We're Planning to Launch Wholesale Sweet Shops

We're gearing up to introduce wholesale sweet shops, offering a diverse range of confectionery delights in bulk quantities. Stay tuned as we bring delicious treats right to your doorstep, catering to all your sweet cravings and occasions with our upcoming venture.

Scandalous Foods is an innovative initiative that seeks to establish a new market for post-meal impulse purchases of Indian sweets, utilizing restaurants and catering services as distribution channels to reach consumers. The company aims to integrate Indian sweets seamlessly into dining experiences, offering preservative-free options with a lengthy shelf life and convenient single-serving portions, reflecting its dedication to quality and creativity.

Sanket S, the creator of Scandalous Foods, discusses observations regarding the Indian confectionery sector and emerging trends and hurdles in the post-dining offerings domain during an email exchange with FnB News. Here are some highlights:

What changes have occurred in the production and distribution of Indian sweets in recent years?

By harnessing innovative flavor combinations, convenient delivery options, and positioning themselves as premium offerings, they are revolutionizing the concept of sweets to suit contemporary tastes. Their business models prioritize not only traditional recipes but also cater to the demand for artisanal quality, adventurous flavors, healthier ingredients, and convenient portion sizes.

While many startups focus on capturing the premium and affluent market, we are directing our attention to the affordable segment, which represents a sizable and less demanding consumer base hungry for sweets. This strategic shift acknowledges the immense potential of this market segment, contrasting with the more selective preferences of the mass premium and premium clientele.

In recent years, there has been a notable transformation in the landscape of Indian sweets production and distribution. This evolution is marked by the adoption of innovative flavor profiles, convenient delivery options, and an emphasis on premium positioning. Traditional sweets have been reimagined to appeal to contemporary tastes, with startups leading the charge by offering sweet-centric business models that cater to both the enduring love for classic recipes and the evolving preferences of consumers seeking artisanal quality, experimental flavors, healthier ingredients, and convenient portion sizes. While many startups have traditionally targeted premium and affluent consumers, there is now a shift towards capturing the affordable segment, recognizing its vast potential. This segment, characterized by a significant demand for sweets and a less discerning consumer base compared to the mass premium and premium markets, presents a lucrative opportunity for those looking to tap into a broader consumer base.

What trends are emerging in the post-dining offerings category?

The post-dining offerings category is experiencing notable trends, particularly within the realm of sweets. There's a noticeable shift towards healthier choices, emphasizing innovative, artisanal, and handcrafted fusion sweets. This trend is exemplified by the introduction of bite-sized pedas, petit gulab jamuns with playful flavors, and the emergence of mithai bars. These developments position sweets as easily consumable accompaniments to everyday meals and drinks, aligning with the changing tastes of consumers.

Furthermore, mirroring the popularity of shampoo sachets in India, there's a growing belief that a similar concept can be applied to mithais. The introduction of mithai sachets, bars, cookies, waffles, and cakes is envisioned, offering a convenient and accessible format for consumers. Despite the emphasis on novelty, the core focus remains on maintaining familiar tastes. This strategic approach aims to strike a balance between introducing new and exciting options while preserving the comforting and traditional flavors that resonate deeply with consumers.

Could you provide more detail on how the restaurant and catering industry functions as a conduit for selling sweets directly to consumers?

The restaurant and catering sectors play pivotal roles as distribution channels for selling sweets directly to consumers, capitalizing particularly on the significant impulse buying tendencies observed in India, notably after meals. Leveraging hotels, restaurants, and caterers as indirect sales channels becomes crucial in exploiting this market opportunity.

Strategic placement of sweets within restaurant menus and catering packages aims to elevate the overall dining experience. By ensuring that sweet options harmonize with main courses, restaurants encourage patrons to explore dessert offerings, thereby boosting additional sales.

Catering services offer a unique opportunity for customization, allowing for the adaptation of sweet selections to suit specific event types, such as weddings, corporate functions, or celebrations. This personalized approach enhances the dessert experience, fostering memorable moments for consumers.

