ITC Foods, the food division of diversified conglomerate ITC Limited, is stepping into the fresh packaged foods space with the launch of short-shelf life items such as cookies, cakes, and chapatis, ET reported. The move is part of the company’s larger strategy to capture the fast-growing quick commerce market, where consumer demand is shifting toward convenience-driven, freshly made options.
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Unlike most FMCG products that carry shelf lives of 12–24 months, ITC’s new offerings are designed to last only a few days. Hemant Malik, CEO of ITC’s food division, told ET that demand for such products is rising rapidly, thanks to the accessibility and convenience offered by quick commerce platforms. “There is an increasing consumer need for fresh packaged food products,” he noted.
To address this, ITC has extended its well-known Sunfeast and Aashirvaad brands into the fresh packaged category. The company has also built a hyper-local production and distribution ecosystem that enables next-day delivery, moving products directly from oven to doorstep.
At the heart of ITC’s strategy is a small-batch production model tailored to urban micro-markets. By producing and distributing in smaller quantities, the company aims to guarantee freshness while sidestepping the challenges of long-haul logistics and warehousing. Malik added that ITC is leveraging tech-enabled supply chain efficiencies, agile production setups, and rapid fulfilment systems, alongside a focus on fresh sourcing, to support the initiative.
Opportunities and challenges
The push into fresh packaged foods also reflects a wider trend in India’s FMCG sector, with rivals such as Hindustan Unilever, Marico, Parle, and Adani Wilmar strengthening their presence in quick commerce through dedicated sales and distribution teams.
However, analysts warn that the strategy comes with hurdles. Products with such limited shelf lives may struggle to achieve scale through quick commerce alone, requiring additional support from modern trade and general trade channels. Devangshu Dutta, founder of retail consultancy Third Eyesight, pointed out to ET that inventory management could prove challenging: “These products need to move fast, and space allocation in quick commerce will be critical.”