Perfetti's sweet spot: Why Re 1 candies still drive 70% of business

Despite digital payments, premium offerings, and changing consumer palates, Perfetti Van Melle India continues to thrive on its Re 1 candy portfolio.

Speaking at the Marketers' Excellence Conference 2025 hosted by afaqs!, Nikhil Sharma, managing director, Perfetti Van Melle India, offered a deep dive into the company’s evolving strategy—from variant innovation to communication pivots and value engineering.

While many FMCG players have cited disruptions from UPI-driven purchase behavior, Sharma confidently stated that UPI has had no real impact on their business. In fact, Perfetti has seen some of its best growth years in 2022, 2023, and 2024, post-pandemic.

“Our core is impulse-driven purchases. Re 1 candies are a cash habit, and that habit is still very much alive,” Sharma noted.

Despite a growing premium portfolio, 70% of Perfetti’s business still comes from Re 1 products, primarily candies. Sharma underlined how important that price point remains in driving scale and reach across India’s vast retail network.

He agrees to the fact that raising prices in this category is not easy. The brand took years to move from 50 paise to Re 1, and moving to Rs 2 is still "too far away." Instead, the company has used quantity reduction (grammage tweaks) to manage inflation—offering smaller sizes while keeping the price point intact.

Perfetti Van Melle India entered the Indian market in 1994 and quickly became a known face in the confectionery sector with brands like Center Fresh, Center Fruit, Mentos, Alpenliebe, Happydent, and Chupa Chups under its belt.

According to Sharma, today Perfetti holds 28% share in the market, producing 350 tonnes of candy daily and reaching over five million retail outlets.

Perfetti’s communication strategy has evolved with its consumer. He stressed that marketing in this sector goes beyond creative campaigns.

“It’s not just about advertising. It’s about knowing your product, pricing it right, and taking ownership of the entire cycle—from development to point-of-sale visibility.”

In January 2025, the company launched a new TVC for Center Fruit after a long time, followed by a collaboration with Paytm soundbox, and more recently, a new Happydent TVC. These campaigns are designed to keep the brand top of mind while staying rooted in category-specific relevance.

Sharma emphasised that unlike many large FMCG brands, Perfetti has to find innovative ways to remain visible despite operating in a low-involvement, low-margin category.

The brand’s once irreverent tone—epitomised by Center Fresh's iconic line Zubaan Pe Rakhe Lagaam—gave it strong recall. However, post-2015, Perfetti began shifting towards product benefit-driven advertising, especially as it introduced more premium-priced formats.

With newer audiences becoming more discerning, the need to showcase freshness or functional benefit became more critical, especially for Rs 10-Rs 20 SKUs.

While innovation has been part of Perfetti’s growth playbook—especially in earlier decades—Sharma offered a word of caution on new product development (NPD) in today's environment. 

“Twenty years ago, launching variants worked because people craved novelty. But now, a new flavor might just end up competing with your own main brand.” 

That hasn’t stopped the brand from exploring new formats.The brand has leaned into flavour and format innovation with variants like liquid-filled gum, cooling crystals, and Air Action Center Fresh. Sharma credited these for sustaining consumer interest in earlier years but cautioned against over-relying on variants today.

Looking ahead, the confectionary brand is also developing products around the ‘sour’ flavor cohort, a growing preference among Indian consumers. He revealed that R&D is actively working in this direction, indicating a shift in taste trends that may shape future launches.

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