Why has Hershey India dunked protein cookies in its soy milk?

Mention the name Hershey and chances are you'll immediately think of Hershey's Kisses, the iconic teardrop-shaped chocolate associated with Valentine's Day.

But U.S.-based The Hershey Company is looking beyond just chocolate in India: A month after its Indian unit launched the over 100-year-old bite-sized chocolate, it is now also offering healthy snacks to tap the country's health-conscious millennial population.

As part of a strategic intent to build its healthy snacking portfolio across categories, chocolate and confectionery firm Hershey India has expanded its beverage brand Sofit to launch protein biscuits under the name.

Herjit Bhalla, managing director of the $7.5 billion U.S. giant's local unit, expects the newly launched biscuit category to soon become a “significant contributor” to its overall business.

With the launch of the protein cookies, India becomes that first market for the pureplay protein cookies brand that Hershey might look at exporting in future. All Hershey India products are made for India and in India.

“We have just forayed into the $2.8 billion biscuit category and plan to establish the brand over the course of next year to drive strong growth in line with the kind of growth Sofit has been delivering in the country so far,” Bhalla told Fortune India.

Hershey India for now will invest equally in both the snacking and delicious treats portfolio, that ‘Kisses’ is a part of. Bhalla says it is too early to predict if the snacking portfolio will overtake the chocolate offerings in the Indian market as younger consumers drive the trend of health conscious eating habits.

Available in three different flavours - natural cocoa with healthy flax seeds, delicious mango with real almond bits, and refreshing raisins with healthy flax seeds, the cookies will be priced at Rs 45 and Rs 65 for the 100 gm and 150 gm respectively.

Hershey is the latest entrant into the already crowded Rs 25,000 crore biscuits industry in India where homegrown biscuit companies including Britannia and Parle Products are also stepping up investments in the premium segment.

Bhalla pegs the urban biscuit market in India at $2.8 billion with growth at 10% a year. But the $800 million premium category biscuit market, that Sofit protein cookies are a part of, is growing at a faster 17%.

The Pennsylvania-based chocolate major obtained Sofit as part of its joint venture with Godrej Beverages and Foods Ltd. In 2007, The Hershey Company entered India in a joint venture with Godrej Beverages and Foods Ltd with a controlling stake of 51%. Later, in September 2012, it purchased the remaining 49% interest in Godrej Hershey Ltd to become Hershey India, a wholly owned subsidiary of The Hershey Company.

Sofit, a market leader in the Indian soy milk market, has grown at an estimated 20% CAGR over the past 10 years, while the focus brands—Hershey’s Jolly Rancher, Sofit, and Brookside—have collectively clocked 50% growth, Hershey India said.

It also obtained Maha Lacto and Nutrine candy brands and the fruit-based drink Jumpin as part of this acquisition

In 2017, Hershey had announced an investment of $50 million in India over the next five years. “We are far ahead of the commitment in terms of year by year break of the $50 million commitment,” said Bhalla adding that going forward the focus will be on building s presence in the biscuits category and its Kisses chocolate launched last month.