Monday, November 16, 2020

Brand Update : SugarFree launches chocolates under D'Lite brand

SugarFree, the market leader in the Rs 350 crore Indian artificial sweetener market has recently launched a brand extension much to the delight of calorie-conscious and diabetic patients in the form of dark chocolates. India which is considered to be the diabetic capital of the world is yet to see a boom in the artificial sweetener category and sweets made up of artificial sweeteners. This is largely due to lack of awareness and fear of risks in consuming such products. 

However slowly and steadily, the market is warming up to such alternatives to non-sugar delicacies. To take advantage of such potential, most of the confectionery brand has one or two variants in the sugar-free category. For example, Amul has one variant of sugar-free dark chocolate but is rarely available in offline stores.

Zydus Wellness, the owner of SugarFree is sensing such an opportunity and with a brand which has a strong generic name and market leadership, it would not be wise not to take advantage. The company has chosen to launch its range of dark chocolates under the sub-brand D'Lite. D'Lite is not a new brand, earlier, SugarFree had attempted to launch a range of beverages such as fruit punch under this brand name. 

In the new avatar, D'Lite will be initially a digital-focused brand with the product available in online stores such as Amazon, BigBasket etc. The sugar-free chocolates come in four variants - Dark Rich Cocoa, Dark Zesty Orange, Dark Hazelnut flavour with roasted almonds, and Dark Crispy Quinoa with roasted almonds. All these have 50% cocoa content. The sugar-substitute is maltitol. 

The brand is positioned as a premium healthy alternative for calorie-conscious consumers. Priced at Rs 99 for 40g, the brand is a premium offering. The packaging is excellent and reflects the premiumness of the range. The brand has a soft-launch and I think it is promoted initially through digital platforms. The brand is promoted with the hashtag #Twogood. 

I strongly feel that the market for such products has huge potential. The one factor that prevents growth is the negative feedback from a key influencer - doctors. Most of the doctors whom I talked to have expressed a negative opinion about the artificial sweeteners. Except for Stevia, all sugar substitutes carry some form of side-effects is usually what doctors say. It would take some persuasion from these marketers to change that influencer- narrative. However, for a consumer, these products are welcome alternatives to sugar and help keep check of sugar-cravings. 

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SugarFree

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