Beverage company Parle Agro has announced its diversification into the dairy category with the launch of a range of flavoured milk products named Smoodh.
The brand says it is the only flavoured milk beverage in the market globally to be available in 85 ml Tetra Pak cartons and priced at Rs 10.
With this offering, Parle Agro aims to grow the branded flavoured milk market in India from the present Rs 800 crore to Rs 5,000 crore in the next four years.
Smoodh will be available in Chocolate Milk and Toffee Caramel.
Nadia Chauhan, Joint Managing Director and CMO, Parle Agro, said, “Years of dedicated R&D have gone into developing this incredible product. And like all Parle Agro products, I am extremely happy and delighted to finally launch it in the market for our consumers to experience. As one of India’s leading beverage companies that has always been led by innovations, it has been a conscious effort to bring Indian consumers high-quality and rich-in-taste products at the best value. Smoodh is in sync with this very vision.”
Chauhan said, “Smoodh is a product that can be described as a technological marvel from all aspects – product, quality, price and pack-size. With the immense consumption opportunities that it presents, we are looking to create a substantial dent not just in the beverage category, but in the Rs 10 chocolate category as well, which is currently a Rs 4,300-crore industry.”
The Rs 10 pricing of Smoodh gives Parle Agro the opportunity to break the pricing barrier, a factor that has hampered the growth of the flavoured milk category in India. The price and pack size enable Parle Agro to achieve high penetration and distribution for the brand.
Since its soft launch, the brand has been seeing almost equal off-take in rural and urban markets, a phenomenon that has never been experienced by existing branded flavoured milk brands in aseptic cartons as they don’t exist in rural markets.
Parle Agro has activated almost 80-90% of the rural market for flavoured milk, which has never been done to date until the launch of Smoodh.
Adolfo Orive, President and CEO, Tetra Pak, commented, “Tetra Pak’s partnership with Parle Agro has been a partnership of many ‘firsts’, from the first Frooti package that made Tetra Pak a household name in India three decades ago, to be the partners of choice for this pivotal entry into the dairy segment. We’re inspired by the vision they have for the dairy market in India, and with our integrated packaging, processing and services solutions, we are committed to supporting them in taking the category to new heights. In addition, Smoodh is being launched in the TBA 90 Ultra package, which is not just a first in India, but a global first for Tetra Pak. We are truly honoured to have been part of the Parle Agro story for over three decades and look forward to supporting this new phase of growth.”
Chauhan added, “The dairy market is really dynamic. We envision a very high and untapped potential to further optimise products in this market. As a leading brand whose strength lies in establishing new categories, building brands and capturing market share, we are very passionate about setting and reaching ambitious goals. We will continue to innovate with our product line with the vision of making Parle Agro the #1 Beverage Company in India while creating a historic transformation in the dairy industry with never-before products.”
Plans are underway for a state-wise launch of Smoodh with a distribution target of 2.2 million outlets across India. A strategic 360-degree marketing plan will be implemented after nationwide availability of the product.