ITC Aims for Double-Digit Market Share in Milkshake and Smoothie Categories in FY24

Leading Fast-Moving Consumer Goods (FMCG) giant, ITC Ltd, has set ambitious targets to achieve a double-digit market share in the smoothie and milkshake segments in the fiscal year 2024. Emphasizing quality and variety, ITC has strategically expanded its offerings in these categories.

Expanding Smoothie Offerings: A Leap Beyond Airlines

Under its brand Sunfeast, ITC introduces smoothies incorporating real fruits and milk in a range of flavors including mango, strawberry, litchi, and peach-pineapple.

Initially introduced solely in airlines and airports, these smoothies gained traction, capturing a significant market share in the past two years. ITC’s focus has now shifted beyond airports to modern trade, where they secured the second position, closely trailing Amul in the previous year.

This year, their expansion into general trade markets aims to attain a substantial double-digit market share in the regions they operate in.

Innovative Dairy Beverage Technology and Expansion

ITC, through its Aashirvaad Milk segment, leverages digital technology in milk procurement, ensuring rigorous quality checks. This milk is vigilantly monitored, maintaining a consistent temperature of 4 degrees Celsius throughout its journey from the village to the factory.

Sanjay Singal, Chief Operating Officer for ITC’s Dairy & Beverages cluster, highlights their value-driven approach and investments in state-of-the-art manufacturing facilities.

The facility in Punjab boasts an aseptic PET line, enabling the creation of dairy beverages with an extended shelf life of six to nine months without preservatives. This technology also facilitates the inclusion of fruit and almond pieces, setting a unique precedent in the industry.

ITC Venturing into Newer Beverage Segments

Eyeing the evolution in consumer preferences, ITC plans to diversify into sub-segments of fruit-based beverages. Their future endeavors include expanding their offerings in natural fruit drinks.

Singal underscores their emphasis on coconut water, an all-natural electrolyte with no added sugar, packaged under the B Natural brand. The company launched this product in user-friendly 200ml and 750ml packages, providing an authentic taste in a convenient format. Singal expressed satisfaction with the progress made within a year of launching this product.

An overview of ITC:

ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata, West Bengal. Incorporated on 24 August 1910, ITC is one of India's oldest and largest companies. It is also one of the largest cigarette manufacturers and FMCG companies in India.

ITC diversifies its business across various sectors like packaging, paperboards and specialty papers, printing and packaging films, agri-business, hotels, retail, information technology, lifestyle, financial services and education.

Main businesses of ITC:

• FMCG: ITC's FMCG business is its largest segment, accounting for over 50% of its revenue. The company's flagship FMCG brands include Aashirvaad (atta, spices, and ready-to-eat meals), Sunfeast (biscuits and cakes), Yippee! (instant noodles), Bingo! (potato chips), and Classmate (notebook).
• Hotels: ITC operates a chain of luxury hotels under the ITC Hotels brand. The company's hotels are known for their high standards of service and amenities.
• Packaging: ITC is a leading player in the Indian packaging industry. The company manufactures paperboards, specialty papers, and packaging films.
• Agri-business: ITC's agri-business division is involved in the cultivation, processing, and marketing of agricultural products. The company's e-Choupal initiative is a rural infrastructure project that connects farmers directly to markets.
• Information technology: ITC Infotech is a wholly owned subsidiary of ITC that provides information technology services and solutions.

ITC's social responsibility:

ITC is committed to sustainable development and has won several awards for its corporate social responsibility initiatives. The company's e-Choupal initiative has been recognized by the World Business Council for Sustainable Development (WBCSD) as one of the world's 100 most sustainable business practices.

ITC's future:

ITC is a well-diversified company with a strong presence in several high-growth sectors. The company is well-positioned to benefit from the growth of the Indian economy. ITC is also committed to innovation and sustainability, which will help it continue to grow in the years to come.

Conclusion:

ITC's strategic expansion into diverse beverage categories, from smoothies to natural fruit drinks and coconut water, reflects their commitment to catering to evolving consumer preferences while maintaining quality and innovation.