Delfi, the chocolate manufacturer which started in Indonesia in the 1950s, is now capturing a wider pool of consumers with newer positionings to appeal to the new generation consumers.
Recently, Delfi has launched healthier versions of its current range of chocolate with lesser sugar and higher cocoa content as consumers, particularly those from Gen Z and the millennials, have become more health-conscious. They still crave for chocolates but want less sugar and preservatives, and added nutrition.
Chocolate bars are known for their high amount of sugar contents, however Delfi CEO John Chuang said, “Cocoa – the main ingredient found in chocolate is a superfood.” Cocoa is very healthy and contains a lot of antioxidants.
Delfi’s key brand in its product portfolio is SilverQueen but its Van Houten brand is better known. However, both brands have undergone a rejuvenation to be more health-conscious.
For example, Van Houten’s Dark Milk series, which features a higher 43% cocoa content, was launched in the 4th quarter 2021 and will be progressively rolled out in regional markets this year. This move is part of Delfi’s ‘Better for You’ campaign that aims to present the market with healthier and more premium options. Chuang emphasised on the need to be constantly aware of changing consumer needs. “By improving our existing products, now with a higher cocoa percentage adaptation for almost every stock-keeping unit (SKU), we have transited into healthier products that taste great, with more cocoa.”
Chuang has credited the ‘Better for You’ campaign to Delfi’s success in Indonesia as it has led to a 5.9% increase in revenue for financial year 2021 to US$270.2 million. As such, Delfi will continue to actively launch new products in line with the campaign.
Meanwhile, with higher disposable incomes in Indonesia, demand for premium chocolates will also grow. Chuang said, “We take advantage of the gift-giving spirit during festive seasons which creates an impact for us.” The Van Houten brand is undergoing a ‘refreshment’ to capitalise on the premiumisation trend. In the past, Van Houten is known as just a normal household brand. The new strategy includes packaging it under a ‘Dark Milk’ series and refining its taste with more cocoa but less sugar, as those from Gen Z and the millennials now make up of 80% of its overall consumer base.
According to Delfi, its premiumisation strategy helped raised the gross margin to 29.5% in 2021 from 28.6%.
Apart from the domestic market which contributed more than 60% to its revenue, Delfi is also upbeat of its neighbouring Singapore and the Philippines markets, and is keen to explore opportunities in China although there are no solid plans yet.
