With Noodles out, sales of other snacks raising

MUMBAI: The Maggi controversy has hit the noodle industry at a very wrong time. With schools reopening, parents have started looking for alternative snack options for their children since instant noodles was one of their favourite. As a result, retailers say sales of other convenience food products such as frozen ready-to-fry and instant foods have risen.
Companies in this space are also running consumer offers in select stores to attract attention. Trade sources from Mumbai said there was a 27-30% jump in sales of alternate snacks such as frozen ready-to-fry and instant foods in the last two weeks or so. Industry estimates suggest that around 60% of instant noodle consumption comes from consumers below the age of 18.

At Reliance Fresh, for example, there is an exclusive offer on MTR instant poha at Rs 7, as against the MRP of Rs 15, in many cities this weekend. "There are other consumer offers like Buy-3-get-1-free' on products like masala oats from Quaker, Saffola and Kelloggs. These brands also promise, just add hot water and get a hot snack'. There are similar offers on all dhokla, idli, dosa type mixes from MTR and Pillsbury's.

Some of these brands are going to get many new homes," said Damodar Mall, CEO (value formats & consumer business), Reliance Retail.

Instant food makers said they were getting more inquiries from the trade. Sahil Gilani, director (sales & marketing), Gits Food Products said, "There has been more interest from the trade for our instant mixes and ready meals. Especially modern trade where Maggi noodles dominated a large shelf space this space is now being filled up by other processed food categories."

While Gilani said it was too early to predict the growth numbers, Gits is operating special consumer offers on its fast moving snack mixes and breakfast mixes to capitalize on this opportunity. Devendra Chawla, group president (food FMCG brands), Future Group, said, "Consumption occasions in food developed over time like tea time, snacking time are like habits and if a certain category goes out, another one can come to fill the void because the occasion still exists."

According to Mall of Reliance Fresh, there is discussion among mothers on alternatives to instant noodles. "We are seeing a revival of search for options in the home-cooked and ready-to-eat snacking space. Given this opportunity, brands of instant poha, upma, oats and fries are making themselves more attractive to ensure the consumer picks them up. Also joining the opportunity are ready namkeens and chips," said Mall.

An MTR Foods company spokesperson, however, said as a part of its marketing strategy for new products, the company often gives out offers as a means of generating trials by consumers. "We sent this offer to Reliance Fresh in the month of April this year to run while stocks last," said the spokesperson.

Arabind Das, COO, Godrej Tyson Foods, which markets ready-to-eat products under Yummiez, said the category is in a nascent stage and is growing consistently in the range of 2025% over last few years due to its low base.