PepsiCo, Tata join forces to spice up India's snack market
What's the story
PepsiCo and Tata Consumer Products have announced a strategic partnership to create and market packaged snacks in India.
The collaboration comes four years after their joint venture, NourishCo Beverages, was terminated.
The new alliance will see PepsiCo's popular snack brand Kurkure, join forces with Ching's Secret, a brand recently acquired by Tata Consumer Products.
Strategic alliance
A 'milestone collaboration' amid rising competition
Notably, the partnership between PepsiCo and Tata Consumer is not a joint venture but a collaboration.
It comes at a time when national players in the packaged snacks sector are up against stiff competition from several regional brands.
Aastha Bhasin, Marketing Director of Kurkure & Doritos at PepsiCo India, called this a "milestone collaboration," adding that "fusion flavors are becoming increasingly popular."
Growth prospects
Potential expansion and portfolio diversity
An insider hinted the partnership could be extended to other products in the firms' portfolios, depending on how consumers respond.
PepsiCo's snack portfolio includes not just Kurkure but also Lay's chips and Doritos nachos.
Tata Consumer Products, a diversified company dealing in everything from salt to staples, had acquired Capital Foods, the maker of Ching's Secret and Smith & Jones noodles and condiments last year in January.
Stake acquisition
PepsiCo in talks with Haldiram
In related news, PepsiCo is reportedly in talks with Haldiram Snacks Food Pvt Ltd for a minority stake.
This is significant as Haldiram is India's biggest ethnic snacks company.
The talks are underway and may not lead to a formal transaction, although the US-based snacks and beverages company is keen on acquiring a stake.