Lotte picks up the confectionary trail, puts spotlight back on Coffy Bite

The Korean major that owns Parry's Confectionary turns to an old faithful brand, Coffy Bite, to push its way forward in the candy and gums business

It has taken 15 years for Lotte, the Korean company that bought out Parry’s Confectionary from the hoary Murugappa group, to turn its attention to an old warhorse in its stable: Coffy Bite. Having spent the first decade-and-a-half prising open the Indian market for its own brand Choco Pie, the company is now looking for a wider sway over the affordable segment of the $1.5 billion Indian confectionery market. 

Coffy Bite was the biggest brand in Parry’s sweets portfolio that also had Lacto King, Caramilk and Coconut Punch. In its early years, it was a frequent advertiser and visible across multiple points of sale. However, over the past decade, the brand has gathered dust and faded from public view. 

Lotte wants to push it back under the spotlight. It has designed new packaging and a fresh pitch for the re-launch. While Coffy Bite brings the weight of its legacy and distribution network into the mix, it will be a challenge to get the old brand to adjust to a new market and consumer landscape, say experts. 

Milan Wahi, managing director, Lotte India said, “Coffy Bite is clearly a gem in our confectionery portfolio that has high recall. Given the nostalgic pull the brand enjoys, we have decided to re-launch it nationwide to stay relevant and appeal to the present-day customer.” The initial years having been spent on establishing Choco Pie, which contributes close to 40 per cent of Lotte’s revenue in the country and is the leader in its category according to the firm, it is now time to refresh Coffy Bite. 

It is not just the brand that Lotte expects to revive, but it is also keen to raise the profile of its candy and gums portfolio. Wahi wants Coffy Bite to contribute around 25 per cent of total revenue in the next three years, as compared to 15 per cent today. New packaging, multiple pack sizes and a new campaign are among the measures being taken to announce the brand’s new look and intent. 

Interestingly though, amidst all the change, the advertising storyline is unchanged. The 32-year-old ‘coffee vs toffee’ proposition where the cast of characters plot their way around the taste of the chewy candy is being reused for the brand’s re-launch. The campaign, to begin with, will play out in the southern states of Tamil Nadu, Andhra Pradesh, Karnataka and Telengana and gradually scaled up.

Keeping the storyline the same is a way to evoke the nostalgia around the brand. Lotte inherits its legacy in India from Parry's, a solid brand of candy and confectionary, said Harish Bijoor, founder, Harish Bijoor Consults. While this is a big advantage for the proposed rejuvenation, he said, “What's missing is the animal spirit to do something disruptive in this market dominated by a handful of players in the organised segment.”

Lotte is leaning heavily on the marketing playbook it used for Choco Pie, for Coffy Bite. The emphasis is on pack sizes; almost 50 per cent of the Coffy Bite sales are from the Rs 5 pack, one that Lotte plans to pay close attention to. According to industry estimates, food products in the Rs 5 pack account for a business of around Rs 40,000 crore for biscuits, chocolates and such other food products. 

The company spends 5-6 per cent of its revenue on marketing with the bulk going towards digital. Wahi said that Choco Pie’s success owes a lot to the strong positioning it managed to achieve, as a pure vegetarian product that doubles up as a regular snack and a gift. Availability in multiple packs and price points helped. The company went to schools and ran special campaigns with children to back up its claims and has worked with retailers to ensure that one can buy different pack sizes for the product, allowing entry for as low as Rs 10 for a trial pack (at select outlets) and going up to Rs 200 for a gift box. Find new occasions for consumers to sample the brand is the motto.

With Coffy Bite, the aim is to do something similar. Lotte plans to turn to some other Parry’s brands in its portfolio and give them a makeover.