Real Good Chicken-maker Godrej Yummiez wants a larger bite of veg frozen foods

Real Good Chicken-maker Godrej Tyson Foods (GTFL) launched the third vegetarian product under its Yummiez frozen food brand on Thursday to boost the vegetarian share of its product mix as it wants a larger bite of what it sees is the higher-growth category.  

“Vegetarian is certainly the higher growth areas because it allows us to launch products at lower prices and expand into tier-2 and 3 cities and towns,” said CEO Abhay Parnekar of GTFL. The firm’s parent poultry- and cattle-feed maker Godrej Agrovet is a part of the highly diversified Godrej Group.  

The frozen food market, he pointed out quoting estimates, is about Rs 3,500 crore and vegetarian items contributes to two-thirds of it. For Yummiez, about 45 per cent of the sales come from vegetarian frozen foods, and targets growing its topline by 30 per cent by 2023, he added. 

Their competitors in the space are McCain and ITC.  

Godrej Tyson Foods’ revenue rose by 13.7 per cent to Rs 228.4 crore in Q2 FY23 over Q2 FY22. The segment's top line growth was driven by RGC and Yummiez categories as volumes grew by 69 and 65 per cent year-on-year, respectively. 

“Veg will continue to gain more share in our products mix. While non-veg will also grow, the contribution to the overall mix will swing more towards veg,” he said, adding that the firm has a dedicated facility in Ludhiana to make vegetarian products.  

“We will keep increasing products for the B2B side (of business catering to restaurants and retailers) and exports as well. Here, too the focus will be more on vegetarian products because that’s where more of the action is.” 

The latest launch, Crispy Potato Starz priced at Rs 125 for 400 grams and Rs 225 for 750 grams, comes after Yummiez’s Paneer Pops and Mix Veggies. “We are trying to get closer to the Rs 100 price point because despite frozen foods serving the upper crust of the society so far, still smaller sized packs have higher transaction," Parnekar said. He also said the company plans to add 50 per cent more outlets in 7,000 existing and new cities such as Udaipur, Allahabad, Varanasi, Mangalore. “This pricing allows us to be in these markets where consumers are more value conscious," he underscored. 

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