Nestlé India to launch breakfast cereals this year

Nestlé India is planning to expand its product portfolio this year with the introduction of breakfast cereals.

The company plans to add Nestlé breakfast cereals from Cereal Partners Worldwide (CPW) to its current portfolio.

CPW is a 50/50 joint venture (JV) company of Nestlé Switzerland and US-based General Mills, and is engaged in the production and distribution of breakfast cereals.

The move is reported to be part of Nestlé’s aim to offer products that are rooted in nutrition, health and wellness.

Nestlé India chairman and managing director Suresh Narayanan said: “We firmly believe breakfast is the most important meal of the day. We also believe eating a nutritious breakfast sets the tone for the rest of the day and acts as the foundation for a healthier future.

“The consumer need for breakfast choices is only growing and companies must bring more options to satisfy this need. We are therefore pleased to be introducing Nestlé breakfast cereals in India. This business complements our current portfolio by combining our expertise in food and this category, globally.”

The launch is in line with its objective to provide quality nutritious breakfast cereals to its customers in India.

The new move is expected to toughen competition in the breakfast cereals’ sector, which is valued at Rs15bn ($222m) and currently dominated by PepsiCo, Bagrry’s and Kellogg’s.

According to food industry estimates, the country’s breakfast industry is expected to be worth more than Rs25bn ($371m) by 2020 as consumers are increasingly looking for nutritious foods and convenience factor.

Nestlé is late to make its foray into the category. In 2016, it launched the breakfast cereal brand for kids, Ceregrow. Although a late entrant, it now expects to aggressively push into this market.

Last month, the company launched iron-fortified Maggi Noodles, vitamin-added Milo, which is in line with the requirements Food Safety and Standards Authority of India to fortify products, especially staples.