Scandic Food India, a subsidiary of the Denmark-based Good Food Group, plans to create a premium jam category by bringing its international portfolio to the country, CEO Preman Singh Ahluwalia said. Having introduced a low-sugar jam brand, Streamline, in 2010, it now intends bringing new brands such as Svanso, a 100 per cent sugar-free brand, from its parent company in Denmark.
Svanso would straddle the premium end of the jam market and would be priced at a 20 per cent premium to the company’s existing brands such as Sil (Rs 105 for 500 gm) and Streamline (Rs 170 for 340 gm). At present, the premium jam segment is dominated by international brands such as St. Dalfour (imported by Weikfield) and Hero, which are present through distributors.
The jam category is estimated at Rs 180 crore and growing at 8-9 per cent. “The premium jam category is even smaller at Rs 15 crore but we want to get better margins by bringing in more products,” says Ahluwalia.
Scandic Food turned profitable in India in 2010 when it got its low-sugar jam brand Streamline in India. Streamline’s franchise has now been extended to a smoothie drink as well.
The Pune-based company is still in the process of building its distribution and does not have pan-India presence currently. Scandic Food started operations in India by acquiring the Sil brand from Marico in 2008.
The jam category is dominated by HUL’s Kissan with a 60 per cent share followed by Sil at 20 per cent. “By bringing in sugar-free jam we expect to differentiate ourselves in the sluggish jam category where there is intense competition from regional players as well,” added Ahluwalia.
The jam and processed food company plans to focus on the digital space and connect with consumers through social media and has given its mandate to Trinetra Focus Communications to build the brand. With sales turnover of Rs 35 crore this fiscal, Scandic Food plans to focus on extending its distribution to 50,000 outlets by 2015.