In the digital age, the restaurant and catering industry leverages online platforms to showcase their sweet offerings effectively. Through captivating visuals, detailed descriptions, and customer feedback, these platforms serve as potent marketing tools, attracting potential customers and fostering engagement in the competitive sweets market.

What obstacles does the company encounter in the food industry?

We face various challenges, including supply chain issues, logistical hurdles, educating the market about consuming frozen sweets, managing costs effectively, and addressing the impact of external factors. These external factors might include disruptions in cold chain logistics due to power outages or refrigeration system failures during transportation.

These challenges are comparable to essential pillars that require strengthening the supply chain, improving market education efforts, enhancing workforce skills, and overcoming mental barriers to embrace new technologies.

What strategies does the company employ to stay ahead of evolving consumer preferences in the food industry?

Our approach is proactive, aiming to anticipate and respond to shifting consumer preferences in the food industry. This involves harnessing data analytics tools to carefully examine sales data, customer behavior, and market trends.

In addition to data-driven strategies, we prioritize ongoing innovation and dynamic marketing approaches. Our primary focus is on aggressively expanding our distribution network, a strategy bolstered by robust data analytics.

We understand that having a quality product is fundamental, but we strive for sustained success by combining innovation, strategic marketing, and a well-informed, expanding distribution network.

How does the company account for cultural nuances and regional preferences when presenting a diverse range of Indian sweets?

Our approach has developed significantly in terms of considering cultural aspects. Initially, during the Minimum Viable Product (MVP) phase, we concentrated on popular options. However, our strategy has evolved to encompass a broader range of sweet offerings.

This expansion now includes seasonal, regional, and occasional sweets, acknowledging the diverse culinary landscape and varied tastes found across different cultures in India.

How are businesses adapting to the growing market demand for healthier dessert choices?

A prevalent strategy adopted by businesses to meet this growing demand is to integrate health-conscious ingredients, such as sugar alternatives like dates and jaggery, as well as unrefined sugar, into their products. Additionally, we are introducing desserts in small-sized single serves and innovatively packaging them into sachets and bars.

This approach not only caters to the increasing demand for healthier options but also prioritizes convenience and portion management in response to evolving consumer lifestyles.

What is the company's approach to integrating sustainability into its production processes?

Even in its nascent stages, our venture is actively tackling sustainability in its production processes. Despite being relatively new, there's a conscious effort to minimize our carbon footprint. This involves sourcing milk directly from cooperatives, bypassing distributors and retailers to streamline the supply chain. Additionally, we prioritize refrigerated vans powered by CNG and EV technology over diesel wherever possible. Furthermore, our commitment to reducing environmental impact is evident in our adoption of reusable packaging.

What is your perspective on the future trajectory of the post-meal impulse buying market?

We envision pioneering a new category within the post-meal sweets market, recognizing it as a significant opportunity akin to the traditional mithai industry in the coming years. This category is tailored to offer convenient, guilt-free indulgence, catering to the psychological needs of a wide consumer base.

Convenience is set to define the future trajectory of the post-meal impulse-buying market. Snack-sized portions, on-the-go packaging, and easily consumable options will remain pivotal, attracting consumers seeking quick and hassle-free treats after meals.

With health and wellness gaining prominence, the market is expected to experience a surge in demand for healthier post-meal impulse options. Businesses are likely to introduce snacks and treats that align with diverse dietary preferences, catering to the growing segment of health-conscious consumers.

What are the company's upcoming plans for the future?

We're strategically laying out a roadmap for future expansion with multifaceted plans. Firstly, there's a strong emphasis on amplifying B2B channels and forging new collaborations and partnerships to broaden market reach and penetration. Additionally, we're exploring opportunities in the export market to capitalize on global demand and introduce our brand to a wider audience.

On the B2C front, we're planning to establish wholesale sweet shops, providing direct access to consumers and fostering a more personalized connection. Additionally, we're gearing up for the retail market by developing products ready for general trade. These products will be available in both ambient and chilled formats, ensuring adaptability to diverse consumer preferences. Overall, these strategic initiatives reflect our comprehensive vision for growth, encompassing both domestic and international markets through various B2B and B2C avenues.

Source: fnbnews