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Future Group building FMCG-style brands out of food labels news
Our Corporate Bureau
17 October 2007
New Delhi: Adopting active in-store branding and marketing initiatives, Kishore Biyani's Future Group has decided to take its food and beverage private label venture to the next level. The endeavour is to develop the brands as any other FMCG product.

According to Subham Ray, senior manager, Own Brands at the Future Group, the group has several private label products across categories, which are retailed through Food Bazaar outlets. During their introductory phase, the store's name, Food Bazaar, was clearly visible on the label.

Subsequently, having realised the marketing potential, the group has decided to take away the store's name from the main label, and leave it only at the back of product cases. This facilitates the products to be treated at part with a proper FMCG product.

Food Bazaar has private labels such as Fresh-n-Pure for dairy based products such as butter and ghee, Tasty Treats for retailing processed foods such as jams, pickles, snacks and namkeens, and home care and personal care labels Care Mate and Clean Mate that retail everything from diapers to dishwashing bars.

According to Ray, the idea is to promote these in-store brands and develop them as FMCG products. Despite the appeal for these store-brands remaining the price points that are 8-10 per cent lower than competing products, Food Bazaar will undertake below-the-line in-store promotions such as attractive danglers and posters to market their in-house brands to shoppers.

To capitalise on the festive spring-cleaning spree, the company plans bring to market under its Clean Mate brand, a cleaning kit that has three or four stock-keeping units (SKUs). Additionally, gift packs and other packaged offers are also in the offing, akin to other FMCG marketing practices.

Furthering its processed foods brand Tasty Treats as a competitor to snacks and processed foods, Ray says that the real potential of the Tasty Treat brand only became apparent when Frito Lays stopped retailing through Food Bazaar. Tasty Treats has been adopted by Future Brands, which develops strong individual brands out of well-performing private labels at a group level.

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Future Group building FMCG-style brands out of food labels