Tata NourishCo forays into premium spices with saffron, says competition from local brands can be met with 'differentiated' products

economictimes.indiatimes.com:

NourishCo Beverages, subsidiary of Tata Consumer Products,in an interview. “The problem (of local competition) magnifies if companies sell the same products. We have a combination of differentiated products, great value, national advertising at scale and investments in distribution muscle, which is difficult to emulate,” he said.

Researcher Kantar said in a report last week that volume growth of regional, local brands crossed that of national ones in the 12-month period ended 30 April, growing 12.7% in volumes, compared to national brands which grew 8.2% in the same period. “We believe we have a potent mix of levers to help us overcome any such competition,” Grover said.Tata NourishCo, which sells Himalayan mineral water, Tata Gluco Plus functional drinks, Fruski juicesand honey, is entering the premium spices category with Kashmiri saffron under the Himalayan brand, which Grover said is probably the world’s most expensive spice. “Given the adulteration prevalent in the category, there is a trust deficit in the saffron category in India and lack of awareness among consumers.

We are addressing this with our product.” The overall saffron demand in India is estimated at 100 tonnes annually, of which India produces 13 tonnes of Kashmiri saffron. The company will move into other spaces within the Himalayan franchise, but these will be premium. “The attempt is to move beyond the water space.

But we will get into spaces within the guardrails of premiumisation and purity,” he said. Functional beverages remains a niche category, in contrast to the mass entry-level segment where players like Bisleri, Coca-Cola’s Kinley and PepsiCo’s Aquafina compete. NourishCo reported net sales of Rs 621 crore in FY23.