Britannia, one of the largest players in the Indian biscuit industry and an FMCG titan, recently announced the launch of its new line of biscuits, the ‘5050 Potazos’. The company communicated that the new biscuits will be thin, crispy and plays on the familiarity of the ‘masaledar’ flavours of the potato chip, but in the form of a biscuit. This biscuit has been launched under the brand umbrella of the 5050 brand. This move comes in light of the shift that the biscuit industry is seeing. The emergence and even preference of smaller producers as well as intensifying competition in the market have attracted the attention of FMCG titans such as Britannia Industries. Seeing this, Britannia has made a move and is using its vast network to muscle in on the new trends and gain the customer’s attention.
So far, the product has been launched in the markets in the North East and Assam and will hit the shelves somewhere in July. The rest of the country will get to witness the new flavour profile in the coming months.
Vinay Subramanyam, VP Marketing of Britannia Industries said, “Britannia 50-50 Potazos is a terrific addition to the 50-50 brand and we believe this product can source from both the biscuits market and the salted snacks market, which are the largest two categories in food in the country.”
It should be noted that Britannia was not the only FMCG giant to venture into new waters, ITC also picked up on the trend and went all-out with the launch of its ‘Sunfeast All Rounder’. This newfound interest in the biscuit market by FMCG companies is making headway thanks to the popularity that the Bangladeshi ‘Pran’s Potata’ biscuits had in India, especially in the east. Based on these it seems that these FMCG giants, ITC and Britannia are also targeting such demographics with the initial launch.
For ITC’s Sunfeast All Rounder, the target market is currently West Bengal, North-Eastern and Southern states for the time being. Coming back to Britannia’s 5050 Potazos, the pricing of it stands at Rs 25 in Assam and West Bengal, while the other geographic markets will be able to purchase it for Rs 30. ITC is giving some competition in this regard with the pricing of Rs 10 and Rs 20 for its biscuits. Notably, Pran’s Potata biscuit prices were set at Rs 25.
Even considering that ITC is readily competing with Britannia for the same customer base, it is notable that Britannia is the bigger in terms of sheer market capacity and command. Britannia along with Parle Products has a command over roughly 70 per cent of the biscuit market in the country. It has the largest presence in over 2 million outlets and with that, it will likely be the disruptor in the market. The organized biscuit market in India is valued somewhere between Rs 37,000 to Rs 40,000 crores. Following the US and China, India is the third-largest biscuit market in the world according to information from PR Newswire. The organized biscuit market accounts for more than 70 per cent of the value share in the overall biscuit market in India according to the release. It was also mentioned that the sector is expected to surpass Rs 400 billion in revenue by 2023.
Britannia Industries posted a Net Income of Rs 2,856.50 crore from operations for the fourth quarter ended March from a year earlier. The total income overall was listed as Rs 2,952.64 crore for the standalone net profits. On the NSE, on Thursday the company showed a downward trend of 0.26 per cent with an overall decline of 9 per cent.
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