Pantaloon Retail had launched its own Cola under the brand name Tasty Treat. This private label cola has been accepted well by consumers and Future group officials are quick to state that Tasty Treat Cola is a big success.
Mr. Damodar of Future Group said,
Customer have surprised us in the cola category with out recently launched Tasty Treat Cola brand. In certain stores, the share of our brand has been higher than Coke and Pepsi and this has raised our hopes in private labels. We believe today’s consumers are looking for more brands are we are open for introducing new brands in every category.
Pantaloon Retail – Future Group already has Future Brands as a separate company to look into the private label business. The company is planning to launch 6-7 new products, all private labels. Future Brands now wants to enter FMCG segments as diverse as Chocolates to Toothpastes with its own private labels.
Thin margins for retailers is the primary motivation for them to move towards their own manufacturing and establish private label brands where they will have at least 10-12% margin said a Future Group source.