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ITC Foods is introducing the famous Italian dish pasta as a "healthy instant

snack" option in India.

Marking a foray into the ready-to-cook snacks category, ITC's Sunfeast Pasta
Treat is made from Durum hi-protein wheat and targeted at consumers of all
ages with flair for experimenting with new tastes.
"We are promoting pasta as a healthy snack offering to meet the changing tastes
of Indian consumers, especially those who are open to new cuisines and are
looking for options to suit their lifestyles," ITC Foods chief executive Ravi Naware
told reporters here Thursday.
Unlike noodles and other kinds of snacks, Sunfeast Pasta does not contain maida
(a by-product of wheat) and is not fried. In about 10 minutes, the pasta can be
cooked in boiling water with a sauce maker that comes as part of the pack.
With convenience foods gaining acceptance among the urban population, the
company aims to leverage this opportunity to popularise its pasta as a tasty
snack available in several flavours.
"Our pre-market research has shown that the working class, especially women
and mothers, are looking for innovative and newer evening snack options.
"Since the conventional cooking process of pasta is tedious and collection of
various ingredients to go with it cumbersome, our instant product offers an easy
solution to make pasta a regular nutritious diet," Naware said.
Priced at Rs.12-15 for a pack of 83 grams, Sunfeast Pasta comes in four flavours
- masala, tomata & cheese, sour cream onion and cheese.
The instant snack food market is estimated to be about Rs.6 billion ($137
million) annually. Nestle, with its Maggie noodles, and Indo-Nissan with Top
Raman noodles are the dominant players in the segment.
ITC Foods outsources the product from a third party, which has a state-of-theart facility at Dindigul, Tamil Nadu. The pasta is processed and produced under
stringent quality control and conforms to international standards, said company

with 1. Zanão. According to International Pasta Organization (IPO) Chairman Claudio Zanão.3 million tons / year. the United States. with production of 3. if we look at where global growth is coming from.3 kg / person / year and Tunisia. Mr. where dried pasta could serve as a low-cost staple that consumers can easily integrate into their diets. world pasta trade volumes are estimated about 3. with 2 million tons per year and Brazil. World pasta market continues to grow day by day. However. of course. Spain (5.6 kg). As per capita spending on pasta is very small in these countries. Italy maintains the primacy for production. The leading exporting country is.Claudio Zanão: “World pasta trade is also growing constantly. the market has great potential for growth. leaders are Italy. Considering that these countries would constitute an important potential for the growth of pasta sector in the future. In countries like China and India. with 11. the countries that have just met the pasta have a more important effect on this growth rather than the current largest consumers. could you please give us some information about world pasta consumption. consumers with rising incomes will become more likely to try new cuisines. the leading countries in terms of consumption and the pasta consumption per capita in these countries? According to our estimates.7 million tons in 2012 (+5% growth vs 2011). IPO Chairman Zanão expresses his thought as follows: “As we have seen in recent years. You can find the details in the interview. The pasta markets in these countries have grown very quickly from a relatively small base. Could you also provide some information about world pasta trade? What can you tell about the leading countries in world pasta import and export and also amounts of import and export in these countries? According to the Global Trade Atlas. about 13. with 26 kg per capita per year. Venezuela. consumption per capita and export. we can see it is from consumers in regions where pasta is consumed the least such as Asia Pacific or Middle East/Africa regions. Argentina (7. when it comes to consumption per capita. The three largest producers of pasta in the world are Italy. The same is true in many countries in Africa and the Middle East.3 kg). national consumption.9 kg / person/year.3 million tons per year. production facilities. . However. with 12. Italy.3 kg). the growth frontiers for the pasta industry will come from countries where it currently has an underdeveloped presence. Zanão answered our questions about world pasta market.” Emphasizing that growth is much slower in the developed markets.5 million tons of pasta is produced in the world.9 kg) and Peru (8. The following countries also recently increased their consumption rates Greece (10.

