Tuesday, November 16, 2010

Rath Brand of Vanaspati Goes To Cargill










Cargill has announced that it signed an agreement with Agro Tech Foods Ltd. to acquire its vanaspati brand Rath.

Rath is a leading vanaspati brand in North India and a market leader in the National Capital Region of Delhi. The scope of the acquisition is limited to the product brand only.

This acquisition not only strengthens Cargill’s existing portfolio of leading edible oil and vanaspati brands, but also expands its market reach in India’s vanaspati market. Cargill already locally produces and markets vanaspati under its NatureFresh Purita and Gemini brands.

Siraj Chaudhry, Chairman Cargill India, told FLEXNEWS: "Acquiring the Rath brand underscores Cargill's long-term commitment to growing our consumer food business in India. Rath is a trusted name associated with cooking delicious food, purity and goodness. We will build on Rath’s strong brand heritage and consumers will benefit from Cargill's commitment to quality, food safety, innovation and value.”

Cargill Foods India originates, refines, and markets a wide range of edible oils and fats to service the needs of food manufacturers, food service companies and consumers across India. Cargill’s NatureFresh and Gemini edible oils are amongst the strongest consumer brands in India. The business owns and operates three edible oil refineries located at Paradip (Orissa), Kandla (Gujarat) and Kurkumbh (Maharastra).

 
source : Flex-news-food.com

Tuesday, November 2, 2010

Major Food Companies Eyeing Break fast Meals

Breakfast is the most important meal of the day. Certainly for several packaged food companies , if not for everyone.
Call it the breakfast war, the scramble to serve the first meal of the day is getting busier with companies such as Britannia, Marico, PepsiCo, Kellogg India and MTR Foods offering more and more options to meet Indian consumers' rising demand for quick-fix food.

Britannia Industries, which already occupies share of the breakfast table with bread, butter and cheese, is making early moves in the ready-to-cook breakfast meals segment, an official said.

One of the country's largest biscuit makers, Britannia is conducting trials of packaged products such as buttermilk oats and sweet multi-grain porridge under 'Healthy Start' brand, and is also toying with traditional Indian options such as upma and poha, an industry official said. "Healthy Start is being positioned as an umbrella brand for Britannia's plans in the breakfast space," the person said on condition of anonymity. The brand may be rolled out in Bangalore this year. 


Major  Ready To Eat Food Companies  and Product s

PepsiCo : Quaker Oats

Kellogg India : Kellogg’s Corn flakes, Special K, Heart to Heart oats, Just Right muesli

Britannia Industries : Daily Bread, Britannia milk, butter, cheese

MTR Foods : MTR rava dosa, idlis, uthappam mix, Dhokla mix

Marico : Saffola Oats

Nestle : Nestle milk, fruit yogurt

GlaxoSmithKline : Horlicks cereal bars

Baggry’s : Oats, muesli & bran

Mohan Meakin : Corn flakes

ITC Foods : Rava idli, rice idli & rice dosa mix

Amul : Butter, milk, cheese

Future Group :Tasty Treat cornflakes (private label)

Aditya Birla More : Feasters corn flakes (private label)

Spencer’s Retail : Tasty Wonders cereal, bread (private label)

McDonald’s : Breakfast menu Mumbai, Delhi



Read more on 
ET

Wednesday, October 20, 2010

Probiotics Drinks And Yogurts Doesn't Aid Digestion Says EFSA

Yakult  has been recently  launched  in India  by  Danone  as healthy Probiotic  drink

Probiotic drinks and yogurts, popular with millions of consumers trying to eat healthily, do not aid people's digestion, a leading European food watchdog has ruled.

Products such as Yakult, which are sold at a premium over standard yogurts, cannot be proved to either boost the immune system or aid digestive health, it has been ruled.



The European Food Safety Authority (EFSA) has examined more than 800 health claims from food companies, including those submitted by the multi-billion pound probiotic industry.


EFSA's independent panel of scientists found that the claims that these products could strengthen the body's defences, improve immune function and reduce gut problems were either so general as to be inadmissible, or could not be shown to have the claimed effect.

In a separate ruling, the panel examined a dossier of 12 studies submitted by Yakult for its own strain of probiotic bacteria, Lactobacillus casei shirota. It found that all were inadequate to support the company's claim that its products maintained immune defences against the common cold.

EFSA's ruling is being challenged by the industry, but if these appeals fail the companies will no longer be allowed to market the foods as aiding digestion or helping the immune system in future.

Yakult in its most recent television advert states: "Yakult's billions of friendly bacteria help keep your gut healthy and a healthy gut helps make for better digestion and stronger natural defences."

Danone, the country's biggest manufacturer of probiotic drinks and yogurts, said none of its products were subject to yesterday's ruling as it had withdrawn its claims that Actimel and Activia boosted the immune system and aided digestive health. However, in its most recent advert, fronted by Martine McCutcheon, it said its yogurts were "good for your digestive health".



The company added in a statement: "EFSA has not yet completed its review of all probiotic products and Danone remains fully confident of the science backing its products."

Nearly 60 per cent of UK households regularly buy probiotic drinks, and over £200 million of them are sold every year in Britain.

Yakult, in a statement, said it was very disappointed with the ruling. It said: "The company wishes to discuss the evaluation process, scientific criteria and this outcome with EFSA.

"Taking into consideration the outcome of this assessment by EFSA, we will focus all our efforts on the preparation and submission of new health claim dossiers. With the benefit of further guidance, the company anticipates a positive EFSA opinion in due course."

source :

http://www.telegraph.co.uk/health/healthnews/8074182/Probiotic-drinks-do-not-aid-health-Europe-says.html

Wednesday, October 6, 2010

FSSAI Issues Standards For Honey and Prohibition of Anti- Biotics

Press release from  Fssai

Recently some reports have been appeared in the newspapers regarding the permitted levels of antibiotics in honey. The following advisory is issued by Food Safety and Standards Authority to clarify the issues involved.
Honey is the natural sweet substance produced by honey bees from the nectar of blossoms or from secretions of plants.
When visually inspected, the honey shall be free from any foreign matter such as mould, dirt, scum, pieces of beeswax, the fragments of bees and other insects and from any other extraneous matter.
The colour of honey varies from light to dark brown.
            Standards for honey have been prescribed under Prevention Food Adulteration (PFA) Rules, 1955 as under.
(a) Specific gravity at 27OC                          Not less than 1.35
(b) Moisture                                                  Not more than 25 per cent by mass
(c) Total reducing sugars                              Not less than 65 per cent by mass
(c-i) for Carbia colossa and Honey dew      Not less than 60 per cent by mass
(d) Sucrose                                                    Not more than to 5.0 per cent by mass
(d-i) for Carbia colossa and Honey dew      Not more than 10 per cent by mass
(e) Fructose-glucose ratio                            Not less than 0.95
(f) Ash                                                          Not more than 0.5 percent by mass
(g) Acidity (Expressed as formic acid)        Not more than 0.2 per cent by mass
(h) Fiehe's test                                               Negative
(i) Hydroxy methyl furfural(HMF),        Not more than 80
        mg/kg                                         

If Fiehe's test is positive, and hydroxy methyl furfural (HMF) content is more than 80 milligram/kilogram, then fructose: glucose ratio should be 1.0 or more.
Rule 44 D provides for restriction on sale of Carbia Callosa and Honey dew. Carbia Collosa and Honey dew shall be sold only in sealed containers bearing AGMARK seal.
Rule 45 specifies that food resembling but not pure honey cannot be marked as honey. No person shall use the word „Honey or any word, mark, illustration or device that suggests “Honey on the label or any package of, or in any advertisement for, any food that resembles honey but is not pure honey.
Violation of the provisions of PFA Act/Rules attracts penal action.
            No pesticide residues or antibiotics are allowed in honey.
            The maximum limits of heavy metals in various foods are prescribed under PFA Rules, 1955. Rule 57 of PFA Rules prescribes the limits of contaminants under category “Foods not specified” (which includes honey) as follows:-
1. Lead                        Not more than 2.5 ppm
2. Copper                    Not more than 30.0 ppm
3. Arsenic                    Not more than 1.1 ppm
4. Tin                           Not more than 250.0 ppm
5. Zinc                         Not more than 50.0 ppm
6. Cadmium               Not more than 1.5 ppm
7. Mercury                  Not more than 1.0 ppm
8. Methyl Mercury    Not more than 0.25 ppm
Standards of Honey under AGMARK
The Department of Agriculture and Cooperation has laid down standards of honey under the Grading and Marking Rules (AGMARK), which lays down the grades, designation of honey as Special, Grade–A and Standard to indicate the quality of honey for the purpose of certification. It specifies the method of packing, marking and labeling and conditions for grant of certificate for authorization. The standards of AGMARK are voluntary.
In the matter of admissibility of antibiotics in honey, safety standards in India are similar to those in European Union, Codex Alimentarius and USA where they are completely prohibited.

for more visit :  www.fssai.gov.in

Sunday, September 26, 2010

Kwality Dairy Takes UP Plant On Lease

Kwality Dairy  India Ltd   an  Indian dairy processor  has taken exclusive  lease a dairy plant form M/s Varshnev  Bandhu  Pvt  Ltd in  Bulandshaher ( U.P).

