Rural India's sweet tooth for Dairy Milk: Cadbury missing out on other treats?
Mint reported that Mondelez India, known for its popular chocolate brands like Cadbury Dairy Milk and Toblerone, has doubled its rural footprint in the past five years. Rural sales now contribute a quarter to the company's traditional trade revenue, as households in even smaller villages, some with populations as modest as 3,000, are spending disposable incomes on its chocolates.
How has the ubiquitous chocolate bar in its distinctive purple packaging made rural inroads, competing with traditional sweets like Mysore pak, gulab jamun, and rasgulla? Established in 1824, Cadbury, a venerable British confectionery brand with a 199-year legacy, has long been in India since before Independence. Cadbury Dairy Milk’s success in India is built on marketing strategies, cultural resonance and getting its distribution right.
Its advertisements resonate with Indian sentiments, and its pricing is affordable, broadening its appeal across diverse demographics. Despite this success, the average chocolate consumption in India stands at a modest 100 grams, considerably lower than the 5-10 kilo consumption observed in developed markets with Cadbury Dairy Milk holding 40% of the market.
It sells in over 100,000 of India's 600,000-plus villages that are home to nearly 69% of the population. Mondelez, which also includes other brands such as the 5Star, Perk, Gems, Silk and the Oreo range, holds 66% of the Indian chocolate market.
The rural per capita FMCG consumption lags that in urban areas ($27 versus $82), but these untapped markets do afford a substantial potential consumer base for packaged goods. Infrastructure developments, including improved road connectivity and rural electrification, have helped accelerate the company's reach in
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