Tata Consumer bets on D2C and nutrition in FY25 – Industry News

Looking to the future, Tata Consumer will be increasingly focusing on nutritious products and direct-to-consumer (D2C) brands, MD and CEO Sunil D’Souza said in the company’s FY24 annual report.

Outlining the priorities for FY25, D’Souza said Tata Consumer has acquired brands such as Organic India.Including health The company manufactures supplements, organic products, teas and infusions to fulfill its nutritional business plan both in India and abroad.

“Consumers are increasingly prioritizing healthy and nutritious products that contribute to their overall wellness. We recognize this trend as a growth catalyst and are aligning our product innovation with our sustainability pillar of ‘For Better Nutrition,'” de Souza said.

He said the company has formulated a “nutrition policy” that will provide direction for the expansion of its nutrition portfolio. To that end, Tata Consumer has been promoting its nutrition plan through its liquid beverages division NourishCo, with products such as Tata Gluco Plus, Tata Copper Plus and Himalayan Mineral Water. NourishCo is venturing into segments such as fruit-based drinks (Frusky) and energy drinks (Say Never), with a target of a turnover of Rs 1,000 crore in future. As per its FY24 annual report, the company ended FY24 with revenues of Rs 825 crore, a growth of 33 per cent over the previous year (FY23).

In the D2C space, Tata Consumer has recently launched new products such as Tata Tea 1868 and Tata Coffee. D’Souza said the company acquired the three companies – Sonet, GoFit and Simply Better – to meet the changing needs of consumers.

“We are also strengthening our digital marketing. “As we ramp up our D2C business expansion and efforts, we are also emphasizing the importance of delivering a unified omnichannel experience to ensure consistency across all touchpoints,” he said.

The company has also moved key brands such as Tata Sampan, which offers a range of food products, to digital platforms to capture increased online media consumption and shopping behaviour, D’Souza said.

“The rapid rise of quick commerce channels, especially among urban consumers, is a testament to changing consumer shopping behavior driven by new platforms and the need for convenience. We quickly adapted to the needs of this rapidly emerging and evolving channel by creating specific SKUs across categories,” said D’Souza.

The share of quick commerce in the company’s overall e-commerce channels has grown exponentially over the past year. Tata Consumer derives about 10% of its revenue from e-commerce channels in its India operations, of which quick commerce now accounts for 30% according to its FY24 annual report.