Wednesday, October 28, 2009

Britannia Vs Parle – Battle for the market continues

Britannia and parle the two food majors of India in the field of biscuits and bakery products . fighting it out in market for the share of consumers pocket and market dominance .In yester years it was market segments which both have dominated and not much was seen to disturb that arrangement.Parle with its Parle G , Kraxkjack and manaco where as Britannia has Good day , Marie gold , Creams

Britannia dominated the premium segment of biscuits where as parle dominated the mass ,low premium biscuits ,things were pretty predictable but for the

entry of new players have changed that status .Now that ITC and Priya gold are trying to break into their market and have established them selves as important players in biscuit market . These two major biscuit producers has are now forced to innovate products by the consumers to create brands which could be differentiated .

Both are trusted brand are ranked in top brands for biscuit ,both have a long history of brands . The Major difference though is that where Britannia is revenues from bakery products is around 90 % ,share of biscuit sales is around –80% for parle

Recently two categories has seen major ad war are bourbon and salty snacks . Parle has come up with new bourbon under its hide and seek umbrella brand .Pitching against Britannia s popular bourbon which has 70% market share of the bourbon biscuits . Parle upped its TV ads by roping in Hritik roshan . Similarly Parle has re jigged its Krack Jack biscuits to Britannia's 50- 50 eating up its market share . Krack Jacks with new packaging and TV ads of Krack and Jack promoting the brands . It would be interesting to see what impacts these would have on the sales of these two biscuits .

PARLE VS BRITANNIA

Business

DescriptionBritanniaParle
Established18961929
Nature of businessPublic ltdFamily run business
No of manufacturing units5 own ,40CMU8 own units ,60 CMU
Market share ( value)32.80%32.94%
Ads Major methods Cricket events and players Celebrities endorse ment
New areas of promotionEnvironment Health and wellness

IMPORTANT BRANDS PITCHED AGAINST EACH OTHER

CategoryBritanniaParleLeader
GlucoseTigerParle -GParle-G
MarieMarie GoldParle Marie Marie Gold
Salty snacks50-50Krack JackKrack Jack
Choco chipsGood dayHide n seekGood day
MilkMilk bikisMilk sakhtiMilk bikis
BourbonBourbonHide n SeekBourbon
Nice Nice------Britannia Nice
Multi grainNutri choice-----Nutri choice
Cream Cream TreatKreamsCream treats
CookieGood day20-20Good day

So the battle for market share continues and advantage is for consumers who will get better product from both these biscuit majors .


Saturday, October 24, 2009

Probiotics in Indian market

The WHO defines probiotics as "live micro-organisms which, when consumed in adequate amounts, provide measurable health benefits", or more simply 'the good bacteria'.

Most common probiotics example  is yogurt which is developed by manufacturer eg DANONE's  Activa brand. Diaherra  has been the most successful case of probiotics  effects . Other benefits  are still under research .

Major Advantage of Probiotics

  • Probiotics help keep up the balance between harmful and beneficial bacteria in the gut thus maintaining a healthy digestive system.
  • Helps to remove gas and decomposes waste.
  • Consumption of probiotics is very useful and beneficial for people who have taken antibiotics for a long time.
  • Traveling abroad means facing travel induced diarrhea, probiotics help the body tackle this condition with ease.
  • Probiotics help in stimulating the immune system thereby reducing infections.
  • Useful in the treatment of diarrhea and infections in the GI tract.
  • Improves digestion of lactose and deals with lactose intolerance. Also improves overall digestion and in particular is good for improving digestion of fats, carbohydrates and proteins.
  • Helps prevention of colon cancer and prevents growth of substances that cause cancer.
  • Lowers cholesterol and blood pressure in the human body.
  • Helps improve mineral and nutrient absorption and reduces inflammation.
  • Controls growth of harmful bacteria under stressful conditions.
  • Plays a role in balancing sex hormones thus improving fertility.
  • Infections such as athlete's foot, candidiasis etc that is caused by yeast is kept at bay.
  • Controls growth of pathogenic bacteria and virus.
  • Crushes toxins and produces antibodies and anticarcinogens.

Indian markets have these probiotic products

  • Amul
    ProLife ice-cream
  • Mother Dairy
    b-Active curd
  • Nestle
    NesVita Curd
  • Yakult-Danone
    Yakult health drink

Major probiotic products are miso soup, some soft cheeses, yogurt products like kefir, sauerkraut and many pickles. Those who feel probiotic food is beneficial are now also interested in prebiotic food. It does not generally contain bacteria but appears
The global probiotic market has been busy in the last few years.

Did you know?
Around 30% of the global population buys into the probiotic dairy sector on a regular basis.
That in 2008, the global probiotic market was worth over US$15.7bn.and, the global probiotic market has more than doubled in value terms since 2003.

