Kissan Vs Maggi: A Comparative Analysis of FMCG Leaders

As the clock strikes 6:00 PM, many of us crave a light yet satisfying snack. Samosas, Fries, Chips, or Noodles are the choice of snacks most people usually go for to satiate this “twilight hunger”. While people have different taste preferences, one thing is universal: the need for a condiment that goes well with snacks. For most people, the scale of favour dips towards tomato sauce.

Now, tomato has been a well-heated topic in India for the past few months due to the price hike. The jump from 20/kg to 140/kg was unexpected and troublesome. This piqued my interest in learning about this red-juicy vegetable from a slightly different angle. So, today, I'll take you on a journey through the history of two of India's top ketchup brands, Kissan and Maggi. We'll explore how these two household names came to be rivals, as well as the story of the foreign competitor who tried to challenge them but was defeated nonetheless.

Tomato sauce, or plain sauce (as it is called in India), this condiment has defeated many to be the public's evergreen choice. It is a key ingredient in many dishes, and it can also be enjoyed on its own. While tomatoes were not always the main ingredient in the sauce, they have since become the most popular choice. So, as per historical records, tomatoes were first used to prepare condiments in 1812. Today, the ketchup market in the world is estimated to be around $21.4 billion, which is over ₹1,700 crore. With a CAGR of 3.2%, the market is expected to grow globally.

The ketchup market in India is largely divided between two brands, HUL’s Kissan and Nestle’s Maggi. The ketchup & jam section, along with squashes and soft drinks concentrates, is dominated by these two players in India. But you know what the most interesting part of this feud is? Both these leaders in the Indian market are not even Indian! That’s right! Hindustan Unilever Limited is not a “Hindustani” company, and Nestle is a Swiss company.

So, both of these brands are foreign-owned, which is surprising given that India is the second-largest producer of tomatoes. In FY23, India produced around 20 million metric tonnes of tomatoes, and this number is estimated to reach 22.5 million metric tonnes by 2026. Around 20% of these tomatoes are utilised to prepare tomato ketchup, puree, paste, pickles, etc.

There are other brands present as well, apart from Maggi and Kissan in the ketchup industry, like Tops, Heinz, and more, but no one has been able to replace either one of these till now. Before we go ahead with overviewing the ongoing competition between the two brands, let’s take a brief look at how they came to India and what tactics they adhere to.

HUL's Kissan: An Indian Brand Controlled by Foreign Flag

Enter Kissanpur: A marketing masterpiece that made Kissan the household name for ketchup in India.

Whether you are a millennial or a Gen-Z, you must remember those colourful ads of Kissan featuring a hard-working farmer who collects fruits and tomatoes to make fresh ketchup and jam. The animated cinematography and inspiring storyline worked perfectly in Kissan’s flavour, I mean favour, appealing to both kids and parents. Kids were also learning a moral lesson while watching those ads. This marketing strategy was a stroke of genius, as it penetrated the minds and hearts of parents and children alike.

The name Kissan is a dead giveaway. It means "farmer" in Hindi, and the brand has always positioned itself as a brand that is for and by farmers. The history of Kissan’s establishment is very interesting as well.
Kissan, the brand older than independent India, was originally a small processing plant established by Britishers in 1935. It was situated near a train halt point in Punjab, selling processed fruits and vegetables. The place came to be called “Kissan” due to it being a selling point for farmers, and the business adopted the name.

In 1950, the United Breweries Group, owned by the Late Vittal Mallya, acquired Kissan from Mitchell Bros. Later, in 1993, Kissan was again acquired by Hindustan Unilever Limited (HUL) via Brooke Bond. The arrival of HUL in India and its formation are also a series of partnerships and acquisitions. Check out the infographic below on HUL and, in turn, Kissan's establishment.

Want to know about HUL in depth? Read the full article by clicking on the link - HUL's Strategic Acquisitions

Thus, Kissan came to be an integral part of HUL and in turn India’s ketchup industry. But the truth is, despite being a business brought up and developed in the nation, Kissan is not managed by an Indian firm. Just the addition of 'Hindustan' in a name doesn't make the company Indian because one of the biggest FMCG companies in India, HUL, originated in Britain.

Food Industry's Maggi: Lead-Infused Brand

In India, Maggi is the one brand in arms with Kissan when it comes to the ketchup sector. But its story began in a small town in Switzerland in the late 19th Century.

So, the story begins with a Swiss man named Julius Michael Johannes Maggi, who was like us, a normal man trying to make a living like millions of people. At first, Julius overtook his father's hammer mill, but the business failed miserably due to the ongoing crisis in the milling industry. He then began experimenting with a new kind of flour by partnering with physician Fridolin Schuler, who specialised in enhancing the nutritional value of food products.

Hence, after two years of experimentation, they succeeded in preparing the first-ever ready-made soups in 1884. These soups were filled with proteins and other nutrients. The creation of these delicious soups and noodles couldn't have been more well-timed as Switzerland was on the verge of an industrial revolution.

For those not aware, the Industrial Revolution refers to the big change in the production of goods from hand to machine. During the late 1800s, the Industrial Revolution was taking place throughout the world, converting agricultural lands to industrial areas, increasing the supply of the produced goods as well as modernising the world.

