New products: Butter sticks & Frozen fruits by iD Fresh Food

Known for its idli-dosa batter, parottas, and dairy products, iD Fresh Food is now entering new product innovations. It is planning on launching ‘butter stick’ and ‘frozen fruit blend’ in the Indian market before long.

Rahul Gandhi, CMO, iD Fresh Food, says, “70–75% of our sales come from the batter and parotta portfolio. Our batter is probably larger than 30–40%. India is a batter market, whereas the UAE is a parotta market. Our dairy portfolio stands at around 15%, and the coffee portfolio is 5–10%. We’ve just launched bread in Bengaluru.”

Gandhi revealed, “Applying butter (on bread, toast, etc.) can be messy at times. We’re launching a butter stick, so now one can apply butter without using a knife. In a couple of weeks, you will see butter getting dispensed in the same way you dispense glue from Fevistik. The packaging will be similar to that of Fevistik. You just have to twist it from below, and the butter will get dispensed.”

Speaking about the new categories, Gandhi states, “Bread and coffee are doing really well in Bengaluru, Mumbai, and Delhi. Bread has around 7–10% of the market share in the channels that we operate in.”

The brand launched grated coconut and smart sip tender coconut in 2020, and ghee in 2022. It also launched Superr Batter in the economy segment in Chennai in 2020. It launched the batter again, with different packaging. Superr Batter is now also available in Andhra Pradesh (excluding Telangana).

“Many people make the batter at home. We’re now trying to give them a more affordable price point so that they can try a different batter recipe. We launched it in Chennai, where its volume consumption is quite high. It’s also a price-sensitive market. We figured out a way to give the consumers a new kind of batter every year,” says Gandhi.

As per the brand, customer experience has changed—both online and offline—post-COVID. “Batter is doing well because, once you order it online, you can get it at your doorstep in just 15–20 minutes,” said Gandhi. Hence, online continues to be a significant channel, even now (post-COVID), he adds.

Out of iD Fresh’s total global sales, i.e., Rs. 600 crores, India contributes about Rs. 450 crore, of which online is Rs. 120 crores.

The brand’s TG varies by category. It’s mostly looking at urban middle-class households. But with batter, it tends to target primarily women of the household or kitchen gatekeepers. For Parotta, the brand targets younger audiences and early jobbers.

“Batter is more family-oriented, but on a psychological level, people are more conscious about the food that they eat. They’re ready to pay more for good quality,” shares Gandhi.

“Almost everybody in South India consumes the idli-dosa batter. We now plan to expand to North India. Data from food delivery platforms Swiggy and Zomato reveals that biryani and masala dosa are the most ordered food items online in Mumbai and Delhi. So, the first plan will be to expand the existing category. We’re trying to reach out to 60% more stores and services. The second one is to get into new categories.”

Set up with an investment of Rs. 40 crores, the company crossed Rs. 530 crores in revenue in FY23 and is expecting to touch Rs. 800 crores by FY24. The brand’s positioning is “clean label, no chemicals or preservatives, and fresh products.