Difference Between Nestle and Britannia

As the trend of the packaging food is increasing day by day, very well the organizations which belong to these grow. Such two organizations we know for a very long time are Nestle and Britannia. There are many products which are well known from these organizations which give a big impact on our lives. They are different from each other in many domains which will be discussed ahead.

Nestle vs Britannia

The main difference between Nestle and Britannia brands is dependent on the growth of both of these brands in the industry. As both of these are well-known brands growth rate which is registered in robust growth rate is different from each other. Nestle is 20% whereas Britannia is growing at the rate of 18%.

Nestle vs Britannia

Nestle is a food processing brand working for a long time and providing many products as a service to its consumers. Nestlé is a Swiss company with headquarters in Vevey. Nestle is a well-known food and beverage manufacturer with a global presence. Nestle has been the world’s top food since 2014, according to revenue and other metrics.

Britannia is an Indian-based food company. The Wadia Group includes the Britannia subgroup. Nusli Wadia is the founder of the Wadia Group. It was formed in 1892 and has its headquarters in Kolkata, making it one of India’s oldest companies. It is well-known for a product that falls within the biscuit category.

Comparison Table Between Nestle and Britannia

Parameters of ComparisonNestleBritannia
Growth20%18%
Productculinary and beverage segmentsbiscuit manufacturer
Operating Margin20%6.5%
ROE90%44%
Famous productsCerelac, Milkmaid, Nescafe Maggi, Lactogen, Kit-Kit, Munch, Bar-One, and PoloNutri-choice, Tiger, Good Day, 50-50, Treat, and Milk Bikis

What is Nestle?

Nestlé is a brand which is based in Vevey, from Switzerland. Nestle is a brand which is known worldwide as a food and beverage manufacturing company. From the year 2014, Nestle is the world’s top food when tracked worldwide based on revenue and other included criteria. On Franksortune Global 500 it was seen that nestle came on 67 ranks in the year 2017.

The other achievement listed was on the Forbes Global 2000 list, it is ranked on 33 ranks in the category of the world’s largest public corporation. L’Oreal which is the world’s largest corporation that deals in cosmetics corporation, has it as one of its major owners. The corporation has been involved in several scandals, including the marketing and advertising of the product of baby formula as another replacement of breastfeeding in poor nations, the use of children as labor in the production of cocoa, and the producer and marketing of bottled water.

Nestlé Health Science has completed several purchases in recent years. Vitaflo, a company that develops clinical nutritional products for those who are diagnosed with disorders related to genes, CM&D Pharma Ltd., a company that develops products and goods for the use of people with diseases which are chronic like kidney disease, and the other company is Prometheus Laboratories that develops treatments and healing method for gastrointestinal diseases and dangerous disease like cancer, were all acquired. As of 2012, it is also the owner of a minority position in the organization of Vital Foods which is a New Zealand-based organization that produces kiwifruit-based treatment related to gastrointestinal issues.

What is Britannia?

Britannia is a food firm that is Indian based. Britannia is a subset of the Wadia Group.Wadia group is run by Nusli Wadia. It is one of India’s oldest firms, having been founded in 1892 and having its headquarters in Kolkata. It is famous for the product which comes under the category of biscuits.

The other products which the company sells are biscuits, bread, and dairy goods under the Britannia and Tiger brands in India and worldwide. from the early 1990s when the Wadia group was taken over from then, the organization has been facing a series of issues involving many related to management.

It has a sizable market share and is lucrative. Britannia’s revenue is almost entirely derived from dairy products. The business not only sells dairy goods to the general public but also trades dairy products with other businesses. In 2000-01, its dairy portfolio increased by 47%, and in 2001-02, it increased by 30%.

Nestle India, the Dairy Development Board, & Amul are its primary competitors. Britannia owns a shareholding in Dynamix Dairy and buys the majority of all its milk products from the company. In addition, Bollywood actor Salman Khan has agreed to represent Britannia Industries and especially the brand known as ‘Tiger’ which belongs to cookies. According to the company Britannia, Khan’s involvement in advertising the brand and all of its goods, and performing promotional activities will help to further enhance Tiger’s key values.

Main Differences Between Nestle and Britannia

  1. Because they are well-known brands, their growth rates are distinct from one another. Nestle has a 20% market share, whereas Britannia has an 18% market share.
  2. The famous product domain of both of these brands differs. Nestle is known for the culinary and beverage segment whereas Britania is known for biscuit production.
  3. The operating margin of nestle is 20% whereas the operating margin of Britannia is 6.5%.
  4. ROE of both of these organizations also differs. ROE of nestle is 90% whereas the ROE of the Britannia brand is 44%.
  5. There are many well-known products which are associated with these brands well know products for Britannia is Good Day, 50-50, Nutri-choice, Tiger, Treat, and Milk Bikis whereas Nestle is known for the products Everyday dairy whitener, Cerelac, Lactogen, Milkmaid, Nescafe, Maggi, Kit-Kit, Munch, Bar-One and Polo.

Conclusion

Britannia & Nestle have both had strong sales growth. However, when contrasted to Nestle’s operating profit of 20%, Britannia’s operating margin of 6.5 percent is a drop in the bucket. Nestle’s luxury category-driven marketing strategy, which is more inflation-proof and profitable than Britannia, makes it a more appealing investment prospect. Britannia, on the other hand, is shifting its brand portfolio to greater profit margin categories in the future. It’s worth noting that the percentage of people who eat low-margin glucose biscuits is decreasing.

Non-staple biscuits, such as cream biscuits and cookies, are, on the other hand, in high demand. As a result, Britannia, which has a strong foothold in the specialized biscuit market, could gain. In addition, the company has reduced its reliance on the area of biscuits by dividing the portfolio related to dairy by releasing health goods. If seen properly in the time of the long run, these actions will boost the company’s margins and increase the “tastiness” as just an investment.

References

  1. http://www.gammaexplorer.com/lanlreports/lanl1_a/osti/10191160.pdf
  2. https://ajph.aphapublications.org/doi/full/10.2105/AJPH.92.2.246
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