The India-made Cocoberry brand of frozen yogurt is adding product categories to compete with MNCs in the health and wellness segment.
Cocoberry will soon market beverages, breakfast cereals and fresh fruit at the premium end of the FMCG market.
Speaking to
It will also launch the ‘Cocoberry Fresh' sub-brand to sell fresh fruit, berries being the first to be launched. In breakfast cereals, Cocoberry would make sure it does not have products like Kellogg's. “None of our products in breakfast cereals would be similar to that of Kellogg's,” claims Mr Bhalla.
Cocoberry is already competing with brands such as Baskin Robbins and Haagen-Dazs in the frozen yogurt segment. It has differentiated its frozen yogurts with a low-fat offering.
“There are larger players like Danone and Nestle in the health and beverage segment already but we believe there is still opportunity in this category as it is growing at almost 40 per cent,'' said Mr Bhalla.
Subcontracting its products to a host of vendors, the Cocoberry brand is poised to expand its distribution with more outlets across the country. It has decided against having franchises and would spend heavily on setting up company-owned stores on high streets and enhance its presence through the modern trade outlets. “Unlike most of the other FMCG players we still need a larger distribution network. We intend having 150 stores across 20 cities to sell our entire range of FMCG products,'' added Mr Bhalla. Currently Cocoberry is present in nine cities and has 42 outlets.
Staying away from getting funds from the capital market, the family-owned Cocoberry will approach private equity players for its next round of funding.
“Currently we are funded through private equity players and would need another Rs 50 crore for our next phase of expansion,'' added Mr Bhalla.