A snack war is brewing between ITC and PepsiCo. Both companies want to grab a bigger share in the Rs 2,000-crore snacks market, which is growing at 20% annually, and are resorting to varied tactics to achieve the same.
Pepsi, for instance, quietly launched two new flavours of Kurkure Desi Beats last month. The product is similar to ITC?s Bingo Mad Angles launched in March last year. The development caught many market observers by surprise as new launches usually are followed by a spate of new advertisement campaigns and marketing initiatives.
It may be noted here that Bingo?s has touched 50% in certain markets within six months since its launch. It is not below 15% in any market. With this kind of overwhelming response, ITC is hopeful of achieving an overall 50% market share in the near future.
Pepsi defended the quiet launch of new Kurkure variants, saying that it has regularly been adding new innovations and variants to its product basket. The company also claims that Kurkure Desi Beats is the latest in a series of innovations.
Deepika Warrier, director, marketing says FritoLay–the snack division of PepsiCo–is the world leader in foods business. ?We have been present in India for over 15 years and have literally created the organised snacks market on the basis of constant innovation and incorporation of local flavours with brands like Lay?s, Kurkure, Uncle Chipps and Cheetos,? she said.
Bingo is ITC Foods? fifth major line of foods business after the highly successful staples, biscuits, ready-to-eat and confectionery businesses. ITC is aiming for a 25% share in the Indian snacks market in the next five years. It has plans of investing around Rs 150 crore in the snacks market.
On the other hand, competitor Pepsi?s FritoLays leads the pack in branded snacks market followed by Delhi-based Haldiram. The organised snacks category is sub-divided into the traditional segment (bhujia, chanachur), western segment (potato chips, cheese balls) and the newly established finger snacks segment, which is an adaptation of traditional offerings to the western format.
