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Hope FSSAI working on
Coca-Cola plans to enter pure streamlining regulations, says Dairy segment, to compete with Amul, Britannia and Nestle Harsimrat Kaur Badal
W
ith yoga guru Ramdevpromoted Patanjali becoming the latest firm to face regulatory issues, Food Processing Minister Harsimrat Kaur Badal today hoped that the Health Ministry and FSSAI are working on regulations, which ensure removal of "roadblocks and speed breakers". The minister said she has already raised the industry's issues related to Food Safety Standards Authority of India (FSSAI) with the Health Ministry and they are working on the same. "FSSAI doesn't come under my ministry. What FSSAI does, I cant comment on it, but I think they are working towards ensuring that roadblocks and speed breakers, which were in place, are removed so that hygienic and safe food is available and industry can carry on with innovations and there is no stalling back and I am sure FSSAI is working on that," Badal told reporters on the sidelines of an PHD event here. The minister also said that she has been informed that the industry's concerns will be taken care of. She also declined to comment on Patanjali Atta Noodles issue
and said it is a matter between the Ministry of Health and Ramdev. However, she added: "I am sure that the (health) ministry is looking into it to ensure these kinds of roadblocks are not there." Speaking earlier at the event, the minister informed that after the Prime Minister Narendra Modi-led government came to power, three mega food parks have become operational, whereas in last 10 years during UPA regime only two parks were made operational. "In next 30 months, we are aiming that 42 mega food parks should become operational," Badal added. Badal also said that she has set a deadline of 30 months for making the 42 mega food parks functional, reiterating the government's commitment to drastically reduce the wastage of farm produce with zero tolerance to it, estimates of which at current price of Rs 92,000 crore. She said that the Ministry of Food Processing Industries will promote setting up of traditional food industry so that the popular cuisines like Makki Ki Roti Sarson Ka Saag of Punjab and Rasam Sambhar of Tamil Nadu, among others are available all over the country. "There is a great demand of the authentic traditional food in India as well as in foreign countries and added that Non Resident Indians settled in all over globe are very keen to get regular supply of authentic food of their region in their adopted countries," Badal said.
C
oca-Cola is working on an ambitious plan for the Indian market — an entry into the pure dairy segment, which will pit it against Amul, Britannia and Nestle. The maker of Thums Up cola and Minute Maid juice plans to introduce its global milkbased beverage brand Vio in India — without any carbonation. The rollout could happen as early as January next year or by next quarter at the most. Coca-Cola has roped in dairy giant Schreiber Dynamix Dairies for its milk drink. The plan is to introduce bottled Vio in locally relevant flavours in the first phase. "We already have an offering in the dairy space — Maaza Milky Delite — which has a presence in select markets. Vio is a global brand and is, therefore, an option available to us. Coca-Cola's move to tap the dairy market comes as fizzy drink sales have been struggling with low single-digit growth over at least the past five quarters. While aerated drinks are a Rs 14,000-crore category, they are driven by seasonality and remain an indulgence consumption. Packaged dairy is aRs75, 000-crore market that's
growing at about 15%. Packaged milk alone contributes as much as Rs 50,000 crore. Vio, introduced by the beverage giant in 2009 as a carbonated 'vibrancy' dairy drink, comes with skimmed milk and flavours such as citrus, peach and berry and is positioned as a drink free of preservatives and fortified with vitamin C. Late last year, it had launched Fairlife in the US; a premium product introduced through a joint venture with dairy farmers and made using a proprietary milk filtering process. The product is relatively new and hasn't yet found much consumption traction.
