ITC pushes Yippee to replace Maggi

With Maggi off the shelves, rivals are eyeing to capture the space. ITC, which sells Yippee noodles under its Sunfeast brand, has taken to the direct communication route to push the sales. It has provided retailers with leaflets to be shown to Maggi loyalists. The leaflets assure customers of Yippee’s quality and safety standards.

"Stringent tests are conducted for our food products at ITC's NABL (National Accreditation Board for Testing and Calibration Laboratories)-accredited Life Sciences and Technology Centre as well as FSSAI (Food Safety and Standards Authority of India)-approved, NABL-accredited external laboratories. In all these tests, our food products have consistently been found to comply with all regulatory standards," it says.

The leaflets also point out the food safety regulator has ordered tests to be carried out on many other brands and that the company is fully cooperating with the authorities.

Nestle India had decided to withdraw its Maggi noodles from all retail outlets on June 4 amid a snowballing controversy over excess lead and the presence of monosodium glutamate (MSG) in the popular snack. Subsequently, the FSSAI ordered testing of instant noodles, pasta and macaroni brands of seven companies including ITC, GSK Consumer Healthcare and Nestle India.

“This a very efficient form to win back customers. In marketing terms it is known as 1:1 communication where the brand directly interacts with the customers,” said brand expert Harish Bijoor. "Since the most prominent brand is under is scanner, it is imperative that the competitors will try to win brand loyalty in this time," he added.

“We are showing the leaflets to all customers who come to buy noodles. The company has asked us to do so,” a retail shop owner said.

“In response to queries raised by the trade, ITC had sent out a communication to them which emphasises on the fact that all ITC products are manufactured in state-of-the-art, world-class facilities complying to strict quality and hygiene norms,” an ITC spokesperson said.

V L Rajesh, the company's divisional chief executive (foods), had earlier issued a notification to customers on the firm's website stating Yippee safety standards. "No restriction has been imposed in any state on the manufacture, distribution and sales," it read.

According to analysts, Maggi had a 65 per cent share in India’s Rs 4,000-crore instant noodles market, followed by ITC’s Yippee, which holds 18 per cent market share. The remaining market share is held by Hindustan Unilever’s Knorr Soupy Noodles, GSK Consumer’s Horlicks Foodles, Capital Foods’ Smith & Jones, Nissin Foods’ Top Ramen and some private labels.

ITC is also wooing noodle lovers with advertisements and on-field customer awareness programmes.