The plant has a capacity to process 3 lakh litres of milk per day approximately", said the company.
“We are expanding in the northern region to capture the growing market opportunity and launch more products,” said a senior KDIL official. The company is making a foray into new segments like sweet curd, flavoured yogurt, branded white butter and flavoured milk, besides ice-cream.
Based in New Delhi, Kwality Dairy produces the Kream Kountry and Indana brands. The Company is also engaged in the import and export of dairy products globally.

source 
Flexnews

Sunday, September 19, 2010

Major Honey Brands Contaminated With Anti Biotics - Report

With  all major  brands  having failed  into  test carried by  Centre for Science and Environment ( CSE)  for presence of antibiotics . These brands  have reported to have antibiotics  which on  consumption could results in reduction of resistance  to antibiotics which in turn results  to blood related disease and  injury to the liver.

Brands that were found to be contaminated with antibiotics are

Dabur,Baidyanath,Himalaya,Patanjali,Khadi,Gold , Himflora , Mehsons , Umang and  2 imported brand  Capilano and  Nectaflor . Anit biotics like ampicillin , oxytetracycline ,ciprofloxacin  were found  in samples  were to have anit biotics from range 2- 5 numbers .

Only one brand  Hitkari  was found to be without  antibiotics .

These reports bust the myth that the  commercially produced honey was pure and natural products . Anti biotics are widely used by beekeepers  to keep  bee colonies from  any  disease .

At present  there no set standards for presence of antibiotics in processed honey  in India . But  by the standards of Export Inspection Council  these samples would have failed .

Sunita Narain  Director CSE   was of the view as international standards are very strict on these standards  products find there way into domestic market without any checks .

Source - TOI  dt 16 Sept 2010

Thursday, September 16, 2010

DS Group Plans Major Investment In Catch Spice Brand

 
 Catch  Spices  is  a popular brand  for spices in northen region in India . With competitors like  MDH  , Goldi , Everest  and Goldi . DS group  has planned major expansion of Catch spices.
 
 
The Dharampal Satyapal Group (DS Group) is looking to increase the production capacity of its Catch spices brand to 18,000 tonnes this year and also aiming at generating revenue of Rs 180 crore by March 2011, helped by the introduction of new products as well as stronger distribution in the south.

Satish K Rustagi, business head, DS Group (food division), said that as of now the company’s spices production capacity is 10,000 tonnes, which is expected to increase by this fiscal end, which in turn will help boost revenue from the spices business.

“We are also in the process of setting up a new manufacturing facility in Noida, which is further expected to raise our production capacity to 30,000 tonnes in the next two years,” he added. The company has earmarked an investment of Rs 100 crore for its spices business.
 
  read more  on
http://www.mydigitalfc.com/news/ds-group-strengthen-catch-spices-brand-339


Tuesday, September 7, 2010

Green Peace Declares Safe Food Guide (2) For Indian Companies

Dabur, KRBL and Vippy have emerged as the top green companies, while Nestle, PepsiCo, Haldiram's and Hindustan Unilever Ltd, among others, have faired poorly in the recently released Safe Food Guide (version two) by Greenpeace, a non-profit organisation.

The Safe Food Guide ranks 25 of the most popular food companies in India according to their policy on genetically-modified (GM) foods. Based on their responsibility towards Indian consumers on the GM food issue, the guide categorises companies as 'green', 'yellow' and 'red'.

The green list, in fact, has only three companies: Dabur India, KRBL Ltd and Vippy Industries Ltd. These companies, Greenpeace says, have not only taken necessary steps to ensure that they remain GM-free now and in future, but also are ready to engage with the government and relevant industry associations to keep the Indian food market free from GM food.

The yellow list includes popular brands such as Cadbury, ITC, Ruchi Soya, LT Foods, Heinz India, Bambino Agro and Kohinoor Foods Ltd, which have said that that they are committed to sourcing ingredients that are GMO-free, but are yet to take a long-term position on being GM-free or share their position with consumers.
The red list includes companies such as Nestlé, PepsiCo, Cargill, Hindustan Unilever Ltd, Britannia, Godrej Hersheys Ltd, Haldiram's, MTR, Parle Biscuits, Agro Tech Foods, Surya Foods, Amul, GSK, FieldFresh (Bharti Enterprises) and Kellogg's. These companies have not taken any concrete steps to provide Indian consumers with GM-free food for now or in future, thereby being irresponsible

more on 
http://www.imagesfood.com/news.aspx?Id=2157&topic=2

Tuesday, August 17, 2010

Coca Cola To Launch Ready To Drink Maaza Milky Delite


Kolkata, Aug 17 (IBNS): The country’s leading packaged beverage company, Coca-Cola India, here on Tuesday, announced its entry into the ready-to-drink (RTD) dairy market with the launch of Maaza Milky Delite.


At a press interaction held at a city five star, company officials showed off the mango and milk-based drink, which will first be launched in Kolkata in the coming weeks, and with a phased approach, shall be introduced to the rest of the country.

Maaza Milky Delite will see the beverage behemoth taking on the current segment leaders (nationally) Amul for the RTD dairy market which the company officials said ‘is nascent but growing at double digit rates’.

The drink, which uses fully indigenous raw materials and is currently packaged only at their Taratala (West Bengal) plant, was developed in Coca-Cola’s Research and Development Lab in Guragon.

“We couldn’t outsource an existing product from our foreign markets because understanding the Indian consumer was very important for this product. There’s an entirely different psyche associated with packaged beverages here than other countries,” company Vice President Marketing, Ricardo Fort said.

Coke already has similar dairy-based products in countries like China and Vietnam where it ‘was doing very well’ according to the company execs.
Pic  Courtesy - ET

The drink’s performance is expected be intricately scrutinised as a similar product launched by Parle Agro, a few years ago, was not very well-received.

 

Read more on

 http://www.indiablooms.com/BusinessDetailsPage/businessDetails170810a.php

Sunday, July 11, 2010

Indian Major Non -Alcoholic Beverages Companies Form IBA

NEW DELHI: Rivals Coca-Cola and PepsiCo have come together along with other beverages makers and bottlers to form the Indian Beverage Association (IBA), which will be the industry’s single point of interaction with the government and help companies comply with food safety guidelines and other regulations.

Juices maker Dabur, packaging company Tetra Pak, bottling companies Pearl Drinks and Bengal Beverages, energy drink maker Red Bull, and drip and sprinkler systems firm Jain Irrigation Systems too have joined the association, while about 30-40 others including Bisleri International, Parle Agro, Amul, Godrej, bottlers, vendors and suppliers are expected to join in due course.

“Non-alcoholic beverages are on a growth trajectory but so far there has not been a comprehensive organization representing the industry. We felt it’s time,” said Arvind Varma, secretary general of the association.

He said the organisation will be the non-alcoholic beverages industry’s single point of interaction with the food safety authority and ministry of health.

It will help members deal with challenges like complying with the food safety authority guidelines, double taxation, VAT, state-level controversies like allegations of water depletion (as is the case with Coca-Cola and PepsiCo), sugar imports, spurious drinks and more.

