Dr Oetker India, the leader in mayonnaise, spreads, and Italian sauces with its FunFoods brand, has recently announced that it has entered into an agreement with Spycy Fast Food, an innovative cakes and desserts start-up based out of Noida, to acquire their manufacturing hub, innovation centre and the Kuppies Brand. In line with its global strategic growth pillars, this acquisition will allow Dr Oetker to expand its product portfolio in the fast-evolving Cake & Dessert category, which constitutes 50% of Dr Oetker’s global portfolio. SPYCY is the leading cake partner for Café Coffee Day, Keventers, Krispy Kreme, FreshMenu, Sweet Truth, Slay Café and many more.
In global research undertaken by BCG in 2017, India was identified as one of the countries with a growth rate of over 36% in the cake and dessert category. The study also revealed that since India lacked a baking, self-made culture, like many other Asian countries, the market potential lies in the ready-to-eat and served cakes segment. This segment presents a perfect opportunity to introduce innovative products that bring a premium taste experience to consumers.
The pandemic and subsequent stay-at-home orders have created a strong demand for pre-packaged branded food products such as cakes, prompting more consolidation in the sector and opportunities for start-ups offering an exciting range of products to consumers.
Dr Oetker’s acquisition complements its mission of building new categories of the highest quality ‘pleasure food’ for consumers in India. Oliver Mirza, managing director and chief executive officer, Indian Subcontinent, commented, “We are excited to welcome Kuppies into the House of Dr Oetker brands. This acquisition will enable us to present Indian consumers with a range of innovative and exciting eggless offerings that match the taste experience of European cakes. Our foray into this new category is a decision backed by extensive consumer research. We are especially delighted to introduce variants such as dark choco-chip brownie, peanut butter brownie, and red velvet brownie that no other player offers. Our products meet the demands of consumers seeking moist, melt in the mouth taste and quality cakes for those small treats anytime of the day.’’
He further added, “India remains an exceptionally important market for us, and we will continue to invest in growing our portfolio. This acquisition reaffirms our commitment to building this category in times to come and is following our global strategy.”
The founders of SPYCY, Jeevash and Uni Vaid said, “We are extremely proud to associate with Dr Oetker, which provides us a great platform to further our vision of delighting consumers with an array of offerings in cakes and desserts right from celebration cakes, pastry cakes, cupcakes, jar cakes to brownies and more. By joining the Dr Oetker family, we will now get a chance to reach a larger audience and scale up this category to its full potential.”
Given the growth potential in this category and Dr Oetker’s strong legacy and baking heritage, the acquisition of this start-up will help address the opportunity gap for the Indian consumer seeking an international taste experience, convenience and innovative offerings. The acquisition of the Kuppies brand will be an addition to the company’s massive repertoire of brands and sub-brands from the house of Dr Oetker, taste a European Legacy since 1891.