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[aryan]

MUMBAI: In the fast-growing cheese category, while brands like Amul and Go have grown ahead of the market, Britannia's volume share has nearly halved to 8.3% in the fourth quarter of 2010 from 16% in the first quarter of 2009, according to Nielsen's data of India's top 35 metros.

While the overall offtake in the retail segment in top 35 metros has increase by 27% in 2010, as compared to 2009, brand Amul from Gujarat Cooperative Milk Marketing Federation (GCMMF) is said to have registered a 36% growth. Amul not only leads in cheese slices (69%) and cheese cubes (98%), but spreads (70%) as well.

However, according to Britannia, the value share of its brand Milkman is around 30% in the overall cheese market. A Britannia Industries spokesperson said: "The Nielsen data pickup for cheese covers a very small population of outlets and hence is not a representative sample size for accurate extrapolation. Basis the data of all Cheese manufacturers in India, we have a value share of approximately 30% in the overall retail Cheese market and a share of approx 40% in modern trade formats."

The size of the cheese market in India is estimated to be around Rs 400 crore. Industry analysts said Amul's value-for-money pricing strategy has assisted the brand in strengthening its volume share from 72% to 83% during the period.

According to the data, the volume share of Go, a relatively new brand in the market from Gowardhan, has gone up from 1% to 3%. Go is also aggressively pushing its product in modern retail format stores through discounts and heavy margins. For instance, currently, on Go cheese slices (200 gm pack of MRP Rs 91), there is a consumer offer of two-wedge pack worth Rs 20 free in certain modern retail stores. In certain stores, there was also an additional discount of Rs 11 per pack, which brings the effective price to the consumer down to Rs 60. As a result of the marketing initiatives undertaken by Gowardhan, Go has grown by nearly 80% since Q1 2009.

GCMMF, on the other hand, has focused on widespread distribution of Amul to smaller cities and towns through its chilled distribution highway.

The competitive scenario in cheese is expected to keep the engagement of companies with consumer active for some time now. Said R S Sodhi, managing director, GCMMF: "As leaders in the category, our priority has been to expand the consumer base for cheese and increase category penetration. Our pricing would continue to remain affordable to the consumer."