On Wednesday, breakfast food-maker Kellogg’s announced it plans to introduce more affordable products targeted at the mass market segment to penetrate deeper into India.

"Small packs are a big growth driver for us. It has expanded our reach and penetration across the country. Going forward, we expect that we will continue to evaluate opportunities and come up products which are affordable," said Kellogg’s India Head Marketing Vikram Bahl.

Kellogg’s India currently sells breakfast cereals such as Kellogg’s Cornflakes and Kellogg’s Chocos at various price points starting from Rs 30. In 2007, Kellogg’s came out with a small pack for both products for Rs 10.

The company, which launched Kellogg's Heart-to-Heart Oats, stated the product is made of wholegrain oats and is targeted at males over 35 years of age. The new product is available in a 200-gram pack priced at Rs 29, a 400-gram pack at Rs 55 and a 1-kilogram pack priced at Rs 118.

"In the last 3-4 years, we have come up with one new product every year. With changing lifestyles, young people over the age of 30 are vulnerable to heart diseases. So we see clear opportunities for the oat segment," Bahl said.

"The ready-to-eat cereal market is around Rs 400 crore. It is growing at the rate of 20-30 per cent. The overall packaged food industry is also growing. So everyone will have its own space in the market and ultimately will help grow the category," he added.

Kellogg’s had already seen a 5 percent increase earlier this year and is unlikely to make a further hike in the near future.

News Source: Economic Times




 

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