Indian consumer is moving rapidly up the value curve: FieldFresh Foods CEO

Brands like us are playing a small but definite role in ensuring that consumers get safe products, says Yogesh Bellani

You mentioned that Del Monte is focused on converting an unorganised industry into an organised one. What will it take a foreign brand to achieve that in a fragmented market like India?

The move towards branded and safe food is coming from the consumers themselves. They are demanding fresh and hygienic food. The government is also doing its bit by promoting programmes such as Swachh Bharat. Basically it is an effort to push healthy habits including consumption of safe food. Then there is a regulatory push from the Food Safety and Standards Authority of India. It is the society at large that is choosing to eat healthy. In that sense, the consumer is moving up the value curve. Brands like us are playing a small but definite role in ensuring that consumers get safe products. For example, in tier 2 and tier 3 towns, small eateries and roadside vendors are switching to Del Monte sauce sachets in place of offering consumers sauces from loose plastic pouches sealed with rubber bands. Every time a small vendor offers Del Monte sauce to consumers, he is able to deliver quality and a consistent consumer experience. Quality products are helping even small eateries create a virtuous cycle of growth. My product should not just cater to a 5-star hotel. It should be able to cater to a neighbourhood bakery as well as a small eatery promising consistent and quality food.

Del Monte started as a B2B brand in India and 10 years down the line, it has a huge play in the B2C market. How did the company achieve that transformation and what are the learnings?

When we entered the market, the business-to-business (B2B) space was all about non-branded play. Our branded ketchup sachets catered to the B2B market. This helped us create awareness around the brand, encourage trials and traction, and also helped us expand into categories that were niche and aspirational. At the same time, we experimented with product innovation and packaging. The year 2009-10 was the time modern trade was just about taking root in India. They helped us reach consumers directly. Modern trade, in a way, proved to be an enabler for us to engage with the customer, against closed format stores where it is difficult to get that opportunity.

Del Monte is focusing on the health and wellness category at the moment. What are the opportunities that you see in this segment?

Across our portfolio, a lot of products are inherently anchored in health and wellness. Be it our whole -wheat pasta or packaged dry fruits and beverages, all these products encourage healthy and safe food choices. We are taking cues from our existing products that are doing well and working to strengthen the portfolio.

Which are the key growth categories for Del Monte?

Almost 50 per cent of our business comes from ketchup and mayonnaise, so culinary products is the lead business category for us. It is followed by Italian foods, beverages, and the fruits category, in that order. All the categories are significant from the role they play in our business and the channels that we cover in both B2B and B2C. 

How large is your distribution network in the B2B and B2C segments?
 

In food services and HORECA (hotels, restaurants and cafes) segment alone, we are present in more than 0350 cities. 

Coming to B2C trade, we are present both in modern trade and organised formats like e-commerce. We have about 10 per cent coverage in modern trade and e-commerce. Within general trade, we are covering more than 60,000 outlets in the top 50 cities. Going forward, we will expand our reach by focusing and increasing direct distribution. The relevance of our brand in tier 2 and tier 3 cities is increasing.

Del Monte’s beverage products have been sold in cans from the beginning. When and why did you start using Tetra Pak packaging?

One of the big reasons for us to launch our juices in the can format had to do with the differences the can format offers. It allows you to go for stylish packaging to attract the aspirational consumer. That said, there are two parts to our business — back of the kitchen and the front-end, where guests are served juices and drinks in glasses. Drinks in Tetra Paks will work here because you need not finish a pack in one go. This is the first year we are piloting our products in Tetra Paks because this market is very big in the country. While the contribution of our products in Tetra Paks is still very small we are confident of growing the share.