Onjus - Squeezed Out

            

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Themes: Brand Management
Period : 1997-2001
Organization : Enkay Texofood Ltd
Pub Date : 2002
Countries : India
Industry : Food, Beverages and Tobacco

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Case Code : BSTR011
Case Length : 9 Pages
Price: Rs. 200;

Onjus - Squeezed Out | Case Study



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Oranges Turn Sour Contd...

Submitting that it had not added any additives to the orange juice, ETL said that the additional sugar was on account of the blend and the additional pulp cells. It further contended that the composition of sugar in the fresh juice and Onjus were almost matching and the company had declared on the pack that it was reconstituted from orange concentrate. However, according to the analysis submitted by the complainant, total sugar in fresh orange juice was 9.35%, whereas in Onjus it was 13.04%.

The company maintained that as per the CODEX standard, the total quantity of added sugar could go up to 5% but did not deny using added sugar or beta-carotene in its 'natural' juice. ETL however, claimed that Onjus was reconstituted from natural orange juice concentrate being imported from South, Central and North America.

ETL also enclosed a copy of the certificate of origin, which showed that the company used frozen concentrated Kinnow juice imported from a Holland-based company. Approaching the MRTPC, the DGIR said, "It is evident the juice was neither natural nor an orange juice, but the fact was that it was a Kinnow9 juice,"10 which differed from oranges in tastes, quality and price.

It also said presenting Onjus as natural orange juice was misleading and false which, "could cause loss/injury to the general public who were buying it under the impression of a natural orange juice."11 Following this, on September 16, 1999, the MRTPC initiated an inquiry against ETL.

The whole episode had tarnished Onjus' brand image. To resurrect the brand image and to reassure its consumers about the purity of Onjus, ETL launched a promotional drive that had ETL's salespersons making presentations outside select retail outlets. The salespersons not only sold the ETL brands but also tried to convince the consumer about the purity of Onjus. The promo was backed by enhanced in-shop display.

As a part of the promo, ETL also introduced 'Dial an Onjus' scheme in Chennai, Bangalore, Cochin, Hyderabad, and Chandigarh. Consumers who ordered Onjus worth Rs.300 got free home delivery. They also stood to win gifts like Onjus T-shirts and caps, watches, music systems, etc. This was followed by the launch of 'Telephonjus' - a toll-free number (2224545), which could be dialed to order Onjus at home. Initially, the service was limited to the Mumbai region. The minimum order amount was fixed at Rs.100. However, in October 1999, the MRTPC restrained ETL from marketing its product as a natural orange juice.

In late 1999, in an intriguing twist, the inquiry against ETL was suddenly moved to a new division bench. On November 25, 1999, when a hearing was scheduled, the counsel for ETL, R.K. Anand approached the judge heading the division bench, Justice A. N. Divecha (Divecha), who was also the chairman of the Commission, with certain documents. The documents included certificates of analysis in support of ETL's claim that the product did not contain any artificial coloring matter, or added beta-carotene, or added sugar.

The certificates were from a host of research institutes including the Central Food Technological Research Institute, Mysore; Central Scientific Laboratories, London; Shriram Institute for Industrial Research; Directorate of Health Services, Arunachal Pradesh, and the Central Food Laboratory, Calcutta. Following the perusal of the documents, Justice Divecha issued an order for the constitution of a new bench, of which he would not be a member. In the next hearing, the application by ETL for vacation of the order of October 1999, restraining ETL from marketing Onjus as a natural orange juice, was to be heard.

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9] Kinnow is a variety of orange
10] September 16, 1999, Financial Express
11] September 16, 1999, Financial Express