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PepsiCo to test India's biscuit market
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Tuesday, 09 June, 2009, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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 After beverages and chips, PepsiCo India is now betting big on the biscuits market in India. Last week, Frito Lay, its foods division, launched what it called a baked savoury cracker brand called Aliva. It is an entirely Indian creation as PepsiCo is not present in the biscuits segment anywhere else in the world.
The stakes are high indeed for the Frito Lay India team led by Gautham Mukkavilli. The segment is already crowded with three well-entrenched players - Britannia, ITC and Parle - and a huge unorganised sector that has almost 60% market share. Besides Aliva is a premium category and is priced at Rs 12 for a 60-gram pack. And that's just an invitation price. The printed price on the pack is Rs 14. Compare this with similar brands in the Indian market. Britannia's 50-50 sells at Rs 7 for a 65-gram pack, while ITC's Sunfeast Snacky is available for Rs 10 for a 100-gram pack.
But Mukkavilli is not perturbed. "We want Aliva to get as big as Kurkure, the company's popular snack brand. So what makes the company so confident of success that it has set up a separate plant at Ranjangaon near Pune and plans to spend about Rs 500 crore on marketing Aliva over the next three years? Mukkavilli, who is also the president of PepsiCo India, says, Aliva is an important milestone in PepsiCo's portfolio transformation journey. With Aliva, we have created a new category altogether."
The company started with potato chips between 1996 and 1999. This was followed by the second phase where it focused on products that bridged the gap between western and traditional snacks vis-à-vis Kurkure. "This year it has entered the third phase where PepsiCo is looking at bridging the gap between nankeens and biscuits by creating a new baked savoury cracker category, which borrows ingredients and textures from biscuits and flvour from namkeens," says Deepika Warrier, director, marketing, Frito Lay India.
Aliva will be available in four distinct Indian flavours, "Special Bhindi Masala," "Tomato & Roasted Spices," "Mint Flavour with Herbs" and "Original Salted."
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