Perfetti's ‘Stop Not' chips

Perfetti plans to enter snacks market with ‘Stop Not' chips

Perfetti van Melle, a leading confectionery maker, is planning a foray into the Rs 3,000 crore Indian packaged snacks market with its own brand of chips called ‘Stop Not.'

This is the first time that the multinational company is diversifying into the snacks business.

The Italian-Dutch company is expected to launch two versions (shapes) of chips called ‘Golz' and ‘Diskets.' Across the two versions, it is targeting around eight flavours — ‘thai chilli', ‘tomato chutney' and ‘mad masala.' The launch is expected to be around April-May this year.

Perfetti, a Rs 1,200 crore (2010) company, has around 30 per cent share of the confectionery market.

It manufactures and markets popular gum, candy and mint brands such as Center Fresh, Center Shock, Fruitella, Happy Dent, Big Babol, Alpenliebe, Chocoliebe, Chlormint and Mentos.

Deloitte India said, For a company in the confectionary market, getting into chips is a natural fit. They can ride on the existing distribution as there is a lot of synergy with the market for its existing products.

The chips market is believed to be worth around Rs 1,500 crore (2010) and is part of the Rs 3,000 crore packaged snacks industry. This number represents only national and regional organised (branded) players, though a similar market exists in the unorganised sector as well. Among the former, Pepsico brand Lay's is believed to be market leader, followed by ITC's Bingo and Parle's Hippo.

On the snacks side, Lot of action happening as there is a trend of increasing out-of-home consumption due to the convenience it offers. Strong distribution through small shops also helps. Although there are a few organised players in the space, there is space for more. New players can ride on the volume growth of the category.