The chicken soup for Tata Group’s FMCG soul

Premium cereals brand Soulfull became a part of Tata Consumer Products in the latter’s search for FMCG glory. But the company will need more than just a niche offering to break into a segment studded with mainstream favourites

Tata Consumer’s acquisition of Soulfull for $21.5 million is the latest in a series of key moves it has made in its quest for FMCG glory

It brought in a new CEO, Sunil D’Souza, and changed its organisational structure and distribution tactics

Investors are happy—TCPL shares have surged 140% in the last one year

A single niche offering is inadequate; TCPL also needs to decide where on the pricing spectrum it falls—low-priced staples or premium brands

Sometime last month, the Tata Group did something that’s quite uncharacteristic. It bought millets-based cereal and snacks brand Soulfull for Rs 156 crore ($21.5 million). Uncharacteristic because the brand—trendy, urban, premium—is everything one wouldn’t usually associate with the 153-year-old conglomerate.

The acquisition is just the latest in a series of moves that the Tata Group has made recently in its quest to climb the FMCG ladder.

As far as instantly recognisable household brands go, it doesn’t get better than Tata Salt and Tata Tea. They have been around for decades and are the #1 and #2 in their respective categories.

AUTHOR

Seetharaman G

Starting out as a business journalist in 2008, Seetharaman has written about energy, climate change, retail, banking, and technology. He has worked with Business Today, a fortnightly, and the Sunday edition of The Economic Times.

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