If commodity brands are to be housed in a large corporate entity with other bigger businesses, there is a need to ensure that the division managing commodity branding is run differently
Unlike developed markets in India, numerous food products are still sold in an unbranded form, however, change is coming slowly. Cooking oil, which was largely a commodity category in the 1990s, is slowly and steadily getting into the branded space. Image: Shutterstock
The news of Hindustan Unilever (HUL) selling its brands Annapurna and Captain Cook caught my attention for a particular reason. I have worked on brand Captain Cook and an old history with the brand. The Captain Cook Atta ‘Farmer’ ad has also been captured as a case in my book FCB Ulka Brand Building Advertising Concepts and Cases.
The two brands Annapurna and Captain Cook had a reported sales of Rs 137 crore in FY22 and were being sold for around Rs 60 crores to a Singapore-based private equity firm.
Some of the questions that arise from this transaction is relating to why brands are built and sold. Equally, why are they bought if you can build your own brand? Annapurna and Captain Cook are interesting examples from the two ends of the spectrum.
Annapurna was a brand that was conceptualized and launched by HUL over twenty years ago; around the same time ITC launched its Aashirwad brand. Captain Cook, on the other hand, was a creation of Nitish Jain of DCW Home Products and had a successful run as a salt and an atta (wheat flour) brand before it was sold.