“IBA’s formation has been triggered by the two cola companies, Coca-Cola and PepsiCo, since they are the one’s facing maximum flak from regulators — whether it’s VAT in Delhi, charges of water depletion in Kerala or being perceived as only making sugary fizzy drinks by health activists,” said an official directly involved with the association.

Earlier this year, the Delhi government increased VAT on soft drinks from 12.5% to 20% on the category, but companies have not increased prices for fear of impacting demand. They have been lobbying with Delhi CM Shiela Dixit for a rollback because they believe the current taxation would ‘reverse their growth cycle’.

Several beverage makers, bottlers and suppliers ET spoke to said they would join the IBA.

The Indian Soft Drinks Manufacturers Association (ISDMA), represented by the two cola companies, is also being merged with the IBA.

Read more on
http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/Coke-Pepsi-join-hands-for-beverage-association/articleshow/6128875.cms

Wednesday, July 7, 2010

Amul Ranked No - 1 Indian Brand In Asia Pacific

ANAND: Amul has maintained its position as number one 'Indian' brand in Asia Pacific for the second consecutive year in the list of top 1,000 brands released by 'Media Magazine' published from Hong Kong and Singapore, a Amul official release said today.

Amul is also ranked as no. 1 dairy brand, ahead of leading food and dairy brands of the Asia Pacific region like Kraft, Dutch Lady, Dumex, Walls, Anchor, Magnolia and Everyday.

The magazine survey has ranked Amul as the 73rd best brand in its ranking of Top 1,000 brands of Asia-Pacific based on a consumer survey conducted in Australia, China, India, Japan, Korea, Hong Kong, Malaysia, Singapore, Taiwan and Thailand.

Amul's ranking has jumped from 83rd in 2009 to 73rd this year, an official at Amul said adding "there is no other 'Indian' brand in the list of Top 1,000 brands ahead of Amul."

"Asia Pacific's top 1,000 brand listing is based on a proprietary survey conducted by Media Magazine which is sponsored by the Wall Street Journal," a official at Amul said.


Source
Dt-07-07-2010
http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/Amul-ranked-No-1-Indian-Brand-in-Asia-Pacific/articleshow/6140009.cms

Sunday, June 6, 2010

MTR Looking Beyond South

 The Bangalore-based MTR Foods, manufacturer of spices, masala, instant mixes and ready-to-eat food is preparing the ground to become a well-known national brand. The 86-year-old heritage brand is a household name in South India, the market that currently accounts for 70 per cent of the company’s business.

MTR Foods was acquired by Norwegian company Orkla for about Rs 350 crore in early 2007. Adopting a two-pronged strategy, MTR Foods aims to strengthen its distribution in North and West. At the same time, the company will also double its total marketing spend to build the brand equity in these regions. The company spends about 14 per cent of its turnover, which is currently between Rs 250-300 crore, on marketing.

Though MTR Foods is market leader in spices and masala category in South, other brands such MDH and Everest outsell it in North. Therefore, to start with, instant mixes would be the face of the brand in North and West. Under instant mixes the brand aims to promote breakfast range by leveraging its popular Idli, Dosa and other South Indian food instant mixes.

Sanjay Sharma, CEO of MTR Foods said, “By 2015, North and West should account for 40 per cent of our targeted turnover. We aim to double our turnover and become a Rs 500 crore brand by 2012, while trebling our profits as well.” The company’s current EBDITA margin is about 11 per cent and it has a debt of around Rs 30 crore. It aims to become debt free by 2012.








Read more on

http://www.mydigitalfc.com/news/mtr-foods-looks-expand-beyond-south-386


Saturday, May 22, 2010

Indian Food Companies Global Footprint

MUMBAI: When Scott Price, president and CEO of Wal-Mart Asia, visited India last month, he talked about helping the country become food basket of the world and sourcing $1-billion worth of goods from here.


Perhaps he drew inspiration from the growing presence of Indian specialty food brands in the shelves of global retailers such as Wal-Mart, Tesco, Ralphs and Safeway.


Companies such as Bajaj Food Products, Nikasu Frozen Foods and Priya Foods have reported a spike in overseas demand for frozen foods, peanut butter and other products in the last couple of years, triggering hopes that the country will turn into a food outsourcing hub.


“After recession, we are getting a lot more inquiries from global giants of developed market,” says the owner of a Pune-based manufacturer of garlic paste and dry fish powder. “Outsourcing from India is lot cheaper due lower labour and infrastructure cost,” adds the person requesting anonymity on the grounds of the firm’s contract with retail chains.


Sanjay Bajaj, MD of Ahmedabad-based Bajaj Food Products, says that besides cheaper labour India also enjoys easy availability of raw materials. “India has diverse agro-climatic conditions and large raw material base suitable for all kind of food processing companies,” he says.


Bajaj Food supplies specialty food products such as peanut butter and instant powder drink under ‘Savory’ brand to Canada-based retail major Dollorama and French retail giant Carrefour.

Companies such as Bajaj Food, Nikasu, Priya Foods, MTR Foods, Gits Foods, Deepkiran Foods, Foods & Inns, Agro Tech Foods, ADF Foods, Kohinoor Foods and LT Foods have seen their exports grow at a rate of anywhere between 15% to 60% over the last three years.


Read more on

 http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/Indian-cos-get-ready-for-the-global-food-market/articleshow/5955739.cms

Monday, April 26, 2010

Popular Food Trends in food Industry

Here are list of popular trends in recent time s .Food manufacturers and processors are eagerly following developments ,consumer reactions and market response to such products .

TRENDS


  • Eco friendly foods
  • Prebiotic and Probiotic foods
  • Low fat or Low trans fat products
  • Low salt products
  • Alternative Sweeteners
  • Green packaging
  • Labelling and Ingredients
  • Natural products or Organic Food
  • Gluten free products
  • Whole Grain products
  • Food safety related labels and symbols
  • Higher Price of Food products

Sunday, April 11, 2010

Ruchi Soya To Sell Protein Drinks And Snacks Under Nutrela Brand

Ruchi Soya Industries will sell protein drinks and snacks under its edible oil brand, Nutrela, to cash in on the popularity of its main


money-spinning brand and growing opportunities in the health and wellness food market in India, says a top company executive.


Indore-based Ruchi will start selling protein drinks with mango, lemon and orange flavours and snacks under the Nutrela brand in a few quarters, said Sarvesh Shahra, business head, consumer brand division.


An analyst said Ruchi is taking a leaf from Marico's book. FMCG company Marico has been adding new products like salt, rice and food supplements to its flagship brand Saffola, which was initially a sunflower oil brand.


Ruchi will also repackage its 'N'rich' brand of protein drinks, available in three exotic flavours such as Apple Kiwi, Apple Peach and multi-fruit. Ruchi had launched these products in late 2008 but did not taste much success because Indian customers do not like exotic flavours, according to market research by Ruchi. Ruchi earned half of its Rs 1200 crore revenue from the 'Nutrela' brand last year. It targets to double the brand sales in the next two years.


"The company may find it challenging to put substantial capital for distribution and promotion in the drinks and snacks segments," said Sageraj Bariya, research analyst, Angel Broking. "There is opportunity in the sector; but new entrant like Ruchi will have to compete with the established multinationals and the local player."




source :
http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/Ruchi-to-sell-protein-drinks-snacks-under-Nutrela-brand/articleshow/5755965.cm
 
 

Dietary supplements to come under FSS Act 2006

Dietary supplements, which are currently not in the purview of any food law, will be brought under the Food Safety and Standards (FSS) Act 2006. The Food Safety and Standards Authority of India (FSSAI) will implement the law through the sate governments, municipalities and panchayats.


At a recent seminar held in Ahmedabad, FSSAI chairperson P I Suvtharan said that the “nutraceuticals, which also include functional foods” would be covered under the Act. A notification to this effect will be issued in a couple of months.

Source : express news service



FSSAI, which was established under the FSS Act, has been entrusted with the task of laying down science-based standards for food items. Dietary supplements for losing and gaining weight, and health improvements have flooded the Rs 4,500-crore nutraceutical market in the country.


