Explore new opportunities
We are continually exploring and evaluating new opportunities to grow organically and inorganically. During the year, we entered new Horizon-3 categories under the protein platform, forayed into new markets and consumer segments for our Sampann, Soulfull and RTE/RTC portfolios. We strengthened our branded coffee portfolio with innovative offerings and expanded Himalayan into a provenance brand.
Following a thorough assessment of several categories against a range of criteria, such as category sizes, growth rates, profitability profile, competitive landscape, synergies with our business and our right to win in these categories, we have identified five F&B platforms where we want to play. This is an important step in our journey to expanding our total addressable market and becoming a formidable FMCG player.
A look at our F&B platforms
CURRENT CORE
Tea
Coffee
Salt
PANTRY PLATFORM
Pulses and Spices
Staples
LIQUIDS PLATFORM
Water
RTD
MINI-MEALS PLATFORM
Breakfastcereals
RTEs
Snacks
HORIZON 3
Protein platform
Tata Soulfull - ‘Taste first, health forward’
In the post-pandemic world, there is growing awareness regarding health and nutrition, consumers are increasingly looking for products that are wholesome and tasty. Tata Soulfull’s millet-based portfolio of wholesome, convenient, and tasty products, caters to the entire family’s needs across various consumption occasions - breakfast cereals, mini meals and snacking.
Millets sit at the sweet spot of the intersection between sustainability, health and going back to our roots. While millets are ancient grains that have been in use in traditional Indian kitchens for a long time, the key is to give them to consumers in a product form that they can easily integrate into their lifestyles.
We believe millets will gradually evolve to become a mainstream category.
Also, with 2023 being the ‘International Year of Millets,’ the awareness for this grain will significantly grow among consumers and millets will start gaining salience as more nutritious grains.
Millets are also planet friendly; they consume less resources than mainstream grains, such as rice and wheat. As context, 1 kg of rice needs 4000 litres of water from the ground. But 1 kg of millets (like Ragi) needs only 400 litres of water from the sky. And with underground water sources depleting quickly, shifting to millets can help with water conservation. It’s a better crop to sow in drought-prone areas, too. Also, it’s a resilient crop. Insects don’t attack it as much and that means it doesn’t need pesticides as such. That leads to a healthier crop, too.
Soulfull’s millet-based portfolio of wholesome, convenient, and tasty products, caters to the entire family’s needs across various consumption occasions - breakfast cereals, mini meals and snacking.
MAKING MILLETS MAINSTREAM
We are scaling up Soulfull’s market presence by leveraging the power of Tata Consumer’s distribution network. Soulfull’s reach has increased from c.15,000 outlets at its acquisition to over 4 lakhs outlets. Ragi Bites is among top 5 distributed Tata Consumer brands. To make our products accessible to more consumers, we have launched products at affordable price points. Our Ragi Bites No Maida Choco is a great snacking option in INR 10 pack. The Tata Soufull Masala Oats+ range is available in INR 15 pack.
Our innovative product range now includes a range of muesli options, the most recent of which is our enhanced Millet Muesli with 25% millets, such as Ragi, Bajra and Jowar- a step towards strengthening the health proposition and providing a better taste experience to consumers. Tata Soufull Masala Oats+ range is made with the goodness of wholegrain oats, traditional Indian millets, such as navane and jowar, desi masalas and real vegetables. Since it has 25% millets, this makes it a crunchy, non-sticky product with taste profiles well suited to the Indian palate.
- 3X Calcium than Milk
- High in Folic Acid and Zinc
- Low Glycaemic Index
- Millets require c.90% less water than rice
- Minimal fertilisers used
- Boosts biodiversity
- Grows in dry conditions
- 3x yield potential
- Preserves soil fertility
Tata Sampann – Unlocking opportunity in everyday staples
We are building Tata Sampann as a master brand for everyday staples, a significant growth opportunity with the total estimated market in pulses at ~INR 1,55,000 crores and spices at ~INR 60,000 crores, and miniscule share of organised, branded segment.
In spices category, the most significant launch for us this fiscal was the pure and blended spices in the South market. We customised both the product and the communication to match the market’s needs. Other notable introductions during the year included:
- Launched Hing (asafoetida) to drive premiumisation for the portfolio
- Expanded to new and rapidly growing subcategory of multipurpose seasoning with the launch of Chef Style Masala in three flavours – Peri Peri, Tandoori and Mummy’s Special
- Tata Sampann Spices entered the South – one of the largest spice markets, with Pure and Blended spices specially curated for South Indian palate for AP, Telangana, and Karnataka markets
MARKETING
Tata Sampann launched a new campaign ‘Jaise Nature Ne Banaya’ with Manoj Bajpayee to build awareness about the goodness of unpolished pulses and the promise of Tata Sampann.
