The New Rules of Food Brand Building
Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?
I am a seasoned leader in the Food & Beverage industry with over three decades of experience across India’s top consumer brands. With a strong foundation in sales, marketing, and general management, I have played an instrumental role in transforming and scaling businesses in Spices, dairy, processed foods, poultry, and confectionery. I hold an M.Sc (Agri) from TNAU, Coimbatore, a PGDM from IIM Ahmedabad, and an international Master's in Food Business from ESSEC Business School, France.
Throughout my career, I have been at the forefront of brand creation and transformation. I have successfully launched and repositioned brands like Arokya Milk, Catch Spices, Mother’s Recipe, Suguna Chicken, and Vegit Potato Flakes, making them household names.
Currently, as Chief Brand Mentor at Pro Next Food Brands, I guide emerging startups and established firms in brand development, marketing, and go-to-market strategy. I continue to consult for investment firms and international organisations, including IFPRI-Harvest Plus, Milky Mist, Godrej Jersey Dairy, Ovofarm ( www.ovofarm.in ), and Swastik Spices, Hyderabad. My multilingual capabilities and deep understanding of Indian consumer behaviour further enhance my effectiveness as a mentor and advisor in the food and agribusiness space.
At Swastik Spices, Hyderabad, my work has turned the brand from a Heritage brand into a leading modern Spices Brand in the south. As the SWASTIK brand faced new competition from new age brands and to grow its business in this competitive environment undertook the Major Packaging Revamp to modernize its offerings to the younger and modern cooking houses without alienating its existing loyal consumers, Create Brand Experiences and peer influences among target consumers, 360 Degree Communications consisting of TV, Print, Digital & Social Media, Outdoor and BTL activities. Created Omni Channel to reach the target Consumers, including its own e-commerce, and repositioned the Brand to break the communication clutter.
Q2. What single shift in food consumption or buying behaviour is most changing how new food brands are built today—and why does it matter now?
The most consequential transformation shaping the development of new food brands in the contemporary market is the pronounced shift towards health-consciousness and transparency in consumer consumption and purchasing behaviour. This phenomenon is not merely a trend but a paradigm shift, driven largely by a new generation of consumers who exhibit heightened awareness and discernment in their food choices.
Drivers of the Shift
• Heightened Nutritional Awareness: Consumers today are increasingly scrutinizing nutritional value, ingredient lists, and the presence of additives or preservatives. This vigilance is fuelled by widespread access to information and a growing body of research linking dietary choices to long-term health outcomes.
• Demand for Transparency: There is a clear expectation that brands provide comprehensive information on sourcing, production processes, and supply chain practices. Ethical considerations—such as fair trade, sustainable agriculture, and humane treatment of workers and animals—are now integral to purchase decisions.
• Alignment with Personal Values: Modern consumers seek products that resonate with their personal values, including environmental sustainability, social responsibility, and clean-label assurance. In many cases, the story behind the brand is as important as the product itself.
Implications for Food Brands
This shift necessitates a fundamental rethinking of how food brands are conceptualized, developed, and marketed. No longer is it sufficient to offer convenience or traditional appeal alone. Brands must now:
• Innovate in Product Development: Focus on healthier formulations, transparent labeling, and the exclusion of controversial ingredients.
• Revise Brand Communication: Craft marketing narratives that highlight not just product features, but also supply chain integrity, sustainability commitments, and community engagement.
• Adopt Responsible Supply Chain Practices: Ensure that every link in the supply chain upholds the values and promises made to consumers, particularly regarding traceability and ethical sourcing.
Why This Shift Matters Now
• Digital Empowerment: The proliferation of digital platforms has equipped consumers with tools to research, compare, and share information about food products, thereby accelerating demand for authenticity and accountability.
• Competitive Differentiation: Brands that successfully adapt to these evolving expectations are positioned to generate higher levels of trust and loyalty among their audience—critical advantages in a crowded marketplace.
• Regulatory and Social Pressures: Increasingly, governments and advocacy groups are mandating greater transparency and healthier food options, making it imperative for brands to stay ahead of compliance and public scrutiny.
This profound shift towards health-conscious, transparent food consumption is reshaping not only consumer behaviour but also the very foundations of brand strategy and product innovation in the food industry. Brands that embrace these changes—by prioritising quality, honesty, and values-driven engagement—will be best positioned to thrive both now and in the future.
