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“We brought cookie concept out of kitchen”
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Monday, 21 April, 2014, 08 : 00 AM [IST]
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fiogf49gjkf0d  When Cookie Man entered India in 2000, it started out by carving out a fresh market segment for premium, fresh-baked cookies in the country. Today, the company has some 70 stores spread across the length and breadth of India. Among other things, the brand is known for bringing the fresh baked cookie concept out of home kitchen. Anupam Saluja, CEO, Australian Food India Pvt. Ltd, which launched Cookie Man in India, in an email interaction with Nandita Vijay talks about his company’s successful business model and more. Excerpts:
How has the concept of cookies been accepted by Indian consumers? How has your company fared since its entry into India in 2000?
Cookie Man was the first entrant in the freshly baked premium cookies segment in the country. A market leader in this segment, Cookie Man has established its presence pan-India with 70 stores. The Indian growth story has encouraged it to expand its operations to Sri Lanka and Bangladesh. Branded freshly-baked cookies are still a niche segment, but Cookie Man has made substantial inroads into the consumer psyche through its extensive branding strategies which has taken cookies outside the home kitchen to create a whole new product segment. To grow the brand further, it is also looking to grow through neighbourhood format stores.
Which are among your fastest-moving products?
Crispy Crunchy Cookies is among our fastest-moving products. From Crispy Crunchy Cookies to Chocolate Indulgences, we have over 50 varieties available. Besides, we also have muffins, brownies, doughnuts and ice creams.
People belonging to which age groups are accessing your stores?
Our products appeal to people across all ages. We find, however, that women make most of the ‘buy’ decisions. Our products contain no eggs and are 100% vegetarian.
Where are the cookies manufactured? Provide details about the manufacturing process and how much of technology is transferred from Australia.
Our cookies are manufactured at the company’s commissary in Chennai. We were the first to introduce the frozen dough concept, which keeps our cookies fresh. Cookie Man uses proprietary and proven technology to ensure that the cookies have uniform, premium quality across (its outlets). The products are made out of the finest ingredients and meet stringent quality norms and consistency standards. We have ISO22000 and FSMS (Food Safety Management Systems) certifications.
How are specialty cookies’ corporate and festive packs faring in India?
A sizeable chunk of Cookie Man’s revenue comes from purchases for gifting. Corporates are a major part of our clientele. Gifting accounts for nearly 30% of our revenues. We expect this segment to grow further, going ahead. In addition, Indians have now moved from the gifting of traditional sweets – cookies now form a major part of festival gifting.
Which of the markets and outlets have registered the fastest growth?
Cookie Man stores are available in several formats – the stores with ovens, kiosks and high-street stores. Depending on footfall and space available, we work with our franchisees to determine what type of store we should set up. Our footprint is across the country including metros and tier-II cities. The southern market is very strong for us. More than half of our sales come from this region. Eastern cities like Kolkata and Bhubaneswar are all picking up fast. Kolkata is traditionally a cookie consuming market and is registering excellent growth.
Going by the response so far, what are the expansions that are expected for India?
From our first mall location in Spencer’s Plaza, Chennai, we have today expanded to over 25 cities, big and small. We plan to increase the number of outlets to over 300 in the next five years. Thirty per cent of these stores would come up in high streets and neighbourhoods. Our next phase of growth will come from neighbourhood stores.
What are the visible trends in the space of cookies that you have observed over the last 13 years?
When Cookie Man entered India in 2000, we created a first-of-its-kind market segment for premium, fresh-baked cookies in the country. We are still the leader today with 70 stores across the length and breadth of India. We have brought the fresh baked cookie concept out of home kitchen and branded it extensively like no one has done before. We have a successful business model for the past 13 years, which has allowed us to maintain our leadership position in the market.
The size of the market, though small, is expanding. Market estimates say that cream biscuits and cookies account for around Rs 10,300 crore and is growing at a rate of 10%. Premiumisation is driving consumer markets today and creates a lot of scope for growth. We have also added more product ranges including ice creams, muffins, pastries, puffs and brownies to suit customer preferences.
What are the challenges you see in India for cookies’ sale?
Indian consumers want value for money and at the same time not compromise on quality and taste. Our products ensure both and this is the reason for our success.
How easy it is to get trained manpower for production and sale of cookies in India?
Our induction and training programmes are designed in a way that the employees are able to adapt to our processes, systems and culture easily and seamlessly.
Is the company engaged in training of its personnel?
There are regular skills upgradation training programmes for the sales and production staff.
Cookie Man provides comprehensive training courses especially for franchisee support system in the areas of product preparation and baking, merchandising, marketing, customer service, hygiene, equipment care and operations.
What is the future of Indian bakery and would you see more global entry?
The Indian bakery industry holds the third position in generating revenue when it comes to the processed food sector. The Indian biscuit market is estimated to be about 1.1 million tonne per annum and valued at Rs 50 billion. The penetration of branded players is pegged at around Rs 2,500 – 3,000 crore. India’s per capita consumption of biscuits is pegged at 1.5 kg, pointing to tremendous potential for the industry to grow. Over 900 million – 50% of the Indian market – is in the unorganised sector, with the market growing at a CAGR of 6-7%. With a population of more than a billion and the largest middle-income population, India is a prominent market for global and domestic players alike.
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