Godrej Yummiez Eyes 30% Growth As Demand For Frozen Food Persists


Godrej Tyson Foods Ltd., which makes poultry and frozen foods, is adding more products under its brand Godrej Yummiez to tap the growing demand for convenience food that stayed even after the pandemic.

The company, a joint venture of Godrej Agrovet Ltd. and U.S.-based Tyson Foods Inc. since 2008, launched its third new vegetarian product, Crispy Potato Starz. Earlier this year, the company launched paneer pops and mixed veggies. The company has priced the product at Rs 125 for a 400-gram pack and Rs 225 for a 750-gram pack.

“Vegetarian is certainly the higher growth area because it allows us to launch products at lower prices,” Chief Executive Officer Abhay Parnekar said. The size of the vegetarian frozen food category, he said, is pegged to be about two-thirds of the Rs 3,500 frozen foods market.

For Yummiez, about 45% of the sales come from vegetarian frozen foods. Other brands in the segment are McCain, Venky’s, and ITC Master Chef and Sumeru.

The portfolio expansion is expected to boost the overall growth of Godrej Yummiez by 30% in FY23, according to Parnekar. Godrej Tyson Foods’ second-quarter revenue rose by 13.7% year-on-year to Rs 228.4 crore.

The segment’s top-line growth was driven by ‘Real Good Chicken’ and ‘Yummiez’, whose volumes grew by 69% and 65% year-on-year, respectively.

The Covid-19 pandemic has provided a boost to the business of frozen food. With restaurants shutting down or restricting operations—particularly in the early days of the pandemic—many consumers increased purchases of fresh and frozen food as they hunkered down at home. 

With the economy opening up, the food industry wondered if increased consumer demand could be sustained.

“It continues to grow even today,” Parnekar said. There are three key drivers for consumers’ frozen food purchases, viz. value, convenience, and healthy options, he said, and Godrej Yummiez plans to tick all the boxes.

Growth is within the reach of the e-commerce industry, in every corner of the country, due to high internet penetration. The proliferation of smart devices will further accelerate the purchase of frozen food items, Parnekar said.

Godrej Yummiez has seen rapid growth on its online channel. The channel also helps the category work around one of its key challenges: the lack of cold chain infrastructure, such as freezers in mom-and-pop stores.

But even as online demand grows, Parnekar said, the company will be launching more smaller pack sizes as the focus remains to generate higher growth from general trade and modern outlets, which still form a significant part of sales for the fast-moving consumer goods companies.

“We are trying to get closer to the Rs 100 price point because despite frozen foods serving the upper crust of society so far, still, smaller-sized packs have higher transactions,” said Parnekar.

The company plans to make Godrej Yummiez Crispy Potato Starz available to 7,000-plus general and modern trade outlets in one year, Parnekar said. It also plans to expand its distribution by 50% in existing and new cities, largely non-metros, such as Udaipur, Allahabad, Varanasi, and Mangalore.

The firm has a dedicated facility in Ludhiana to make vegetarian products, and two chicken processing plants in Mumbai and Bengaluru. It commands a “strong” market share with its non-vegetarian range of products. “But in the coming days, the contribution to the overall mix will swing more towards veg even as the non-veg portfolio will grow in tandem,” he said.

Currently, the brand’s portfolio comprises 25 non-veg stock-keeping units and 15 vegetarian stock-keeping units including nuggets, burger patties, salami, sausages, kababs, sweet corn, and green peas.

Godrej Yummiez Crispy Potato Starz is made with high quality potatoes using advanced individual quick freeze technology that keeps it fresh for long without any added preservatives, said Parnekar, even as the company seeks to solve the inferior image of frozen food viz-a-viz fresh food.

According to the ‘STTEM – Safety, Technology, Taste, Ease and Mood Uplifter’ report by Godrej Yummiez, around 55% of Indians binge on frozen foods as a mood uplifter on various occasions.

However, the myth that frozen foods contain preservatives is a concern among consumers. The same report highlights that about 51% of Indians feel preservative-free frozen snacks would guilt-rid them off frequent snacking.

“It (Crispy Potato Starz) disproves the notion that preservatives are a necessary component of frozen foods,” said Parnekar.


Source link

What is your reaction?

In Love
Not Sure

You may also like

Comments are closed.

More in:Business