Until recently, these food items were imported. But now, some local dairies have started making nutraceutical products. “As awareness about health is increasing with the rising income levels, more people are using functional foods. Since it is related to the health of public at large, there is a need to keep a check on the content of these foods,” said Suvtharan

Sunday, March 28, 2010

Bisleri's expansion thirst for new plants


Bottled water brand leader, Bisleri’s new plants at Pune and Nagpur are ready to meet the summer demand. And over the next six months, the company will start operating more plants at Thane, Ratnagiri, Nasik, North Bengal and Bhubaneswar.



This is part of the company’s plans to open as many as 35 new plants across the country to tap the fast-growing market for packaged water (at Rs 2,400 crore now) in India’s hinterlands. Each of these plants is expected to service a radius of 100-150 kms. The growth will come, Parle Bisleri says, as there is an increasing consciousness even in villages to the fact that over 1,600 Indians are dying every day because of waterborne diseases and almost four million people in India are affected by water-borne diseases every year.



Read more
http://www.business-standard.com/india/news/bisleri%5Cs-expansion-thirst/389299/

Wednesday, March 17, 2010

New Indian wafer brands giving tough fight to imported brands

While one sshop for daily grocery in these uptown  food retail super market one cannot ignore the presence  of  two Indian wafer brands with bright and colorfull packaging .

Interestingly  the Indian wafer markets has been dominated by  UAE based brands such as

"Tiffany "  wafers  manufactured  by IFFCO

"Nutro " wafer now  brand of Britannia Industries ltd

Both  are  imported from  UAE 

But presence of  Pickwick wafer packs and Dukes Waffy packs   are giving tough competition to these two imported brands


Pick wick wafers















Dukes Waffy



Emami to diversify into milk and breakfast cereals food business



The FMCG major, which launched its edible oil brand last month, is looking at a slew of food & beverage products


Emami Group, the Rs 2,500 crore fast moving consumer goods major, is cutting its teeth on food business. Last month, the Kolkata-based firm made its debut by launching the ‘Healthy and Tasty’ brand of edible oil.


But that’s only the beginning. While Emami recognises that its core business will remain personal care, it plans to foray into newer food categories like breakfast cereals and milk-based beverages.



Emami Group director Aditya Agarwal, says “We want to be a complete foods and beverages company, although we will take one step at a time.” The company will foray into the milk-based beverages market with the launch of chocolate granules, a milk-based beverage mix, under its brand ‘Chawanprash’. Chawanprash is a Rs 25 crore brand now.



The idea is to increase the consumer base by offering differentiated products in the Rs 1500 crore milk-based beverages market, which is reportedly growing at 15 per cent and is dominated by Complan, Horlicks and Bournvita.



“We are also test-marketing ‘Chocoprash’, a chocolate paste that consumers can use as a spread on rotis and breads,” Agarwal says.



According to market data, the penetration of Emami’s Chyawanprash in Indian households is just 2 per cent, and Emami feels that it offers a lot of potential to fill the market gaps by producing more variants. In the past few years, the company has also introduced ‘Amritprash’, a summer variant of Chawanprash which is traditionally consumed more during winters.



The Indian food market is worth approximately Rs 2,50,000 crore and value-added food products another Rs 80,000 crore ($22.2 billion). It is expected to double in another 10 years.



On edible oils, Emami is trying to tap the unorganised market through low unit packs (LUPs) besides creating space in the Rs 10,000-crore branded edible oil market. Demand for Mediterranean food such as pasta and pizza has risen in the country over the years leading to an increased demand for edible oil as a cooking medium.Though the market size is huge in India, the potential for branded products is tremendous as most of the 14 million tonnes consumption is sold in unpacked loose form and in small quantities as well.




Read more on

http://www.business-standard.com/india/news/emami-wants-bigger-bitefood-business/388203/

Tuesday, March 16, 2010

Lead limits found to be above the prescribed limit in Imported Indian Spices

While Indian government has set up FSSAI  to have an uniform food safety norms  for food safety for all foods  .Indian spices have been found  to contain lead over the standard limit in USA .Spice manufacturers in India should ensure that lead present in the spice matches the International standards .



A report


Researchers in Boston recently tested imported spices and food products in 15 Indian specialty stores and found a quarter of the samples contained more than 1 microgram of lead per gram, TIME reported yesterday.




The study, published in the journal Pediatrics, was conducted after the lead poisonings of Indian children were linked to Indian spices. The link prompted researchers at Children's Hospital Boston and the Harvard School of Public Health to investigate whether lead in spices is a widespread problem.



In addition to finding lead in 25 percent of spices sampled, researchers found that, on average, imported spices contain double the amount of lead in U.S. spice brands.



Though most lead levels detected are well below the European Union's acceptable threshold, the authors of the study believe the trace levels are concerning, as they could add to exposure from other neurotoxins.



The FDA has different thresholds for allowable levels of lead in food products based on how often a product is likely to be used. Last summer, the FDA updated its guidance on lead likely to be consumed by small children, significantly lowering the recommended maximum level.


The FDA does not have specific guidelines for screening lead in imported spices.

Read more on
http://www.foodsafetynews.com/2010/03/spice-regulation-facing-renewed-scrutiny/

Saturday, March 13, 2010

Genetically Modified Crops to be covered under Food safey and standards act

Government today assured the Lok Sabha that all concerns related to genetically modified crops were covered under the Food Safety and Standards Act.



The assurance was given by Minister of State for Health and Family Welfare Dinesh Trivedi in the Lok Sabha.

He said during Question Hour that the Food Safety and Standards Act, 2006 covers such products.


"Parliament has passed the Food Safety and Standards Act (FSSA), 2006, integrating the multiplicity of provisions under various food related laws and inter alia regulating the food safety standards and uniform licensing in the country," he said, adding even life imprisonment could be given to culprits.



Trivedi also said the government had constituted the Food Safety and Standards Authority of India in September, 2008 to carry out the purposes of Act.
 
Source -PTI

Thursday, March 11, 2010

PFA Act of India and relevant standards for bakery manufacturers

Now that  the act is taken over by new  FSSAI act 2006  still the  bakery manufacturers should be aware of the guidelines and standards given in this pfa act 1954- Pfa rules1955

A bakery manufacturers can find  standards for  

Additives
Anti -Oxidants
Bakery Products
Milk
Preservatives
Flour
fats and oils
Sugar
Salt
 ArtificialFlavours
 Artificial colors

Guidelines for labeling and packaging and related information


Here is the Link

http://www.delhi.gov.in/wps/wcm/connect/doit_pfa/PFA/Citizens+Corner/Complete+PFA+Act.

FSSAI brings rules for licensing and adulteration under fssai act 2006

Just  a reminder  to all  Indian bakery manufacturer s that  the new act  of food safety and standards 2006   is effective  since  Jan2010 . Please  ensure your firm registration with authorities in proper category .

Article
Around one lakh cases related to food adulteration are pending in courts. The conviction rate of these cases is only 1%, said PI Suvrathan, chairman, Food Safety and Standards Authority of India. The prime reason for the low conviction rate was faulty designing of the law under the Prevention of Food Adulteration Act, which was based on sample testing of the final product. If the sample was found adulterated by the food inspector, the food manufacturer was taken to the court. However, he would manage to go free if he proved that circumstances other than manufacturing were responsible for adulteration. For example, the way the product was transported or stored. This allowed him to evade from the 3-6 months jail term as prescribed under the PFA Act.




The laboratories that tested these samples too were not properly equipped. “Every country should have protocols which are uniformly applied to the entire laboratories, “said Suvrathan. The food manufacturer used the loophole in the law to pass on the blame to someone else. However, with the FSSAI coming up, the method of law implementation will change radically. The FSSAI will put the responsibility of food safety on the manufacturer and not the government or the law-enforcing agency. The prime responsibility would lie on the manufacturer and secondary responsibility on the food handler. In case an offence is committed, the manufacturer will be given an opportunity to rectify his product. If the act is repeated, then a warning or suspension may take place.



Said Suvrathan, “For the first time science-based protocols are being laid down. We are developing a simplified system of safety standards which will be a part of the licensing regulation. Around 5,000 food professionals will be accredited who can assist manufacturers in auditing, certifying food units and helping them understand safety laws. The role of the regulating agency will be not only to inspect but also to achieve food safety through interaction with school, colleges, panchayats, corporations and all the stake-holders.



