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Godrej-Tyson fixes frozen foods on radar

After ending its joint venture partnership with Hershey’s, the Godrej Group plans to focus on its ready-to-cook frozen foods portfolio through its other joint venture (JV) with US company Tyson Foods as both the players are entering the mini meal category with its latest offering keema parathas, under its Real Good Chicken Yummiez brand. As it is being a market leader in frozen chicken, it is now capitalizing on its strengths to introduce new offerings in the non-veg category with niche products, which is currently not present in the frozen ready-to-cook category, claimed official sources, adding that the players are also taking care to ensure about the protein content required in a meal. While a couple of local brands are trying to make a mark in the paratha category, multinationals such as Pillsbury have also tried to experiment with this in the past. Godrej Tyson has already built an extensive cold chain for its frozen chicken and its new ready-to-eat offerings would ride on the same distribution network.

They said adding that the biggest challenge was to build a cold chain when we launched chicken in 2006 and currently reached out to more than 50 cities and have also entered tier 2 and 3 cities through the hub-and-spoke model. However, its JV partner Tyson has brought in certain advantages for Godrej’s foods business, by providing technology at the back-end and putting in processes in the front-end as well. Godrej Tyson has the advantage of the Nature’s Basket outlets owned by the Godrej Group to retail its products, apart from the 4,000-odd modern retail stores. It has almost 30 per cent of its sales from retail stores and the balance comes from institutional sales and quick service restaurants (QSR). The company has also been increasing its capacity at its plants based in Bangalore and Mumbai and has raised its capital expenditure by 60 per cent. The ready-to-cook foods category is estimated at Rs 1,500 crore with a compounded annual growth rate of 30 per cent.

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