Britannia Industries plans investment of Rs 100 crore to capture 50 percent of the premium biscuits market within two years.
According to a Livemint report, a company executive said Britannia aims to remake the Pure Magic, Bourbon, and Treat brands to stimulate its flat growth.
Britannia’s Marketing Vice President Ali Harris Shere told Mint that discretionary marketing and pricing are the key areas of focus.
Cream biscuits, which currently constitute only 7.5 percent of Britannia’s total revenue, take away close to 30-40 percent of its total advertising budget.
Of the Rs 100 crore, Rs 50 crore will be earmarked for the 'Treat' brand. This involves a new packaging and biscuit design, new chocolate and vanilla flavors and a television advertisement campaign, set to launch in a week’s time. The Treat brand is expected to hit an additional 200,000 stores in India, including rural stores of Kerala and Tamil Nadu.
Britannia’s net profit for the quarter ended 30 June fell 1.4 percent from a year earlier to Rs 216 crore.
The company is also looking to clear its inventory and cover up its losses following the rollout of the Goods and Services (GST) taxes, which hurt earnings.
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