With the FSS Act, the role of food inspector will be replaced by the food safety officer. Also, till now food manufacturers had to comply under various licences proposed under different Acts like the FPO, MPO, etc. Now, all licensing will be integrated in one licence known as the FSSA licence. FSSAI will be licensing all the larger units like milk companies producing above 50,000 litres a day, meat processing units etc. The rest of the units will be licensed by states, in turn by districts, municipal corporations, panchayats etc. Smaller units with monthly income up to one lakh rupees a year or limited quantity of production can simply go for registration and not licensing.



Also, for the first time the FSSAI has introduced the rule that if the regulating authority fails to respond within 60 days of application of licence/registration, then the food manufacturer can go ahead and start operations without approval/registration. Thus the responsibility has been shifted to the regulator, said Suvrathan.

Date  12.03.2010
Source: http://www.fnbnews.com/
Author :Irum Khan

link to fssai : http://www.fssai.gov.in/

Wednesday, March 10, 2010

Parle to Scale Up its Online Presence

Parle Products has roped in Digital Law & Kenneth as its digital marketing agency. The FMCG firm is planning to beef up the online presence of its various brands, such as Parle G, Monaco, Hide & Seek, Parle Marie, Melody, Monaco Smart Chips, Digestive Marie and Krackjack.




Speaking to afaqs!, Anil K Nair, managing partner, Digital Law & Kenneth says, "We will look after the overall digital media strategy and will be responsible for conceptualisation and development of the creative aspects of online advertising." However, online media buying will not be handled by Digital Law & Kenneth.



With this move, the company is trying to tap growing mediums, such as mobile, gaming and social media for its leading brands in various categories.



There are plans to carry out internet marketing - display and search advertising, social media marketing and online gaming - on a consistent basis, in order to strengthen and promote the presence of Parle Products' brands online. "Earlier, Parle used to carry out online marketing campaigns on a sporadic basis," claims Nair.



In an official communiqué, Pravin Kulkarnii, general manager, marketing, Parle Products says, "We will be increasing our focus on digital marketing. Parle will use all kinds of digital marketing formats to boost the visibility of the brand. The digital market is growing rapidly in India and the awareness level is quite high, especially in metros, mini-metros and tier I cities. It is the medium youth are engaged intensively in; and kids have also got into this media increasingly. So, we would like to make the most of it. Law & Kenneth has understood the mandate for our portfolio of brands. We will also launch the first digital campaign soon

Monday, March 8, 2010

Energy Drinks and Beverages to be covered by Food safety and standards act

Food items like energy drinks fall in the category of proprietary food (non-standardised) defined in Prevention of Food Adulteration Rules, 1955 and have to comply with the requirement laid down in the Prevention of Food Adulteration Act, 1954 and Rules, 1955.




Setting standard for new food items, like energy drinks, and review of existing standards under Prevention of Food Adulteration Rules, 1955 is an ongoing process as a part of the mandate of the Food Safety and Standards Authority of India.



This information was given by Shri Subodh Kant Sahai, Minister of Food Processing Industries in the Rajya Sabha in a written reply.

Source : PIB

Friday, March 5, 2010

Creating an Indian Food Brand

All about creating a food brand in India


At the ongoing annual conference and exhibition on Indian food business – Food Forum India, '10 – the session titled 'Insights from food brand creators' had some of the stalwarts from the food segment, sharing their experience about surviving and growing in the food and beverage segment.


Sudeep Goenka, director, Shubham Goldiee Masale elucidated, “Creating a food brand is like the birth of the first child. Also food in itself is an emotional thing. With the reach of modern retail now every brand has the opportunity to be everywhere. We are trying to do so with our good old Indian spice brand.”


Like spice is an important aspect of Indian food, similarly there are interesting ways in which some of the food industry players are trying to spice up the experience for the consumers. Venkatesh, MD, Goli Vada Pav emphasised on how a 'desi name' helps the consumers to connect better with home grown brands. He said, “We are an ethnic fast food chain brand since 2004. From my experience, I would say that the basic foundation for food product is the food itself. So the key factors to keep in mind are product standardisation, safety of food, a three-month shelf life at least in order to become national and the use of technology.”


From the perspective of an importer of international food brands, catering to the Indian consumer is equally appetising. Sanjey Bajoria, MD, Bajoria Foods noted, “A strong brand needs consumer loyalty. Thus, a brand owner needs to have good knowledge of the consumer as well as the market. Ten years ago our country was a closed economy but now things have changed. The imported brands need to Indianise the product.” In order to illustrate his point with examples he pointed out how McDonald's has been doing well with their aloo tiki burger and Pizza Hut doing good business with paneer tandoori pizzas. He also stressed on the fact that imported category is precisely an 'impulse buy' category. Bajoria added, “Once the consumer likes the taste, they will be become loyal.”



Anjana Ghosh, director, Bisleri stated, “The brand Bisleri has existed for the past 40 years now. In fact, we have become a generic name for packaged mineral water. What has worked for us I feel is the connect we have been able to create with the consumers. When we changed the packaging from blue to green, our sales grew by 56 per cent. We have been able to communicate our brand essence to the consumer in a way in which he or she understands best. I personally feel that the product may come and go but it is the brand that plays in the mind and heart of the consumer.”



As a final word, K Radha Krishnan, chief mentor, Aligned Business Partners (ABP) observed, “I feel that if a brand name becomes generic, it is a huge compliment in itself. I would like to say that there will be conflicts between the need to customise and the need to standardise and how much of the volume will be dedicated to what. But the key take-aways such as product safety, topicality, availability and of course good quality still remain.”



Source :http://www.imagesfood.com/

Thursday, February 25, 2010

ITC planning to enter food market of GCC


The booming economies of the GCC ( Gulf Co-operation Council ) countries which includes Saudi Arabia , Kuwait , Bahrain , Qatar , UAE ,Oman  with  major south Asian expats from India , Pakistan , Srilanka , Bangladesh and Nepal making majority  of the population Indian food companies have a ready market to exploit . Already we had presence of Food majors like Britannia , Parle , Haldiram  and Dabur in these regions .ITC has plans to enter GCC through its partners in UAE .

A report

Dubai: ITC, a multi business conglomerate, is planning to enter the food market of the UAE and the Gulf Cooperation Council (GCC) through a partnership with the Al Seer Group, a news report has said.



“We are currently not marketing any of our food products in the UAE but we plan to enter the market in a big way. There is an alliance with the Al Seer Group to distribute our confectionery products in the market,” a company source was quoted as saying by Emirates Business, a local newspaper.


The products ITC plans to market in the UAE and GCC include wheat biscuits under brand its Sunfeast, cream and tea biscuits cookies, crackers, candies, eclairs and chews etc.


The company forayed into the biscuits segment in India in 2003 with its brand Sunfeast and has managed to capture nearly 10% of the market.


ITC, with a turnover exceeding $5 billion and market capitalisation of $19 billion, is participating for the first time in the Gulfood exhibition. The firm displayed a number of its confectionery products in Dubai World Trade Centre.

ITC has a strong foods division supplying packaged foods, snacks, confectionery and biscuits.


The group has diversified its presence, from tobacco manufacturing, into packaged foods, consumer goods, hotels, information technology, branded apparel and agri business.

Report Source : http://www.livemint.com/

Wednesday, February 24, 2010

FSSAI to evolve rules on Imported food items safety and recall

NEW DELHI: The government is about to check the rampant import of food items flooding the market with a comprehensive set of rules that will trigger a recall of foods in case of contamination and issue alerts and warnings on dubious ingredients.

Representatives of the Central Board of Excise and Customs, agriculture ministry, Bureau of Indian Standards, Quality Council of India and the Export Inspection Council, among others, met on Wednesday, under the aegis of the Food Safety and Standards Authority of India (FSSAI), to evolve an integrated system to streamline food imports.


At present, there is an outpouring of colas and juices, chocolates, biscuits and even fruits into the modern trade. The system, the first of its kind, will address a string of issues such as reducing lead time for clearance of foods at ports and peruse of historical data of imported foods, among others.


FSSAI has teamed up with Hyderabad’s National Institute of Smart Government (NISG) to set up an integrated IT-enabled imported food safety system, which is expected to be finalised by mid-2010.