Friday, October 23, 2009

Bt Brinjal to be launched soon in India

Genetically modified ( GM ) brinjal might be launched soon as per the ministry of environment ,Govt of India . The committee set up to check the food safety and health of consumers aspect has submitted its findings to the government . If there are no major concerns then Bacillus Thuringiensis (Bt) brinjal would be released for commercial release of the transgenic (GM) seed. India would become the first nation to launch Bt products for commercial production .A genetic modification involves altering the DNA of the seed to make it resist the shoot borer insects and enhance its quality

This Bt Brinjal seed has been developed by MAHYCO (Maharastra hybrid seed company) with collaboration with the University of Agricultural Sciences at Dharwad in Karnataka and Tamil Nadu Agricultural University.

Delay in launch of GM products has been the stay put by Supreme Court on ground PIL submitted against Bt seeds . Committee has submitted its finding to the genetic engineering approval committee( GEAC) constituted by ministry of environment , government of India .

The All India Crop Biotechnology Association said that about 40 GM food crops, including banana, cabbage, castor, cauliflower, corn, groundnut, mustard, onion papaya, potato and tomato were at various research stages for developing their transgenic seeds that would be subjected to field trials for approval later.

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Sunday, October 18, 2009

Danone Probiotic drink Actimel Ad banned from Tv ads -UK

Danone probiotic drink Actimel has been banned for display in UK by Advertisement Standards Authority . It has declared that after their investigation they found Danone Ad misleading as consumer would assume that the probiotic yogurt develops natural defence mechanism to fight common disease .

Danone UK Ltd has been promoting Actimel as ""Actimel. Scientifically proven to help support your kids' defences""

In defence Danone claimed that the yogurt was meant for general population and this ad campaign was live since 2007 and claims are proven by reputed scientific study.

But this claim were rejected and the ASA ( Advertisement Standard Agency ) UK rejected it s claim .Now AD cannot be displayed/ broad casted in present format .

Note : Other manufacturer would take note of this observation .

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"Kissan Amaze "ad by HLL under scanner by FSSAI

FSSAI has set up a committee to see any false claim by Hindustan lever ltd on its advertisement for Kissan Amaze . HLL has launched this malted beverage for young children claiming to increase brain capabilities by giving 33% of total nutrient required for mental development .This product has been test launched in area of Tamilnadu , Karnatka and Andhra Pradesh .

FSSAI committee would come out with the results by December and after detail study may be used for guidelines for food manufacturer against any false Ads ,labels or claims .

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Friday, October 16, 2009

India's food processing ind seen at $260-bn in 6-years- Food-Cons. Products-News By Industry-News-The Economic Times

India's food processing ind seen at $260-bn in 6-years- Food-Cons. Products-News By Industry-News-The Economic Times

FBD: India’s food processing industry will grow 30-40% in next 10 years: Ernst & Young

FBD: India’s food processing industry will grow 30-40% in next 10 years: Ernst & Young

Monday, October 12, 2009

PM confident of India being a world major food processing hub

Prime minister Manmohan singh told a gathering of state food minister for food processing that
Food processing is an sunrise industry and has potential to change the rural economy of India . He urged state governments to rationalise tax and levies on processed foods .

PM also highlighted that most of these food processing units are in small scale industry hence would require help from govt institution to become competitive in world market .

He observed that the food industry in India is fragmented and mostly are unorganised . We lack in basic infrastructure to have world class food industry . India being one of largest producer of agriculture food products has contribution of only 2% to the world food industry trade . He congratulated food industry captains for achieving 14% growth rate even in these times of recession .

He also sees Multinationals in waiting in many food processing companies in coming future and was optimistic on participation of big industrial house s in food processing . Giving statistics Mr Manmohan Singh told that The Prime Minister also said that the government is working sincerely to realize this vision for the food processing sector. Our Government adopted in 2005 a ‘Vision 2015 – Strategy and Action Plan’ to enhance the level of processing of perishables from 6% to 20%, to increase value addition from 20% to 35% and to increase India’s share in global food trade from 2% to 3%.
He said that trade policy, automatic approval for foreign equity upto 100% in food processing units, customs duty exemptions. During the 11th Five Year Plan, the government has initiated major infrastructure development programs like the Mega Food Park, Cold Chain, Value Addition and preservation Infrastructure and modernization of abattoirs, Prime Minister said.

KS OIL to invest more in Indonesia for Palm plantation

KS Oil Ltd India s prominent edible oil manufacturer and owner of popular brands like Double sher , Kalash , K S Gold .
KS Oil through its subsidiary Singapore K S Natural Resources Pte would invest USD76 million .The Company has acquired an additional 53000 acres of land for development of Palm Oil Plantations in Indonesia. The Funding will be through internal accruals and debt at subsidiary level.

A leader in mustard oil in India, K S Oils today enjoys 11% market share in the overall mustard oil segment with a dominant 25% market leadership in branded mustard oil.

Sunday, October 11, 2009

Amul to upgrade its supply chain management with help of IBM

India Largest Dairy group Gujarat Cooperative Milk Marketing Federation (GCMMF) trading under the brand name of Amul has introduced ‘Spoken Web’ technology developed by IBM.

