Glaxo plans to enter premium cookies market

After expanding into instant noodles, snack bars and low-priced milk-food drinks in recent months, GlaxoSmithKline Consumer Healthcare is planning to enter premium, high-margin biscuits and cookies category.

The Rs 2,100-crore maker of Horlicks and Boost health drinks will introduce a range of high-end cookies and cream-biscuits under the Horlicks brand next week, said GSKCH executive vice-president of marketing Shubhajit Sen. GSKCH’s presence in the biscuits segment is marginal, with the inexpensive Horlicks brand and the recently-launched Junior Horlicks aimed at toddlers the only brands in the market. By stretching its compass in a segment dominated by Parle Products and Britannia Industries, GSKCH could be setting off a fierce brand war in the Rs 11,000-crore segment.

Thanks to an assortment of brands spanning the inexpensive and premium price categories, Parle and Britannia enjoy shares estimated at nearly 35% each in the overall organised biscuits segment, followed by ITC’s Sunfeast brand. A host of smaller players such as Cremica, Priyagold, Anmol and Bonn are also jostling for space. The segment has also drawn UK’s United Biscuits while American powerhouse Kraft Foods is exploring an entry.