“Different parameters will be used to standardise different categories of foods. In case of frozen imported foods, for example, lead times for clearances at ports could be much lesser, compared to say, beverages like juices,” an FSSAI official said.


Author: Ratna Bhusan
Source- ET

Sunday, February 21, 2010

Shree Renuka Sugar Ltd to buy Brazilian Firms

Mumbai, Feb. 21: Shree Renuka Sugars Ltd has swooped on Brazil for the second time in just three months to pick up Equipav S.A. Açúcar e Álcool for $329 million, or Rs 1,530 crore, and become the third largest producer in the world.



In November, Shree Renuka, which will also be No. 1 in the country after the Equipav deal, had brought Vale Do Ivai for Rs 1,100 crore.


Equipav is one of the largest sugar and ethanol companies in Brazil. It has two mills with integrated co-generation facilities in Sao Paulo. They have a combined cane crushing capacity of 10.5 million tonnes per annum (mtpa), or 4,400 tonnes crushed per day (tcd).


Shree Renuka’s buy will be the biggest overseas acquisition by an Indian sugar firm.


The company will fund the deal through internal accruals and money raised earlier via a qualified institutional placement issue.


Equipav also has a co-generation capacity of 203 mega watt (mw). The plan is to expand the combined capacity of the mills and power production to 12mtpa (56,600 tcd) and 295mw, respectively.


Equipav’s requirement of cane comes from around 1,15,000 hectares of land, of which nearly two-thirds are cultivated by the company.


Shree Renuka said the mills had an easy access to the main ports of Santos and Paranagua.


The Indian firm will acquire not less than 50.79 per cent, and the remaining stake in the venture will be held by the Equipav group.


Equipav had a net debt of approximately $822 million, (Rs 3,821 crore) as of December 2009.


Shree Renuka said its investment would be used to fund capital expenditure for expansion, repay debt and increase working capital.


According to the company, the deal is subject to approval of a debt restructuring package by the lenders and certain other conditions customary to such transactions.


Though it did not provide any further details, the company said the deal was likely to be closed in 40 days.

Banco Itau BBA, Brazil and Motilal Oswal Investment Advisors were the strategic and financial advisers to Shree Renuka.


Brazil is the largest producer and exporter of sugar in the world, and India is the largest consumer. The acquisition comes at a time sugar prices are ruling firm both in the international and domestic markets.


According to an analyst, the acquisition is a huge positive for Shree Renuka as it can now secure raw material at a time of supply deficit in sugar.


The company said the buyout would bolster its presence in the central and southern region of Brazil and enhance its competitiveness and size, globally.


Vale acquisition


Shree Renuka’s Vale acquisition included two sugar and ethanol manufacturing facilities in the Brazilian state of Parana, with a combined cane crushing capacity of 3.1mtpa.


Besides, it got stakes in logistic assets, including terminals for storage and loading of sugar and ethanol at the Paranagua port.


On the second acquisition, Narendra Murkumbi, managing director of Shree Renuka, said, “This investment brings us closer to building a global sugar and ethanol business combining the most cost-efficient and scalable production areas in the world along with a leading presence in the largest ethanol and sugar markets of the world.”

The buyout will also help the company meet its raw material requirements.

Source : The Telegraph

Saturday, February 20, 2010

Emami to foray into packaged cooking oil market

Emami Group today cut its teeth on food business by introducing packaged cooking oil.




Bollywood actor Preity Zinta launched six variants of the ‘Healthy and Tasty’ brand oil in Calcutta.



Zinta and Indian cricket captain M.S. Dhoni will endorse the edible oil, which has already hit the stores.



Manish Goenka, director of Emami Biotech, said the television commercial, shot by adman Prahlad Kakkar, would go on air in the next fortnight.



The group hopes to clock Rs 300 crore of business from the branded oil business in the first year itself and then raise it to Rs 1,500 crore in three years. Emami is producing palm and soya oil at its own refinery in Haldia. The rest of the variants are being outsourced now. However, Aditya Agarwal, director of Emami, said the group was setting up a refinery at Krishnapatnam in Andhra Pradesh, where palm and sunflower oil would be processed.



It also wants to build another refinery on the west coast, preferably at Pipavav in Gujarat, for palm and ground nut oil to tap the entire market.



Agarwal said the group aimed to invest Rs 1,000 crore in next 3-5 years in farming, processing, refining and brand building in edible oil.



It has begun cultivation in 4,000 hectre plot in Ethiopia for growing corn, maize, soybean, jatropha, sunflower among others.

Source :PTI

Friday, February 19, 2010

Himalaya International to launch fruit Yogurts across major metros

NEW DELHI: Himalya International , India's first frozen food company which exports its products to North America, has launched real fruit blended yogurts in Metro cities under brand name Himalya Fresh.




Speaking on the occasion Manmohan Malik, chairman of the company said that so far only plain & flavored yogurts are produced in India by major companies and Real Fruit blended yogurts has been launched for the first time in domestic market as healthy Breakfast, snack food and desserts.



He told that the company has started marketing its real fruit blended yogurts in NCR Delhi, Mumbai, Bangalore and Pune in the initial phase. The company has started commercial production of real fruit blended yogurts with technical collaborations of US based company Preffered Vegetarian Inc who provided technical assistance for developing low fat vitamin fortified Real fruit yourts in indian market. He told that the fruit yogurt having six week shelf life is hundered percent natural without any chemical and preservatives .



He told that company is importing different varieties of berries like Blue berry, Straw berry and Raspberry fruits from North America while Mango, Peaches, Banana etc fruits are being procured from Indian markets



Manmohan Malik added that the company has set up most modern plant for manufacturing the product with total cost of five crore rupees at Paonta sahib in Himachal Pradesh and all the equipments and machinery has been imported from the USA.



Currently, the company launched fruit yogurts blended with strawberry, strawberry banana, pine apple and mixed fruit in 150 gms pack in the initial phase.

Source : Time of India

Monday, February 15, 2010

Indian consumer willing to pay premium on Food Brands - A survey

Indians have become increasingly wary about the food that they buy, thanks to the rising issues concerning the safety of food and the resultant food-borne diseases. According to the Nielsen global online survey, 97% Indians consider safety of food an important factor in deciding where they shop and 73% Indians are confident in the safety of the food that they purchase from their local store.




As per the survey, India along with Ukraine is the second most willing nation to pay a premium for food that is safe (85%). Saudi Arabia and Phillipines lead with 86% votes in their willingness to pay a premium for safe food.



More than six in ten Indians think that the food manufacturer has the main responsibility for providing them with safe food. Around 30% hold the government responsible for providing safe food and only 8% think that the retailer has the main responsibility in providing safe food to them. However, Indians trust the government the most when a food safety scare arises (32%). With 29%, food manufacturers are the second most trusted entity in case of a food safety issue. Over 26% Indians trust media and only 13% trust retailers when they are skeptic about food safety.



“Food contamination is a problem that Indians face every now and then. Food supply in the country is often fragmented involving a multitude of middlemen, which exposes it to various types of fraudulent practices. In such conditions Indians are very careful of where they make purchases from and mostly go by the name of manufacturer.



The retailer is not seen as the prima donna in India, the manufacturer is,” said Biswarup Banerjee, associate director, marketing communications, South Asia, The Nielsen Company.


Nearly nine in ten Indians (86%) believe that they are responsible for the safety of food they consume at home. This is higher than the global average of 75% who believe that they are responsible for the safety of food that they consume at home.



The most important reason why Indians buy locally made products is because they think that by doing so they are supporting the local farmer or producer.

Source - Nielsen Survey

Food brands major factor for buying decision of Indians- A survey

Indians have become increasingly wary about the food that they buy, thanks to the rising issues concerning the safety of food and the resultant food-borne diseases. According to the Nielsen global online survey, 97% Indians consider safety of food an important factor in deciding where they shop and 73% Indians are confident in the safety of the food that they purchase from their local store.



As per the survey, India along with Ukraine is the second most willing nation to pay a premium for food that is safe (85%). Saudi Arabia and Phillipines lead with 86% votes in their willingness to pay a premium for safe food.


