India's multi-category, multi-brand beverage behemoth Parle Agro has been dominating the fruit-based drinks category in the country for over three decades with iconic Indian beverages, has announced its diversification into the dairy category. The move is backed by years of devoted in-depth research and extensive investment in modern and innovative technologies to build a robust dairy infrastructure and introduce novel products to Indian consumers. With this, Parle Agro is set to dynamically transform the dairy universe in India with innovations and new consumer experiences that haven't existed in the category before.
Parle Agro makes its entry into the dairy segment with a high quality and premium range of flavored milk products – SMOODH. With disruption ingrained in the company's philosophy, SMOODH claims to become the only flavored milk beverage in the market globally, to be available in 85 ml Tetra Pak cartons and priced at only Rs 10. With this offering, Parle Agro is gunning to grow the branded flavored milk market in India from the current Rs 800 crore to Rs 5000 crore in the next four years.
SMOODH is a silky, wholesome, and delicious flavored milk beverage available in two universally popular consumer choices, Chocolate Milk and Toffee Caramel. Created combining the finest quality ingredients and the goodness of milk, this drink is sure to become a new favorite among all age groups, said Parle.
Commenting on the launch of SMOODH, 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 innovations have always led, it has been a conscious effort to bring Indian consumers high-quality and rich taste products at the best value. SMOODH is in sync with this very vision."
Elaborating further on the impact that the innovative SMOODH will bring to the beverage industry, Chauhan added, "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."
Disruption in the flavored milk and Rs 10 Chocolate category with SMOODH
SMOODH is the only brand in the flavored milk category priced at an incredible value of Rs 10. This allows Parle Agro to break the pricing barrier, which has hampered the growth of the flavored milk category in India. The price and pack size also enable Parle Agro to achieve high penetration and distribution for SMOODH.
SMOODH also meets the need of consumers looking for a quick energy boost or a quick sweet fix, equivalent to that of a Rs 10 chocolate bite. Thus, with the unique and disruptive pack size and price for a chocolate milk beverage, SMOODH is sure to impact the flavored milk category and the Rs 10 chocolate category.
Since its soft launch, SMOODH has seen almost equal offtake in rural and urban markets, a phenomenon that has never been experienced by existing branded flavored milk brands in aseptic cartons as they don't exist in rural markets. With this breakthrough combination in price and pack size, Parle Agro has brilliantly activated almost 80-90% of the rural market for flavored milk, which has never been started to date until the launch of SMOODH.
Speaking about the launch of SMOODH by Parle Agro, Adolfo Orive, president and chief executive officer, 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. We are committed to supporting them in taking the category to new heights with our integrated packaging, processing, and services solutions. 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 honored to be part of the Parle Agro story for over three decades and look forward to supporting this new phase of growth."
Technological Innovation and Infrastructure
SMOODH is currently being produced at two manufacturing locations - Mysore and Sitarganj. By the end of 2021, Parle Agro will have added two more manufacturing locations producing SMOODH. The company has invested Rs 100 crore for the latest and most advanced manufacturing technologies at their plants to ensure the premium quality of SMOODH is maintained and remains top-notch.
Future of dairy vertical at Parle Agro
SMOODH range of flavored milk beverages is just the beginning of Parle Agro's innovative offerings to bring to the dairy category. The company has set its vision on introducing a range of ground-breaking products under their dairy portfolio apart from flavored milk products that will shake up and cause disruption in the dairy market.
Chauhan added, "The dairy market is dynamic. We envision a very high and untapped potential to optimize products in this market further. 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 nationwide post availability of the product.