FMCG giant Hindustan Unilever (HUL) has added peanut butter to its Kissan food and refreshment line (F&R) products. The new product was initially introduced in the North Indian markets. It comes under the range of sweet spreads, including jams, marmalades, sugar, nut-based spreads, etc
The segment is currently valued at about Rs 250 crore and has gained recognition in North Indian markets (Delhi and Punjab). Peanut butter leads the demand for nut spreads, rising steadily at more than 35% CAGR over the last five years. There are various smaller / regional brands in the market, but famous players include food brands such as Sundrop, Dr. Oetker, etc.
The company’s spokesperson says that India’s peanut butter industry caters mainly to health lovers who eat it as part of a balanced diet. There are early adopters of the group and have, in many cases, begun to take it as suggested by nutritionists/dieticians. The challenge at HUL’s desk is now to build a niche outside culinary enthusiasts.
The brand aims to exploit its relationship with Indian mothers to cultivate an association with Indian mothers. The company says that the time has come to join this new party and democratize the practice of peanut butter eating. Why did HUL prefer South Indian markets rather than the fast-growing ones? Why did HUL select South Indian markets? According to IMRB data, South India provides the best opportunity for selected target segments of mothers looking for healthy and easy food solutions for their infants.
In all the states of South India, the taste of peanuts is also very popular, with a variety of dishes-delicious and sweet. making it easier for people here to take the product quickly. We predict that peanut butter can easily become a regular breakfast/snack accompaniment to bread/roti, or even a nutritious shake mixed with milk.
Peanut butter appears to have been first adopted by metros, followed by Tier-I cities. Kissan, as a brand, is the industry leader for jams in India. It played a key role in making jam an essential part of Indian breakfasts and school tiffin boxes. The brand’s aim, for now, is to create salience with mothers and, in turn, children. The product has more protein than in egg, dal, milk, poultry, fish, curd, and paneer per 100 grams.