Godrej Tyson Foods Ltd. (GTFL), the farm-to-fork joint venture company of Godrej and American foods major Tyson Foods, with brands such as ‘Real Good Chicken’ & frozen ready-to-cook brand ‘Yummiez’, said it would clock double-digit growth in FY24 while maintaining a volume growth of 16% year-on-year (YoY) for its processed and branded products business.
Having achieved the milestone of surpassing the turnover of ₹1,000 crore with a 28% growth in revenue as compared to the previous year GTFL said in the third quarter of FY24 it sustained 15% YoY volume growth for branded businesses, including Godrej Yummiez and Real Good Chicken.
The company said it had been scaling back on poultry trading and focusing on branded businesses for better profitability.
For the 9-months of FY24 the overall branded business revenue comprising of Godrej Yummiez and Real Good Chicken stood at ₹454 crore wity growth rate of 12% YoY. Abhay Parnerkar, Chief Executive Officer (CEO), Godrej Tyson Foods Limited, said
“As we scale back on poultry trading, I think next year and the year after that we believe the two processed businesses of Real Good Chicken and Yummiez frozen snacks business will continue double digit growth trajectory,” said Abhay Parnerkar, CEO, Godrej Tyson Foods Ltd in a interview. Tapping on the demand for fried Chicken, GTFL through its frozen ready-to-cook brand Godrej Yummiez has introduced Crispy Fried Chicken that can be made at home within five to seven minutes.
“This innovation from Yummiez create ‘At-Home Fried Chicken’ sub-category within the larger ₹2,000 crore Fried Chicken category. Crispy Fried Chicken and Crispy Chicken Bites becomes two fresh additions in Yummiez’s non-veg portfolio, having witnessed the launch of chicken sausage sachets, cocktail sausages, and prawns this year,” he said. Mr. Parnerkar, said, “Factors such as the rising popularity of ready-to-cook and value-added chicken products are driving up chicken consumption. As India’s leading player in ready-to-cook frozen products category, Godrej Yummiez recognizes consumer preference for indulging in fried chicken out of home, steering clear of the kitchen complexities and its preparation at home.”
“Sensing the potential and the absence of hassle-free home options, we have introduced a ready-to-cook format of fried chicken that is crunchy, tasty and can be made within just five to seven minutes,” he said. The frozen foods category in India currently has a penetration rate of less than 5%, indicating ample room for expansion, the company said.
Traditionally, both vegetarian and non-vegetarian frozen foods have been priced between ₹ 170 and ₹300 and this price point had been a barrier for growth. Considering this the company through its brand Yummiez has gone for the sachet strategy to grow the volumes. It this front it has introduced frozen ready-to-cook products protein-rich pack of two chicken sausage at a price of ₹30. “The introduction of sausage sachets has garnered positive responses, particularly in regions like the Northeast, East, Goa, and certain pockets of South India. We plan to launch few more products in this affordable range in the next few months,” the CEO said.
GTFL’s products are currently available in 30 to 35 cities, which contributes to 85-90% of its business. It has now planned to further invest in these cities and expanding into uncovered markets.
Its expansion plan involves investments in freezers with a target to double the horizontal footprint across the markets. GTFL is also focusing on accelerating the scale of its exports business by leveraging its ready-to-cook Godrej Yummiez brand.
Mr. Parnerkar said, “At present, we have a single-digit percentage contribution in terms of export. This year, we added four countries to our export portfolio. Uptill now, we have been able to service some of the markets through private labels. However, this year, we started seeding the Godrej Yummiez brand in a few markets such as Bangladesh and Singapore.” More countries would be added soon.
