For as long as one can remember, Horlicks has been part of the Indian breakfast table, closely associated with children, milk and everyday nutrition. But the brand is now widening that association with its entry into the protein category. With Horlicks Protein, Hindustan Unilever Limited (HUL) is looking to make protein relevant beyond gym-goers and sports enthusiasts, positioning it as part of daily nutrition. In a conversation with IMPACT, Rajneet Kohli, Executive Director, Foods, HUL discusses the thought behind Horlicks Protein, the barriers to protein consumption, HUL’s approach to affordability, and how the company is using different channels to reach consumers.
Q] What was the core insight behind launching Horlicks Protein?
The insight was very clear. All of us need protein, and Horlicks has long-standing credentials in health and nutrition. I call it a 153-year-young brand, not an old brand, because it has pivoted with every decade. For this decade, it was important that we move towards protein, which is a natural progression. But we were not looking at protein only for gym-goers and sports enthusiasts. Our insight was that life is gym enough. Your real day is a real workout. As you keep travelling, moving around, doing your work and getting into assignments, it is a real workout. We need to ensure that we have high-quality protein for every day, for everyone. That was the big insight behind our yeast-based protein. Our fermented yeast-based protein contains nine essential amino acids and four grams of prebiotic fibre. Fibre is important because it helps your gut. It is not about the quantity of protein, but the quality of protein.
We also wanted to ensure that it is affordable and accessible. The one-kilogram packs have pre-measured sachets inside, which you can carry in a laptop bag or any other bag. It is an on-the-go format rather than having to scoop and measure. It is available at a price point of less than `85 per drink. You can have it with water or with food, depending on the variant. Most importantly, people need to trust what they are putting inside their bodies. It comes from the house of HUL, with Horlicks’ credentials in science and nutrition. We have conducted 150 lab tests before bringing a protein product to consumers. These factors were important in ensuring that protein is there for everybody in India.
Q] Horlicks has traditionally been perceived as a children’s brand. How are you changing that perception and making it relevant to Gen Z and others?
The interesting part is that if you look at the history of Horlicks, it was used by young adults and marathon runners as well. I have a picture in my room from the 1928 Rome and Amsterdam Olympics, where marathon runners are running and having Horlicks. It was never just about being a milk emulsifier or taste-enhancer. It had micronutrients in it. It was always about young adults getting nutrition.
Therefore, our pivot is from health food drinks to lifestyle nutrition. That means all life stages, whether it is toddlers, young children or young adults. That is where Horlicks Protein comes in. Even in later life stages, when specialised nutrition is required, we have products such as Horlicks Diabetes. We have Horlicks for women and Horlicks for mothers.
Q] Protein has become a major buzzword, with several players entering the category. How is Horlicks differentiating itself?
More importantly, the market itself is still very small and nascent. While protein is mainstream in discussions, only around three per cent of households currently consume protein. There are four big barriers. First, people believe they do not need it. They may think, ‘I am a non-vegetarian or I have dal, I have paneer, so I don’t need Horlicks.’ Second, they may not like the taste and associate protein with a chalky experience. Third, people believe they cannot digest it. The fourth barrier is trust.
Our first job is therefore to create awareness and tell people that Horlicks is for everyone and for daily needs, rather than only for gym-goers. The proposition is nutrition for everyone. Second, we have added prebiotic fibre, digestive enzymes and amino acids. Third is taste. We have ensured that the product is tasty because taste is paramount. Nutrition and science need to go hand in hand. Then comes trust. It comes from Horlicks and HUL, backed by 150 tests. Another differentiator is the accessible format. We have sachets that consumers can carry around, as well as a ready-to-drink format. It is also available at an affordable price point, compared to products that can cost twice as much in the market. The market is so small that our job is to make protein mainstream in India.
Q] Affordability is a major consideration in the Indian market. How do you find the sweet spot between premium nutrition and mass accessibility?
When we say it is affordable, it does not mean it is low quality. It is a high-quality fermented yeast-based protein. It has everything that any other premium protein has. It has the nine essential amino acids required, prebiotic fibre and papain, which is an enzyme aiding digestion. Our core strength is HUL’s R&D and the trust factor we have built. That allows us to price it competitively and make it affordable without compromising on quality. This is premium nutrition at a price point that consumers can afford, packed in a format they can carry along.
Q] How is the rise of D2C and digital commerce changing the way a legacy FMCG company such as HUL approaches consumers?
From HUL’s perspective, our reach spans all channels. We take pride in the fact that nine out of 10 households in India have an HUL product. Our job is to ensure that the right consumer finds us on whichever occasion and platform they choose. Whether it is e-commerce, quick commerce, modern trade or specialist channels, we need to be available. Our focus is consumer-first. Wherever the consumer is, we go there and service them. I often describe it to the team as being like Aladdin’s lamp. As and when the consumer rubs it, we are there and available to service them.
That is our endeavour. We are looking at digital marketing, influencers, nutritionists and science-based people who understand the product. They are the ones who will be talking about it.
Q] How is your channel mix divided between digital and traditional platforms?
A large part of our consumers is currently on e-commerce and quick commerce, followed by modern trade and then specialist channels. Our first step is to go where consumers are looking for protein and target them in a segmented manner. As we grow the category, we will open up all the channels available to us.
We work across general trade, e-commerce, specialist channels such as chemists and quick commerce. We have the repertoire of all these channels, but for this product, the approach is more segmented and specialised, ensuring that we are present wherever consumers are going and shopping.
Q] How much is Horlicks growing year on year, and how much are you investing in advertising and marketing?
Horlicks, as a lifestyle nutrition brand, has been growing in double digits. That includes our core Superfoods business, ready-to-drink products, biscuits and now, protein. We are sufficiently investing into marketing. Our spending is always targeted and sharply focused.
Q] What can we expect next from Horlicks and HUL more broadly?
We discussed this at our Capital Markets Day as well. Our strategy is called ‘Winning in New India’, and it has four segments: consumption, premiumisation, market-making and new spaces. In new spaces, one part is Horlicks Protein. We have also spoken about Kisan Chutney. We have launched ready-to-drink tea, which is an instant tea that you can simply add water to. It has five flavours, including no-added-sugar variants and ginger masala chai.
There is enough and more within our brands which we can stretch and get into. Those are the areas we are looking at. I mentioned the five big trends in India for food and beverages; we are going to play across all those trends so that we can capture consumer needs as and when they emerge.
