After cola play, Reliance Consumer takes trade margin fight to snacks

After trying to make a dent in the cola market with Campa by offering higher trade margins to the supply chain, Reliance Consumer Products is betting on the same strategy to capture the chips, namkeen, and biscuits market in the country's booming snacks sector.

- SHARLEEN D'SOUZA

The Mukesh Ambani-led company is offering super stockists around 6.5 per cent, nearly double the typical trade margin of around 3-5 per cent (including performance-based incentives), from other brands in these categories. Its current brands in the chips and namkeen market include Alan Bugles and Snactac, while its biscuit brand is marketed under the name Independence.

Distributors are also receiving increased incentives, with margins of about 8 per cent plus an additional 2 per cent (including performance-based incentives). In comparison, other snack brands typically offer distributors 6-6.5 per cent.