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US-based multinational chocolate-maker Mondelēz [mohn-dah-LEEZ] plans to further expand its market in India’s rural areas after successful sales in the past year.
Chocolate sales in India increased because of tax cuts in the country last year. Positive effects of these cuts were felt in around 650,000 low-income villages in the country.
In an interview with Reuters, a bakery owner in a rural Indian town said that previously, people in his community could only afford chocolates worth five rupees (around $0.07). Now, villagers have enough money to pay for high-class chocolates like Mondelēz’s Cadbury Silk bars, which are priced between 70 and 170 rupees (around $0.99 and $2.40).
In the early 2000s, Mondelēz increased its presence in India by providing storeowners free display coolers for its products. The company ramped up its distribution of free coolers last year, and it now holds 66% of India’s chocolate market.
Despite this, an Indian business news organization speculates that Mondelēz still has a lot of room for growth in the country. The company’s executive director said in an interview that the yearly consumption of chocolate in India is only at 300 grams per person. This figure, according to him, is much lower than the average 5 to 10 kilograms per person consumed in the United States and the United Kingdom.
As part of its expansion plan, Mondelēz wants to reach up to 100,000 villages in the next three years. The company plans to make more premium chocolates available in rural India by adding more display coolers and acquiring more refrigerated trucks for their deliveries.