Food major Nestle India is planning to tap the breakfast cereal market of corn flakes, muesli or cereal bars. “In the coming days, we will pay more and more attention to health and nutrition and may enter these (breakfast cereals) areas,” Nestle India CMD Carlo M Donati told FE.
Nestle, Mr Donati pointed out, had a joint venture with General Mills called Cereal Partners Worldwide (CPW) which was a world-wide producer of breakfast cereal with brands such as Zucosos, Choc-apic, Nesquik and Shreddies.
In India, Kelloggs India with its corn flakes and other variants is the only multinational in the category, which has been fighting to find a way on the breakfast tables along with popular traditional items like dalia, parantha, idli and dosa .
Homegrown Mohan Mea-kins was the first to introduce western breakfast cereals in the country.
Without giving specific details, Mr Donati, however, said that the company had recently set up a team including a full time nutritionist at its company head office to understand the changing lifestyles and strengthen its understanding of ‘nutrition’.
The company also plans to leverage the Nestle technology, convert the consumer insights into products that provide nutrition, health and wellness. “Taste and pleasure continue to be important in the choice for food, but health and nutrition are becoming increasingly important concerns for the consumers,” he added.
Meanwhile, Nestle officials also do not rule out the possibility of outsourcing these products from local companies as and when the company decides to take the plunge into the category. In fact, industry sources say that the company is in talks with local vendors including the Delhi-based Bagrrys India Ltd, which makes high-fibre health foods like oats, oat-brand and muesli for a possible ‘outsourcing’ tie-up.
While there are no firm official figures, industry analysts, however feel that the breakfast cereals market has registered an impressive growth. Despite that, they point out, the market has not stabilised as yet. There are fluctuations in the consumption level. Pricing, according to them has been a very crucial factor in the growth of the market.