This allow Amuls vendors to communicate directly to company in local language without using keyboards .Gujarat Cooperative Milk Marketing Federation (GCMMF) serves around 2.79 million members, across 13,328 village societies, handling almost 11.22 million liters of milk every day. Earlier this year, increasing business complexity and need for becoming a more agile enterprise prompted Amul to sign a 10-year IT outsourcing contract with IBM estimated to be worth around USD 20 million.

IBM has already some experience handling Dairy business of Kraft Foods Inc , Australia and Nestle. Amul has to find local solutions to its complex supply chain structure from Cow to Consumer chain .

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Reliance Retail plans business expansion in Eastern India

Reliance retail has plan to expand in West Bengal . 17 months has gone since reliance opened its retail shop in Mumbai . Now retail giant wants to open more stores in West Bengal .It has 590 stores in 13 states as per last year figures with staggering 3.5 million sq.ft of trading space . It has also began to sell number of food item and grocery products in Mumbai market .



















FBD: Reliance Retail plans business expansion in Eastern India

Saturday, October 10, 2009

Britannia Enters flavoured Milk market

Britannia with its brand Actimind has launched two variant of milk for consumers 200/250ml .It would be first test launched into chennai urban market .After consumers feed back would be rolled for national market . Britannia has already started its production of UHT (Ultrahigh temperature ) packaged milk for consumers of Delhi , Bangluru and Mumbai markets . Its has regular pack and other slimz format pack of zero fat and zero cholesterol .UTH helps in preserving milk for longer period .It has shelf life of 3 months .

Britannia exited this market in year 2004 .It started this venture in year 1997 . With launch of flavoured milk"" Zip Sip "' and packaged milk by the name of "Milkman "with joint venture partner New Zealand's Fonterra group . Now that Fonterra has exited from the joint venture , Britannia is re entering this segment to diversify from bakery products . Main competitors for this dairy segments are Horlicks and Amul , Nestle and Amrit

Britannia had problem with cost over run in last venture when it had to buy milk from dairies and was pitted against co operatives like Amul and Mother Dairy .It had to increase its price of packaged milk which resulted in steep fall in market share . However Britannia's other products like Butter , Whitener , Ghee , Cheese have substantial market share and are well established in their categories

Wednesday, October 7, 2009

FSSAI code for regulating advertisement and labels related to Food Products

Food safety and standards authority of India ( FSSAI) are working on rules to regulate advertisement by food companies which are misleading or false with respect to claims made by companies . India does have voluntary safe guards against such ads . The Advertising Standards Council of India makes necessary request to withdraw such ads . Consumers does not have any legal platform to punish such food manufacturers .
FSSAI has been constituted by govt of India through Food safety and standards act , 2006 to formulate policy , rules and guidelines for food safety and set standards for food additives and their use.
The FSSAI has prescribed penalty of Rs 10.0 lakh under the act for such manufacturers who gives misleading ads . It also recommends guideline s such where food manufacturers

Does not put advertising and communication of the food and beverages products should not be misleading or deceptive.

The advertisements should not encourage excessive consumption or inappropriately large portions of any particular food and not exploit consumers’ lack of experience or knowledge.

The code also points out that the advertisements should not undermine the role of parental care and guidance when children make food choices.

It discourages the portrayal of products as substitutes for meals, and endorsements by government agencies, professional bodies, independent agencies or individuals in a particular profession without their consent .

Parle to enter Snacking food category aggressively

Parle products is all set to increase its market share in snacking food division with launch of new products like MusstChips and Stixx . Parle is a new entrant to snacking market which have players like Pepsico- Frito lays and ITC Bingo in the lead .

Parle is a leading company in biscuit category ( 40%) of market share and confectionery( 15%) with its wide distribution channel it has plans to capture 25 % of market share in snacking business within span of 3 years . Parle popular brands are Parle G , Monaco , Krack Jack , Mango bite etc

MusstChips and Stixx would be marketed on Health platform as these are baked and not fried .

Friday, October 2, 2009

Shakti - Bhog to enter biscuit market

shakti bhog divs ,shakti bhog enters biscuit market , shakti bhog brand , shakti bhog atta
Shakti bhog foods India major branded wheat flour manufacturer which sells its product by the name of "shakti bhog" has decided to enter Indian biscuit market by launching healthy biscuits with brand name of 'Div'. Organised Biscuit market is estimated to Rs 9000/- crore . The dominant players are Parle , Britannia , ITC , Pepsico and Priya Gold .

Shakti Bhog foods natural extension would have been bakery products and with decision to go for biscuits they have started commissioning its plant at Haridwar with investment of Rs 75.0 crore . The focus of the company will be on “health biscuits”, with the primary ingredients being wheat, fibres, oats and multigrains, according to Shakti Bhog Foods Managing Director K K Kumar.
They expect Rs 250.0 crore annual turnover from biscuits .They roped in Karisma Kapoor for the ad campaign worth Rs 15.0 crore .

Shakti Bhog is famous brand for wheat flour and have share upto 60% market share in Northern region of India . Shakti bhog group turnover is approx Rs 2000/ crore .

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