Nissin Foods to Serve up Future’s Tasty Treats at Kiranas
Mumbai: Future Group, the pioneer of organised retailing in India, has found the right ingredients in the inventor of Asian snack-food staples to serve up a tasty treat beyond its bailiwick – at street-corner groceries across the country. Future Consumer (FCL) that sells its own brands of snacks, cookies and other packaged foods at its Big Bazaar and Easy Day stores, will harness the distribution muscle of the Indian unit of Japan’s Nissin Foods to reach out to buyers beyond the 800-odd own outlets that currently stock FCL products. The arrangement is a novelty in India, where about two decades of organised retailing have failed to erode the dominance of neighbourhood grocers in the $600-billion-a-year market.
The Indo-Nissin distribution tieup, therefore, dovetails into Future Group founder Kishore Biyani's wider strategy to generate ₹ 20,000 crore in sales from in-house brands by 2021 and establish itself as a standalone consumer goods company by enhancing the brand recall of its private labels. The latest initiative will turn Future Group into a direct rival of Hindustan Unilever, ITC, and Nestle, marquee consumer-goods companies whose products dominate the retail shelves at Biyani’s stores. “We are taking our products and brands to local general trade which accounts for nearly three-fourth of the overall FMCG sales. The scale of our reach will now match the large portfolio that we have created over the last decade,” said Devendra Chawla, chief executive officer at FCL. The consumer company has 27 brands under 65 categories, including food brands such as Sunkist, Karmiq, Golden Harvest, Fresh & Pure, Premium Harvest and Tasty Treat.
Bengaluru-based Indo-Nissin, which set up in India in 1988 and introduced Top Ramen noodles as an alternative to Nestle’s Maggi, will initially market FCL's snacks and beverages brand Tasty Treat before rolling out other brands. “It will help Future Consumer expand the reach of the brand to more consumers across by leveraging our extensive distribution network in general trade outlets,” said Gautam Sharma, MD at Indo Nissin Foods that has a similar tie-up with Hector Beverages for its Paper Boat brand of non-alcoholic drinks.
FCL, which counts Arisaig Partners and Verlinvest as its investors, has a distribution network of 22,000 stores, including their own and expects the firm to contribute 70% to the Future Group’s consumer-goods sales by 2022. While Future Group operates around 13 million square feet of retail space with an annual customer footfall of 295 million, over the past year the group has been adding new partners such as Tata StarBazaar, Metro and Spar, besides 5,000 Rajasthan Fair Price shops.
The company recently entered a joint venture with Hain Celestial to manufacture and sell food products in the health and wellness space in India. FCL also has a joint venture with Mibelle AG, a division of Migros Group, Switzerland, and makes a range of personal-care products under the brand Swiss Tempelle.
Ttie-up dovetails into Future Group founder Kishore Biyani's wider strategy to generate 20,000 cr in sales from in-house brands by 2021