Tata Consumer Ventures into the UK Cereal Market

09 Sep, 2023

Tata Consumer Ventures into the UK Cereal Market

Tata Consumer Products Ltd. (TCPL), a renowned packaged goods company, has ventured into the UK cereal market by introducing its Soulfull brand of millet-based cereals through a partnership with the prominent British retail chain Tesco. Under the brand name "Joyfull muesli," Soulfull will now offer its cereals to UK consumers, further expanding TCPL's presence in a market where it already boasts a significant footprint with brands like Tetley tea, Good Earth UK, and Teapigs.

This move aligns with TCPL's strategic decision in 2021 to acquire Kottaram Agro Foods, the owner of Soulful, in its pursuit of entering new, related segments within the packaged foods industry.

Apart from the UK, Tata Consumer also operates in the US and Canada. In the fiscal year 2023 (FY23), international markets contributed to 29% of the company's total revenue, amounting to ₹3,589 crore, while TCPL's consolidated revenue for FY23 reached ₹13,800 crore.

TCPL's acquisition of the British tea company Tetley in 2000 marked India's first significant cross-border acquisition and positioned TCPL as the second-largest tea company globally. Leveraging its extensive distribution network, TCPL is now actively expanding its brand portfolio to international markets.

Prashant Parameswaran, MD & CEO of Tata Consumer Soulfull, emphasized the integration of Soulfull into Tata Consumer Products Ltd. in India, utilizing the entire Tata Consumer distribution network. He also highlighted their collaboration with Tesco and the extensive reach it offers, with Joyfull available in 500 Tesco stores across the UK.

Parameswaran noted that overseas consumers have a growing interest in diverse grain options, hinting at potential expansions into other international markets. Discussions with leading online retailers in the UK and retailers outside the UK are already underway.

In the previous fiscal year, TCPL introduced Tata Raasa, marking its entry into the Indian ready foods segment in international markets. This move comes as the Indian government proposes 2023 to be declared the International Year of Millets, with a surge in packaged food companies offering millet-based products.

However, the breakfast market abroad is highly competitive, with numerous established players. The UK's breakfast cereal market alone is estimated to exceed $2 billion, with over 90% of households already embracing these products. Parameswaran believes that the TCPL brand's existing popularity will give its cereal offering a competitive edge, especially with TCPL's 19.4% market share in the black tea market in the UK. This strategic expansion aligns seamlessly with TCPL's existing tea and coffee offerings, providing a comprehensive product portfolio for consumers.