Kathmandu. CG Foods Waiwai, which has been dominating the Nepali noodle market for decades, is facing tough competition from its competitors. Yashoda Foods, which entered the market through the current brand, and Asian Thai Foods, which has made an impact through Two PM, have changed the equation of the market.
The latest financial statements and ratings agency reports show that the interest of Nepali consumers has shifted from traditional flavors to curo and foreign flavors, which Yashoda Foods is directly benefiting from.
Yashoda Foods has become one of the fastest growing companies in Nepal’s fast-growing region. Wai Wai, which has ruled the Nepali noodle market for decades, is now facing one of the toughest challenges in its history. CG Foods’ financial statements and recent credit rating reports show that WAI’s market share is shrinking and competitors are moving aggressively.
Popular Wai Wai has seen a downward trend over the past two years due to its crazy taste and ready-to-eat features.
FY 2023. CG Foods’ revenue fell 11 percent to Rs 8.10 billion in Q2014. This fall is in fiscal year 2024. In the first nine months of Q15, it continued to decline by 6 percent to Rs. 5.71 billion.
Waiwai’s share, which was about 45 percent in the early 2010s, is now estimated to have shrunk to about 28 percent. Yashoda Foods’ Current and Asian Thai Foods’ 2PM have played a major role in taking away Wai Wai’s market share.
The current brand has created a stir in the market with its spicy flavor aimed at the younger generation. Yashoda Foods’ operating income for FY 2024. In 2015, it increased by 31 percent to Rs 7.69 billion.
Asian Thai Foods Presence Asian Thai Foods is also strengthening its market through brands such as 2PM and Rumpum. In particular, these companies have pushed the traditional market of Wai Wai by making the taste of Korean noodles available at affordable prices.
Why is YY lagging behind:
In order to maintain market demand, CG Foods has recently introduced new brands like So Yum and prepared snacks of different flavours, but due to some fundamental reasons, it is difficult to retain market share.
Nepalese consumers have been attracted to the traditional brown noodles with a crisp and premium taste. Wai Wai has not been able to adapt to this change in time.
Yashoda Foods attracted the youth with expensive but attractive packaging and the concept of Akbare Piro. Wai Wai still seems to be stuck in its old identity.
The recent action and controversy taken by the Kathmandu Metropolitan City over the issue of quality and cleanliness has also affected the popularity of the brand.
CG Foods distributes a major portion of its profits in the form of dividends ranging from 78 to 155 percent. This may have limited the company’s capital expansion and investment in new research.
Although Wai Wai is still a strong brand in the market, the rapid growth shown by competitors such as Current and 2PM has forced CG Foods to rethink its strategy. In order to regain its foothold in the market, it is imperative for the company to diversify its products and address consumers’ desire for quality and new tastes.