Q3. Where do nutrition, sustainability, or social-impact claims materially influence buying, and where do they not?
Nutrition, sustainability, and social-impact claims exert a profound influence on consumer purchasing decisions, particularly in urbanised, economically developed markets. In these environments, consumers often demonstrate heightened awareness of health and environmental issues and a receptiveness to brands that espouse ethical values. The presence of such claims can serve as decisive differentiators, motivating consumers to select one brand over another, pay a premium for perceived quality or integrity, and cultivate enduring brand loyalty. This phenomenon is especially pronounced among younger consumers, affluent demographics, and individuals who utilise digital platforms to inform their choices. These groups actively seek products that align with their personal principles and lifestyle aspirations, making them more likely to respond positively to nutrition, sustainability, or social-impact messaging.
Conversely, the degree of influence exerted by these claims diminishes in rural regions and among segments characterised by high price sensitivity. For these consumers, practical considerations such as cost, taste, and convenience often outweigh concerns about nutrition or sustainability. Moreover, in markets where public awareness of health and environmental issues remains nascent, or where regulatory oversight and enforcement are relatively limited, such claims may not materially affect purchasing patterns. In these contexts, the effectiveness of nutrition, sustainability, or social-impact claims depends on market maturity, socio-economic conditions, and the prevailing level of consumer education.
In summary, the extent to which nutrition, sustainability, and social-impact claims influence buying decisions is shaped by a complex interplay of geographic, economic, and demographic factors. Understanding these nuances is essential for food brands seeking to position themselves within diverse markets strategically and to tailor their messaging for maximum impact.
Q4. Where has digital, data, or AI materially improved brand building or go-to-market effectiveness—and where has it failed to deliver ROI?
Digital, data, and AI technologies have materially improved brand building and go-to-market effectiveness across the food industry in several ways.
For example, advanced analytics and AI-driven consumer segmentation have enabled brands to identify emerging trends and personalise marketing campaigns, resulting in more targeted engagement and higher conversion rates. Additionally, digital platforms and predictive analytics have streamlined inventory management and demand forecasting, allowing companies to respond rapidly to market shifts and optimise supply chain operations. These innovations have empowered organisations to build stronger brand equity, improve customer loyalty, and achieve faster, more efficient market penetration.
The Areas where Digital Data or AI has improved Brand Building or GTM are
• Consumer Insights and Trend Identification:
• Advanced analytics powered by digital and AI technologies has enabled brands to process vast amounts of data from sources such as social media, e-commerce platforms, and market research. This capability allows companies to discern emerging consumer preferences, forecast demand fluctuations, and identify white-space opportunities with greater accuracy and speed. As a result, brands are better positioned to anticipate market shifts and develop targeted strategies that resonate with evolving consumer needs.
• Personalised Marketing and Customer Engagement:
• The deployment of data-driven algorithms and AI tools has revolutionised marketing strategies by facilitating hyper-personalised communications. Brands can now segment their audiences with precision and deliver tailored messages, offers, and product recommendations. This approach not only increases engagement and conversion rates but also enhances customer satisfaction, ultimately fostering deeper brand loyalty.
• Optimisation of Product Assortments and Supply Chains:
• Digital technologies and AI-driven forecasting models help brands optimise their product portfolios and manage inventory more efficiently. Predictive analytics inform decisions regarding stock levels, product launches, and discontinuations, minimising waste and maximising profitability. Additionally, integrating digital platforms across the supply chain enhances real-time visibility, improves responsiveness to disruptions, and supports traceability initiatives—key components for maintaining consumer trust and regulatory compliance.
• Enhanced Customer Experience:
• The use of AI-powered chatbots, virtual assistants, and recommendation engines has streamlined customer service and support functions. These tools ensure prompt, consistent, and informative interactions, contributing to a more seamless and positive brand experience.
• Agility in Go-to-Market Execution:
• Digital platforms enable brands to rapidly test, iterate, and scale go-to-market strategies, adjusting campaigns in real time based on performance data. This agility allows for more effective allocation of marketing resources and optimises return on investment (ROI) in dynamic environments.
Areas Where Digital, Data, or AI Have Failed to Deliver ROI
• Lack of Strategic Alignment:
• Initiatives that are undertaken without a clear connection to core business objectives often fall short of delivering measurable value. When digital or AI projects are pursued
For their novelty rather than as integral components of a broader strategy, resources may be misallocated, and desired outcomes may not materialise.
