Acquisition by Unilever and Regional Reorganization
In December 2018, Unilever announced its acquisition of GlaxoSmithKline's (GSK) health food and nutrition portfolio in India, Bangladesh, and other predominantly Asian markets, a deal that was finalized in 2020. This major corporate move is the single biggest reason why the status of Horlicks is so different depending on where you are in the world. As a new owner, Unilever had its own strategic vision for the brand, which differed from GSK's.
Strategic Shifts and Product Portfolio Management
For decades, GSK had built Horlicks into a dominant brand in specific markets, particularly in India where it was a household name. However, GSK's corporate focus began to shift towards its core pharmaceutical and over-the-counter (OTC) medicine businesses. By selling its nutrition portfolio, GSK could sharpen its focus and fund its other ventures, such as acquiring Novartis's stake in their consumer healthcare joint venture.
Unilever, on the other hand, saw an opportunity to strengthen its own food and refreshment business, especially in high-growth emerging markets. With a vast portfolio of brands, Unilever's strategy involved integrating Horlicks and streamlining its product offerings, which meant that in some regions, Horlicks' market presence was deprioritized in favor of other products or brand categories. This is a standard practice in mergers and acquisitions, where companies reorganize to maximize efficiency and profit.
Market-Specific Decisions and Changing Consumer Tastes
The perception and consumption of Horlicks vary significantly around the world. In the UK, where it originated, Horlicks is often seen as a comforting bedtime drink. In contrast, in markets like India, it was heavily marketed as a nutritional breakfast and children's growth supplement. These regional differences in how the product was viewed and consumed played a key role in its changing availability.
In some smaller markets, the decision to discontinue Horlicks could be attributed to a simple business calculation. If sales were not meeting targets or brand loyalty was waning due to competition, a new owner like Unilever might decide it is no longer profitable to maintain a presence. Changes in consumer tastes towards perceived healthier, less-sugary alternatives also played a factor, particularly in urban areas.
The Impact of Brand Competition
The market for malted beverages is not without competition. In India, for example, Horlicks competed with other strong brands like Cadbury's Bournvita. The competitive landscape, coupled with shifting market dynamics and consumer preferences, meant that the new brand owner had to re-evaluate the product's viability in each region. The rise of new product categories and nutritional trends also challenged the traditional malt-based drink market, influencing strategic decisions.
Health Regulations and the 'Health Drink' Controversy
In some regions, particularly India, regulatory scrutiny over health claims has significantly impacted malted drink brands like Horlicks and Bournvita. In April 2024, after a social media influencer highlighted high sugar content in Bournvita, regulatory bodies directed e-commerce sites to remove products from the 'health drink' category. In response, Hindustan Unilever Limited (HUL), the Indian subsidiary of Unilever, rebranded Horlicks as a 'functional nutritional drink' (FND), rather than a 'health drink'. This was a proactive step to align with regulatory clarifications and avoid mislabeling. While not a discontinuation, this rebranding reflects a significant change in how the product is presented to consumers and highlights the scrutiny faced by such products over their nutritional claims.
Availability by Region: A Comparison
The following table illustrates the varying status of Horlicks availability in key markets.
| Feature | United Kingdom | India | United States / Canada | Southeast Asia | Rest of the World |
|---|---|---|---|---|---|
| Current Status | Widely available, but different ownership | Widely available via HUL | Very limited or discontinued | Available in some areas (e.g., Malaysia) | Availability varies greatly, often via specialty import |
| Primary Owner | Aimia Foods (UK Business) | Hindustan Unilever Limited (HUL) | N/A (Historically GSK) | Unilever | Various regional distributors |
| Marketing Focus | Bedtime drink for relaxation | Nutritional supplement for growth | N/A | Nutritional drink, especially for children | Varies by distributor |
| Reason for Change | Sold by GSK to Aimia Foods | Acquisition by Unilever (HUL), regulatory changes | Unclear, likely market size/interest | Acquisition by Unilever | Driven by specific distribution decisions |
| Common Perception | Nostalgic, warm bedtime beverage | Essential family nutritional drink | Foreign specialty product | Trusted family brand | Specialty import |
Conclusion
The question of "why is Horlicks discontinued?" is best answered by understanding its complex history of corporate acquisitions and divergent regional strategies. The brand is not universally discontinued but rather has undergone a profound transformation driven by its sale from GSK to Unilever. This change in ownership led to strategic decisions about which markets to prioritize, what product claims to emphasize (especially in light of regulatory changes), and how to compete with other products. For consumers, this has resulted in a patchwork of availability, with the product thriving in some areas like India and disappearing from shelves in others. While the classic malted drink may be harder to find in some parts of the world, its legacy continues under different owners and market approaches.
The Acquisition and Rebranding Process
How Corporate Strategy Drives Market Changes
When a major corporation like Unilever acquires a brand as iconic as Horlicks, the changes are not simply a matter of swapping logos. The acquisition process is a complex, multi-stage affair involving due diligence, market analysis, and a new strategic vision. Unilever's goal was not to maintain GSK's exact business model but to integrate Horlicks into its own ecosystem of products. This involved assessing Horlicks' fit within their broader portfolio and prioritizing markets with the highest growth potential. In some cases, this means exiting smaller or less profitable regions entirely, especially if maintaining distribution channels proves too costly.
The Impact on Local Market Presence
In regions where Horlicks has been pulled, the change is often felt deeply by loyal consumers who relied on it as a staple. The void left by the brand can be filled by other competing products, or it may simply disappear, leaving a nostalgic gap in the market. The decision to exit a market is rarely made overnight and typically follows a period of declining sales, increasing competition, or regulatory hurdles that make the cost of doing business too high.
Conversely, in areas like India, where Horlicks was a market leader, the acquisition by Unilever meant a change in management and potentially a renewed marketing strategy, as seen with the recent rebranding to a 'functional nutritional drink'. This kind of adaptation is a key part of modern corporate strategy, ensuring brands remain relevant and compliant in a changing landscape. While the brand remains, the messaging and positioning have evolved, which can feel like a different product to long-term consumers.
The Future of Regional Availability
With different owners controlling the brand in various regions (e.g., Aimia Foods in the UK), the future availability of Horlicks is no longer a centralized decision but a fragmented one. This means consumers in one country cannot assume the fate of the brand in another. For those who miss the drink, importing from markets where it is still produced or seeking out specialty stores may be the only option. This phenomenon is a direct consequence of the global business transactions that reshaped the Horlicks brand.
