No more ‘Kiwi’ as Sara Lee ends deal with Godrej
24 Mar 2011
The once iconic Kiwi brand of shoe polish will no longer be sold in India. Godrej Household Products Ltd and US-based Sara Lee Corp have terminated their agreement under which Godrej used to sell Kiwi shoe care and Kiwi Kleen brands in India and Sri Lanka.
Sarah Lee will pay Godrej $37.9627 million (Rs177 crore) to end the arrangement.
It is not quite clear who initiated the move to terminate Godrej's licence for Sara Lee products; but the Indian company does not seem worried by the development.
"Shoe care is a non-core business for us," said Adi Godrej, chairman of Godrej Consumer Products. He added that the agreement would help Godrej to continue focusing on its core categories – personal wash, hair care and home-care products - in emerging markets of Asia, Africa and Latin America.
Godrej Consumer Products manufactures and sells several well-known brands, including Good Knight mosquito repellents, Cinthol soaps and talcum powder. And however much thinking people disparage skin-whitening products, no FMCG can afford to ignore the booming segment. So Godrej has its Fairglow.
But it has given good old Kiwi the boot.