The Hindu Business Line : Food Bazaar's snack brand gains on Frito Lays exit

Mumbai June 19 Loss of Frito Lays brands at Pantaloon's Food Bazaar has led to gain in share of the latter's private snack label. Today Tasty Treat, the ready-to-eat private label of Food Bazaar, is leading with a 16 per cent share among the rest of the brands.

States Mr Sadashiv Nayak, CEO, Food Bazaar, Pantaloon Retail, "In the past few months our private brand in the snacks category has been dominant with a 16 per cent share. In fact, the second largest selling snack brand - ITC's Bingo is way behind it.''

While category development has always been the intention of the retailer, recently Food Bazaar had to withdraw the Frito Lays brands at its outlets. "It was an exceptional case where we have had to withdraw the Frito Lays products from our stores. There were internal problems where the commercial terms of trade were not suitable for us,'' explains Mr Nayak. However, its private label - Tasty Treat did come in handy and proved its competence in spite of Frito Lays absence from the shelves. "We have not lost any money in the snacks category. We expect Frito Lays to re-think its commercial agreement with Food Bazaar,'' adds Mr Nayak.

Organic, ethnic foods

Meanwhile, Food Bazaar has lined up a series of brands to make an entry into new categories such as organic and ethnic foods with the intention of bringing in more private labels at its stores. "We are exploring new brands and would be entering the new segments with more of our own private labels. We would look at regional preferences and would like our private brands to be the preferred brand in the foods space,'' adds Mr Nayak.

At the same time, the foods retailer is not looking actively at the home delivery format. "Home delivery is an added experience for our consumers and we cannot compare our efficiencies in this area with the local kirana shops," says Mr Nayak. Today, almost 5 per cent of its total turnover is attributed to its home delivery services.

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