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Dropping sales force Nestle to stop production of energy drink Milo
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Tuesday, 09 June, 2009, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Nestle India has discontinued the production of its energy drink Milo because of dropping sales. According to company sources sales have not picked up despite heavy discounting and aggressive sales push. "We have tried Milo for a long period with limited success in the crowded and competitive market and have decided to exit this particular product from our current portfolio," according to a company spokesperson. This is the first major brand after 'Pure Life' water that Nestle has discontinued in India. The company had previously discontinued brands such as Nescafe Choc Café and Milkmaid dessert mixes due to poor performance.
According to market watchers, Milo fell way behind in the 'brown beverage' market category. The market leaders in the malted foods category overall are Horlicks, Bourvita and Complan, in that order. Horlicks has a 56% value share in the Rs 1,800-crore category. While Horlicks is marketed by GlaxoSmithkline (GSK), Bournvita is from Cadbury's and Complan from Heinz. Milo has been steadily losing market share to competition from Boost, also a GSK brand, and Bournvita. GSK and Cadbury's have been pushing their brands aggressively.
Milo was first launched in Australia, but now is available in various markets throughout the world. It was developed by Thomas Mayne in Sydney in 1934. The beverage derives its name from the Greek athlete 'Milo of Crotona,' after his legendary strength.
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