which is already quite large. . This indicates that consumers are increasingly turning to pasta as a convenient.000 to 74. nutritious and affordable meal choice.which. growth is less dynamic. On a per capita basis. Western European countries and North America far outspend others on pasta. we can see it is from consumers in regions where pasta is consumed the least such as Asia Pacific or Middle East/Africa regions. global volume of pasta exported advanced another 5% in 2012. with about 1. accounts for 49% of pasta world trade. and easy-to-prepare. mainly due to pasta penetration. Belgium. However. China.9 million tons. With export volumes ranging from 137. consumers retain a strong interest in pasta and it is still growing. given the wide range of alternative meal options in these areas and the relative maturity of the market. convenient.8 million tons of pasta exports (+ 2% vs 2011). However.000 tons exported. The second largest exporter is Turkey. they are opening up to pasta as a versatile calorie source that is affordable. the pasta markets in these countries have grown very quickly from a relatively small base. on the other hand. Major importing countries are Germany (14% of total exports). United Kingdom (6%) and Canada (4%). In countries with more mature markets. After advancing more than 1% in 2011. What are the differences in the pasta consumption habits of the regions. per capita retail spending on pasta is much smaller than all other regions. with about 437. As consumers in these areas continue learn more about foods outside of their traditional staples. as retail volume sales continue to grow. In these areas. Mexico and France are also on the list of top exporters. experiencing a very sharp growth in most recent years (+28% vs 2011). Japan (6%). which pasta varieties are preferred most in Brazil? While the pasta market remains strong overall. World pasta trade is also growing constantly. continents or countries throughout the world? What are the pasta types and varieties that become prominent in the regions’ consumption? For instance. on the other hand. After increasing more than 8% on 2011. we can see strong regional discrepancies in consumption. if we look at where global growth is coming from. the United States. have pasta markets that are still largely underdeveloped. Can you evaluate the world pasta market and the change in this market in terms of both consumption rates and the pasta amount that is subjected to the world trade? The global mass consumption trend is quite stable and strong. France (11%). The Asia Pacific and Middle East and Africa regions. United States (12%).000 tons. According to Euromonitor analysis. global volumes retail sales of pasta increased at least another 1% in 2012 to reach nearly 10. As a result. the global pasta market remains strong.

where dried pasta could serve as a low-cost staple that consumers can easily integrate into their diets. these regions tend to have more varieties and shapes of pasta. push up value sales. mainly driven by diets created by scholars. In mature markets one major driver of growth in recent years has been health/wellness pasta (organic. chilled/fresh products and instant noodles have also been growing in popularity. value-added offerings that retail at higher unit prices. and Eastern Europe.Some regions have pasta as staple food. spaghetti constitutes 57% of consumption and it is followed by fusilli with 14%. Therefore. Latin America. fortified. We recently face a major barrier due to the popularity of low carbohydrate diets. growth will be slower than in the emerging regions. The remainder is divided in all other formats. but also for convenience. Do you think that pasta consumption habits have changed in the recent years? What can you say especially about the expectations of today’s consumers from pasta? I believe so. According to Euromonitor. for example. Although demand is likely to expand in regions like North America. Therefore. In countries like China and India. Today’s consumer is looking not only for healthier foods such as wholegrain products. If we look at more mature markets. the consumption here is limited to a few times a week. which means that we have only 50 different formats. In Italy. most meals are based on some kind of pasta or potato. In other regions diet is more focused on other traditional staples like rice and noodles. the daily diet is based on rice and beans. Every season brings new eating habits. the growth frontiers for the pasta industry will come from countries where it currently has an underdeveloped presence. Consumers perceive fresh pasta as a gourmet option that is both healthy and easy and quick to prepare. 11% of total pasta value sales in 2012 were of health/wellness varieties. In these areas. there are 600 different formats. for example. What is the future potential of world pasta market especially in terms of consumption? What are the reasons that prevent the increase of pasta consumption or what are the misconceptions of consumers about pasta? How can these misconceptions be changed? As we have seen in recent years. consumers with rising incomes will become more likely to try new cuisines. the market has great potential for growth. gluten-free and reduced carbohydrate). Even so. especially Europe and North America. including all nutrients. growth is likely to be slower. Therefore. there is less room for expansion as well as strong competition from other foods. although today several studies have proven the harmful effects of this type of diet and show that it is important to have a balanced diet. In these regions. In Brazil. high-fibre. and encourage consumers to eat pasta more regularly due their health properties. . a sizeable portion of the overall market. As per capita spending on pasta is very small in these countries. The same is true in many countries in Africa and the Middle East.

