Dr Oetker takes over Kuppies to diversify into RTE cake & desserts
Dr Oetker India, the market leader in mayonnaise, spreads, and Italian sauces through its FunFoods brand, announced that it has entered into an agreement to acquire the manufacturing hub, innovation centre, and the Kuppies brand from Spycy Fast Food, an innovative cakes and desserts start-up based in Noida.
In keeping with the company's worldwide strategic growth pillars, this acquisition would enable it to extend its product portfolio in the rapidly developing cake and dessert area, which now accounts for 50% of its global revenue. It is the preferred cake supplier for Café Coffee Day, Keventers, Krispy Kreme, FreshMenu, Sweet Truth, and Slay Café, among others.
In a global study conducted by BCG in 2017, India was listed as one of the countries with a cake and dessert category growth rate of more than 36%. Additionally, the study discovered that because India, like many other Asian countries, lacks a baking, self-made culture, the market opportunity exists in the area of ready-to-eat and served cakes. This area is ideal for introducing unique items that provide consumers with a premium taste experience.
The epidemic and accompanying increase in stay-at-home orders have increased demand for prepackaged branded food products such as cakes, resulting in increased consolidation in the sector and chances for start-ups delivering a diverse selection of products to consumers.
“We are delighted to welcome Kuppies to the House of Dr Oetker brands,” said Oliver Mirza, MD and CEO-Indian Subcontinent. Through this acquisition, we will be able to offer Indian consumers a variety of creative and interesting eggless options that replicate the flavour of European cakes. Our choice to enter this new market is based on thorough consumer research. We're especially excited to introduce novelties like dark chocolate chip brownies, peanut butter brownies, and red velvet brownies that no other player offers. Our products are designed to fulfil the needs of consumers looking for moist, melt-in-your-mouth flavours and high-quality cakes for those small indulgences throughout the day."
"India continues to be a critical market for us, and we will continue to invest in expanding our portfolio. This acquisition underlines our commitment to growing this category in the years ahead and is consistent with our worldwide strategy,“ he continued.
Jeevash and Uni Vaid, founders of Spycy, stated, "We are extremely proud to partner with Dr Oetker, as it provides us with an excellent platform to further our vision of delighting consumers with an array of cake and dessert offerings ranging from celebration cakes, pastry cakes, cupcakes, jar cakes, and brownies and more." By becoming a part of the Dr Oetker family, we now have the opportunity to reach a broader audience and grow this category to its full potential.”