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Vol. 8, Issue 07 - December - 2015
BEVERAGE NEWS
Coca-Cola brings Sprite zero to India
U
S beverage maker Coca-Cola high on the success of its sugar-free fizzy drink Coke Zero, is planning to test market Sprite Zero here, the zero-calorie option of one of the world's largest selling lemon-lime drink. Sprite is India's biggest soft drink brand by volume sales -a position it occupied last year by overtaking Thums Up, which is also a Coca-Cola brand. The diet soft-drinks market in India has remained a niche category. It is estimated to be around Rs 300 crore (having tripled from its size of around Rs 120 crore in 2010) compared to the Rs 14,000-crore domestic soft-drinks market. However, Coke Zero's launch last year seems to have boosted the category, which has grown by around 39 per cent since then, compared to a CAGR of 12-13 per cent between 2010 and 2014, according to industry experts, who quoted data from research firm Nielsen. Debabrata Mukherjee, VP, marketing & commercial, Coca-Cola India and South West Asia said, "Coke Zero has become a Rs 40-crore brand within around 10 months of its launch, and we have been surprised by the strong consumer traction and high rates of conversion, from trials to repurchase of Coca-Cola Zero. What is important is that it is perhaps showing the way for a lot of consumer brands in the diet and light foods category -a category that has not met with a lot of success in the Indian market." Sprite Zero has the same sweeteners as in CocaCola Zero -Aspartame and Acesulfame - and was originally known as Sugar Free Sprite when it was first created in 1974. At present, Coca-Cola sells two diet beverages in India, Diet Coke and Coke Zero. In the test-marketing phase, Sprite Zero is expected to be sold only in 300 ml cans, which is a preferred pack for the company for its diet products. The company is likely to test market it in South Indian cities, where Hindustan Coca-Cola, its bottling arm, has a robust distribution network.
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Beverages & Food Processing Times
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Vol. 8, Issue 07 - December - 2015
Chocolate on your mind. D iwali has set the tone for the festivities to begin. Doesn’t it feel like India begins the partying from Diwali only to take a well deserved break well after the New Year has settled in? On the back of this celebratory mood, is the country’s huge appetite for chocolate, which it consumes in bus loads either while gifting or being gifted to or just shared as the evening progresses.
Whether it be within the bakery or patisserie world, chocolate is an always present, ever powerful product that has its own appeal. It is that beloved giant that takes all the space on the table, leaving everything else fading in the background, yet leaving everyone thirsting for more. The beauty of chocolate is lies in the sheer versatility that it allows. Whether its the flavour of the cake or inside the cake as a filling or simply a decorative layer on top of the cake, its sheer magical presence attracts the eye. Keeping an eye on the growing demand for chocolate, Puratos introduces two compound variants, CARAT Supercrem and CARAT Coverliq.
your wild creative side but also known as the best tasting compound. The Coverlux makes de-moulding a breeze, especially useful if you are making hollow figures that need careful handling. Making mousses with
the luxurious mouth feel complete with superior finish becomes a breeze with this wonderful compound. Requiring no tempering, the Coverlux is the perfect multipurpose compound with its own signature taste. Available in white milk and dark, the Coverlux truly captures the luxury of chocolate in a bar& giving the ultimate taste expereince.
the ganache, choosing Cover, allows the customer to know that every single bite comes with the Puratos guarantee of a great product and translates into an even better one.
Making and decorating cakes, muffins, cupcakes and the other scrumptious patisserie offerings are a breeze with the CARAT Cover Dark. This hard compound offers a cost effective option to produce world class products at significantly lower rates, without compromising on the quality of the product or the ingredients used.
Chocolate is here to stay and how, once called the food of the Gods, it has become an all over phenomena which is showing no signs of slowing down. Within the Asia Pacific region& specifically in Indiachocolate products are consumed more than all other flavours combined, such is the pull and lure of the silken beauty.
Again a multipurpose offering from the Carat Compound range, the Cover works its magic in cakes Mousses, cupcakes and muffins apart from other bakery and patisserie offerings. When used either as an ingredient in the cake or as
Whether CARAT is used within the cake or on top, whether the use is specific or simply across the board, Puratos CARAT has the perfect answer to your chocolate question.
