Growth in India has been driven by the ability to hit key price points and commitment to increasing distribution of products in small shops, Swiss foods company Nestle said in its annual report for 2022.

The maker of Nescafe coffee and Maggi noodles also called out R&D centres in India, China, South East Asia and Africa markets, where it said it can innovate closer to consumers with agility. The company noted in its annual report that its Munch chocolate in India continues to appeal to consumers through affordable “price point management’ and an interactive digital campaign with the IPL.

Referring to its KitKat chocolate, Nestle noted that young adult consumers are making the brand one of the fastest growing chocolate bars in the world.

The foods maker, which has noted that rurban (rural-urban) growth is core to its strategy, expanded its direct distribution to 1.5 million outlets last calendar year, and said it is continuing to push rural coverage. The company increased its total direct and indirect distribution network to 5.1 million outlets in 2022, up from 4 million outlets previously.

Nestle India chairman Suresh Narayanan said in a December quarter earnings całl that the company’s ambition is to grow its rural reach in villages with population above 2,000.

India’s villages grew 26% in the quarter ended December 2022, compared with 25% in the previous sequential quarter for Nestle India. Narayanan said on the earnings call that the company will follow penetration-led volume growth, and that it is sharpening its geographic focus, increasing distribution points, and going deeper into smaller towns and cities.

Nestle India reported its highest domestic growth in a decade for 2022, led by volume and product mix despite inflation impacting profitability. The firm launched over 110 new products in the last 7 years. For the full year, Nestle’s sales increased 14.8% at ₹16,790 crore.