ITC enters fresh food market with short-shelf life products

ITC goods, the food subsidiary of the diversified conglomerate ITC Limited, are entering the fresh packaged goods market by introducing short-shelf life products including cakes, cookies, and chapatis. The move is a component of the company's broader goal to take advantage of the rapidly expanding quick commerce industry, where consumer demand is moving toward freshly cooked, convenience-driven solutions.

Unlike most FMCG products that carry shelf lives of 12–24 months, ITC’s new offerings are designed to last only a few days. Hemant Malik, CEO of ITC’s food division, told ET that demand for such products is rising rapidly, thanks to the accessibility and convenience offered by quick commerce platforms. “There is an increasing consumer need for fresh packaged food products,” he noted.

ITC has responded to this by expanding its popular Sunfeast and Aashirvaad brands into the fresh packaged market. Additionally, the business has established a hyper-local production and distribution network that allows for next-day delivery, bringing goods straight from the oven to the customer's door.

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ITC's strategy is based on a small-batch production model that is suited for urban micromarkets. The company wants to ensure freshness while avoiding the difficulties of long-haul transportation and warehousing by producing and distributing in smaller numbers. Malik continued by saying that in order to support the project, ITC is utilizing tech-enabled supply chains efficiencies, agile production setups, and speedy fulfillment systems in addition to an emphasis on fresh sourcing.

With competitors like Hindustan Unilever, Marico, Parle, and Adani Wilmar bolstering their position in fast commerce through specialized sales and distribution teams, the drive towards fresh packaged foods also mirrors a broader trend in India's FMCG industry.