View Campaign
Tata Sampann’s TVC with Manoj Bajpayee builds awareness about Tata Sampann Haldi, which has essential oils intact and is sourced from the choicest farms to deliver an enhanced food experience.
View Campaign
Scaling Dry Fruits
In FY 22-23, we completed one year in the dry fruits category, scaling it up smartly. We also launched new-sized SKUs for almonds, cashews, and raisins to drive higher volumes. Expanding the range, we also added two new products viz. black raisins and dry fruits and nuts mix.
We also introduced assorted gifting packs to make our offering relevant to corporate and festive occasions. We plan to further scale up the portfolio by adding to our existing range of products and entering new channels of distribution.
Unleashing the potential of NourishCo
NourishCo, our liquid beverages business, has been on a strong growth trajectory since its acquisition by Tata Consumer in May 2020. The business achieved significant growth in topline, despite the pandemic and the business having high salience in ‘Out of Home’ channels.
STRATEGIC VISION
This portfolio which is even more relevant in the post COVID world has been deployed across a significantly broader canvas by:
NourishCo aims at providing the most relevant and meaningful hydration solutions in the non-carbonated, ready-to-drink beverages segment in India, fulfilling consumer need around energy hydration and wellness. The business has built an ambitious pipeline of innovations that will be used to fuel growth and create newer hydration solutions.
KEY HIGHLIGHTS
Growth in topline(INR Crores)
Expansion of distribution coverage
Growth in topline(INR Crores)
2.4x
Retail distribution since FY 20-21
13%
Innovation to Sales, with several category-first innovations
Capacity
Via co-packers in an asset-light model
EVOLUTION OF NOURISHCO TO A NATIONAL PLAYER
At the time of acquisition in 2020
- Geographical presence limited to AP, Telangana, TN and Odisha
By Exit-FY 22-23
- National Manufacturing and Distribution footprint
- Tata Copper+ capacity increased by 8x. Tata Gluco+ capacity increased by 2x
PRODUCT PORTFOLIO
Creating a portfolio to address need gaps.
Tata Copper+
In India, there has always been a strong tradition of drinking water stored in copper vessels. We decided to leverage this insight together with the strong brand equity of ‘Tata’ to create a differentiated product in Tata Copper+.
Tata Copper+ offers consumers the benefits of age-old wisdom which is conveniently packaged and competitively priced in the market.
7.4X
Growth in net sales in FY 22-23 vs FY 20-21
Tata Gluco+
Tata Gluco+ is a low-cost glucose-based drink that plays at the cusp of the energy and sports segments and is attractively priced at INR 10. It contains electrolytes and iron making it a ‘better for you’ product. This is packaged in a cup which differentiates the offering while also reducing cost. The cup format and distributed manufacturing represents a differentiated capability for NourishCo.
2.2X
Growth in net sales in FY 22-23 vs FY 20-21
Tata Fruski Juice n Jelly
Juice-based beverages are one of the largest categories in RTD beverages, and we are working to create a winning brand. Inspired by local Indian flavours, we launched Tata Fruski Juice N Jelly - a one-of-its-kind juice-based drink with the added surprise of Jelly, providing a unique taste and feel.
Himalayan
Himalayan has pioneered the creation of the source/natural mineral water market in India and has retained its leadership credentials over the years with packaging innovation and brand building.
We have successfully transformed Himalayan into a multi-category provenance brand with the launch of honey and preserves made with Himalayan origin fruits.
3.3X
Growth in net sales in FY 22-23 vs FY 20-21
The brand partnered with top celebrities and chefs for Himalayan Honey and Spreads.
Malaika Arora
Amrita Raichand
Gul Panag
Sarah Todd
Dia Mirza
Expanding presence in Ready-to- Eat (RTE) and Ready-to-Cook (RTC) products - Tata Sampann Yumside and Tata Raasa
CATERING TO CONSUMERS’ NEED FOR CONVENIENT AND WHOLESOME PRODUCTS
In today’s fast-paced world, consumers seek quick and convenient, wholesome and tasty meal options. Following the acquisition of Tata SmartFoodz, we revamped the acquired portfolio and rebranded it to ‘Tata Sampann Yumside’. Tata Sampann Yumside conveys the brand promise of taste and home-style goodness.
It is the first brand in India that straddles International and Indian cuisines in RTE. We also entered Ready-To-Cook (RTC) gravies and pastes segment with five everyday and exotic offerings. The product range includes RTE International cuisine, biryani and appetisers, an innovative range of RTE Indian Ethnic dishes, and RTC gravies and pastes. Our proprietary MATS technology helps us create products that can be stored at room temperature (ambient supply chain) and also helps preserve the texture of products. Yumside also entered the B2B segment with bulk packs during the year.
