Nissin Foods to Serve up Fu­ture’s Tasty Treats at Ki­ranas

The Economic Times - - Brands & Companies - Sa­gar.Malviya@ times­

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

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