The Hindu Business Line : Frito Lays brands back on Food Bazaar shelves

Food Bazaar is increasing it dependence on its private labels in spite of signing several MoUs with a host of FMCG companies such as Ruchi Soya and Rasna.

Purvita Chatterjee

Mumbai, Jan. 14 Resolving its differences with Pantaloon Retail’s Food Bazaar, Pepsico’s Frito Lays has brought its brands back on the shelves of the retailer.

As a result, Food Bazaar expects its own private label snacks business to grow at a slightly slower rate as there are going to be more snack brands selling at its stores.

Snacks biz

“Frito Lays has been the largest selling and most preferred brand at Food Bazaar and with it coming back on shelves, we expect the snack business to have a 15 per cent growth rate,” says Mr Arvind Chaudhary, CEO, Food Business, Pantaloon Retail.

Currently snacks account for 5-7 per cent of Food Bazaar’s Rs 2,000-crore turnover.

The brands from Frito Lays have been off the shelves at Food Bazaar outlets for the past 3-4 months due to differences in the terms of trade between the retailer and the FMCG company.

In fact, during the time Frito Lays was not available, Food Bazaar’s private label of Tasty Treat emerged as the dominant snack brand with a 16 per cent share with the second largest brand (ITC’s Bingo) way behind it.

Bazaar’s own

Today, Food Bazaar is increasing it dependence on its private labels in spite of signing several MoUs with a host of FMCG companies such as Ruchi Soya and Rasna. It has got some of the same FMCG companies as suppliers for its private labels such as Tasty Treat and Fresh n Pure.

Of late, new companies such as Cargill Food, Dynamix Dairy and Priya Foods have been roped in to create food products for its private labels. “We have companies like Ruchi Soya which are manufacturing our edible oils while Dynamix Dairy is making cheese, butter and ghee for our private labels,” says Mr Chaudhary.

Even SMEs have been included in its list of suppliers and these include smaller players such as the Kolkata-based Priya Foods (the makers of Pogo chips) which has been supplying snacks under its Tasty Treat brand.

“Our private labels help in filling the gaps as consumers get a range of products, variants and price points,” states Mr Chaudhary.

At the same time, Food Bazaar is exploiting the synergies at the back-end with its fair-priced format under KB Fair Price.

“For categories such as grains, oils and fruits, we have synergies at the back-end with our fair-priced formats. We share resources in sorting, grading, packing and the supply chain with KB Fair Price,” claims Mr Chaudhary.

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Food Bazaar's snack brand gains on Frito Lays exit

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