At a time when the Fast-Moving Consumer Goods (FMCG) sector is facing a slowdown, Future Consumer - a part of Kishore Biyani-led Future Group, has carved out a new strategy to overcome the same.
Apart from selling Future Consumer brands across modern retail, the company is now aggressively strengthening its presence in the general trade as well.
As on date, 25 percent of total Future Consumer’s sales is coming from outside the Future Group network, and this will increase further as more and more brands get introduced into the general trade, a company spokesperson said.
Earlier in November, Moneycontrol reported that Future Consumer Ltd (FCL) would sell Dreamery products across 3,000 general trade outlets in major metro cities.
Dreamery is the dairy brand of Future Consumer Ltd launched in partnership with New Zealand-based dairy major Fonterra. In June, Fonterra Future Dairy, a joint venture (JV) between New Zealand-based Fonterra and Future Consumer, launched the brand.
Under this brand, the Fonterra Future Dairy launched ultra-high temperature (UHT) toned milk, Dahi (Curd), chocolate and strawberry-flavored milkshakes, Greek Yoghurt (in strawberry and mango flavours) and cheese slices.
After selling Dreamery through general trade, Future Consumer now plans to sell healthy snacking Terra Chips and Sensible Portions via general trade.
Ashni Biyani, the managing director of Future Consumer, told Moneycontrol, “Hain Future Natural’s Better-For-You snacks Terra Chips and Sensible Portions will now be available at modern trade and general trade outlets across major metro cities and e-commerce channels.”
Hain Future Natural Products is a joint venture of US-based Hain Celestial Group Inc and Future Consumer Ltd, one of the fastest-growing FMCG companies in India, conceptualised to bring products from health and wellness space from the Hain Celestial portfolio of products to the Indian consumer.
The current portfolio comprising Terra Chips and Sensible Portions Veggie Straws (available in three flavours – Sea Salt, Zesty Ranch and Cheddar Cheese) is already available in major metros including Delhi, Chennai, Bangalore and Mumbai and aims to expand reach by connecting with 32,000 outlets by end of 2020, Biyani said.
The total savoury snacks market in India is estimated at Rs 29,000 crore, with an annual growth of 24 percent, while the health snacks sub-segment is estimated to be around 2 percent of the overall snacks market.
Other brands including munching brand Tasty Treat and Premium wet wipes brand Kara are also available in general trade outlets.
Experts say, by directly approaching general trade outlets with its Future Consumer Brands, Future Group is relying on increased product visibility for higher brand recall translating to higher sales.
Expanding to general trade is expected to help push sales numbers and get volume growth for the company as well.
Future Consumer reported the widening of consolidated net loss to Rs 16.75 crore for the quarter ended on September 30.
According to the BSE filing, the company posted a loss of Rs 3.23 crore in July-September 2018-19.
Future Consumer was formerly known as Future Consumer Enterprise Ltd
At least five out of 20-plus brands of FCL are sold through general trade outlets, in addition to Future Group’s own retail network.
Modern retail includes Future Group Network stores like Big Bazaar, Easy Day, Hypercity and so on, and non-Future Group retail outlets like Amazon, Spencer’s Retail, Star Bazaar among others.
Future Consumer (FCL), one of the fastest-growing FMCG companies in the country, has achieved more than 50 percent category share within Future Group’s retail network in at least 30 categories.
FCL has crossed 50 percent category share in several categories within Future Group outlets. Groceries like pulses, dry fruits, cereals, wafer biscuits, agarbathis, aluminium foils & wrap, chinese noodles, cooking pasta, face tissues & wipes, frozen vegetables, manicure & pedicure, phenyls are among the major categories where FCL brands have a lion’s share.