50+ store plan and q-comm debut make Rebel Foods’ Smoor Chocolates consider 30% ad spend hike

Luxury chocolate brand Smoor plans to open over 50 new stores in the next two years, focussing on tier-2 cities where it sees significant potential. Cities like Ahmedabad, Surat, Lucknow, Chandigarh, Jaipur, and Hyderabad are emerging as strong markets. The brand sees great growth opportunities in these smaller cities as they are key sources of online orders.

The 16-year-old brand has also realised the growing importance of quick commerce and its products will soon be available on these platforms. In the last six months it has been focusing on developing a product category tailored to this format. Its products are typically sensitive to temperature variations, so it’s creating a range that’s delivery-friendly, affordable and caters to people’s impulse needs. 

As the Rebel Foods’ owned chocolate brand expands its presence, it plans to increase its advertising spend by 20-30% in FY25. Kanchan Achpal, CMO, Smoor Chocolates, says the brand will explore various mediums, including print, out-of-home (OOH), and over-the-top (OTT) platforms, and will boost its investment in performance and influencer marketing.

“Print will be especially useful for quick commerce. We might even tie up with a celebrity to endorse our products, as the glamour aligns well with our brand. Additionally, partnering with celebrity chefs or patissiers to endorse our brand could significantly boost trust and credibility,” she adds.

Currently, its marketing strategy relies heavily on word-of-mouth and content marketing, both organic and inorganic.

“We believe that no billboard or ad can match the impact of someone actually trying our product. We focus on getting our products into people's hands through strategic giveaways and events. So, instead of investing heavily in media publications, we let our products speak for themselves,” she says.

Smoor’s offline and online presence

Founded in 2008 as Bliss Chocolates, the brand opened its first outlet in Forum Value Mall, Bengaluru, with the vision of offering a premium chocolate experience. It was rebranded as Smoor in 2015 and its traditional brown and gold colour scheme was replaced by vibrant hues. In 2022, Rebel Foods acquired a majority stake in the brand. According to media reports, the deal valued Smoor at $50 million. Rebel Foods’ investment helped the brand to significantly enhance its cloud kitchen operations. Smoor now operates over 36 cloud kitchens across India.

It also has a presence at the airports of Mumbai, Ahmedabad, and Bengaluru. Smoor views airports as crucial for its branding and recall, providing an ideal setting for its stores with high standards of presentation and merchandise.

“Being in an airport means our brand gains exposure to a diverse, global audience, which enhances its novelty and appeal. Moreover, having a presence at airports instils trust. Corporates view airport locations as a mark of credibility, given the stringent policies and hygiene standards required. This credibility and global exposure are invaluable for our brand,” she adds.

Apart from these, Smoor operates three formats of offline stores: eight lounges in Pune, Mumbai, and Bengaluru, which are spacious stores; 16 cafés, smaller, mall-based locations offering a café experience; and 12 kiosks, compact outlets with no seating, focused on quick, ready-to-pick items. These formats are present in five cities: Bengaluru, Mumbai, Pune, Delhi, and Chennai. Approximately 60% of its revenue comes from these stores.

“Physical stores are crucial for our brand as they build trust with customers who experience our products firsthand. They then order those same products online,” she says.

When the COVID-19 pandemic began in 2020 and it had to shut its stores, its online presence was minimal. As a result, it had to quickly pivot to digital platforms. Since 2020, it has invested heavily in its website and online channels, such as Instagram, Swiggy, and Zomato. This shift has paid off, with about 40% of its revenue now coming from online channels.

Catering to changing trends

As the festive season begins, the brand is preparing to cater to the season’s gifting needs. Increasingly, chocolates have become the preferred gift for many, including corporates. Not only do they have a long shelf-life, but it also gives a modern touch to traditions. 

Smoor will be bringing in this fusion of tradition and modernism in its product range. For instance, it is introducing mithai infused with chocolate, such as kaju katli chocolate, motichoor ladoo chocolate, and rose petal ladoo with chocolate. These are packaged in modern, elegant boxes, blending tradition with contemporary appeal. Diwali is the most important time of the year, both in terms of revenue and the range of products it offers.

“In gifting, we've seen a shift away from traditional mithai. While mithai is often recycled as gifts and has a shorter shelf life, chocolate offers a longer shelf life and doesn’t need to be consumed immediately. This has made chocolate a more appealing option. To balance tradition with modern preferences, we’ve introduced chocolate-infused mithai, blending traditional gifting practices with our chocolate expertise,” she adds.

Apart from chocolates, Smoor also sells cakes and other desserts in its cafes and kiosks. Traditionally speaking, cakes in India were reserved for birthdays and wedding anniversaries, becoming a highlight of these special occasions when family and friends would gather to enjoy a beautifully decorated cake. However, the concept of celebration is rapidly evolving. People are now embracing the joy of everyday moments, choosing to celebrate more frequently rather than waiting for major milestones.

Smoor plans to capitalise on this changing trend. Achpal says that with over 95% of its products being purchased as gifts, it wants to make even its consumer’s smallest milestones special. Towards this end, it is offering products that help people celebrate these small moments. 

“Customers are always celebrating something, whether it's a first job, a child's good test score, or even a one-month dating anniversary. We've even received cake orders for beautifully decorated half cakes for six-month birthday,” she says. 

Achpal has noticed significant changes in consumer behaviour, especially after the COVID19 pandemic. 

“Previously, family birthdays were marked by large cakes, but now people prefer smaller cakes for more frequent celebrations. That's why we introduced 300-gram cakes, which work well on platforms like Swiggy and Zomato. It's no longer about big families getting together to cut a cake. Instead people prefer smaller portions which they want to finish right away,” she says.

Catering to this demand, Smoor’s major focus this year will be to make customised gifting a core part of its offering. Smoor aims to elevate the gifting experience, both online and offline. It is revamping its website to offer a seamless and personalised gifting experience, even allowing customers to customise their own chocolate boxes, hampers, and add personalised messages.

The brand is known for its range of couverture chocolates, which contain a high percentage of cocoa butter (32–39%). While its cafés and lounges offer more than just chocolate, Achpal insists that chocolate will always remain at the heart of the brand. The brand also strives for authenticity, with the word ‘true’ frequently featured in its branding.

“Our caption, from the beginning, has been "True Chocolate, True Story". This reflects our commitment to using rich, honest ingredients in every product. Whether it's the cocoa content, the quality of our ingredients, the customer experience in our stores, or our packaging, everything is designed to convey this true story,” she says.