the spread of misconceptions about pasta’s nutritional characteristics could undermine the increase of pasta consumption. We believe that. Brazil. Pasta is a versatile ingredient that can be used artfully and skilfully in a range of unique and diverse dishes. This trend has helped create opportunities for pasta endorsements. Our idea is to better inform people about proper nutrition. are becoming more and more aware of pasta as an affordable. I often say that the only thing that is not fattening is water. The main obstacle is linked to fad diets and the spreading myth that “carbohydrates are fattening”. recipes and sauces. The purpose of the IPO is to support the growth of world pasta market by explaining the concept and nutritional value of pasta.Generally speaking. France. such as Brazil. and gourmet at-home cooking indicates that people are looking for an experience with their food. United States. We always try to disseminate proven information about studies that confirm that the best way to lose weight is to eat with balanced nutrients. We always work with the idea of increasing per capita consumption raising consumer awareness about pasta values. The rise of cooking television shows. Guatemala. harder to change. while there are over 50 different formats. For this it is essential that people diversify formats. Portugal. especially in regions where pasta is consumed infrequently. Costa Rica. Belgium. These regions have tremendous potential for future growth. Since its establishment the Secretary General has been Raffaello Ragaglini. Uruguay and Venezuela). Mexico. for example. and easy-to-prepare staple. Consumers. In Brazil. Colombia. Italy. Chile. Our main goal is to increase consumption of pasta. 57% of the consumption of pasta is spaghetti. is the lack of pasta culture. Turkey. Spain. IPO brings together associations and representatives of pasta organizations from 18 among the largest pasta producer and consumer countries (Argentina. convenient. Could you give some information about the role of International Pasta Organization in the pasta market and its activities? The International Pasta Organization is a non-profit association dedicated to promote pasta consumption and awareness around the world. particularly in countries that do not have a pasta culture. so we try to guide our associates. there is enough potential to increase its consumption. . Consumers are becoming more interested in gourmet food. gather and disseminate quality information to consumers and develop ideas for communication and promotional activities that can boost the sector. Iran. Another way to raise pasta consumption is to teach consumer how to cook pasta properly. IPO’s Secretariat-General is run by AIDEPI (Italian Association of Confectionery and Pasta Industries). Another barriers. Canada. celebrity chefs.