More than six in ten Indians think that the food manufacturer has the main responsibility for providing them with safe food. Around 30% hold the government responsible for providing safe food and only 8% think that the retailer has the main responsibility in providing safe food to them. However, Indians trust the government the most when a food safety scare arises (32%). With 29%, food manufacturers are the second most trusted entity in case of a food safety issue. Over 26% Indians trust media and only 13% trust retailers when they are skeptic about food safety.



“Food contamination is a problem that Indians face every now and then. Food supply in the country is often fragmented involving a multitude of middlemen, which exposes it to various types of fraudulent practices. In such conditions Indians are very careful of where they make purchases from and mostly go by the name of manufacturer.



The retailer is not seen as the prima donna in India, the manufacturer is,” said Biswarup Banerjee, associate director, marketing communications, South Asia, The Nielsen Company.


Nearly nine in ten Indians (86%) believe that they are responsible for the safety of food they consume at home. This is higher than the global average of 75% who believe that they are responsible for the safety of food that they consume at home.


The most important reason why Indians buy locally made products is because they think that by doing so they are supporting the local farmer or producer.

Source :Nielsen

Saturday, February 13, 2010

Smaller Companies giving tough competition to bigger FMCG companies/Brands

The acquisition of three Henkel brands by Mumbai-based VVF is not an isolated development in which a small FMCG company beat a large retail group to

buy brands owned by a multinational. There is a silent revolution on in the Rs 85,000-crore FMCG industry in the country: the rise of a number of small companies into national players.



From prominent players like Paras Pharma, Cavin Kare, Zydus Wellness and MTR to lesser-known ones such as Capital Foods, Desai Brothers and Temptation Foods, these companies have started to give sleepless nights to leading consumer product multinationals such as Hindustan Unilever, Procter & Gamble and Nestle.



While it may look like a battle between David and Goliath, the small companies are growing in strength and expanding their presence, with some help from modern retail that let them share shelf space with bigger brands.

The Rs 400-crore Ahmedabad-based Paras Pharma has mastered the art of developing successful household brands such as Moov, Krack, D’cold , Dermicool and Itchguard, across niche product categories. The company has been growing at 15% a year, with FY10 providing strong growth of 25% in revenues.



Its Dermicool brand in the prickly heat & cooling talc category is a market leader with a 33% share. Its deodorant brand Set Wet is No. 2 in the male grooming category after HUL’s Axe and enjoys little over half of the latter’s market share. Its D’cold brand increased its market share while the shares of its competing brands like Vicks Action 500 and Crocin Cold & Flu stagnated. Its hair serum brand Livon dominates the category despite Procter & Gamble launching Pantene Hair Serum.



In a category like tomato ketchup, dominated by Nestle’s Maggi and HUL’s Kissan, Mumbai-based Capital Foods has amassed a highly respectable 20% share with its Smith & Jones brand, launched in late 2007. Its Chinese cuisine under Ching’s brand is also steadily gaining market share against Nestle’s Maggi and HUL’s Knorr.



Zydus Wellness, the divested FMCG business of Cadila Healthcare, has successful brands like Sugar Free, EverYuth and Nutralite, while Rajkot-based Balaji Foods is giving tough competition to Frito Lays in the potato chips category.



Kolkata-based Bisk Farm is a Rs 100-crore biscuit manufacturer competing with Britannia, Parle and ITC.


Read More on

ET

Friday, February 12, 2010

Reliance Dairy to market Milk on larger scale

MUMBAI: Reliance Dairy Foods, a subsidiary of Reliance Retail, is muscling into the country’s branded milk product market with a new brand that will

take on established players such as Amul, Mother Dairy, Nestle and Gowardhan by offering higher margins to retailers and 10% extra milk to customers.



The Mukesh Ambani-controlled company will sell its new milk brand, Life, through general milk distributors, while its existing Dairy Pure brand is sold only through Reliance Retail stores.



The Life brand milk will be available in Haryana, Punjab, Andhra Pradesh, Tamil Nadu, Rajasthan, National Capital Region (NCR) and Himachal Pradesh, a Reliance Retail spokesperson told ET.



“We see this business growing further with the extension of our product portfolio.” Reliance’s aggressive move doesn’t come as a surprise as, according to industry sources, the dairy foods space offers high margins on limited initial investment.



In fact, existing companies such as Nestle India and Parag Milk Foods too have drawn up big investment plans to expand their reach in the Rs 40,000-crore branded milk distribution business that’s growing 10-12% a year.



Analysts say the sector sees high margins of 10-12% that keeps growing. In terms of investment, companies need to make one-time investment for setting up processing units and supply chain units with cold storage facilities.



Pune-based Parag Milk Foods, owner of the Gowardhan brand of dairy products, is investing nearly Rs 160 crore this year to expand capacities for processing 20 lakh liters of milk daily. “We are witnessing 15% growth every year in our annual milk retailing business in Maharashtra and now with new investments, we’ll further expand it to states such as Tamil Nadu, Andhra Pradesh and Karnataka,” said chairman Devendra Shah.



India is the world’s largest milk producer and, according to a study jointly published by the Central Ministry of Food Processing Industries and Federation of Indian Chambers of Commerce and Industry, about 35% of total milk produced in the country is processed.



The organised sector process about 1.3 crore tonnes annually while the unorganised sector processes about 2.2 crore tonnes. This study, prepared by consulting firm Ernst & Young, says there are currently 676 dairy plants in the organised sector that combines cooperative, private and government sector units. India’s total milk production totals 10.28 crore tonnes.



Demand for milk and milk products has increased in urban areas despite recent price hikes. Govardhan increased price of its milk products by 5% over the past two months due to increased prices of cattle food and below-average rainfall.



Gujarat Cooperative Milk Marketing Federation, India’s largest food products marketing organisation and owner of Amul brand, hiked prices of brands such as 'Taaza' and 'Slim and Trim' by Re 1 per litre and by Rs 2 per litre for brands such as 'Gold' and 'Shakti' in Gujarat.



The National Dairy Development Board, a nodal agency for the country’s dairy programmes, says that feed accounts for about 70% of the cost of milk production.



“Prices of cattle feed increased by 20% compared to last year due to insufficient monsoon,” says Maharashtra Rajya Sahakari Dudh Mahasang (Maryadit) chairman Vinayak Patil. His organisation owns the brand ‘Mahananda’ and is planning to expand its network in Gujarat and Karnataka.



Nestle India has also major plans to increase its marketshare in the organised milk segment. However, with products such as Nestle Milk, Pro-Heart milk and Slim Milk, it mainly caters to niche segment and to the aspirant class. When contacted, Amul managing director Bharat Vyas declined to comment on the investment and on future plans.

Read more on
ET

Kishore Biyani to consolidate Food Business

MUMBAI: Pantaloon Retail, the nation’s largest retailer, plans to spin off at least five of its brands and merge them with Capital Foods, as

Kishore Biyani looks to consolidate the foods businesses under one company to get ahead of global giants Nestle and Kraft with his home-grown recipes’ such as pav bhaji masala and lemon pickles.



Mr Biyani, who revolutionised organised retail in India, will have Indian television’s most popular culinary showman, identified with the Khana Khazana brand, Sanjeev Kapoor, as a venture partner. Capital Foods is owned by Future Ventures and other investors.



Dairy products brand Fresh & Pure, Tasty Treat cereals, Golden Harvest spices, Ektaa and Punya edible oils will be merged with Capital Foods, leading to Pantaloon shareholders getting a yet-to-be decided stake in the company, said a person privy to the development, who did not want to be identified before an official announcement. Mr Biyani declined to comment on the development, but said: “We are working on creating a large foods entity which will capture the foods consumption story in India.”



Global food companies such as Nestle, Kraft and Unilever are investing heavily to capture a share of India’s food industry which is estimated to grow to $300 billion by 2015 from $200 billion in 2006-7, according to consultancy Technopak.



Norway’s Orkla had bought a controlling stake in the popular MTR Foods, which sells ready-to-eat pongal and upma, for about $100 million in 2007. Investors are grabbing the stocks in the sector, with Jubilant FoodWorks, franchise to Domino’s pizza in India, gaining 58% on its debut on Monday, valuing it at nearly half the US parent.



