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Regional or hyperlocal food and beverage brands are increasingly joining quick commerce platforms such as Zomato-owned Blinkit, Zepto, Swiggy Instamart and BigBasket’s BBNow. These brands are seeking to not only enhance their presence nationwide, but also capitalise on the demand surge expected during the festive season, executives say.”We launched Blinkit in Vijayawada yesterday,” Albinder Dhindsa, chief executive of Blinkit, posted on X on Monday. “Happy to work with homegrown brands like Vijaya Milk, Sri Lalitha and more.” He said a second Blinkit store would open in the city by the weekend.Chennai-based Sweet Karam Coffee is also looking to go big.Larger market opens upSweet Karam Coffee, which originally planned to operate only in the south, now aims to fetch 15-20% of its sales from north India via quick commerce, and is adding stocks for taking its business nationwide, said K Sitaram, cofounder of Fireside Ventures, which has invested in the chain.”That a snacking brand from the south can deliver in minutes to any corner of India is a remarkable example of how quick commerce has bridged geographical gaps and made local flavours accessible to a national audience,” said Nalini Parthiban, cofounder and chief executive of Sweet Karam.She said platforms like Blinkit and Swiggy Instamart are “solving distribution problems for new-age brands.” New Delhi-based snacks maker Let’s Try, Pune’s Two Brothers, Indore’s Jeeravan, Coolberg non-alcoholic beer and Bevzilla coffee are among others boarding such platforms.”We offer a broad selection of products – from FMCG (fast moving consumer goods) and D2C brands as well as locally relevant options…from JK Spices in Kolkata and Sri Lalitha rice in Hyderabad to Milma Milk in Thrissur,” said a spokesperson for Swiggy Instamart. She said the range “ensures access to products that cater to regional tastes and preferences.” Even large established FMCG companies such as Nestle, Dabur, Hindustan Unilever, Godrej Consumer and ITC have been reporting 25-50% rise in sales on quick commerce platforms. Ecommerce sales at these companies have been growing at twice the pace seen in FY24, executives said in earnings calls over the past three to four quarters.A senior executive at a retail company said on condition of anonymity that quick commerce firms are onboarding regional and small brands because the margins are substantial – more than 20% in some cases – unlike with large brands, which have strict terms of trade with quick commerce. “That’s why quick commerce companies are so keen to get them (smaller players),” the executive said.Two Brothers Organic Farms, an eight-year-old Pune brand selling organic food products such as khapli wheat-marketed as low gluten wheat flour-is seeing double-digit sales growth through its own online store, as well as quick commerce.
Published On Aug 28, 2024 at 09:00 PM IST
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