As the festive season draws near, the chocolate industry is buzzing with heightened demand. Recent trends indicate an increasing preference for chocolates during festivals, replacing traditional sweets. According to a report by IMARC, the Indian chocolate market is poised to grow from $2.4 billion in 2023 to $4.1 billion by 2028. Global brands also want a piece of the pie. Yet, one player has consistently dominated this segment with a 55.9% market share – Mondelez International, the home of Cadbury chocolates.
Cadbury’s Journey in India
Cadbury, a British confectionary company, first set up shop in India in 1948 in Mumbai. The iconic Dairy Milk chocolate was one of the first Cadbury products made available to the Indian market. With its catchy advertisements, Dairy Milk quickly became a household favourite.
In 1994, Cadbury attempted to redefine the way India perceived chocolates. With the launch of the iconic tagline, “Asli Swad Zindagi Ka” (The Real Taste of Life), the brand wanted to shift the focus from chocolates being solely for children to a delectable indulgence for adults of all ages. The 2000s marked another turning point in Cadbury’s journey. They brought Bollywood actor Amitabh Bachchan on board as its first celebrity ambassador to promote Dairy Milk. The famous ‘Kuchh Meetha Ho Jaaye’ (Let’s have something sweet) advertisements proposed Cadbury as a substitute for traditional sweets during festive occasions while also expanding its target group to include rural consumers. To further cement its role in Indian traditions, Cadbury introduced ‘Cadbury Celebrations’ – dedicated chocolate assortments for various festivals.
The brand has faced its fair share of controversies over the years including the recent controversy regarding Bournvita, a ‘health’ drink owned by the brand. The chocolate drink faced scrutiny when a social media influencer, in a viral video, criticized its high sugar content. Cadbury responded with a legal notice, and Bournvita clarified that its formulation had been scientifically crafted by a team of nutritionists and food scientists to offer both taste and health. Despite these challenges, Cadbury retains its popularity and recorded a 16% growth in sales to Rs. 9,296 crores during FY22.
The brand’s 70-year history in India and its ability to evoke a sense of nostalgia continue to play a crucial role in its success. This sentiment was put to test when Swiggy decided to tease the return of Cadbury Bytes, a popular chocolate snack discontinued back in 2011. As Mondelez International took over Cadbury, the decision to de-prioritize low-margin products like Bytes was made. The focus shifted to other iconic products, such as Oreo and Tang, leading to Bytes’ gradual disappearance from stores. On April Fool’s Day, Swiggy added an option to buy Cadbury Bytes on its app. But when people tried to add Bytes to their cart, they received a playful message- “Oops, you just got fooled”. The uproar on Twitter that followed confirmed the enduring popularity of the brand across generations.
Mondelez India faced another test of brand loyalty when they raised the prices of their confectionaries by 3.4-17%, translating to a ₹4-10 per pack increase in absolute terms. This move was made to compensate for the impact of rising cocoa prices. Despite the price increase, the group still managed to achieve double-digit growth in volumes, which is an indication of the price inelasticity and the brand’s loyal base.
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