Packaged food giant Kellanova India, formerly Kelloggs India, aims to double its household penetration from the current 40-50 million households in the coming years. The͏͏ company͏͏ reported͏͏ robust͏͏ growth͏͏ in͏͏ its͏͏ Kellogg’s͏͏ Muesli͏͏ portfolio͏͏ and͏͏ has͏͏ also͏͏ increased͏͏ its͏͏ market͏͏ share͏͏ in͏͏ the͏͏ cornflakes͏͏ segment.
In͏͏ a͏͏ global͏͏ announcement͏͏ made͏͏ in͏͏ August,͏͏ Mars,͏͏ Inc.͏͏ stated͏͏ that͏͏ it͏͏ has͏͏ signed͏͏ a͏͏ definitive͏͏ agreement͏͏ to͏͏ acquire͏͏ Kellanova.͏͏ Prashant͏͏ Peres,͏͏ Managing͏͏ Director͏͏ of͏͏ Kellanova͏͏ India͏͏ &͏͏ South͏͏ Asia,͏͏ commented,͏͏ “Kellanova͏͏ has͏͏ been͏͏ on͏͏ a͏͏ transformative͏͏ journey͏͏ to͏͏ become͏͏ the͏͏ leading͏͏ snacks-led͏͏ company.͏͏ With͏͏ this͏͏ recent͏͏ announcement,͏͏ we͏͏ have͏͏ an͏͏ exciting͏͏ opportunity͏͏ to͏͏ join͏͏ Mars,͏͏ which͏͏ will͏͏ help͏͏ us͏͏ accelerate͏͏ our͏͏ vision͏͏ and͏͏ realise͏͏ our͏͏ full͏͏ potential͏͏ even͏͏ faster.͏͏ This͏͏ announcement͏͏ is͏͏ just͏͏ the͏͏ first͏͏ step͏͏ in͏͏ the͏͏ process.͏͏ Until͏͏ the͏͏ deal͏͏ closes,͏͏ both͏͏ companies͏͏ will͏͏ remain͏͏ completely͏͏ independent,͏͏ and͏͏ it͏͏ will͏͏ be͏͏ business͏͏ as͏͏ usual͏͏ for͏͏ everyone.”
Discussing͏͏ the͏͏ company’s͏͏ strategy,͏͏ he͏͏ stated,͏͏ “Our͏͏ household͏͏ penetration͏͏ is͏͏ currently͏͏ estimated͏͏ at͏͏ around͏͏ 40-50͏͏ million͏͏ households.͏͏ We͏͏ aim͏͏ to͏͏ increase͏͏ this͏͏ to͏͏ approximately͏͏ 100͏͏ million͏͏ households͏͏ over͏͏ the͏͏ next͏͏ 3-4͏͏ years.͏͏ We͏͏ believe͏͏ we͏͏ provide͏͏ a͏͏ compelling͏͏ proposition͏͏ to͏͏ consumers͏͏ in͏͏ terms͏͏ of͏͏ health,͏͏ nutrition,͏͏ and͏͏ convenience,͏͏ which͏͏ will͏͏ enable͏͏ us͏͏ to͏͏ build͏͏ a͏͏ substantial͏͏ business͏͏ in͏͏ the͏͏ long͏͏ term.”
Robust͏͏ Growth͏͏ in͏͏ the͏͏ Muesli͏͏ and͏͏ Cornflakes͏͏ Segments:
The͏͏ company͏͏ has͏͏ been͏͏ focused͏͏ on͏͏ revamping͏͏ its͏͏ portfolio͏͏ over͏͏ the͏͏ past͏͏ few͏͏ months.͏͏ It͏͏ reported͏͏ that͏͏ household͏͏ penetration͏͏ for͏͏ its͏͏ Kellogg’s͏͏ Muesli͏͏ portfolio͏͏ has͏͏ increased͏͏ by͏͏ 1.5͏͏ times,͏͏ and͏͏ the͏͏ brand͏͏ has͏͏ tripled͏͏ its͏͏ growth͏͏ compared͏͏ to͏͏ last͏͏ year.͏͏ “The͏͏ recent͏͏ introduction͏͏ of͏͏ Multigrain͏͏ Chocos͏͏ offers͏͏ a͏͏ balance͏͏ of͏͏ nutrition,͏͏ convenience,͏͏ and͏͏ taste.͏͏ Although͏͏ the͏͏ renovation͏͏ is͏͏ recent,͏͏ the͏͏ new͏͏ proposition͏͏ is͏͏ starting͏͏ to͏͏ show͏͏ positive͏͏ growth͏͏ signs͏͏ for͏͏ the͏͏ portfolio,͏͏ with͏͏ the͏͏ Chocos͏͏ line͏͏ gaining͏͏ 400͏͏ basis͏͏ points͏͏ in͏͏ market͏͏ share͏͏ over͏͏ the͏͏ last͏͏ three͏͏ months,”͏͏ he͏͏ added.͏͏ The͏͏ packaged͏͏ food͏͏ giant͏͏ noted͏͏ that͏͏ it͏͏ has͏͏ been͏͏ gaining͏͏ market͏͏ share͏͏ in͏͏ both͏͏ the͏͏ cornflakes͏͏ and͏͏ muesli͏͏ segments.
Continue͏͏ Exploring:͏͏ Kellanova India revamps͏͏ iconic͏͏ Kellogg’s͏͏ Chocos͏͏ as͏͏ Multigrain͏͏ Delight,͏͏ eyes͏͏ greater͏͏ household͏͏ penetration
Portfolio͏͏ Revamp͏͏ Yields͏͏ Early͏͏ Results:
“Pringles͏͏ was͏͏ launched͏͏ in͏͏ India͏͏ in͏͏ 2015,͏͏ and͏͏ the͏͏ brand’s͏͏ growth͏͏ momentum͏͏ has͏͏ been͏͏ fueled͏͏ by͏͏ a͏͏ strong͏͏ emphasis͏͏ on͏͏ flavors͏͏ that͏͏ resonate͏͏ with͏͏ Indian͏͏ consumers,͏͏ resulting͏͏ in͏͏ over͏͏ 20͏͏ percent͏͏ market͏͏ share͏͏ in͏͏ the͏͏ premium͏͏ potato͏͏ chips͏͏ segment,”͏͏ Peres͏͏ stated.
When͏͏ asked͏͏ about͏͏ demand͏͏ trends,͏͏ he͏͏ noted͏͏ that͏͏ after͏͏ a͏͏ period͏͏ of͏͏ sluggishness,͏͏ the͏͏ industry͏͏ is͏͏ now͏͏ experiencing͏͏ an͏͏ uptick͏͏ in͏͏ consumption͏͏ momentum͏͏ and͏͏ is͏͏ expected͏͏ to͏͏ rebound͏͏ strongly͏͏ in͏͏ the͏͏ second͏͏ half͏͏ of͏͏ the͏͏ fiscal͏͏ year.
