Tata Soulfull banks on millets to stand out in breakfast cereal segment | The Financial Express

Tata Soulfull banks on millets to stand out in breakfast cereal segment

Modern trade and e-commerce have near 100% weighted distribution, according to Parameswaran.

Tata Soulfull banks on millets to stand out in breakfast cereal segment
The growth is not from just the top five metro cities. “The top five cities is 36% of the business, while the top 18 cities form 54%,” he said.

Tata Soulfull, a 100% subsidiary of Tata Consumer Products that operates in the health and wellness-focused food segment, is looking to increase its distribution share keeping high millet content in its products as a key differentiator. The company is aiming to become a top-two or three player by 2027 in the three categories it operates in: children’s snacking, breakfast cereals and masala oats.

“Keeping millets as our key differentiator, we will be doubling our market share in the muesli segment to the high 20s from the close to double-digit market share at present in the coming few years,” Prashant Parameswaran, managing director and CEO, Tata Soulfull, told FE.

He said the snacking category is exploding in India, and the company plans to ride on the phenomenon. “We operate in choco-fills and no-maida chocos, where we have strong clear distinctive proposition. And we are clear that we are going to take that and increase our distribution and reach from a consumer base on kids’ snacking, as well as build strong distribution on breakfast cereals in muesli.”

The company is looking at investing significantly in improving store counts, getting consumers to taste the products, and digital and print advertisements.

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While Parameswaran did not put a number to the investments, he said as a category, 50% of the stores do close to 90% of the muesli business, and it is important for Tata Soulfull to be present in these stores. Tata Soulfull is looking to take the present 60% weighted distribution to over 80% in the next one year, he said.

The market size of muesli in India is about Rs 300 crore and growing at 22-24% quarter-on-quarter. “We are close to double the category growth, which is an encouraging sign. As much as the numbers are there, we will continue to outpace category growth and also expand ourselves into distribution,” said Parameswaran.

The category is present in less than 100,000 outlets, while modern trade, e-commerce, quick commerce and omni-channel contribute majorly to its growth. Modern trade and e-commerce have near 100% weighted distribution, according to Parameswaran.

The growth is not from just the top five metro cities. “The top five cities is 36% of the business, while the top 18 cities form 54%,” he said.

He said the company is not looking at exorbitant pricing, while not aiming for mass pricing as well. “Our vision is to make millets mainstream and bring them back to the table. We have a consumer affordability to value kind of approach and while we are not into high premiumisation, we are not into mass discounting kind of space as well,” he said.

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First published on: 02-12-2022 at 03:05 IST