Distribution hurdles have forced ITC Foods to withdraw its snack food brand, Bischips, from the market.
Mr Ravi Naware, Chief Executive of ITC's food division, told Business Line, "We have withdrawn Bischips since we could not sustain the supply chain efficiencies, for the brand and distribution was getting expensive."
Having sub-contracted the Bischips brand to a firm in Kolkata, ITC Foods was finding its tough to have an all-India distribution network to support the brand.
"The Bischips snack brand was never advertised and has been withdrawn from the market for the past couple of months. However, we might be re- launching the snack brand on the back of our biscuits distribution network in future," said Mr Naware.
In the process of enhancing its biscuit distribution network, ITC Foods realises that it cannot ride on the existing cigarette distribution network for its snack foods, which includes its biscuits, as well.
Mr Naware said, "We have to go beyond cigarettes, and today we have added another half-a-million outlets to our existing network."
Currently, ITC Foods reaches out to 1.5 million retail outlets across the country.
ITC Foods has decided to use the distribution network of its biscuits brand `Sunfeast', to distribute Bischips, once it gets re-launched in the market.
"We are in the process of strengthening our biscuits distribution network and once that happens, we will use it for the re-launched Bischips snack brand as well," said Mr Naware.
Bischips was introduced about a year ago as a flour-based baked snack in region-specific flavours, with the "goodness of a biscuit and the freshness of a chip".