Kolkata’s Switz Foods plans to enter non-aerated drinks segment

Kolkata-based Switz Foods, former franchisees of Monginis in eastern India, is planning to enter into the non-aerated drinks segment.

Winkies, another home-grown brand of the company, that was withdrawn as it was competing with Monginis’ offerings, has also been re-introduced across the new “Mio Amore” stores.

Switz Foods – primarily, into the bakery business that include short-shelf life retail and long life distribution products – have currently re-branded the Monginis shops as “Mio Amore”, after Monginis moved out of the Kolkata market earlier in April.

According to Arnab Basu, Director, Switz Foods, the company is contemplating the launch of fruit-based non-aerated drinks and will also enter into a partnership with a Guwahati-based company for manufacture of the same. “Details are still being worked out,” he told BusinessLine .

Monginis began operations in Kolkata in 1991, following a tie-up with Basu’s Switz Foods.

However, in 2014, the Khorakiwala family-controlled Mumbai-based Monginis Foods, which owns the ubiquitous brand, decided to market their products on their own, Basu said. Accordingly, it rescinded their agreement.

Sources, however, said a prime bone of contention was Switz Foods’ decision to manufacture competing products on its own (Winkies) as well as for other companies like Britannia. Following an out-of-court settlement Monginis decided to move out of the Kolkata-market.

It also has a three-year non-compete agreement (beginning May), which means that Monginis will not set up shop here in West Bengal for three years.

Following this, a nearly ₹1 crore re-branding exercise – store interiors and brand name change, visibility campaigns and signage – was taken up by Basu.

“Most of the re-branding exercise across all 210-odd stores in West Bengal and Odisha has been completed. Post re-branding new products have also been introduced,” he added.

Switz Foods along with its associate companies have seven facilities – four in West Bengal (two in Kolkata and one each in Howrah and Jalpaiguri) and one each at Guwahati, Bhubaneshwar and Bengaluru.

They reported a combined turnover of nearly ₹399 crore. Basu’s bakeries also manufacture packaged cakes and biscuits for Britannia and ITC.

Plans are also afoot to add another manufacturing unit in the city and ensure greater reach across the State.

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