India's growing breakfast cereals market has got leading food and beverage company -- Nestle -- to foray in this segment too.
India’s growing breakfast cereals market has got leading food and beverage company — Nestle — to foray in this segment too. FMCG major Nestle India has said it will launch breakfast cereals in India this year, a market which is dominated by Kellogg’s, PepsiCo and homegrown Bagrry’s.
“The consumer need for breakfast choices is only growing and companies need to bring more options to satisfy this need. We are therefore pleased to be introducing Nestle Breakfast Cereals in India,” Nestle India Chairman and Managing Director Suresh Narayanan said on Wednesday. Nestle India already has a huge market for Maggie noodles and its coffee in India.
Nestle India said it will add Nestle Breakfast Cereals from Cereal Partners Worldwide (CPW) to its existing portfolio this year in India. Nestle’s Fitness, Cheerios, and Nesquik are some of the popular breakfast cereals in the western countries. With lifestyles of Indians changing in tandem with increasing spending power and higher health consciousness, the market for breakfast cereals has grown with a gateway for experimenting with
different tastes and varying eating preferences, a research said.
Breakfast cereals is a growing market in India which was pegged at $157 million in 2013 with the promise of double-digit growth over the next five years, a research by Technopak said. While with Nestle’s foray into the market, it will lock horns with Kellogg’s, PepsiCo, and Bagrry’s, regional players have a competitive edge over bigger brands with their strong and robust local distribution network.
Meanwhile, Nestle’s has signed a $7 billion licensing deal for Starbucks’ retail business, which will give the much-needed boost in its battle against JAB, the privately owned investment firm stirring up the coffee industry with a string of deals, Reuters reported. The agreement between Nestle and Starbucks calls for Keurig to continue manufacturing Starbucks coffee K-cups in the United States, where the bulk of Keurig sales are, and for Nestle to market and distribute them.