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Hershey-Godrej JV spells repositioning for Nutrine; Mudra’s position hangs
Virtually all the brands under the Godrej Foods & Beverages stable will go in for a new look and positioning, a rebranding of sorts. Mudra will continue to handle the Godrej set of brands, although it is unclear which agency will take care of Hershey’s brands when they come to India
The formal announcement about the joint venture between Godrej Beverages and Foods and the US-based chocolate and confectionery major, The Hershey Company, was made on April 3. The resultant entity will be called Godrej Hershey Foods & Beverages. It will include all the brands from the Godrej Beverages and Foods stable, most prominently the Nutrine set of brands, and Hershey’s brands, which will initially be imported and later manufactured here under the JV.
So far, Hershey’s has had a weak brand presence in India, with little or no advertising for its products.
It is learnt that, as of now, Mudra, which has been the agency for all the Godrej Beverages and Foods brands, both confectionery and beverages, will continue to handle them. It is not clear whether it will also handle Hershey’s brands that enter India through this joint venture.
From (L) to (R): Richard Lenny (chairman, president and CEO, The Hershey Company), Adi Godrej, John Bilbrey (senior V-P, Hershey International, The Hershey Company), and A Mahendran. |
Globally, Hershey’s account was handled by DDB before October 2005. Mudra can’t be completely ruled out of the picture as DDB is also a partner in Mudra Communications, and it recently launched a new unit, DDB Mudra, to work closely with DDB.
Some of the brands from the Godrej Beverages and Foods stable that Mudra will continue to handle include Nutrine Maha Lacto, Nutrine Eclairs, Nutrine Superstar, Nutrine Kokanaka and Nutrine Gulkhand, and beverage products such as Sofit and Jumpin.
It is learnt that all of these will go in for a new look and positioning, as a result of the joint venture, but things are still in the research stage.
The advertising spends for the Godrej brands are pegged at Rs 20-30 crore. Ad budgets for Hershey’s brands could not be ascertained.
Hershey’s will have a 51 per cent stake in the joint venture (a total investment of US$ 60 million), while Godrej will have the remaining 49 per cent (out of which 6 per cent belongs to A Mahendran, erstwhile director of Godrej Beverages and Foods, who will now be the mentor director of the new entity).
The JV gives Godrej a strategic long term partner with global brands and international technology to grow its F&B business, whereas the acquisition gives Hershey a platform to launch its brands in the country by leveraging Godrej’s strong distribution network.
The Hershey Company markets brands such as Hershey’s, Reese’s, Hershey’s Kisses, Ice Breakers, Hershey’s Special Dark, Hershey’s Extra Dark, Cacao Reserve, Hershey’s Milk Chocolate Covered Almonds and Hershey’s Special Dark Chocolate Covered Almonds.
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