The reports stated that the partnership will see PepsiCo’s Kurkure snack brand joining hands with Ching’s Secret, a Tata Consumer Products’ acquired brand
Aiming to compete in the fiercely growing Indian snacks market, PepsiCo and Tata Consumer Products have teamed up to develop and sell packaged snacks, according to media reports. The partnership will see PepsiCo’s Kurkure snack brand joining hands with Ching’s Secret, a Tata Consumer Products’ acquired brand.
The reports state that the current partnership is a collaboration, unlike the joint venture for beverages by the name NourishCo. In 2010, Tata Consumer and PepsiCo formed a 50:50 joint venture (JV) which was called NourishCo Beverages. After a decade, Tata Consumer acquired PepsiCo’s stake in the JV.
Depending on the response from consumers, going ahead, the partnership could be extended to other products within the portfolio of the companies, as per the reports which also quoted an official who highlighted that fusion flavours are becoming increasingly popular.
As far as the portfolios are concerned, in addition to Kurkure, PepsiCo’s snacks portfolio has Lay’s chips and Doritos nachos. On the other hand, Tata Consumer Products acquired Capital Foods, the maker of Ching’s Secret and Smith & Jones noodles and condiments.
The development becomes crucial since the competition in the segment is heating up. Apart from PepsiCo, ITC, Parle Products, Haldiram, Bikanerwala, Bikaji Foods are among the major players which are battling it out to gain a larger share of the market. The well-established brands have been facing competition from the regional and direct-to-consumer (D2C) brands.
The regional and D2C brands have been making inroads within the industry riding on lower prices and the ability to distribute directly. However, the reports added that the new partnership could face challenges as well since it is hard to predict consumer taste in the segment.
