Nestle India Doubles Down On Millets, Bets On Gen Z Consumers To Drive Demand
In an effort to mainstream millets, the consumer goods maker has launched bajra-based Masala Millet, part of its a+ brand.
Nestle India Ltd. is widening its millet-based product basket in sync with the worldwide push for these "nutri-cereals" and government campaigns.
In an effort to mainstream millets, the consumer goods maker has launched bajra-based Masala Millet—the latest addition to its Rs 100 crore Nestle a+ brand. With a flavour-first approach and strategic pricing, the company plans to tap into the Generation Z consumer base, which tends to have a greater intention to buy healthy snacks, and possibly get a larger share of the wallet.
"Millet, as a category, will take time to grow and is not going to suddenly unlock huge opportunity," said Suresh Narayanan, chairman and managing director at Nestle India, during a media briefing on Thursday.
"However, Gen Z is very conscious of what they eat, and to that extent, I am hopeful that they would choose these kinds of products, which are good not just for their health but also for the planet," he said.
The company will test-market the product in the Delhi-NCR region and parts of South India before making it available nationwide. It is being produced in Kerala at a third-party manufacturing facility.
Available in two variants—Tangy Tomato and Veggie Masala—Nestle a+ Masala Millet comes in a multi-serve pack priced at Rs 180 for 240 gm and a single-serve pack priced at Rs 30 for 40 gm. The product is high in fibre, has 30% less calories, and is free from added preservatives. It has been developed under the guidance of the Indian Institute of Millets Research.
Nestle started the millet journey with the launch of a ragi variant of its baby food brand, Ceregrow. It also has a jowar variant of its breakfast cereal brand, Koko Krunch. Currently, 'Milo' cocoa malt with bajra is also being test-marketed in the south. Narayanan also hinted that plans are underway to launch millet-rich offerings under its 'Maggi' brand as well.
Innovation currently contributes about 5% to total sales, he said.
While the United Nations General Assembly is celebrating 2023 as the International Year of Millets, Nestle's domestic peers—including Britannia Industries Ltd., Hindustan Unilever Ltd., ITC Ltd., and Tata Consumer Soulfull Pvt.—have been stocking up retail shelves with a range of items rooted in millets. These companies have already introduced food products like muesli, granola, upma, poha, noodles, and dosa mixes to the local and export markets. And the product baskets are getting larger.
"It is an introductory gambit, and what we are seeing is just the beginning of a long journey," said Narayanan. On why the still niche millets category will take its own time to grow, he said, "There's a need to customise more such products to suit the Indian palette. Secondly, sourcing and processing will become a challenge as capacities go up, and thirdly, with multiple choices now open to customers, the adoption will take time."
Millets are superfoods and have high nutritional benefits, which have been recognised not just in India but worldwide, according to C. Tara Satyavathi, director at IIMR. The partnership with Nestle India will help in offering the benefits of these super grains to a larger audience, she said.
"The focus this year will be to raise awareness about millets, especially amidst the adverse and changing climatic conditions, while highlighting the opportunities it can create for producers, farmers, and consumers," Satyavathi said.
