Godrej Tyson Foods Ltd (GTFL), the company behind the Godrej Yummiez brand, said it plans to increase its the footprint for vegetarian frozen snacks and plans to export it to South East Asian Nations and Australia. It currently exports to the UK, Middle East and USA. It is also looking to introduce a sachet size for its sausages range to make it affordable and penetrate further into the category.
Godrej Tyson Foods Ltd (GTFL) is a joint venture of Godrej Agrovet Ltd. and Tyson Foods, USA since 2008. It retails Yummiez brand of frozen snacks and Real Good Fresh Chicken.
“There is traction in the ready-to-cook category and exposure is happening as more Indians travel. Sausages are high in protein for fitness-conscious individuals too. The combination of these two factors is driving the category not only in metros and tier-1 but in tier-2 cities as well. Therefore, if you want to penetrate into these demographics, you have to become more affordable,” Abhay Parnerkar, CEO, Godrej Tyson Foods, told FE.
He said that the company was introducing a two sausage per pack for Rs 30. “In vegetarian snacks too, there is hardly anything that we could find below the Rs 70 -80 price point,” he said.
The company said it was sensing opportunities from markets like Mangalore, Amritsar, Siliguri and Guwahati and affordability will help increase its market share.
Speaking about the larger business, Parnerkar said that Godrej Tyson Foods has a diverse portfolio and the vision for the company was to create a farm-to-fork enterprise.
“In India, frozen category currently is one of the least-penetrated categories with single digit penetration. We deal both in traditional poultry products and frozen non-veg chicken-based snacks. We also have a range of vegetable-based snacks which are manufactured at our Ludhiana facility,” he said. The company’s facility in Bengaluru manufactures its non-vegetarian portfolio.
Parnerkar said its B2B business caters to the likes of McDonald, KFC, Wendy’s and a host of other restaurants. “We are also diverting our energies into growing our B2B segment. In urban areas, there is huge explosion in terms of restaurants, cafes, international chains and standalone outlets. We cater to such businesses with our range of products,” he said adding HORECA as a category will be big for it.
Parnerkar said the current business in Yummiez business about 85-90% is B2C while balance was B2B. For RealGood about 20% is from the fresh chilled is for B2C. HoReCa accounts for about 80% of the business”.
The company said it has intensified its efforts on exports.
“We want to leverage our expertise our own vegetarian frozen foods plant. For non-veg products, there are certain restrictions on exports. In the vegetarian category, a lot can be done. A couple of years back, we started (operating in the) US but largely through a private label and not our own brand. Now for the last few months, we have been focusing on what can be the opportunity for our brand in some international markets. We are exploring South East Asia, Middle East and Australia are our focus markets,” Parnerkar said.
He said the quick commerce was providing the biggest growth for the company and it was whole channel for Yummiez.
On its revenues, the company said, “We crossed Rs 1000 cr revenue as Godrej Tyson in FY23 for the first time. And a lot of it came in through both, good growth in B2B and B2C segments. Real GoodChicken saw almost a 50 percent growth which is combination of both B2B and B2C. Yummiez also was a double digit growth last year and its more from the consumer/B2C segment.”
Yummiez frozen brand is our biggest and most distributed products would be about 7000 stores physical presence in about 60/60+ cities. For Real Good Chicken, the company said it sells through 1,000 odd outlets in three cities.