Shah Rukh Khan stays hot in endorsement world with Frooti, Tata Tea in kitty

05 Mar,2013

By Ratna Bhushan & Sagar Malviya

 

Salman Khan may be the hottest star on Bollywood, but Shah Rukh Khan remains as popular as ever in the endorsement world, signing back-to-back deals with mango drink Frooti and the country’s largest tea brand Tata Tea. While Parle Agro, the maker of Frooti, confirmed the association, an official aware of the development at Tata Tea said the firm had roped in Shah Rukh to make its tea brand more contemporary.

 

Both the beverages brands are roping in a celebrity ambassador for the first time. “We have got two very big things working hand in hand. One, an iconic brand like Frooti and a powerful endorser like Shah Rukh Khan,” said Nadia Chauhan, Parle Agro’s joint MD and daughter of company CMD Prakash Chauhan.

 

Chauhan junior, who at 27 is as old as Frooti, added that Parle Agro had the capacity to cater to 50% growth and more both in terms of manufacturing and distribution. The firm plans to increase its ad spends by over 40% to support its new Frooti campaign with Mr Khan. While company insiders refused to share the size of the deals, industry sources say Shah Rukh Khan is known to charge Rs 3.5-4 crore for a day annually for each brand endorsement.

 

By roping in Mr Khan, Frooti is taking the fight to Coca-Cola’s Maaza and PepsiCo’s Slice in the mango drink market. “It is a bold statement to make within the category and it will do the brand a great deal in the current competitive landscape,” said Sajan Raj Kurup, founder and creative chairman at Creativeland Asia that handles Frooti account. Frooti has been growing by over 25% over the last three years, the company said.

 

An industry source, quoting Nielsen data, said that within the overall Rs 450-crore juice drinks category, Maaza has 38% share, followed by Slice at 23% and Frooti at 15-16%. A spokesperson for Tata Global Beverages declined comment on Tata Tea’s association with Shah Rukh Khan.

 

The official quoted earlier said, “The firm is taking forward its Jaago Re theme with its new association with Khan.” Vinita Bangard, MD of talent management firm Krossover Entertainment, which represents Shah Rukh Khan, declined to confirm the development. Shah Rukh Khan is the second-highest ranked celebrity behind Salman Khan, according to January data by Times Celebex, a monthly celebrity rating index operated by the Times Group. He endorses about 19 brands.

 

Recent months have been a spate of bigticket endorsement deals, which had slowed down over a year back. While Coca-Cola roped in actors Imran Khan and Parineeti Chopra for Maaza, Dabur signed Ajay Devgn for its digestive candy Hajmola. PepsiCo announced four new faces for its Kukure snacks, and Wipro Consumer Care brought back Saif Ali Khan to endorse soap brand Santoor after a two-year gap.

 

“Increasingly, brands are turning to celebrities to create buzz and recall, as in the case of Frooti which has signed a celebrity for the first time,” Ms Bangard, who also represents actress Priyanka Chopra among others, said.

 

The Rs 800-crore Parle Agro, which also sells Appy Fizz and Hippo snacks, grew 15% during 2012 and is targeting over Rs 2,500 crore in sales by 2015. The company said it aims to more than double its 2,500-strong distributor network serving over eight lakh retail outlets.

 

Frooti, launched in 1985 by the Chauhans, is credited with growing the packaged mango drink segment in the country. The company was also the first to launch a ready-to-drink beverage at a price point of Rs 2.50 a decade ago, which still remains unmatched by its multinational rivals. More than 25 years after introducing juices in tetra packs, Parle Agro last year launched Frooti in returnable glass bottles to challenge the dominance of Coca-Cola’s Maaza, which gets more than half its sales through glass bottled packs.

 

Source:The Economic Times

Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

 

Phograph: Fotocorp

 

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