This is important because the market for these beverages has taken off, and is currently growing at about 20 per cent a year. In 2002, the market had been declining by 7 per cent.

So, given such a healthy growth rate, new players should be able to enter the market and dip into the pail easily, right? Wrong, as Nestle just discovered. Its brand, Milo, quietly bit the dust some months ago when the company decided to stop production. According to the trade, irregular distribution and lack of marketing did it in. Even at its peak, its market share never went up beyond 3 per cent, say sources in the trade. By March-April 2009, however, this figure had dropped to a meagre 0.5 per cent. Nestle declined to comment on whether this failure was the result of it having a different taste as compared to its international variants. Nevertheless, an unfazed Nestle is considering introducing a ready-to-drink milk-based beverage called Milo Smart Plus. The product is being test marketed currently, says a spokesperson for the company.

GlaxoSmithKline (GSK), Cadbury and Heinz have done better. They have seen their milk-based beverages become a major component of their product line-up. Of course, these companies have the advantage of being in the market for relatively longer. GSK’s Horlicks, for example, has been in the Indian market since the 1930s, before undergoing a revamp in 2003 when the whole industry was stagnating and the products in this segment were beginning to acquire an ‘old-fashioned’ image.

Years of experience in the market have given GSK a decisive edge over others and its brands have continued their dominance through the ages. Apart from being the ‘secret’ of Sachin Tendulkar’s energy, Boost has also enabled GSK to capture a lion’s share of the milk beverages market. GSK’s Executive Vice-President (Marketing), Subhajit Sen, says, “Horlicks and Boost give us two-thirds of the market share in milk-based beverages.” Boost alone holds a 13 per cent market share all over India while in South India this figure goes up to 24 per cent. It’s clear from these numbers that these beverages form a sizeable part of GSK’s operations.

The Horlicks brand has evolved into more than just malted beverages. With variants such as Horlicks Lite, Mother’s Horlicks and Junior Horlicks, the brand now caters to the needs of the whole family. In 1992, the Horlicks brand also branched out into biscuits and earlier this month launched Junior Horlicks biscuits for toddlers. The Horlicks brand alone contributes almost 80 per cent to GSK’s revenues.

The fact that GSK has two more milk beverages in the same market – Viva and Maltova – gives it a firm grip on the market. According to Sen, Viva and Maltova are popular in select markets in areas such as West Bengal and Tamil Nadu where they have found favour for a long time. Their popularity is largely taste-based, he explains. The difference between the three brands of malted beverages under the GSK umbrella is marginal. Viva and Maltova are niche products with long-time consumers still sticking with them.

The other major player in this segment, Cadbury, too believes that Bournvita is an important part of its arsenal. Sanjay Purohit, Executive Director (Marketing), Cadbury India, says, “Bournvita is the second largest brand from the Cadbury stable after Cadbury Dairy Milk. Bournvita has approximately 25 per cent share of Cadbury India’s total revenue.”

Bournvita, like Horlicks, has been present in India for a long time, since 1948 to be precise. This, coupled with strong marketing campaigns over the years, has meant that Bournvita has continued as a strong player. The ‘Bournvita Quiz Contest’, which began as an event held in cities in 1972 and went on to capture television audiences in the 1990s, further established Bounvita as a household name. Bournvita’s taste has always set it apart from the rest of the competition. This is quite understandable as Cadbury was always best known for its chocolates.

Not one to lose out to its competitors, Bournvita finally launched a new variant for toddlers called ‘Bournvita Li’l Champs’. Both GSK and Heinz have variants of the beverages for toddlers in the market.

Complan, originally a GSK product, completes the holy trinity in the domestic milk beverages market. Complan had been in the market since 1969. However, since Heinz acquired GSK’s food division in 1994, Complan has developed into one of Heinz’s flagship brands. It has become a household name in terms of its nutritional value.

Sudip Shah, Vice-President (Marketing), Heinz India, says, “Complan is an iconic brand in Heinz India’s portfolio that has earned the trust and goodwill of discerning Indian consumers for over four decades. Complan has set new standards in delivering nutritional benefits.”

The brand was recently embroiled in a controversy over its claims of providing faster height growth. Shah believes the claim is “tangible and proven”. He says Complan is one of the fastest growing brands in the category. To take advantage of the local taste palette, Complan expanded its portfolio by launching the Kesar Badam flavour.

Complan too has extended itself to variants beyond milk-based beverages. Shah says, “We have now extended Complan’s promise of nutrition to the entire family through Complan Nutri Bowl Muesli. It is well positioned to reach out to health-conscious families.” The muesli is available in three flavours.

As far as the price positioning is concerned, there’s some difference between the three market leaders. According to a Delhi retailer, while a 500 gm pack of Complan is sold for Rs 174, both Bournvita and Horlicks retail for Rs 131. Milo, on the other hand, was sold at a lesser amount of Rs 88 for the same weight, as per sources in Nestle. That’s 49 per cent lesser than the cost of Complan. This indicates that the milk beverage market is driven more by individual tastes, usually acquired over time, than price.

Being in the market for decades has given GSK, Cadbury and Heinz control of the malted beverages market. Consumers have become accustomed to these brands and generally seem reluctant to shift loyalties to newer brands. In such a scenario, new entrants face an uphill task of bringing out a product exciting enough to lure consumers.