Gurugram-based startup Yu Foods is disrupting the packaged food industry with its innovative, all-natural noodles, pastas and recent launch of its 100% natural fruit juices.
Today, where consumers are increasingly aware of the ingredients in their food, Yu is pioneering a new path in the Indian packaged food market. With its commitment to quality and natural ingredients, the startup, co-founded by Bharat Bhalla and Varun Kapur, has already made a significant impact since its launch in October 2021.
Entering the Packaged Food Space
Yu Foods was founded on a simple but powerful idea: packaged food can and should be good for you. Bharat Bhalla explains, “Why has India kind of skipped that revolution in the packaged food space? A lot of it is attributed to the onset of cloud kitchens. Packaged food has remained stagnant, but urbanization is only increasing. Why can’t packaged food be good for you?”
To address this, Yu has embraced freeze-drying technology to create meals that are free of preservatives and artificial flavors, with a shelf life of 12 months. Bhalla describes their approach: “We use freeze-drying technology to figure out how you can put together food stored at ambient temperature, without any preservatives and without any artificial flavors.”
Unique Approach to Distribution
Unlike many startups that begin with an online-first model, Yu took a different path. “We are pure play FMCG. Our journey started from offline,” notes Varun Kapur. “Our largest channel today is offline, which is harder because, in terms of distribution, offline is the hardest leg.”
Despite these challenges, Yu has established a presence in approximately 5,000 distribution points across India and is also available on all major online platforms. This omnichannel strategy is essential for building brand awareness and consumer trust.
Expanding Product Range
Yu offers a diverse product range that includes category leaders in instant foods and pasta using Freeze drying technology. Their products, such as whole wheat noodles and ramen, reflect the brand’s commitment to innovation and consumer health. Bhalla shares, “We have instant whole wheat noodles that we launch later this month, and then we also launch a ramen which our consumers want us to do.”
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Their recent venture into instant rice and pasta is aimed at providing better-for-you products, particularly for the younger generation. Bhalla adds, “We have this view to ourselves and our consumers. It’s a product we launched in November-December 2023, and the response has been heartening.”
Introducing 100% Natural Juices
With the success of their coconut water, Yu is set to shake up the beverage industry with the introduction of its 100% natural fruit juices. Bhalla explains the motivation behind this new line: “We started looking at the packaged juice market and saw that 99% are filled with sugar, artificial flavors, or concentrates. It makes no sense.”
After extensive development, they are launching two flavors: Tropical Punch and Berry Blast. These juices are made entirely from natural ingredients without any added water or sweeteners. Bhalla emphasizes, “This will obviously form a very big part of what we do over the next six months.”
Looking ahead, Yu is poised for substantial growth. Kapur shares their projections: “By the turn of this quarter, we should be a INR 50 crore revenue business annualized. We should also be positive on our profitability metrics at this level.”
With products selling every 8 minutes, Yu Foodlabs is at the forefront of a packaged food revolution in India. As Bhalla puts it, “We’re selling faster than quick commerce can deliver.”
