Belgium’s Lotus Bakeries sets sights on India’s middle-class cookie jar

In June 2024, Mondelez agreed to manufacture, market, distribute and sell the Lotus Biscoff biscuit brand in India. Earlier this week, the duo officially announced the launch of the brand in the country.

Jan Boone, CEO of Lotus Bakeries, said that the company plans to make its flagship Biscoff biscuit the number three brand in the world and India will play an important role in these goals.

Global chocolate and biscuit manufacturer Mondelez’s Oreo is the world’s best-selling cookie brand.

In a virtual interaction with the media on Thursday, Boone said, “We set our goal to be the number three cookie in the world. Number one is obviously Oreo. If we want to be a global brand, India has to be a part of it and we couldn’t conquer India on our own. There are too many retail stores, distribution is too complicated and we needed a partner like Mondelez to create a brand in India.” Boone said.

Apart from expanding Biscoff in India, the two companies will also work together to develop and market co-branded chocolates. The move will help Perk and 5 Star chocolate maker Mondelez expand its premium cookie portfolio in the country.

Founded in 1932, Lotus Bakeries sells brands such as Lotus Biscoff and Kiddylicious. It operates in more than 50 countries and generates revenues of €1.06 billion in 2023. It counts the USA as its largest market, followed by the UK and France.

“I hope India will be one of the top three countries for Biscoff,” he said.

The size of the Indian biscuit market is approximately ₹39,500 crore by 2024, according to estimates by research firm IMARC Group. The market is expected to reach this level ₹69,000 crore by 2033, at a compound annual growth rate of 5.9%. The size of the Indian snacks market is expected to increase ₹1.01 trillion by 2033 ₹46,571.3 crore in 2024.

Biscoff is currently available on: ₹10 for a single serving. Homegrown Parle Products sells its flagship Parle G glucose biscuits at a very low price ₹2. “So this is a premium cookie. Overall pricing will be indexed at around 2.3 to 2.4 times the market average, approximately ₹It weighs 450 kilos,” said Samir Jain, President, Mondelēz International India.

Mondelez, which started selling chocolate mainly in India, was a late entrant into the Indian biscuit market with the launch of Oreo in 2011.

As a result, its share in the biscuit market is held by Parle, Britannia and ITC Ltd. It is still small compared to established companies such as. In India, the bulk of its business comes from chocolate brands such as Cadbury Dairy Milk, Cadbury 5 Star and Perk. Additionally, powdered drinks such as Tang and Bournvita are also sold.

Dirk Van de Put, president and chief executive officer of Mondelez International, said the company expects annual revenue from India to rise to $2 billion by 2030 from the current $1.2 billion in 2022.

Analysts said major domestic biscuit players adequately cover both the mass and premium ends of the market, making it difficult for multinationals to crack the market immediately.

“We do not see the entry of a new player having any impact on Britannia and ITC as prices are higher. Most of the existing players have also premiumized their portfolios. We think MNCs are slow to grow compared to domestic companies. We think the market will continue to be dominated by Britannia and Parle,” said Abneesh Roy of Nuvama Institutional Equities.

About the copyright and commercial terms of the deal with Mondelez, Boone said: “We can’t reveal any details… All we can say is that this has a long-term perspective. This isn’t a matter of working together for a few years; it’s going to be going on for a really long time,” Boone said.

Meanwhile, Mondelez International reported net income of approximately $36 billion in 2024. It is known for brands such as Oreo, Ritz, LU, Clif Bar, Tate’s Bake Shop, Cadbury Dairy Milk, Milka and Toblerone.