Oetkar widens spread
Western sauce and dip maker Dr. Oetker is hoping to ride out the weak consumer sentiment in the Indian market by banking on the changing tastes of the upwardly mobile urban consumer.
The company, part of the 7-billion-euro Oetker Group of Germany, maintains that it will be able to continue with its robust growth in 2020 as it did in the recent past and also turn profitable at the net level.
Driven by launches within the fast expanding mayonnaise and peanut butter categories, Dr. Oetker is aiming to achieve 14-15 per cent growth in sales.
“Consumption of mayonnaise outstrips ketchup in the United States, Germany and many other countries. In India, it is still a fraction of ketchup. There is a big headroom to grow. And as a market leader in India, Dr. Oetker is well placed to capture it,” Oliver Mirza, managing director & CEO of India and SAARC, said.
Dr Oetker’s India product portfolio consists of sandwich spread and Italian sauces, of which mayonnaise and peanut butter contribute 50 per cent and 25 per cent, respectively. The inflexion point came when it introduced veg mayonnaise in 2016.
The company posted a topline in 2019, up Rs 52 crore, the best year after entering India in 2008 by acquiring FunFoods. It expects to add another Rs 40-45 crore in sales and break even. Last year, it became EBIDTA positive.
Devarshy R. Ganguly, vice- president, marketing, said the company would spend less on advertising in 2020 as the focus would shift to social media.
“We want to drive affordability with small size option in the market place. This will encourage consumers to try out new products,” he said.