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INTERVIEW

“We aim to democratise millets by launching at affordable price”
Monday, 18 November, 2024, 08 : 00 AM [IST]
Since its arrival in 2010, McVitie's has expanded its product portfolio to include a variety of biscuits and snacks tailored to local tastes. The brand offers innovative products such as digestive wheat biscuits and hobnobs, along with a range of cookies and cream-filled biscuits that appeal to younger demographics. McVitie's India also emphasises using locally sourced ingredients to ensure freshness and support local agriculture. This strategic adaptation to local preferences has allowed the brand to build a loyal customer base in India, fostering brand recognition and trust.

Marketing and distribution are key components of McVitie's strategy in India. The brand employs robust marketing campaigns that highlight its health benefits and premium quality, often endorsed by popular Indian celebrities. It ensures widespread availability through a strong distribution network covering both urban and rural areas. This comprehensive approach has enabled it to penetrate deep into the market, making its products accessible to a broad audience. Pawan Jagnik, head of marketing - India at pladis Global (McVitie's, Godiva, Ülker), shares his views on the F&B industry, FMCG & baking industry, sustainability and more, in an email interview with Kimberley Almeida. Excerpts:

The F&B industry has changed over the past few years. Comment.
In a country like India that celebrates diversity in flavours, embraces new experiences, and craves convenience, the transformative potential of the F&B industry remains irrefutable. The market is thriving to say the least; with more and more entrepreneurs leveraging its profitability, the industry is projected to reach Rs 7,76,511 crore by FY28 — a rapid growth of over 36% in four years. From products and services to processes, the strides in innovation made in the past few years are spurring this growth. These strides, in turn, have been the result of increased focus on meeting rapidly changing consumer preferences. Health and sustainability have now taken centre-stage, driving a paradigm shift towards eco-conscious practices that contribute to both personal and planetary health.

Brief us about the company.
pladis Global is one of the world’s leading snacking companies known for its high-quality products across different categories and demographics. The proud custodian of a legacy spanning centuries of family baking and confectionery expertise, pladis is home to some of the most loved snacking brands globally, including McVitie’s, Ülker, Godiva Chocolates, Carr’s and DeMet’s Candy. Manufacturing in India began in 2010 with the iconic brand McVitie’s. McVitie’s has a rich history, originating over 180 years ago as a small provision shop on Rose Street in Edinburgh, founded by Robert McVitie. pladis encourages a healthy lifestyle through its high-quality products and is committed to bringing excellence and sustainability to a wide demographic.

The rise of millet use in the FMCG & baking industry. Elaborate.
Among the many healthy food products now dominating the FMCG sector, one stands out above the rest. Millets have made a comeback into the Indian staple diet unlike anything we’ve seen, thanks to its abundance in fibre, vitamins, proteins, and minerals. Not only does it meet the needs of today’s health-conscious consumer, but it also is easy to cultivate, being well-suited to our country’s semi-arid regions. In fact, the United Nations declared 2023 as the International Year of Millets, following India’s proposal. Many major FMCG players have already invested in developing and distributing millet products. This has triggered innovation in processing techniques and led to unique, delicious millet-based formulations. From cookies and chips to upma and dosa, millet products are slowly integrating into the Indian diet. Following this key trend, we launched Millet Almond and Millet Honey cookies, which have become widely favoured by consumers.

Tell us about how FMCG sales boom during festive seasons.
These periods contribute to almost a quarter of the incremental sales for the sector, which is why companies implement various innovative strategies to capitalise on the increased demand. This rise in auspicious buying by consumers is further fuelled by aggressive marketing campaigns and exciting offers on products. E-commerce platforms like Amazon, Flipkart, Swiggy, and Blinkit double the consumer attraction, offering gifting options and rewards. Moreover, stores stock up ahead of festivals in anticipation of bulk buying. At McVitie’s, we have specially curated ‘Festivities Pack’ options containing an assortment of different products, which are perfect for both gifting and personal consumption.

