higher than in the last year," he said. Besides 'Rejoice', the brands that have been launched this festive season are 'Bindaas' for youngsters, 'Fundu' for children and 'Almond Bar'.

An Amul official said while a 25 per cent increase in sales has already been achieved, this is likely to go up in the next few days.

The company expects to sell up to eight tonnes of chocolates valued at Rs 90 lakh (Rs 9 million) in Ahmedabad, north Gujarat and Saurashtra in the festive season.

Jignesh Shah, marketing head of the corporate sales section of Cadbury India Ltd, Gujarat region, said, "Diwali is a peak season for the chocolate industry as the sales during this period almost doubles."

"In the current month alone, sales have amounted to Rs 13 lakh (Rs 1.3 million) till date and sales figures in the state are expected to exceed Rs 50 lakh (Rs 5 million) by the month-end," said Shah.

Cadbury is offering various gifts during the Diwali. The 'Festival of delights' offer has packs priced from Rs 85 to Rs 1,400.

In its Rs 85 pack, the company is offering assorted Cadbury chocolates in a colourful tray, where as in the Rs 1400 pack, the company is offering a food hamper, which includes the complete range of Cadbury products.

The company is also offering gifts such as watches, perfumes and pen sets with the packs. Officials said the negative publicity has hit the festive sales, but with the new packaging, consumers will come back to the brand.