The Landmark Acquisition and Market Divergence
For generations, Horlicks has been a staple in households worldwide, a comforting bedtime drink or a nutritional supplement. However, the past few years have seen seismic shifts for the brand, largely triggered by a major acquisition. In 2018, GlaxoSmithKline (GSK) sold its health food drinks portfolio, including Horlicks and Boost, in India, Bangladesh, and 20 other Asian markets to Unilever. The deal, which finalized in 2020, was valued at €3.3bn and involved Hindustan Unilever Limited (HUL), Unilever's Indian subsidiary. This move marked a dramatic change in direction, particularly for the brand's largest market, India, and had ripple effects elsewhere.
Meanwhile, the brand's fate in its home country, the UK, took a different turn. The iconic Horlicks factory in Slough, which had been in operation for over a century, closed its doors in 2018. The UK brand rights were sold separately to Aimia Foods. This created a bifurcated reality for the brand: a powerhouse growth engine for a multinational giant in Asia versus a nostalgic comfort beverage with new ownership in the UK.
A Tale of Two Horlicks: UK vs. India
The UK Market: Nostalgia and Redevelopment
For British consumers, what has happened to Horlicks is a story of tradition giving way to change. The closure of the historic Slough factory was a significant event, ending an era of local production. The site is now being redeveloped into a residential area, preserving some historic structures like the clock tower and war memorial. The UK brand, under Aimia Foods, has embraced its nostalgic positioning, marketing itself as a classic, comforting malted drink. While sales saw a bump during the COVID-19 pandemic as consumers sought comfort, its market leadership in the UK malted category has long been established and maintained. The product remains true to its heritage, offering a warm, malty beverage for moments of rest and relaxation.
The Indian Market: Growth, Innovation, and Repositioning
In India, the story is one of aggressive growth and diversification. Under Unilever, Horlicks has not only solidified its position but also expanded its product lineup. The company has strategically launched variants targeting specific demographics, a move that proved more successful than earlier, failed extensions like biscuits and noodles.
- Successful brand extensions: Women's Horlicks and Mother's Horlicks target nutritional needs for specific life stages, with Women's Horlicks proving a significant success. Other variants like Growth+ also cater to targeted needs.
- Marketing strategy: Campaigns focus on modern, data-driven insights. For example, a 2025 campaign celebrated 'mischief' in children as a sign of growth, a shift from older marketing focuses.
- Regulatory reclassification: In April 2024, following an order from India's commerce ministry, Hindustan Unilever (HUL) removed the 'health drink' label from Horlicks on e-commerce platforms. The product is now categorized as a 'functional nutritional drink,' reflecting new regulatory guidance and avoiding misleading health claims.
Horlicks vs. The Competition: A Changing Landscape
For decades, Horlicks has faced intense competition, particularly in markets like India, against rivals such as Bournvita and Complan. With the shifts in ownership and marketing, the battle for market share has evolved. This table outlines key differences in the market positioning of major malted beverage brands:
| Feature | Horlicks (Unilever-era) | Complan | Bournvita |
|---|---|---|---|
| Market Focus | Evolving; strong focus on targeted variants (Women's, Growth+) in Asia. Nostalgia in the UK. | India-centric; often positions itself on high protein content. | India-centric; focuses on taste and general growth/energy. |
| Key Marketing Claim | 'Clinically proven' for growth in some markets, but label change in India. 'Mischief' as a sign of growth. | Claims of higher protein content (e.g., 63% more). | Often emphasizes chocolatey taste alongside health benefits. |
| Nutrient Focus | Fortified with up to 27 vital nutrients in some formulations. | Emphasis on protein and overall nutrient profile. | Focuses on vitamins, minerals, and overall energy boost. |
| Target Audience | Broad; from children (Junior) to women and adults. | Primary focus on children's growth and protein intake. | Often targets children for growth and energy. |
What's Next for the Horlicks Brand?
While Horlicks has successfully navigated a significant transition, its journey is far from over. The future of the brand will likely involve continued innovation and adaptation to meet consumer demands and navigate regulatory environments. In emerging markets, expect to see further product extensions and aggressive marketing to maintain dominance. However, the brand must also contend with increasing consumer scrutiny regarding sugar content and nutritional claims, as evidenced by India's recent regulatory changes. In its legacy markets like the UK, the brand will continue to rely on nostalgia while subtly updating its image to stay relevant. The key for Horlicks will be to leverage its storied history while proving its value in a highly competitive and health-conscious market. The acquisition by Unilever has provided a strong platform, but the real work of maintaining and growing the brand lies in continued strategic execution.
The Legacy and Future of a Beloved Brand
Despite the dramatic changes in ownership, manufacturing locations, and marketing strategies, Horlicks' core identity as a nutritious, comforting beverage endures in many parts of the world. Its ability to adapt to regional tastes—such as developing local flavors in Pakistan—showcases its resilience. From its origins as an infant food to its role in polar expeditions and military rations, Horlicks has a rich history that resonates deeply with consumers. Unilever's investment validates the brand's strength, ensuring its legacy continues, albeit in a more fragmented and specialized form across different markets. Ultimately, what has happened to Horlicks is not an end, but a significant new chapter in its long and successful history.
For more insight into Unilever's acquisition of the brand, visit this Unilever press release.
