Big Bazaar: Private label push

Big Bazaar, the hypermarket of Pantaloon Retail, has come out with a breakfast cereal range under its private label, Tasty Treat. Big Bazaar already sells noodles, pasta, vermicelli, soups, namkeens, chips, toast, khari, papads, jams, pickles, carbonated drinks, ketchup and fruit beverages under the brand. t has now added breakfast cereals to the range.

The breakfast cereals will be available in three variants ! plain cornflakes, chocolate"flavored #hoco $ols and honey"flavoured %oney #ircles. There are two reasons for launching the product, says Pantaloon Retail&s head of private brands, 'evendra #hawla. One is that private brands give us far higher margins, and the second is that cornflakes as a category is under-penetrated and has a lot of scope to grow. The market for breakfast cereals is still small. (hile the packaged food market is valued at Rs )),*)+ crore, the organized breakfast cereal market is just Rs *,- crore ! less than one per cent. But the market is growing fast, given the growing health consciousness in the country, especially the urban middle class. .elloggs monopolizes the market for breakfast cereals with its range of flakes. /ome other multinational players have also shown keen interest in this market. Pepsi#o has already entered with its bestseller brand, 0uaker 1ates. %einz ndia, which has a hugely strong bond with households because of its #omplan health drinks, too has joined the bandwagon.

n spite of the presence of a large number of players in the branded packaged food segment, Tasty Treat is growing at about 2- per cent. This perhaps has given Big Bazaar the confidence to try its luck in breakfast cereals as well.

n a recent development, Pantaloon Retail, promoted by .ishore Biyani, has boycotted .elloggs at all its retail formats for turning down its demand for higher margins. 3ot surprisingly, Big Bazaar is pushing its own brand of cornflakes now. This is not the first time Big Bazaar is doing this. 4 while back #adburys and Pepsi#o owned snack food brand 5rito 6ay had to bear the brunt.

4s an introductory offer, the cornflakes brand will be priced at Rs 77 along with a free bowl worth Rs 8-.

4ccording to #hawla, the brand will provide 9- to 9, per cent value when compared to rivals. :(e have the option of pricing it lower as we don&t have to pay intermediaries and can pass on that advantage to consumers,; says #hawla

http<==www.business"standard.com=india=news=big"bazaar"private"label" push=9*=+9=)2>9*+=