Ajinomoto enters Indian powdered drinks market
10 Aug 2017 --- Ajinomoto India Private Limited, an affiliate of Ajinomoto Co., Inc. is set to enter the powdered drinks market in India with the start of sales of Blendy 3 in 1 powdered drinks (coffee and masala chai) in the state of Tamil Nadu in southern India in mid-August.
This will be the first rollout of the brand outside Japan since Ajinomoto Co. acquired the trademark rights for Blendy 2 on November 1, 2016.
The population of Tamil Nadu is 78 million and rising. In addition, gross domestic product (GDP) in the state is at a high level, growing by 12 percent in 2016 compared with the previous year (source: Trading Economics 2016). Although coffee and tea are drunk on a daily basis in the state, the usual practice in households is to use instant coffee or to brew tea from tea leaves, adding hot milk and sugar in both cases. Consequently, there is consumer demand for a simpler and easier way to enjoy delicious coffee or tea, but the market for 3 in 1-type powdered drinks is not yet significant.
Against the backdrop of this market environment, Ajinomoto India Private Limited will launch Blendy 3 in 1 powdered drinks in Tamil Nadu. The company aims to establish a powdered drinks market and gain the top share through sales in small neighborhood retail outlets called kirana shops and in supermarkets. It is also considering a future roll out into other states in the country.
Ajinomoto Co. has positioned the powdered drinks business as a future growth driver of its International Food Products business, and this rollout will expand the business to its eighth country, following Thailand, Vietnam, and others. Ajinomoto Co. will accelerate the growth of its powdered drinks business with the rollout outside Japan of the Blendy brand, which is popular in the Japanese coffee market, together with the technological and marketing capabilities that are the strengths of the Ajinomoto Group.
Ensuring food products business growth with a stronger regional portfolio is a key strategy of Ajinomoto Co.’s FY2017-2019 Medium-Term Management Plan. In India and other emerging countries, Ajinomoto Co. aims to expand its business by proactively launching new products in addition to its existing products, and will contribute to the health and well-being of local consumers through the development of product categories adapted to local eating habits and food culture.
