In the global market, Nestle is one of the major players in breakfast cereals, competing with brands like Kellogg’s and PepsiCo’s Quaker Oats.
India’s largest pure-play food and beverages company, Nestle India, got the approval of its board to add breakfast cereals to its portfolio from the company's joint venture with Cereal Partners Worldwide (CPW), and also launch it in India, Business Standard reported.
In the global market, Nestle is one of the major players in breakfast cereals, competing with brands like Kellogg’s and PepsiCo’s Quaker Oats, and now it will be present in India as well. Breakfast cereal market in India is worth Rs 15 billion and has local players like Marico and Bagrry’s competing with the same international brands.
The report quotes industry estimates saying that India’s breakfast market is bound to cross Rs 25 billion in size in the next 2 years. It is mainly driven by convenience, health and value of nutrition. Nestlé is also expected to aggressively promote a breakfast cereal brand it had launched in 2016 for kids, named Ceregrow.
CPW is a joint venture between Nestle and General Mills, which is a network of 17 factories and four R&D centres. It employs 4,600 people across the world.
The company was a late entry in the market but it remains confident. Nestle India’s CMD Suresh Narayanan said that this business complimented the company’s present portfolio since it is about health and food expertise at the same time.
“The consumer need for breakfast choices is only growing and firms need to bring more options to satisfy this need,” he added.Nestle recently reported a growth in the sales volume of its four big product categories that include milk products and nutrition, prepared dishes, cooking aids, power and liquid beverages and confectionery.