A German confectionery brand is minting money by selling mints in tin boxes. Can Impact Mints ramp up its premium play in India?
August 2016, Gurugram. “BMW bech rahe ho kya? Kaun kharedega ye? Maruti le ke aao (Are you selling a BMW? Who will buy this. Get a Maruti)…” Manoj Dugar was swamped with a flurry of not-so refreshing response from a sea of retailers across India. A German confectionery brand, Impact Mints had officially made its debut in India in 2016, and had granted exclusive distribution rights to Dugar Overseas, a Delhi-based company which has been marketing overseas FMCG brands since 1992, and also has its own range of confectionery and chocolate products and brands such as Sapphire. “Ye car nahin hai, mint hai. Nahin bikega (This is not a car but mint. It won’t sell),” there was a strong pushback from stockists, dealers, retailers and shopkeepers.
The reaction was natural, caustic, and expected. An impulse consumption item, mint has historically been a mass product in India, was sold either in tiny plastic pouches or packs, and widely carried a price tag that ranged from Re 1 to Rs 50. The organised and unorganised mint players in India followed a classic FMCG retail model to push sales. Products were made available across small kiranas, betel shops and roadside eateries, and most of them had a price sweet spot at Rs 5.
Back in 2016, Dugar was exploring a new spot, and was trying to do so in his own sweet way. Impact Mints was launched in a small tin box, the 14-gram pack was priced at Rs 100, and the option of low-priced SKUs was shunned. “It was a premium product in taste, feel and packaging," says Dugar, managing director of Dugar Overseas. Though available in India before 2016, Impact Mints was imported by a diverse bunch of retailers who sold it above Rs 200. In terms of fight from organised players, ITC’s Mint-O Ultra Mintz was the closest rival, and was priced at Rs 50. Now in 2016, with an exclusive marketing and distribution partner in the country, Dugar slashed the price to Rs 100, and thought it would find takers. “We were bringing German quality at an Indian price point,” says Ayush Dugar, chief marketing officer of Dugar Overseas. “We expected it to have a brisk start,” he adds.
And Impact Mints did have a brisk start. Free sampling, attractive packaging, strategic display across modern trade and retail stores, and a flurry of incentive schemes for stockists, distributors, salesmen, retailers and small betel shop keepers did the magic. From offering gold chains, TV and fridge to dangling promotional trips to Thailand, US and Germany, Dugars did all to push for a wider acceptance, deep penetration and warm adoption. Every trick in the book worked. Impact Mints had a heady beginning, and Dugars were minting money with a Rs 100-tin box.