Nestle Maggi toped the noodles list again after ban within four months. Nestle India Chairman Suresh Narayanan said that Maggi which was banned in the last year has returned to top position in the country with almost half the share of market estimates.
It recaptured its market share on Tuesday with 57%.
He said, Maggi is now available in over 2 million outlets and variants such as oats and atta noodles would be back on the shelves over the next couple of weeks
“Some of the big hitters will be coming back to the market. We are rejigging the Maggi portfolio under noodles, pasta and sauces,” he added.
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FSSAI imposed a ban last year on Maggi noodles as it was found that these noodles contained harmful lead content and MSG. Maggi was relaunched few months ago and promised to contain a healthier dose of lead content.
Maggi had just 10.9% market share when it was launched in the month of November. Within one month the noodles brand climbed up to 35.2%.
However the share of Maggi noodles in market was less when compared to previous year. It was 48% in February, according to data by market researcher Nielsen, still significantly lower than the 77% it commanded in the previous year at the same time.
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Maggi used to contribute close to 30% of our portfolio before the controversy. At the moment, it’s slightly less than a fourth of the turnover because the full traction hasn’t happened. But it’s quickly catching up,” said Narayanan.
The market is not super buoyant and is showing signs of strain. Even in our categories, the fact is that consumption expenditures are getting fragmented.
There is a bit of a loss of momentum but with the recent Budget announcements, we should be bouncing back into the realm of what a 7.5-8% GDP growth economy should exhibit in a couple of quarters,” he added.
The harmful levels of lead present in Maggi hit the Nestle brand very hard. It took time for the brand to regain the confidence from the people to believe in the brand.
After huge market research the product was relaunched and now it is leading player in the noodles market again. Heavy advertising for Maggi in the form of ads to welcome back the band created impact among people.