Why Re 1 Candies Still Rule Perfetti’s Sweet Success

Perfetti Van Melle India, the iconic confectionery company behind household names like Center Fresh, Alpenliebe, Mentos, and Chupa Chups, has found its sweetest spot in the most humble of price points: the Re 1 candy. Despite a rapidly changing consumer landscape, the rise of digital payments, and a growing portfolio of premium products, Re 1 candies continue to account for a whopping 70% of Perfetti’s business in India.

The Power of the Re 1 Habit

At the recent Marketers' Excellence Conference 2025, Nikhil Sharma, Managing Director of Perfetti Van Melle India, shared insights into why the Re 1 candy remains unbeatable. “Our core is impulse-driven purchases. Re 1 candies are a cash habit, and that habit is still very much alive,” Sharma explained.

While many FMCG brands have felt the impact of UPI and digital payments, Perfetti’s business model has remained largely unaffected. The act of buying a Re 1 candy is often spontaneous—a quick treat for kids, a reward at the local shop, or a sweet pick-me-up during the day. This impulse-driven behavior, rooted in cash transactions, keeps the Re 1 candy thriving in both urban and rural India.

Why Raising Prices Isn’t Easy

Perfetti’s journey from 50 paise to Re 1 took years, and moving to a Rs 2 price point is still “too far away,” according to Sharma. Instead of raising prices, the company has managed inflation by slightly reducing the size of the candy (a practice called “grammage tweaks”) while keeping the price unchanged. This strategy ensures that the Re 1 candy remains accessible to all, driving scale and reach across Perfetti’s vast network of over five million retail outlets.

Scale, Reach, and Market Share

Perfetti Van Melle India entered the market in 1994 and quickly captured the imagination—and taste buds—of Indian consumers. Today, the company holds a 28% share in the confectionery market, producing about 350 tonnes of candy every day. The Re 1 price point is crucial for maintaining this scale, especially in a country where small, affordable treats are a daily ritual for millions.

Even during challenging times like the pandemic, when children were at home and impulse buys dropped, Perfetti bounced back quickly. The company’s low-price strategy ensured that as soon as mobility returned, so did candy sales, reaffirming the power of the Re 1 habit.

Innovation and Communication

While the Re 1 candy is the backbone of its business, Perfetti hasn’t shied away from innovation. The company has introduced new flavors, liquid-filled gums, cooling crystals, and even “Air Action” Center Fresh to keep things exciting. However, Sharma cautions against over-relying on new variants, noting that too many options can end up competing with the main brand itself.

Perfetti’s marketing approach has also evolved. Once known for its irreverent, witty ads like Center Fresh’s “Zubaan Pe Rakhe Lagaam,” the brand now focuses more on product benefits—especially for its higher-priced SKUs. Recent campaigns, such as the new Center Fruit and Happydent TVCs, are designed to keep the brand top of mind while staying relevant to today’s more discerning consumers.

Looking Ahead: Sour Flavors and Premium Offerings

Perfetti is not ignoring changing tastes. The company’s R&D team is developing new products around the “sour” flavor trend, which is gaining popularity among Indian consumers. While premium products (Rs 10–20 range) are growing, the Re 1 candy remains the foundation, ensuring mass appeal and everyday accessibility.

Despite the buzz around digital payments and premiumization, Perfetti Van Melle India’s Re 1 candies prove that sometimes, the simplest things have the most staying power. By sticking to a price point that works for everyone, innovating thoughtfully, and keeping its distribution vast and deep, Perfetti has turned the humble Re 1 candy into a symbol of sweet success in India’s confectionery market.