Chief Executive Officer (CEO). the information is also important. consisting of internationally recognized experts in the field of pasta production. We should take advantage of rapidly-growing rates of internet usage globally. aware of pasta as an affordable. These are the qualities at the basis of a strong potential for future growth. Future Group’s Tasty Treat. as many as 25 experts from 17 different countries participate in this Committee. and Twitter to interact with consumers. YouTube. Nestle and ITC between them control the . Our goal is to make more and more consumers. Foods division at ITC told Financial Chronicle. Finally. Sunfeast from ITC and Maggi Pazzta are reaping the returns of a rapid double-digit growth rate in sales as customers increasingly add this to their portfolio of snacks they consume at home. indicating the risks and benefits of each diet.We work very hard too in organizing congresses and exhibitions with scientists and technical experts. The instant pasta market is booming with the aggressive advertising by the Indian arm of the world’s largest foods company Nestle and tobacco giant ITC. developing our presence on Facebook. using the internet and social media to engage and interact with their customers. In support of its activities. ask for the advice of a health professional. and easy-toprepare healthy and delicious food. Industry experts said the entry of more firms into this market such as HUL’s Knorr soupy pasta. medicine and food science. Global volume sales of pasta to foodservice channels are expected to rise in the future as economic recovery and consumer trends favoring convenience accelerate. consumer preferences and innovations of manufacturing processes to remain competitive. Foodservice offers further potential. We are seeing our sales of this product grow by between 35-40 per cent and we expect that the market will grow to Rs 100 crore this year. convenient. The global foodservice market continues to expand. Before entering into any diet or choosing a way to lose weight. Currently.” Chitaranjan Dar. It’s good to be aware of changes in world consumption. For manufacturers. Bambino Agro Industries instant pasta and their marketing efforts has resulted in greater penetration and consumer awareness. especially in regions where pasta is consumed very infrequently. According to data from market research firm Nielsen. and pasta can be an important part of this expansion. “The instant pasta market is at the kind of stage that the instant noodles market was years ago. IPO has also set up a Scientific Advisory Committee. what do you suggest to both the members of pasta industry and consumers? What would you like to add? My suggestion for consumers is to always seeking for quality information.

Mr. Nestle India has launched pasta under the Maggi brand in two flavours — masala penne and cheese macaroni — priced at Rs 12 and Rs 15.Sunfeast Pasta Treat aims to leverage this opportunity and provide the Indian consumers with a product that meets their requirements". The ready-to-eat Sunfeast pasta is positioned as a healthy product. many players are positioning it as a health product. “The instant pasta category will be a roaring success with the opening up of a number of Italian restaurants.Sunfeast Pasta Treat thus offers a unique solution for the Indian palates.majority share of the fast growing instant pasta market. Speaking on the occasion. healthy and instant . With attributes like convenient. Nestle did not respond to an e-mail sent to the company seeking comments on growth potential of its instant pasta category. president at consultancy firm Technopak Advisers. . Pasta is gaining popularity in the Indian market. Research conducted by ITC shows that mothers nowadays are looking for newer and innovative evening snack options for their children. cheese. chicken and tangy tomato.500 crore in the next five years. sale of convenience food would only grow. founder director at MarketGate Consulting. “With more women picking up jobs. pizza style. Divisional Chief Executive. the Maggi Nutrilicious Pazzta is made up of semolina. Ravi Naware. Convenience foods are hence gaining popularity amongst the urban population. Made from Durum Hi-Protein Wheat. Research also indicates that women are aware about Pasta but find the cooking process of Pasta tedious and cumbersome. Also.” said Saloni Nangia. It has been launched in multiple flavours — masala. ITC Limited . a convenient and healthy instant snack option. sour cream. According to an Ernst & Young report.Foods Business said. And since there are many established players in pasta.Foods Division today announced the launch of Sunfeast Pasta Treat. Sunfeast Pasta Treat presents a ready-to-cook healthy snack option for the evolving tastes of the Indian consumers. the instant noodles and pasta market in the country would be worth Rs 1. tomato cheese. Sunfeast Pasta Treat. ITC's innovative instant Pasta offering . as it is made of whole wheat. "Consumers today are open to experimenting with their cuisines and looking for options that suit their changing lifestyles.” said Shripad Nadkarni. the early entrants will have an advantage. ITC Limited . India's first instant Pasta with sauce maker inside. earmarks the division's foray into the ready to cook instant snacks category. Positioned as a healthy product.

