The power of malt drinks

ACCORDING to a report by Euromonitor, flavored powdered drinks, including malt-based hot drinks, dominate the Other Hot Drinks category across the Asia Pacific region. Health and wellness, as well as convenience are key drivers in Southeast Asia and India.

Issues ranging from high obesity rate, malnutrition and growing need for coffee and tea substitutes have sharply focused the demand for health foods and drinks (HFD).

In the malt drinks category, Horlicks is one of the brands that has adapted successfully to this trend.

“Our insights show parents are more concerned with children’s overall growth development. Horlicks packed with 23 vital nutrients provides not only the adequate nutrition but also a holistic solution to support children’s mental and physical development to help them grow taller, stronger, and sharper. In addition to providing the product solution, we empower parents and children of the right nutrition to fuel their active lifestyle,” says Stacy Wallace, general manager, GSK Consumer Healthcare for Malaysia & Brunei.

Stacy Wallace, General Manager, GSK Consumer Healthcare for Malaysia & Brunei

“India’s issues include that of malnutrition, undernourishment and hunger. Micronutrient deficiencies alone cost India US$ 2.5 billion annually. This affects physical and mental health at times and thus, the need for a fortified HFD like Horlicks,” adds Prashant Pandey, executive vice president, Marketing, GSK Consumer Healthcare for India. “Horlicks has not only been witnessing high-demand from the urban health-conscious, but rural markets have been also a growth driver for the brand.”

Combining natural with the best of science

For the current consumers of the HFD category in India, Horlicks sees further opportunity in driving relevance to them as well as pushing accessibility among rural and semi-urban users.

Mr Pandey points out that “Horlicks is focusing on driving the same through its unique combination that integrates the natural with the best of science, and makes Horlicks like no other food product.”

Ms Wallace says that for both parents and children nutritional education is needed to help parents understand the importance of nutrition and the right nutrients needed for growth and development. “The challenge is getting parents to encourage kids to recognize and appreciate the benefits such as fill nutrition gaps, enable them to grow tall, strong and even sharper in their different growth stages and active life.”

Flavors for rich consumption experience

For the Malaysia and Singapore markets, the Horlicks Original variant remains the all-time favorite within its whole product range. They also offer other varities such as Chocolate flavor and in a convenient 3-in-1 format with added benefits such as fiber. Horlicks has a long-standing heritage in these two countries.

Meanwhile in India, Horlicks is available in Classic Malt, Chocolate Delight, Royal Kesar Badam (which contains real pieces of Saffron and Almonds blended together) and Elachi Surprise (Cardamom mixed with Horlicks). “While Classic Malt is an age old favorite and has been around for more than a 100 years, the other flavors have also become very popular with children,” says Mr Pandey.

Prashant Pandey, Executive Vice President, Marketing, GSK Consumer Healthcare for India

“Our flavor strategy stems from our ongoing attempt to make our products relevant for greater local consumption. Local flavors like Kesar Badam and Elaichi Surprise are packed with flavor, taste and nutrition, thus providing a rich consumption experience. Our localized flavor strategy is commitment to innovation for the Indian consumer,” he adds.

Innovation across different levels

“GSK’s mission to help people do more, feel better and live longer, drives us to continuously use our research and development expertise to bring more innovation with nutrition benefits that consumers will need,” explains Ms Wallace.

According to Mr Pandey, the success of Horlicks in India has been in staying ahead of trends by evolving its brand identity and a whole array of innovation across claims, packaging and new products.

“Horlicks is the only Health Food Drink in India which is clinically proven to make children taller, stronger and sharper according to a clinical study conducted by the National Institute of Nutrition in Hyderabad,” he says.

In South Asia, Horlicks claimed top position in India, and according to Euromonitor the company maintained its lead in the other hot drinks category with 64 percent of retail sales value in 2015.

“With more than 100 years presence in India, Horlicks is one of the strongest brands in the food and nutrition space in the country. It is the leading brand in the India health food drink product category with a market share of 47.2 percent. Over a period of time, there have been line extensions and brands such as Junior Horlicks, Women’s Horlicks, Mother’s Horlicks and Lite Horlicks which have made the brand relevant to different life-cycles and life-stages,” says Mr Pandey on why the brand is a front-runner in the country.

In a 2015 brand equity survey by India’s The Economic Times, Horlicks was ranked as the 6^th Most Trusted Brand in the country. The same survey ranked it as the Most Trusted Hot Beverage brand in the country.

Aside from Malaysia, Singapore and India, Horlicks is present in the United Kingdom, Hong Kong, Pakistan, Australia, New Zealand, Africa and Middle East.

Horlicks is clinically proven to make children taller, stronger and sharper according to a clinical study conducted by the National Institute of Nutrition in Hyderabad, according to Prashant Pandey

Growth initiatives in the subcontinent

To keep its top position in the Indian market, Horlicks has drawn up strategies to ride on the many prospects presented by the trend towards living a healthy lifestyle. The brand contributes more than half of the consumer healthcare business in India and has been fueling a positive double digit growth for over a decade.

“Our vision is to make brands a ‘must have’ on the consumer’s list. Working in this direction, we are dialing up our science claims. All our advertising and promotion will continue to be based on high-science and facts,” says Mr Pandey. “In addition to this, we also have a healthy line of extensions that help us cater to every stage of the lifecycle.”

GSK continues to see a sustained and uninterrupted growth for the Horlicks brand as it continuously and effectively addresses the needs of the ‘home architect’, the progressive mother who values her contribution in providing the right nutrition to her family. “In addition to this, urbanization from rural markets has stimulated aspirations and led to more demand.”

Mr Pandey mentions that “Horlicks contributes more than half of the consumer healthcare business in India and has been fueling a positive double digit growth for over a decade.” He further cites that modern trade, though small, is growing very fast for them and contributing 30 plus percent to their sales.

Also helping the brand reach new markets are the company’s health education initiatives such as Horlicks Ahaar Abhiyan and Swasthya Abhiyaan.  The Horlicks Ahaar Abhiyan is a movement designed to make underserved communities in India self-sufficient to fight malnutrition on a sustained basis.

The Swasthya Abhiyan is the Indian chapter of the People's Health Movement, a worldwide movement to establish health and equitable development as top priorities.

GSK is also looking at formats that will increase the consumption occasions.