Consumer interest in organic products growing in India’s Tier II cities

Helen Blackburn Export Manager (India), Daioni Organic

Daioni is a leading provider of premium quality organic milk and organic dairy products, based in Wales, the United Kingdom. Daioni has launched its products in Mumbai in September 2016. The Daioni product range encompasses organic fresh milk, organic UHT and long-life plain milk, long-life flavored organic milk and organic cream. ‘Daionic’, a high-protein sports-focused organic milk drink, has also recently been launched in the market.

Daioni products are now being sold throughout the United Kingdom and around the world, including India, Mainland China, Hong Kong, and the United Arab Emirates. Helen Blackburn, Export Manager for India, Daioni, explains how she is developing the launch in Middle East and South Asian countries and managing the market entry strategy along with the distribution plan across India.

Tell us about how Daioni started and grew their organic milk business?  

Daioni is an established organic milk producer from Wales and supplier of some 16 years now. Our decision to convert our three-generation 3,000 acre farm to organic standards was taken after our founding director and farm owner, Laurence Harris, became ill as a result of chemical spraying. His son Tom, a biochemist who has now returned to manage the farm, then researched the health, husbandry and environmental benefits of organic farming, and it was agreed that this model would ensure best practice, and guarantee the highest nutrition possible in milk supplied to our customers.

We are part of an organic milk farming co-operative, and Helen Blackburn Export Manager (India), Daioni Organic work with a top range processing dairy, ensuring maximum standards of hygiene throughout our entire supply chain. We are certified by the Soil Association, whose exacting standards surpass those stipulated by the UK government. This includes the provision of three acres of land for every cow, which graze freely outside all year except during the winter months. We also grow our own organic fodder crops, with only 30 percent of supplementary organic feed being brought in.  

All our milking is carried out untouched by human hands. Once the farm converted to organic, the decision was then made to set up our own direct supply, and hence Daioni Organic was born. Initially, we supplied fresh organic milk throughout Wales. Then we quickly went on to develop a unique and award winning flavored organic milk, which is a long-life UHT product; coupled with the UHT whole, skimmed and semi skimmed milk, meant that we could supply Daioni Organic much further afield. Daioni Organic was the first UK organic milk to enter China, Hong Kong, Singapore, Vietnam and the UAE, where we are establishing a rapidly growing popularity, and now most recently we have launched in India.  

What are your business expansion plans in India?  

We are presently launching in Mumbai, followed by Pune and Goa, and are due to expand nationally from early 2017 into the main metro cities, beginning with Bangalore, Delhi and Gurgaon. We are also keeping note of developments in the tier II cities, where consumer interest in organic and premium products is increasing.



How do you plan to deal with your product rates for the Indian market?  

Apart from the high costs of producing premium milk, we currently have to cope with high import duties, so the price of Daioni Organic is relatively high. We have a strong brand image, with a great history, and are confidently marketing the organic provenance, purity and health benefits of our milk, as well as the exceptional recipe of our flavored milk drinks. Our milk will meet the current and increasing demand within a niche consumer demographic. We are reaching our target customers by teaming up with key modern and premium retailers, and through a sustained programme of regular in-store sampling so people can find out why Daioni Organic is so great!  

After Brexit, what are the prospects for India-Wales business tie-ups?

Post Brexit, the UK government has sent out a clear message that they intend to work more closely in partnership with India, with new trade deals and policies already under discussion. Coupled with the Indian Government’s commitment to the Make in India campaign, this is resulting in more dynamic opportunities for companies such as ours, who have a long term interest in sustaining and developing our business in India.

Are there any plans to collaborate with online supermarkets in India?

We are already collaborating with Big Basket as a proven online supermarket with a great track record in supplying premium and gourmet foods to our target consumers. We also expect to be working with Amazon from early 2017. 

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