Explain the effects of agriculture produce in the FMCG sector.
The FMCG sector demands a high level of collaboration across all points of the supply chain. This is especially important in the industry’s endeavours to meet the nation’s growing calls for sustainability. Naturally, this shift needs to be reflected in agricultural practices, and FMCG companies play a pivotal role in making this happen. By partnering with organic farms and creating an ecosystem of mutual growth, the sector has the power to enable a steady supply of ethically sourced agricultural products. At pladis Global, for instance, we’ve commenced regenerative agriculture programmes, which not only improve carbon and water retention in the soil but also support the livelihoods of farmers.

Of course, Government is also crucial in facilitating such change. With the 2024 Budget including significant provisions for the agricultural sector, FMCG stocks have witnessed a surge. This is a clear indicator of the symbiotic relationship between the two industries that is essential for overall development.

How does the FMCG sector benefit from the wellness industry?
The wellness industry is booming, and the expansion of this massive $1.8 trillion global market has major effects on the FMCG sector. Today, people prioritise holistic health, fitness and nutrition above all else, and technology is amplifying the importance of such a wellness-first approach in a digitally interconnected world. In response to the evolving requirements that stem from this, FMCG companies are innovating and developing solutions that offer health-related benefits. Companies are recognising the problems that plague the modern world, leading to the creation of products like mood-enhancers and sleep aids. The market is also seeing an influx of offerings featuring natural ingredients such as CBD and herbal extracts. Additionally, plant-based options with high nutritional value are gaining traction.

Clearly, the wellness market is helping diversify FMCG, and companies are seizing this opportunity to capitalise on the expansion. With AI now in the picture, brands are also delivering personalised recommendations and crafting tailored experiences that resonate with consumers.

What is the company’s long-term goal for sustainability?
Our primary objective has always been to ensure our customers’ needs are met. So, we will continue to listen in and develop our products to cater to their needs. Improving the levels of engagement among our suppliers and stakeholders is yet another agenda that will help us achieve our long-term sustainability goals. In an attempt to be aligned with the EU-UK deforestation legislation, which ensures businesses trade ethically without compromising the quality of or causing harm to forests, we’re building a system that can assure legal compliance, ethical sourcing, transparency, and other due diligence. Furthering the same cause, a team at the organisation is also focusing efforts to encourage pilot programmes that help with regenerative agriculture. The success of such pilots will help improve the margins of financial recovery as well as growth for farmers. Parallelly, we are working towards not only continuing our programmes but also scaling them up to grow the business sustainably.

What are the difficulties faced by the company in this competitive space?
In the times we’re living in, the food and beverage industry is encircled with multiple challenges. Overcoming these challenges, ranging from the production of products to packaging layers, will only help us be healthier and more sustainable. Q-commerce and easy delivery have made access to products, hyper local and global alike, extremely easy. Due to this, we are witnessing consumer preferences develop rapidly. Keeping up with the changing demands is one of the most crucial challenges. The rise in product awareness has encouraged people to opt for alternatives that are devoid of artificial sweeteners, preservatives, and fats. As the country makes a conscious shift towards mindful living, the demand for organic, non-GMO foods is also increasing.

For producers and manufacturers, this trend translates into redefining the production process, replacing current ingredients with healthier alternatives, and adhering to new quality standards, while being cost-effective and affordable. They must also scale production and rewire the supply chain to meet business growth goals.

How was your last fiscal, and what are you looking forward to?
We had a very successful fiscal year that saw us take product innovation to a new level. Last year, we responded to the growing demand for millet-based products by launching Millet Cashew Almond and Millet Honey cookies, both of which quickly became consumer favourites. This year has been equally exciting with the relaunch of our entire cookies and creams range under McVitie’s Tasties, alongside the introduction of a new coconut flavour. The response so far has been overwhelmingly positive.

Any plans for collaborations and launch of new products?
We are currently developing a product pipeline for the next three years, drawing on consumer insights and trend forecasting to create exciting new formulations. We expect to launch some of them within the next six months. We’ve already introduced a new variant ‘Butter Jeera’, which will be available in the market soon. Moreover, considering the success of our millet cookies, we aim to democratise millets by launching it at an affordable price point of just Rs 25.
 
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