Cadbury`s, Nestle lose market share to imported chocolates

As a result, these companies will lose their pricing clout. Imported chocolates are not only in demand but also offer bigger margins as compared with the locally made brands to retailers.

Cadbury is already at loggerheads with the Future Group, the country's largest retailer, on the deals and margins it offers. Seeing the increase in competition, Cadbury India is also looking at introducing more sophisticated forms of chocolates from its global portfolio to boost consumption and retain market share.

"In our stores, the sales of imported chocolates is double the sales of domestic brands. Their sales is growing at triple digits. Imported brands offer newer chocolate formats to consumers, resulting in their higher demand," said Sadashiv Naik, CEO, Food Bazaar, Future Group. Echoing this view, vice-president (marketing) of Spencer's Retail Samar Singh Sheikhawat said, "Sales of imported chocolates has become equal in value to that of the domestic brands put together. Whereas the imported chocolates sales are growing at 100 per cent, made-in-India brands are growing at around 25 to 30 per cent."

Anand Kripalu, managing director, Cadbury India, said, "The competition in the chocolate market has increased significantly. In spite of this, we have been able to hold on to our 70 plus per cent market share. We would look at introducing newer products to boost the consumption of chocolate in India. Chocolates are not consumed on daily basis, so we would look at positioning them for everyday consumption from being consumed only on select occasions."