As for Switzerland, the home branch of Maggi, the years between the 1870s and 1980s were the prime ones of the Industrial Revolution. In those days, around 44% of the factory workers were women who first toiled at their workplace and then had to go home and struggle to prepare meals for their families. Maggi, with both noodles and soup, came out as a blessing in disguise.

These simple yet new kinds of edibles were extremely easy to prepare and only took minutes to be served. People found a yummy new soup variety that was healthy and nutritious, and mothers found an easy-to-prepare substitute for dinner. In this way, Julius’ Maggi line of products gained popularity, boosting his business's revenue to the skies.

By 1888, Maggi started spreading to other nations like Germany, France, and Italy, and soon after, in 1897, Julius registered his company with the name "Maggi GmbH". By 1947, the world's largest food and beverage company, Nestle, acquired Maggi and began advertising with vigour.

Soon after, Nestle, and by extension, Maggi, entered India in 1983, snatching a whopping 97% market share within a couple of years. It took them a couple of years due to India being a unique nation with varying cultures and flavours. This diversity is also reflected in Indian cuisine. The concept of quick-to-prepare food products was not immediately accepted by India, and Maggi struggled to form a base at first. Their old strategy of targeting working women was not such a hit in India. Thus, Nestle had to brainstorm something even better.

With the nation seeing a lifestyle change at the beginning of the 20th Century, people slowly opened up to the idea of ready-to-make food products. Nestle brought the entirety of its Maggi line of food products, from noodles to tomato ketchup, in India slowly yet steadily. Maggi came out with the tagline "Bas 2 Minutes" and centred all its advertisements and marketing campaigns in India.

Is the Indian Food Industry in Danger? Read the article to know more.

Top Leaders Face-to-Face

Maggi might have come to India after Kissan, but it gave strong competition to HUL's Kissan and continued the fight. So much so that it is Kissan’s biggest competitor today. At first, HUL was enjoying a market with no competitor when it came to its acquired brand, Kissan. Kissan has been a renowned brand in the ketchup market with its Indian-origin brand name and various flavours. On the other hand, Maggi slowly became everyone's go-to food due to its noodle line. The success of one product boosted the entire brand Hence, people started using Maggi's tomato sauce as well.

Along with exceptional advertising strategies and targeting the right audience, these brands were also experts in catching what the people wanted. At first, condiments like tomato sauce were used for added flavours or a dip for fried eatables. But then, the world changed; both men and women started going to work, leaving hardly any time to prepare a full meal. The craze for healthy eating endangered the existence of these brands; then they came out with healthier and local versions of their products like the No Onion, No Garlic flavour, Sweet & Spicy, etc. These factors gave a major boost to the demand for products that Kissan and Maggi included in their portfolio.

America’s biggest ketchup brand, Heinz, also tried penetrating the ketchup sector in India in 2000 but was defeated by these two brands. They were unable to crack the market like Maggi or Kissan and were limited to a minor market share in the sector.

If you look at Nestle's financials, then it is clear that the group has been seeing a constant rise in its net sales. Maggi, which contributes around 20% of Nestle’s revenue in India, is estimated to generate a revenue of ₹4,413 crore. This position has not been compromised much since its firm establishment in the nation. Even when Maggi was charged with accusations like “Unfair trade practices”, “false labeling” and “misleading advertisements” Maggi saw a minor obstacle in its path and came out victorious on the other side.

You all may remember how a large amount of lead was found in Maggi products in May 2015, leading to the brand being banned in the entire nation. During this time, other brands like Sunfeast, Ching’s, Heinz and even Kissan started benefiting from the woes of their competitor.

But Maggi is not the type that falls and doesn't stand back up. They challenged the ban and got tested by the FDA, a US health regulator. After no dangerous levels of lead were discovered and revealed for public assurance, Maggi came back with a bang four months later, in August 2015.

The revenue breakdown of HUL portrays that Kissan, which falls under the Food & Refreshment segment of the company, contributes to generating over 20% of revenue. However, this segment also involves other well-known brands for HUL. This is not the case with Nestle, as Maggi contributes way more in terms of revenue generation for Nestle. Though the market division between both the brands, Kissan and Maggi, is unclear, one thing’s for certain: Maggi is winning the ongoing race, although with only a few paces. As per Euromonitor Research report, Maggi has a market share of over 50%, and Kissan lands second with over 45% control. With its variety of products and delicious taste, Maggi is leading the ketchup sector in India.

The competition between Maggi and Kissan is fierce. Both brands are constantly innovating and introducing new products to attract consumers.

The Bottom Line

The success of Kissan and Maggi in India is a testament to the power of marketing. These brands have been able to create a strong emotional connection with Indian consumers, positioning themselves as the leading brands in the ketchup market.
Just think about it: many of us eat ketchup at least once a day with one dish or another. Maggi (noodles) and ketchup (Kissan for me) go well together. Just saying!

In short, making it big in a foreign country by constantly keeping domestic brands at bay is something companies can learn from HUL & Nestle.