ITC Ltd is looking at doubling production capacity for its luxury chocolate brand Fabelle over the next 15-18 months. The FMCG major also plans to expand the retail footprint of the brand that has completed ten years. This comes at a time when Indian consumers are increasingly warming up to the luxury chocolate segment.
While the overall chocolate segment is pegged at about ₹22,000 crore, the size of the luxury chocolate segment is estimated to be around ₹1,000–1,200 crore however growing at a fast clip. Launched in 2016, Fabelle is known for its handcrafted luxury chocolates rooted in storytelling and innovation.
Subash Balar, Vice President and Business Head – Chocolates, Coffee and Confectionery & NCD, Foods Division, ITC Ltd told businessline, “ Fabelle’s production is currently anchored across our two key facilities in Haridwar and Bengaluru. Nearly 80 per cent of the portfolio is handcrafted by our master chocolatiers. We aim to double the manufacturing capacity of the brand over the next 15-18 months. We see strong potential for the brand as luxury chocolate segment in India is growing at nearly double the pace of the overall chocolate sector.”
Fabelle Continental Dessert Collection
Nearly 35-40 per cent of the brand’s demand now comes from non-metro markets indicating growing salience of luxury chocolates beyond big cities.
The brand is also aiming to double its retail presence in the next 2-3 years. “Currently, there are 14 boutiques housed at ITC Hotels and three outlets at Bangalore Airport and malls. Now, we want to scale up the retail presence of the brand through in outlets in malls and larger retail spaces in the key metros. We are also expanding our reach through the modern trade channel. Fabelle Boutiques are evolving into mini chocolate cafés therefore becoming brand experience centers,” he explained.
Infact, the e-commerce and quick-commerce channels has helped the brand widen its reach rapidly. “ Nearly 50 per cent of Fabelle’s business now comes from the e-commerce channel. Luxury chocolates are now seen as ‘everyday indulgence’ rather than occasional purchase. Infact, quick-commerce platforms have boosted consumption of luxury chocolates,” he added.
The company is also leveraging on personalisation trends through bulk formats including weddings and corporate gifting.
Talking about future launches, Balar said that the brand will expand in the dark chocolate portfolio, which has emerged as a key segment. “We will also continue to introduce more dessert type concepts in chocolate formats inspired by global and Indian trends,” he added.