Established in 2018, TABP Snacks and Beverages is a food-based start-up started to provide international standards, healthy and nutritious food to all the segment of people. Its mission is to offer healthy packaged foods/ beverages made with the highest quality ingredients at an affordable price to all categories of consumers
TABP is an exemplar of a sustainable FMCG brand with a focus on producing a healthy, nutritional line of products comprising juices, beverages, and quick-eat snacks. The company’s products are distributed in the states of Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Orissa. The company is associated with more than 130 super stockists, 650 distributors. Today, its products are available in more than 1,10,000 shops.
TABP raised a pre-series A round of Rs 6 crore from Chand family office Yukti, which has invested in over thirty consumer-facing businesses, valuable structuring and advisory services LLP, and a mix of angel investors. The funding round was led by Probhus Ventures.
In an exclusive conversation with Indianretailer.com, Prabhu Gandhikumar, Co-Founder and Director, TABP, talks about how the healthy snacking market is changing in India and what are the future plans of the brand.
Impact of COVID on the Food and Beverage Industry in India
The food and beverage industry has been hit particularly hard by the COVID pandemic. And with a potential prolonged economic recession on the horizon, there’s no relief in sight for food and beverage companies. Consumer Products food & beverage companies are facing significantly reduced consumption as well as disrupted supply chains. At-home consumption has increased, but out-of-home consumption, which historically generates the highest margin, has come to nearly a standstill. There may be long-term changes in customer behavior and demand.
The beverage-based companies will suffer a lot. Both the years the peak of the covid numbers has come in the months of March, April and May. These months are the peak months for beverage sales. Snack’s businesses targeted towards kids are also taking a hit because schools are closed and movement is restricted. Due to covid people are avoiding to give to their children snacks from outside. Also due to covid, production of food has also been affected as a whole.
Healthy Snacking Market Changing in India
People in India are now more focused on balancing their diets and eating healthy. Eating healthy has now been on the top of people’s priority list. People have definitely changed their lifestyle by switching from white bread to brown and from brown to oats bread is now more preferred by the people. Because of this, change snack makers and brands are now focusing more on making healthy snacks but tasty snacks to be popular among the mass. But there are still so many people for whom snacks are only for fun and taste. So as a brand, we also try to focus on making products that are healthy and also taste good.
India’s snack food market is growing at a 25 percent CAGR, according to industry sources. While presently, an unorganized market is dominating this segment, this scenario is expected to change during the forecast period of 2018-2024.
The snack food industry in India is highly competitive and evolving. Consumers are always tempted to shift their choices and preferences whenever new products are launched or various marketing and pricing campaigns of different brands are introduced.
Factors Propelling Growth in the Healthy Snacking Segment
We estimate the healthy snacking segment to be less than 1 percent of the overall snacks and namkeen market. Due to covid, people have become even more health-conscious than they were before. Overall wellbeing and health consciousness of consumers in Covid times are pushing people towards trying out healthy snacks.
Factors that propel the growth are:
- Increase in demand for health foods/ snack products
- The rising popularity of convenience food/ on-the-go snacking products
- Consumer seeking healthy yet tasty options for their families
- Nutritional values of snacks
Omnichannel is the Way to Go
Our presence is more likely to be omnichannel. As a brand, we try our level best to serve our customers in a better way. We want to make every experience of them while consuming our products to be the best.
We provide customers with different methods of shopping with us. We try our level best to give our customers a seamless experience while they are shopping with us. This presence also helps us to give our customers a more personalized experience.
Growth and Expansion Plans
There are so many plans on which the company is working in order to enhance the growth to the next level. We are promoting all the products on each and every platform possible. Also, we are launching new and healthy products to be more popular among the mass. The future plans on which the company is currently working are:
- The company is targeting a topline of Rs 100 crore in the next 2 years
- The company will also expand the geographic reach to Maharashtra, Goa, and Madhya Pradesh in order to enhance its reach among the mass
- We are looking for franchise bottlers for our beverages in the states of Maharashtra and Orissa
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