• Poor Data Quality and Integration:
• The effectiveness of digital and AI solutions is heavily dependent on the availability of comprehensive, accurate, and timely data. Inadequate data infrastructure or fragmented data silos can impede the performance of analytics tools, resulting in misguided insights and suboptimal decision-making.
High Complexity and Implementation Costs:
• The deployment of sophisticated AI systems often involves significant financial investments and technical expertise. For smaller organisations or those operating in regions with limited digital infrastructure, these costs may outweigh potential benefits, making it difficult to achieve positive ROI.
• Impersonal or Ineffective Customer Interactions:
• While automation can improve efficiency, excessive reliance on AI-driven interactions may alienate consumers who value human connection or nuanced service. In some cases, automated systems misinterpret complex customer needs, eroding brand trust and diminishing effectiveness.
• Regulatory, Ethical, and Organisational Challenges:
• The adoption of digital, data, and AI technologies raises concerns regarding data privacy, algorithmic transparency, and ethical use. Failure to proactively address these issues can lead to compliance violations, reputational damage, and lost consumer confidence—further undermining any anticipated return on investment.
The transformational potential of digital, data, and AI technologies in brand building and go-to-market execution is undeniable, particularly when these tools are strategically aligned with business objectives and supported by high-quality data. Organisations that successfully integrate these technologies benefit from enhanced consumer insights, targeted engagement, operational efficiency, and responsiveness to market dynamics. However, achieving sustainable ROI depends on overcoming challenges across strategic focus, data management, cost, customer experience, and regulatory compliance. As such, a disciplined, value-driven, and continuously adaptive approach is essential to harness the full benefits of digital transformation in the contemporary food industry landscape.
Q5. Which point in the food value chain is most fragile today, and what early signal indicates stress before it becomes visible?
In the current landscape, the most vulnerable—or fragile—segment of the food value chain is the supply chain and sourcing stage. This phase serves as the backbone that connects agricultural producers and raw material suppliers with processors, manufacturers, distributors, and ultimately, consumers. Its fragility stems from a web of interdependencies and external risks, making it prone to disruption from multiple directions.
Why Supply Chain and Sourcing Are Most Fragile
• Reliance on a Diverse Supplier Network: Modern food supply chains are global, often sourcing ingredients from multiple countries. This reliance on a wide array of suppliers exposes companies to risks such as supplier insolvency, inconsistent quality, and variable lead times.
• External Shocks: Weather events (like droughts, floods, or hurricanes), geopolitical tensions, trade restrictions, and pandemics can rapidly disrupt the normal flow of goods. Even a single supplier’s disruption can cascade throughout the entire chain.
• Volatile Commodity Prices: Sudden shifts in the prices of grains, oils, or proteins can squeeze margins and force abrupt changes in sourcing strategies.
• Logistics & Transportation: Bottlenecks at ports, shortages of shipping containers, or trucking delays can slow down the entire chain, causing ripple effects that impact manufacturers and retailers.
• Regulatory and Compliance Risks: Changes in food safety standards, labeling requirements, or import/export rules can create unexpected disruptions if suppliers are unprepared or slow to adapt.
Early Signals of Stress in Supply Chain & Sourcing
Disruptions rarely appear suddenly; subtle, measurable indicators often precede them. Recognising these early warning signs can empower organisations to respond before issues escalate:
• Increased Lead Times: If suppliers begin to require more time to deliver goods or materials, it may signal upstream production issues, transportation challenges, or resource shortages.
• Order Delays and Backorders: A rise in delayed orders or unfulfilled purchase requests, even if minor, can be an early symptom of more severe disruptions to come.
• Unusual Fluctuations in Inventory Levels: Both overstocking (as a hedge against shortages) and unexpected stockouts can indicate instability in the supply chain.
• Supplier Communication Gaps: Reduced responsiveness, vague updates, or changing contacts at supplier organisations can hint at internal turmoil or looming financial distress.
• Abnormal Increases in Input Costs: Sudden spikes in the costs of raw materials often precede broader market disruptions or shortages.
• Quality Deterioration: A drop in the consistency or safety of supplied goods may point to compromised production standards or rushed fulfilment.
