By Abhay Ray 
Introduction
ITC Foods has unveiled plans to expand into the fresh packaged foods space with offerings such as short shelf-life cookies, cakes, and chapatis. This marks a major strategic step for the cigarette-to-snack conglomerate as it seeks to capture India’s rising appetite for convenience-led foods that last only a few days, compared with the 12–24 month shelf lives typical for processed items. The push comes in response to the explosive growth of quick commerce platforms, which are reshaping consumer access to everyday essentials.
Leveraging Quick Commerce and Brand Extensions
Hemant Malik, chief executive of ITC’s food division, explained, “There is a growing consumer demand for fresh packaged food products, powered by enhanced accessibility and convenience provided by the surge in quick commerce platforms.”
ITC has extended its Sunfeast and Aashirvaad brands into these categories to strengthen consumer familiarity and trust. To support this shift, the company has developed a hyper-local production and distribution ecosystem, enabling next-day delivery from oven to doorstep. With 75% of India’s sales still routed through local kiranas, ITC believes its small-batch, micro-market scaling model will ensure freshness while avoiding the limitations of long-haul logistics and warehouse storage.
Why Quick Commerce ?
Quick commerce is growing rapidly in urban India as consumers demand fresh, convenient, and instantly available products. Platforms like Blinkit, Zepto, and Swiggy Instamart enable same-day or instant delivery, making it possible to sell short shelf-life items such as cookies, cakes, and chapatis. Rising disposable incomes, busy lifestyles, and the desire for “fresh-from-the-oven” experiences are driving this trend, giving FMCG companies like ITC a strong opportunity to expand into this high-growth channel.
Distribution & Supply Chain Model
ITC is adopting a hyper-local manufacturing and distribution approach for its fresh packaged products. Instead of large centralized factories, production will be done in small batches near urban centers, ensuring products reach consumers quickly. This model reduces delivery time, keeps items fresh, and minimizes spoilage. Quick commerce platforms will act as the main delivery partners, enabling oven-to-doorstep service. However, short shelf life demands tight inventory control and precise logistics to avoid wastage, making supply chain management more complex than traditional FMCG products.
Opportunities and challenges
The push into fresh packaged foods also reflects a wider trend in India’s FMCG sector, with rivals such as Hindustan Unilever, Marico, Parle, and Adani Wilmar strengthening their presence in quick commerce through dedicated sales and distribution teams.
However, analysts warn that the strategy comes with hurdles. Products with such limited shelf lives may struggle to achieve scale through quick commerce alone, requiring additional support from modern trade and general trade channels. Devangshu Dutta, founder of retail consultancy Third Eyesight, pointed out to ET that inventory management could prove challenging: “These products need to move fast, and space allocation in quick commerce will be critical.”
Financial Performance and Competitive Landscape
ITC’s packaged foods business reported ₹18,270 crore in gross sales during FY25, reflecting a 6% year-on-year increase. The company’s decision to diversify into fresh packaged goods coincides with the rapid rise of quick commerce players such as Blinkit, Swiggy Instamart, and Zepto, which deliver ultra-fresh items within hours.
These channels have already been embraced by direct-to-consumer brands and local bakeries like Theobroma, Baker’s Dozen, and Id Fresh. To remain competitive, FMCG heavyweights including Hindustan Unilever, Marico, Adani Wilmar, and Parle have also created specialised quick commerce sales and distribution teams, highlighting the industry-wide pivot toward faster stocking cycles and dedicated product lines.
Conclusion
ITC Foods’ foray into fresh packaged products marks a bold step in aligning with India’s fast-evolving consumption patterns. By extending trusted brands like Sunfeast and Aashirvaad into short shelf-life categories, supported by a hyper-local supply chain and quick commerce tie-ups, the company is positioning itself at the forefront of a growing market. While execution risks around wastage, inventory management, and scale remain, ITC’s strong distribution network and brand equity provide it with a competitive edge. As urban consumers increasingly demand freshness, speed, and convenience, ITC’s strategy could redefine packaged foods in India and intensify competition within the FMCG sector.
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