Perfetti’s ₹1 Candy Strategy Is Still Winning India’s Sweet Tooth

Perfetti Van Melle India is doubling down on a strategy that many would call old school but remains remarkably effective. Even as the world of digital payments, premium products, and modern retail continues to evolve, the humble Re 1 candy still drives seventy percent of the company’s massive business footprint across India.

At the Marketers’ Excellence Conference 2025 hosted by afaqs, Nikhil Sharma, Managing Director of Perfetti Van Melle India, shared key insights into why the Re 1 price point continues to be non negotiable for the brand. With brands like Center Fresh, Alpenliebe, Mentos, and Happydent under its belt, the company has become synonymous with impulse driven candy sales. And that impulse, Sharma insists, is still very much tied to small, instant, cash based purchases.

He acknowledged that while digital payments and UPI have transformed many retail habits, it has had minimal impact on candy buying behavior. People still buy candies with loose change, and the habit is embedded deeply in Indian consumption patterns. Even though moving prices from 50 paise to Re 1 took years, Sharma said that a jump to ₹2 still feels too far for this category. Instead of raising prices, the company smartly reduced product quantity over time to manage inflation without disrupting its customer base.

Perfetti Van Melle India now holds a 28 percent share in the Indian confectionery market and reaches over five million retail outlets across the country. Every single day, it produces around 350 tonnes of candy, reinforcing the scale and strength of its ₹1 product economy. According to Sharma, this level of scale only works when the price and value equation is intact.

Beyond pricing and distribution, Sharma also emphasized that communication plays a central role in keeping such a low involvement product top of mind. Unlike many FMCG giants with bigger margins, Perfetti operates in a high volume, low margin space. Their marketing is not just about creative storytelling but about owning every part of the product journey from flavor and packaging to retail visibility.

Recent efforts include a revived TVC campaign for Center Fruit and a collaboration with Paytm soundbox that helped keep Perfetti brands active in consumer memory. Sharma explained how the company has shifted from irreverent, humorous campaigns of the early 2000s to more benefit led messaging today. With newer premium SKUs priced at ₹10 and ₹20, consumers now expect freshness, function, and clear reasons to pick a specific format or variant.

Even though innovation is built into the company’s DNA, Sharma noted that launching new flavors and variants in today’s cluttered market carries risk. Unlike the past, when novelty would drive trial, new flavors today often cannibalize existing products. Still, the brand continues to explore formats like liquid filled gum and cooling crystal mints that previously helped them expand their base.

Looking ahead, Perfetti is placing a sharp focus on India’s growing appetite for sour flavors. Its R&D teams are working on innovations that cater to this changing palate, suggesting a pivot toward taste experiences that break the traditional sweet mold.

Perfetti Van Melle India is proving that a brand rooted in tradition can still thrive through sharp product thinking, deep consumer understanding, and a refusal to chase trends blindly. It is not just about candy. It is about knowing the habits that never fade and building a business model around them.

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