Tata NourishCo enters the market for luxury spices with saffron

3 Aug 2023 , 01:41 AM

Local FMCG businesses may have expanded more quickly than national brands in the past year, but Vikram Grover, managing director of NourishCo Beverages, a Tata Consumer Products subsidiary, told ET in an interview that any rivalry can be countered with ‘differentiated products.’

‘If businesses sell the same products, the issue of local competition gets worse. It is challenging to replicate the combination of our differentiated items, excellent pricing, national advertising at scale, and investments in distribution muscle, he said.

Regional and local brands saw volume growth surpass that of national brands in the 12-month period ending on April 30, according to research firm Kantar, which claimed in a report last week that national brands saw volume growth of 8.2% in the same period.

Grover stated to ET, ‘We feel we have a formidable combination of levers to help us overcome any such competition.

The Himalayan brand of Kashmiri saffron, which according to Grover is perhaps the most expensive spice in the world, is Tata NourishCo’s entry into the premium spice market. The company already sells Himalayan mineral water, Tata Gluco Plus functional drinks, Fruski juices, and honey. Given the level of adulteration in the market, there is a lack of customer awareness and a lack of trust in the Indian saffron market. This is something that our product addresses.

Grover stated that the business believes there is ‘a lot of room to grow distribution and convert consumers to branded beverages.’

For the quarter that ended June 30, 2023, group company Tata Consumer Products recorded a 22.1% year-over-year increase in net profit to Rs 337.7 crore. The packaged beverage industry reported a 2% increase in revenue and a 3% increase in volume for the quarter. While the Indian foods sector saw a 24% increase in revenues, the coffee industry saw a quarter-over-quarter decline of 11%.

The corporation announced a corporate reorganization earlier this year, combining Tata Consumer Products Foods and Beverages with Tata Coffee’s plantation division.

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