About Sunfeast The Snacks Division of ITC Foods forayed into the branded biscuits segment in July 2003 with Sunfeast range of Glucose. The latest offering will be available in 4 exciting flavours . being at the forefront of product development and innovation has introduced "Sunfeast Pasta Treat" after months of product research and development to ensure an innovative & exciting pasta experience. This challenger biscuit brand launched in 2003. In September 2010 . This exciting offering will be subsequently launched in key centres across India.15/. contentment. good for health. has presence in categories like biscuits.ITC Limited . with distinctive graphics and descriptions conveying the health proposition of Durum Wheat and at the same time maintaining the consistent look of the umbrella brand Sunfeast. Sunfeast Pasta Treat will be packed in vibrant coloured packs. Indian noodles segment has now become a huge market worth Rs 1200 crore . The brand positioning and imagery is reinforced by the Sunfeast mascot conveying the emotional and gratifying aspects of the product. Maggi is the market leader with a whopping 70% market share ( Business Standard). Cream and Milk biscuits. "Sunfeast Pasta Treat" will be available at 28 FoodWorld outlets across Bangalore and will similarly be extended to other leading stores across the innovative and exciting snacking proposition from ITC Foods Stables. A huge market with one major market leader is definitely an attractive one.Masala. "Sunfeast". Sunfeast made its first brand extension in 2005 when it launched Sunfeast Pasta Treat and created the pasta category in the Indian market. the brand launched its noodles brand extension. Tomato & Cheese. During initial launch phase. Sunfeast is on its way to become a megabrand. Sour Cream Onion and Cheese economically priced at Rs. 12/. within a span of 7 years.for the Masala Flavour and Rs.Foods Division. satisfaction and pleasure one would derive from great tasting. That is one of the reason why so many players have recently launched their brand in this segment.for other flavours. Sunfeast Pasta Treat will be available in 83 gms packs including a 15 gm saucemaker .pasta and now in noodles. This marked the division's foray in both the basic and value added segment. . Marie. with the Brand Essence "Spread the Smile" connotes happiness.Sunfeast Yippee. quality products.

there are pros and cons that has to be noted. The Sunfeast brand already has built up sufficient equity in the biscuit business with its high profile campaigns featuring Shah Rukh Khan . Since Sunfeast is already in food business. The disadvantage is the dilution of the equity of the brand in its core business. I am yet to see any campaigns for this brand in any of the channels. it makes economic sense to launch noodles under this brand. This change has happened from 2005 itself when the brand launched the Pasta Treat. Hence the personality of the brand has changed . fun loving brand.biscuits. Looking at the strategy behind extending the biscuit brand into noodles. Building a brand in a sensitive category like food will take lot of investment and time. ITC is a company that is not averse to taking risk and have a huge cash reserve to fight a marketing war with Nestle. The look of the brand says that it is going to be positioned as a Sunfeast Yippee Noodles . The major advantage for ITC in extending the Sunfeast brand is that it may have saved lot of money through this extension. Another aspect of the brand was its penchant for launching a series of new products and flavors which helped gain lot of consumer liking in the biscuit business. Sunfeast is not now a biscuit brand but an umbrella brand endorsing many food items. Retail shops are displaying the brand with some POP promotions but not much on the message side.Sunfeast ( ITC) is a worthy player to take on the might of Maggi. Picture courtesy and an interesting take on the brand by Karthik . Sunfeast has adopted an endorsing structure where Sunfeast brand will endorse the Noodle brand "Yippee " . vibrant. The brand also occupied good shelf space in most of the large retail formats . In the branding of noodles.

Newer tastes Threats 1. single professionals Opportunity 3.Good product distribution and availability Strength 3.Media generated news about health issues Weakness 2.Parent Company ITC Category Food Products Sector Food Products Tagline/ Slogan The better noodles.Good advertising and visibility 2.Brand loyalty of Maggi is tremendous 1.Maggi .Untapped rural markets 2.Lots of flavors and varieties available 1.Price wars with other noodle brands Competition Competitors 1. Spread the smile USP Instant noodles with different tastes STP Segment People looking for a healthy snack when hungry Target Group Young people and children from upper and middle class Positioning Sunfeast Yippee noodles do not lump even 30 minutes after cooking SWOT Analysis 1.DINKS.