Preferred Popcorn, the US-based popcorn kernel supplier, is diversifying its India operation toward premium mushroom popcorn variants, adding a new product line to a local sourcing network that already spans 16 acres across nine Indian states, according to businessline. The company supplies kernels in bulk to restaurants, retailers, movie theaters and other commercial establishments through a partnership with Chennai-based Gourmet Popcornica.
From butterfly to mushroom: a new kernel portfolio
The expansion shifts Preferred Popcorn's mix away from the butterfly varieties that have dominated its India sales over the last ten years. Thomas Peace, Director of Sales at Preferred Popcorn, described the shift to businessline:
Traditionally, over the last ten years, we have been doing a lot of butterfly varieties. Now we are starting to diversify more into these mushroom varieties which allows us to sell to a different customer base who are doing more gourmet products.
Mushroom variants are rounder, denser kernels suitable for gourmet popcorn flavours such as caramel or cheese, as opposed to the regular butterfly variants, businessline reported. The company described the move as a way to sell to a different customer base doing more gourmet products, according to Peace.
Local cultivation and a 55 per cent import duty
The India supply model was partly shaped by trade economics. When Gourmet Popcornica first imported Preferred Popcorn kernels, the price was marked up by a 55 per cent import duty, according to Peace.
"When our partners here first started importing from Preferred Popcorn the only struggle was that there was a 55 per cent import duty. So everything they were selling was getting marked up which became pretty cost prohibitive for many cinemas. So we thought maybe we could grow US style popcorn in India domestically," he said.
That reasoning led to a domestic growing programme, even though India's climate is not naturally suited to popcorn. Peace added that the firm earlier faced challenges given India's climatic conditions that are not ideal for popcorn cultivation, but over the years it has experimented with planting seasons and genetic technology to cultivate popcorn suitable for Indian soil and weather.
India's gourmet popcorn premiumisation
The expansion comes at a time when India's popcorn industry is seeing increased premiumisation, with brands such as 4700BC building a market for gourmet, ready-to-eat popcorn with premium flavours and packaging, according to businessline. Mushroom variants, which can hold flavour coatings such as caramel and cheese, fit this segment of the market.
Sourcing footprint and export operations
Preferred Popcorn's India kernels are grown by domestic farmers on 16 acres across nine states. Globally, Preferred Popcorn exports kernels grown on its farms in Nebraska in the Midwestern US to more than 70 countries, businessline reported. India stands out as the only geography where the company operates with a domestic partner and grows kernels locally.
| Market | Operating model | Cultivation footprint | Import-duty context |
|---|---|---|---|
| India | Partnership with Chennai-based Gourmet Popcornica; local kernel growing | 16 acres across nine states | Avoids 55% import duty on imported kernels |
| Global export markets | Exports from Nebraska farms | Nebraska farmland | Not applicable |
The company's India expansion follows years of adapting US-style popcorn varieties to local soil and weather. With mushroom kernels added to the portfolio, the company can sell to a different customer base doing more gourmet products, according to Peace.
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