“Higher investments in brand building and moving the home-grown brands into Capital Foods will help the company scale up the foods business over a period of time,” said Abhijeet Kundu, vice-president, research, at Antique Stock Broking. “Pantaloon Retail is more likely to do well in foods business given its understanding of the Indian consumer.”



Future Ventures, the private equity unit of Mr Biyani, holds 33% of Capital Foods. While Mr Kapoor owns 10%, the rest is held by Ajay Gupta, the founder of the company which owns brands such as Ching’s Secret, Smith & Jones, Mama Maria, Raji and Kaeng Thai.

Read more on

ET

Khana Khazana to be owned by Capital Food

Capital Foods Ltd, a leading maker of ready-to-eat foods, is reportedly acquiring all brands of celebrity chef Sanjeev Kapoor, reports Business Standard, quoting an unnamed source. The deal will enable Capital Foods add a new line of products in its ready-to-eat segment, frozen foods, jams, pickles and papads, the report adds.




Capital Foods is a processed foods company which makes food brands like Smith & Jones and Ching’s Secret. It manufactures and exports nutrition fast food and Indian food spices. It is also a leading private label supplier to several big retailers like Target and Tesco.



The deal seems to be an all stock deal with Kapoor getting 10% in Capital Foods post transaction. Capital Foods is backed by Indivison India Partners, the private equity fund formerly affiliated to the Future Group, which picked up 33% stake in the foods company in 2006.



Kapoor, who started Khana Khazana brand of foods named after his successful cookery show on Zee TV, will also join the board of directors of Capital Foods.



Ajaay Gupta, managing director of Capital Foods, has confirmed the development to the paper, and added that all ‘Khana Khazana’ brands by celebrity chef Sanjeev Kapoor would be a part of Capital Foods. “Sanjeev as a valuable expert in the culinary industry will bring in his knowhow,” Gupta has been quoted as saying.



Gupta is aiming Rs 2,000-crore turnover in the next three-four years.

Source : http://www.vccircle.com/

Indian Brands to kraft strategy to take on Kraft Food Inc

Mumbai: With the proposed foray of Kraft Foods Inc into India, the branded processed foods sector will soon witness a major tussle between Indian and international players. To take on new rivals, Gujarat Co-operative Milk Marketing Federation (GCMMF) and Godrej Hershey Food & Beverages Ltd (GHL) are drawing up fresh game plans which include extension of distribution network & product portfolio and modern trade retail initiatives.

For instance, after launching Hershey’s chocolate syrup in domestic markets, Godrej Hershey’s is planning to launch its other global brands (including chocolates) in India. “We are evaluating different options in our supply chain management. Also, we are looking at the launch of Hershey’s brands which are relevant to Indian markets,” said Vivek Mathur, managing director of GHL.


On the other hand, Amul is extending its distribution network to reach out to a wider target audience across the country. “We will consolidate our product portfolio and improve the availability of our brands across the country,” said RS Sodhi, chief manager of Amul.


Meanwhile, Nestlé India is getting ready to launch a host of brand building exercises to promote its flagship brands, Munch and Kit Kat, in India. “Nestle is currently fine-tuning its advertising strategy to woo consumers. The company will soon launch new mass media campaigns to promote its chocolate brands in India,” informed industry sources.


US-based Kraft’s $19.7-billion acquisition of Cadbury Plc now pits the world’s second-largest food company against global rivals such as Nestle and Hershey’s in the Indian market too. Recently, Irene Rosenfeld, chief executive , Kraft Foods Inc, has said owning UK-based Cadbury would enable the American confectionery giant to expand its footprint into the developing market, including India.


According to industry analysts, Kraft Foods will utilise Cadbury’s existing distribution network to push its own allied products such as Kraft cheese in India. At present, Kraft’s has no major presence in India except for its three brands––powdered flavoured drink Tang, chocolate brand Toblerone and biscuit brand Oreo.

On Godrej’s strategy, Vivek Mathur, said: “We are planning introduce many initiatives in modern trade channels. Also, we are planning to expand our distribution in premium general trade channels.” GHL (formed in 2007), a joint venture between The Hershey Company (USA) and Godrej Group, at present, operates in multiple categories such as confectionery, beverages and grocery items. In its portfolio, GHL has brands like Hershey, Mahalacto, Nutrine, Jumpin & Sofit.




Source : http://www.financialexpress.com/news/Branded-food-cos-ready-to--Kraft--fresh-battle/578241/

Author :Lalitha Srinivasan

Sunday, January 31, 2010

Vadilal third largest brand of Ice cream in India

In 1907, a certain unassuming gentleman started a soda fountain outlet in Ahmedabad. He, later on, passed on the business to his son


Ranchod, who ran a one-man show, and, with a hand-cranked machine, started a small retail outlet in 1926. What was started in 1907 by Vadilal Gandhi has now turned out to be third-largest ice-cream brand in India, which boasts of 500 distributors and more than 40,000 retailers. With its 120-plus flavours, Vadilal has one of the largest range of ice-creams in the country.



Brand Vadilal firmly established itself in the early 1960s. With the entry of Vadilal’s grandsons, the Gandhi family decided to ramp up operations and incorporated the company in 1961. Before introducing automatic machines around 1960, Gandhi family used to manufacture ice cream in wooden drums called Kothis.



A name that dominates western Indian market, Vadilal, during seventies and eighties, had to contend with competition from local brands. Kwality ice-cream was the only sizeable player in the still nascent ice-cream market. But it faced first real challenge when dairy giant Amul forayed into ice-cream business in 1996. Backed by its strong butter brand, cooperative major made quick inroads into the 1,500-lakh litre ice-cream market in which it now enjoys 40% share. Amul marketed its ice-creams almost 30-40% cheaper than the existing brands, and that pushed the then market leader Vadilal to the second slot.



But Amul’s foray also indirectly helped Vadilal, as it helped in expansion of market in India. As against the per capita consumption of 23 litres in the US, 18 litres in Australia, 14 litres in Sweden, ice-cream consumption in India stood at a pathetic 100 ml in the mid-nineties. Post-Amul, the per capita consumption of ice-cream jumped to more than 300 ml. Vadilal has been using the growing ice-cream consumption culture to its advantage.



“Brand Vadilal has survived many challenges and it will live through generations,” says group managing director Rajesh Gandhi, the fourth generation of Vadilal. Today, turnover of Vadilal Group, which has presence in ice-cream, frozen food, chemicals, forex and real estate, stands at about Rs 350 crore.



With an investment outlay of Rs 50 crore, the group will expand the capacity by 60% to three-lakh litres per day. While two upcoming candy lines will produce 25,000 pieces per hour, new ice-cream plant will be ready before summer. Vadilal already has manufacturing facilities at Pundhra near Ahmedabad and Bareilly in Uttar Pradesh. “The ice-cream market is growing at an average of 12-15% a year and has now turned into a game of volumes. We are expecting the market to grow even better during coming summer since the country had a below average monsoon,” says a top Amul official.



With the leader sounding optimistic, Vadilal too, after long pause, has once against started airing its commercials on national television. It is spending about Rs 7-8 crore a year on promotions and planning to increase the budget in coming days. The group is focusing on the food business.



“We were in dilemma about leveraging our brand and the group is still assessing the possibilities to use the brand Vadilal in non-ice cream categories. We launched processed food business under the brand name ‘Quick Treat’ some five years back that accounts for Rs 50 crore in our total turnover and growing at almost 80% a year. While ice-cream remains the core of our activity, we also export ready-to-serve curries, range of Indian breads, frozen samosa etc to 45 countries,” says Gandhi.



The group recently launched ice-cream parlours under the banner of Happinezz. “We believe that ice-cream is a happy thing, so we named our chain of ice-cream boutiques Happinezz, which offers rich exotic flavours,” says Gandhi. Besides expanding manufacturing and distribution capacitites, we are also strengthening our milk procurement network from farm-to-factory to cater ice cream made from the fresh milk,” says Gandhi.



In last couple of years, Vadilal has won laurels at the Great Indian Ice Cream Contest organized by Indian Dairy Association and Danisco. This year too it won seven awards in various categories. The group is gearing up to achieve new scales with rapid expansion on cards. The fifth generation of Gandhi family is now ready to enter the business. The challenge remains—retaining the freshness of the century-old brand.





Source : Economictimes
Related Posts with Thumbnails