Proactive Measures: To manage these vulnerabilities, organisations should invest in robust supplier management systems, diversify their sourcing bases, and closely monitor data streams for the signals outlined above. Early action, such as securing alternative suppliers, renegotiating contracts, or adjusting inventory policies, can mitigate the impact of supply chain fragility before it affects downstream operations or consumer satisfaction.
Q6. Which geography or consumer segment looks attractive in food-brand growth data but proves hardest to scale operationally, and why?
Urban Tier-II and Tier-III cities in India stand out in food-brand growth data as highly promising markets. This attractiveness is driven by a combination of factors: rapid urbanisation, rising disposable incomes, a burgeoning middle class, and changing consumer preferences that increasingly favour branded and packaged food products. These cities, often located outside the traditional metros, are witnessing a surge in demand for new and premium brands, making them a focal point for expansion strategies among food companies eager to tap into fresh growth opportunities.
However, scaling operations in these geographies is fraught with significant obstacles. One of the primary challenges is the fragmented and underdeveloped distribution network. Unlike Tier-I cities, where logistics infrastructure is robust and organised, Tier-II and Tier-III cities often lack efficient cold chain facilities, reliable warehousing, and streamlined transportation. This makes it difficult for brands to ensure consistent product quality and timely delivery, especially for perishable goods.
Additionally, there is considerable heterogeneity in consumer behaviour and preferences across these regions. While growth data might signal strong aggregate demand, the reality on the ground is that tastes, price sensitivities, and brand loyalties can vary markedly from one city or neighbourhood to another. Companies must adapt their product offerings, marketing strategies, and even packaging to meet the local context—a process that is resource-intensive and requires deep market understanding.
Regulatory variations at the state and municipal levels also add complexity. Differences in food safety norms, labelling requirements, and local taxes can force companies to adjust their operations in ways that undermine efficiency and scale. Navigating these bureaucratic hurdles demands both agility and investment.
Moreover, developing an effective last-mile delivery system is often prohibitively expensive. Smaller retailers and traditional trade outlets dominate the retail landscape in these cities, resulting in lower modern trade penetration than in metros. As a result, brands depend on a vast network of distributors and stockists, each with its own operational quirks and reliability levels. Maintaining supply chain visibility and preventing stockouts or overstocking becomes a persistent challenge.
Finally, limited brand awareness and consumer trust in these markets can slow adoption. Building credibility and loyalty often requires sustained marketing investments and grassroots engagement, which can lengthen the payoff period and increase the risks of expansion.
While Tier-II and Tier-III cities in India offer compelling opportunities for food brands, the operational hurdles involved in scaling make them among the most challenging markets to conquer. Success in these geographies demands not only innovation and patience but also a nuanced approach to logistics, compliance, and consumer engagement.
Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?
As an investor exploring opportunities within the food-brand sector, a thoughtful and critical question to ask senior management would be:
"What is your strategy for scaling operations in Tier-II and Tier-III cities—markets identified as attractive for growth but notoriously difficult to serve? Specifically, how do you intend to overcome challenges related to fragmented distribution networks, inconsistent cold chain and warehousing infrastructure, diverse consumer preferences, regulatory complexities, and the high costs of last-mile delivery, all while ensuring consistent product quality and building strong brand trust?"
To elaborate, this question probes several key operational dimensions:
• Distribution and Logistics: How will you address the logistical gaps in cold chain, warehousing, and transportation to guarantee freshness and timely delivery, especially for perishable goods in areas with unreliable infrastructure?
• Consumer Diversity: What tactics will you use to understand and cater to widely varying local tastes, price sensitivities, and brand loyalties, so your products and marketing remain relevant across different regions?
• Regulatory Compliance: How do you plan to navigate the patchwork of state and municipal food safety standards, labelling rules, and tax policies that can hamper efficiency and increase costs?
• Retail and Last-mile Delivery: In a landscape dominated by small retailers and traditional outlets, what innovative models or partnerships are you considering to improve reach and supply chain visibility, while mitigating the risk of stockouts or overstocking?
• Brand Building: What is your approach for increasing brand awareness and trust in new territories, and how do you measure the effectiveness of grassroots marketing and local engagement efforts?
By seeking detailed answers to these areas, investors can assess whether the company possesses not only ambition but also the operational depth, agility, and local insight required to turn promising Tier-II and Tier-III opportunities into sustainable, scalable growth.
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