Tata Sampann Yumside
16
Ready-to-Eat SKUs
5
Ready-to-Cook SKUs
Launched
In MT, Ecommerce and SAMT Outlets
TARGETING EXPORT MARKET FOR INDIAN READY FOODS SEGMENT
‘Tata Raasa’ marks the entry of Tata Consumer into the fast-growing Indian Ready Foods segment in the International Markets, where the company’s existing footprint can be leveraged to fuel this business. Inspired by traditional regional recipes from India, Tata Raasa spans the Ethnic Ready-To-Eat and Ready-To-Cook categories, delivering authentic taste with no artificial colours or flavours. It is tailored for local preferences in markets like the USA and the UK.
Tata Raasa
5
Ready-to-Eat SKUs
4
Ready-to-Cook SKUs
Launched
In USA and UK in the ethnic channel
Expanding the total addressable market
ENTRY INTO PROTEIN PLATFORM -
TATA SIMPLY BETTER AND TATA GOFIT
The entry into the protein platform aligns with our focus on expanding our total addressable market. In FY 22-23, we launched two brands under our protein platform i.e., Tata Simply Better in the alternate meat category and Tata GoFit in plant-based supplements. We plan to expand the protein portfolio, moving forward.
Plant-based meats are at the forefront of the broader plant protein landscape, aimed at replicating animalderived meat’s sensory and cultural resonance, but without the associated implications for the environment and health. Tata Simply Better is targeting consumers, who are looking to incorporate more plant-based ingredients and it has both - the requisite protein content and the taste and texture of actual meat, making it a winning proposition for consumers.
1 Grand View Research, PBM Market Analysis Report
2 Internal and external estimates
3 Observer Research Foundation
We have also launched Tata GoFit, a plant protein powder, a health supplement range for women on their journey to be fitter every day. Tata GoFit plant protein powder is a plant-based easy-to-mix product formulated with gut-friendly probiotics. With ingredients like pea and brown rice, it is free from soy, lactose and added sugar.
1Marc Analysis, February 2022
2Observer Research Foundation
3Internal and external estimates
Tata Starbucks – Scaling up post COVID
Our out-of-home business, Tata Starbucks has seen strong growth in the past year. Post the pandemic and the easing of restrictions, it has seen a strong revival with the highest ever store openings during the year. During FY 22-23, we launched 71 stores in 15 cities including tier 2 cities.
come a long way—covering over 41 cities with over 333 stores. Same-store sales have surpassed pre-COVID levels. As Tata Starbucks looks at rapid expansion in the Indian market in the coming years, the endeavour is to enhance relevance for an increasing range of consumer segments. To achieve this, a pilot programme was run in 2022 in 4 cities across India with the objectives to:
- Drive familiarity among consumer segments
- Create more occasions for consumers to visit Tata Starbucks
- Grow consideration set for a different type of consumer
As part of this pilot, we introduced new products in beverage category, including filter coffee, masala chai (spiced tea), elaichi chai (cardamom tea) and three flavours of milkshakes (chocolate, vanilla and strawberry). Another key aspect was introducing a new size— ‘picco’ (6oz) — in the hot beverages segment. ‘Picco’ is a global first to be launched in India. In addition, we revamped the food menu by introducing freshly assembled sandwiches, and shareable and bitesized items whilst also changing the store décor. With the pilot's success, these initiatives will be rolled out in additional stores this year.
333
Stores
41
Cities
71
New stores opened in FY23 – highest ever annual addition since inception
INR 1,087 Cr
Net Sales FY 22-23
First Tata Starbucks Reserve store in India
We launched the first Tata Starbucks Reserve store in India at our Flagship Mumbai location to showcase the story of our coffee and the craft of our baristas for a unique customer experience. The store serves a wide range of premium coffees, including small batch and single-origin, alongside a specially-curated food menu.
2.3 Mn
Starbucks® Rewards loyalty programme
40.3%
Gender diversity
20
All-women stores
Starbucks X Sabyasachi
Tata Starbucks partnered with the celebrated Indian designer and couturier, Sabyasachi Mukherjee, for a limited-edition collection, available exclusively in India. It featured a range of lifestyle drinkware including ceramic mugs and stainless-steel tumblers.
Vegan Food Menu
Tata Starbucks launched a Vegan Menu in India for the first time, which provided vegan options for customers, in addition to Starbucks’ existing beverage customisation options with plant-based dairy alternatives such as almond, oat and soy.