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FMCG cos eye rural market for wider penetration
by Gopal Singh on September 28th 2010 and filled under Food & Beverages
 

The fast moving consumer goods (FMCG) companies are focusing on the country's rural market by developing specialised nutrient-enriched products to cater to malnourished population.

"Many people in India lack key nutrients like iron, iodine and Vitamin A...and fortification of food will help in overcoming this problem. It is our clear vision that we want to develop fortified affordable products for Indian consumers," Nestle Global Head (R&D) Klaus Zimmermann was quoted by a news agency.

The company has taken up one of the biggest steps towards the new focus by announcing plans to open its first Research and Development centre (R&D) in India at an investment of around Rs 230 crore. The centre will focus on developing affordable nutrition products.

Other FMCG players are also not far behind. While Britannia has developed a highly fortified energy snack under its 'Tiger' brand for children suffering from iron deficiency, GSK Consumer Healthcare (GSKCH) said it is currently test marketing a subsidised health drink 'Aasha'.

"We have developed an energy snack, which is highly fortified with iron, required to give to those children who are highly deficient in iron," Britannia Industries Managing Director Vinita Bali was quted as saying by the agency.

On the other hand, GSKCH is also currently test marketing a health drink 'Aasha' under the Horlicks brand, which has been developed particularly for the the bottom of the socio- economic pyramid.

"It has been made with raw materials and micro-nutrients. The product is priced cheaper and specially made for those people who are deficient of key nutrients," GSK Consumer Healthcare Executive Vice President Subhajit Sen was quoted.

Last year, Coca-Cola had also launched similar initiative by developing an orange flavoured beverage fortified with micro-nutrients called 'Vitingo'.

 
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Tags (click for more Related Topics): consumer goods (FMCG), Vitingo, GSK Consumer Healthcare (GSKCH), Research and Development centre (R&D), rural market, Nestle Global Head (R&D) Klaus Zimmermann, malnourished population, nutrient-enriched products
   
 
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