In a nutshell

On the face of it, it may seem like an apple vs orange contest. A Rs 40 packet of namkeen versus a Rs 200 packet of pistachios. But that's the category that Mark Masten, Vice-President of Global Sales & Marketing at Paramount International, says he is trying to attack with his company's Wonderful pistachios. Wonderful, he says, is positioned as a healthy snacking alternative, so what if its pricing is way above your average teatime snacks!

Now cut to Kerala, the cashew capital of India. Here, the shelves of stores are flooded with different flavours of cashewnuts – from the exotic wasabi to spicy ginger-chilli. Brands such as CDC – from the government stable of Kerala State Cashew Development Corporation (KSCDC), VLC – from Vijaylakshmi Cashews, and Delinuts from the Kollam-based India Foods Exports Assorted Food Packers Pvt Ltd have unleashed an avalanche of cashew snacks in pouches ranging from 100 gm to 1 kg.

In New Delhi, the people behind the Tulsi brand of nuts are now promoting a new ‘mass' brand of nuts. Finely blended almonds, cashews, pistachios and peanuts are being sold in retail packs priced between Rs 5 and Rs 50 under the brand name ‘Magic Nuts'. “Among the new flavours under this brand are honey, sesame and black pepper,” says a spokesperson for Magic Nuts.

After rice and sugar, yet another commodity – which till now was sold loose or unbranded – is seeing a burst of branding activity. Tree nuts – pistachios, cashews and almonds – in all sorts of flavours, have entered an arena till now dominated by peanuts (which are cheaper, mass snacks and already branded).

While Indian brands such as Delinuts and Magic Nuts are slowly becoming more and more visible on retail shelves, it's the American giant Paramount that promises to revolutionise this nascent category.

It is planning to spend $10 million ramping up processing facilities in India and $2 million on a marketing campaign for Wonderful. Already, it has launched a test campaign in Bangalore, where it has launched the Wonderful brand in 17 gm packets priced at Rs 15. In a novel twist to distribution, these are also being pushed through liquor stores. Delhi and Mumbai will soon see a similar roll-out. For the Indian market, especially, Paramount has come up with a salt-and-pepper flavour, processed at its plant in Gujarat. “We try and package it as close to the market,” says Masten.

Masten also points to how they have taken a leaf out of the FMCG players' book to market the pistachios in smaller, more affordable packs to push sales. “Like Cadbury's we are rolling out small, affordable sachets,” he says, “and will be going after a bigger share of stomach!”

On the distribution front, the company, which entered India in 2008, has already reached 11,000 outlets and is hoping to take it up to 20,000 outlets. “We plan to boost sales another 100 per cent,” says Masten. A host of below-the-line, outreach and other promotional activities are planned.

Meanwhile, in Kerala, a large number of cashew exporters and major processors of cashew kernel has suddenly woken up to the domestic demand. Not only have they introduced valued-added branded products to appeal to the taste of Indian consumers, but are trying to market these through innovative distribution channels. The KSCDC has tied up, for instance, with Hindustan Petroleum Corporation to sell the products through its outlets. Besides, it has also tied up with government agencies such as the Civil Supplies Corporation, Consumerfed, Handicraft Development Corporation, Agro-Industries and KTDC to use their channels to sell CDC Cashews, says Dr K. A. Retheesh, Managing Director of the Corporation.

KSCDC has also entered into tie-ups with modern retail players such as Reliance Fresh. The cashew business in India is now estimated at about $2 billion (Rs 9,000 crore) and “given the high pace of growth we conjecture that it will touch $4 billion (Rs 18,000 crore) by 2015,” says Dr Retheesh. “The consumption, which was largely restricted to the US and EU, is on its way towards Asian countries such as India, China, and the Middle East,” he pointed out.

Meanwhile, Delinuts has a strong presence in airports and luxury hotels. According to Satheesh Nair, Managing Partner, India Foods, these premium branded products are available in the airport and other luxury hotels, in-flight sales and are in good demand and, in fact, “we are the leader in this category”, he claims. “We are using a dry roasting technology, in which oil and artificial flavours and preservatives are not used,” he says.

Paramount's Mark Masten feels that given the strong health endorsement that nuts have got for their cardioprotective properties, the demand is only going to go up. Pistachios' demand is also expected to peak riding on the back of reduction in prices following a cut in import duty from 30 per cent to 10 per cent.

“We have also spent a lot on advertising the brand and building it up globally. Wonderful is today a $300-million brand and it is among the top fastest moving brands globally,” says Masten.

A lot of nutty experimentation is taking place in the labs. On the anvil from KSCDC are chocolate-coated cashew kernels and cashew noodles. “Even though the quantum of sales may not be large, the boundaries will be significant and it will also boost the CDC Cashews brand image indirectly, being a premium product, thus escalating the demand and sales of our other value-added products – such as cashew soup, cashew vita, cashew bits and cashew powder. Value addition is mainly for the promotion of branded products. Innovative products will attract the end consumers,” says Dr Retheesh.

In a nutshell, expect more innovations in this space!

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