Maggi sales plummet in India

Wednesday 17th June 2015 06:34 EDT

The recent lead and MSG controversy may just have cost Magi its glory of being a Rs 20 billion brand in India this year. The FMCG industry has very few brands in the Rs 50 billion sales bracket, but quite a handful of them are reaching the Rs 20 billion mark. Maggi, given its vast consumption and strong brand equity amongst its consumers, crossed the benchmark years back. But considering the latest negative publicity the brand has been receiving and the fact that the product is off shelves, even if temporarily; it seems to have a rub-off effect on other Maggi products as well.

A senior analyst explains that high-consumption categories, the percentage spend of the consumer's wallet and competitiveness, determine the size of the brand. Maggi, which created the noodles market of India, was for a long period of time, the only player in the category. “For some brands it is very easy to touch Rs 20 or 50 billion sales because of the category they are present in,” the analyst said.

The growing consumption has seen action in the Rs 10 billion bracket. Godrej No. 1 and the said group's other product, Good Knight has crossed Rs 15 billion in sales. From HUL, Dove has entered the club, while Dabur's Real, Amla and Vatika has crossed the mark too.

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