The CARAT Supercrem which is unique to itself, is specially created as a multipurpose ready to use filling, shining in those applications that require a refined texture and taste. Specially crafted for center filling of cookies , pralines, which enhances the taste of cookies. It gives good result for post baked applications, when used as a filling in Croissants, or as a special surprise in a cupcake centre, or simply as a filling in a pastry, donut or Danish. Made with high quality cocoa contents, Supercrem sparkles across the board whether in patisserie, bakery or confectionery. From the CARAT stable comes the Coverliq compound. Perfectly crafted for thin enrobing and dipping applications, the Coverliq does it all without the hassle of tempering. A perfect solution to get that perfect crack free layer wherever it may be applied. Coverliq is the perfect partner for soft or crunchy creations including coating of cookies, wafers, brownies, short bite pastries and many more . Just finishing a product well isn’t enough. As we all know the proof of the pudding is in the eating, and cakes, cookies, and the like are all about just that. Choosing a Puratos Compound that is perfectly suited to your particular need, crafted with the end consumer in mind is perhaps that crucial first step in getting a world class product. CARAT Cover and Coverlux allow you to explore
Beverages & Food Processing Times
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Vol. 8, Issue 7 - December - 2015
BAKERY NEWS
Consumers prefer bakery products to sweets this Diwali
D
iwali is synonymous with sweets, but fear of spurious ingredients being used in their preparation to meet the festive demand is keeping consumers at a distance said, apex industry body Assocham. A sector specific analysis aimed at asserting
prevailing market trends this Diwali conducted by Assocham. "If trends are anything to go by, there is a considerable rise of about 30 per cent in demand for assorted cookies, low-cal premium biscuits and bakery products this Diwali as consumers shift away from sweets amid fears of adulteration" . Mr D.S. Rawat, secretary general of Assocham , added that, "Growing suspicion about adulteration together with rise in preference for healthy and low-fat products has hit the demand for traditional sweets which has fallen by over 50 per cent especially those made from milk," said while releasing the chamber's analysis. "The Rs 25,000 crore worth biscuit industry in India is making merry this festive season and its business is likely to grow by leaps and bounds this Diwali owing to multiple factors like attractive packaging in different shapes, sizes and flavours, quality control, longer shelf life and others," said Mr Rawat. "Considering there is an emotional value attached to traditional sweets, branded sweets market is doing a brisk business," he added. India's traditional sweets market which is worth over Rs 50,000 crore remains largely unorganized and constantly faces threats from rising prices of key raw materials like milk, butter, sugar and dry fruits, therefore, many resort to the use of inferior or adulterated ingredients and in some cases, they may even use chemicals to keep the costs down. Biscuit hampers are selling like hot cakes and have even surpassed demand for chocolates and fruit juice packs owing to their growing acceptance amid varied Indian palates and are affordable, highlighted the analysis done by the ASSOCHAM Social Development Foundation. Assocham Social Development Foundation had interacted with about 100 leading sweet shops countrywide to enquire about demand for traditional sweets during the festive season in past two weeks. Majority of sweet shop owners/representatives reported drastic dip in demand for sweets to the extent of about 25-50 per cent. Most of the sweet shop owners said they have started using more of dry fruits and less of mawa and other dairy products which has increased their costs by about 15-20 per Many of the traditional sweet shop owners said that considering the growing demand for biscuits/cookies, they have started selling the same under their own brands and are selling other popular biscuit brands to lure customers. Some of them said there is more demand for branded biscuits compared to chocolates this year.
Beverages & Food Processing Times
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Vol. 8, Issue 07 - December - 2015
FOOD SAFETY NEWS
Food safety regulator must follow global practices
B
ombay HC allows Nestle to export Maggi noodles, India ban continues Regulating the food safety regulator Maggi again: Food regulator wants its honour back Nestle gearing up for Maggi's comeback Maggi faces production roadblocks The indication by the Food Safety and Standards Authority of India (FSSAI) that it would reintroduce the system of pre-launch product approvals by issuing new regulations has dealt a
blow to the food processing sector. This issue was deemed to have been settled after the Supreme Court upheld a Bombay High Court verdict that the system of product approvals introduced by the FSSAI through advisories was arbitrary and illegal. However, the uncertainty and confusion over this issue resurfaced with the FSSAI declaring that even while respecting the court's decree over its advisories, it will come up with new regulations to revive the approval procedure. This has turned prospective investors - both domestic and foreign - wary of committing resources in this sector. For the first time in several years, the festival season hardly saw the launch of any fresh food product, variant of an existing product or a new health food or food supplement despite over 700 such products being in the pipeline. The industry bodies are once again knocking at the doors of the government to get the FSSAI's intended move quashed. India's food regulation law, the FSSAI Act of 2006, in fact does not require a new product to be formally approved by the regulator if its ingredients are as per the law - the generally accepted global practice. The industry maintains that the regulator cannot bring back the product approval system unless the law is amended. Even the food processing ministry feels that some of the recent actions of the FSSAI, including those against Nestle India's Maggi noodles, created a "fear psychosis" in the industry, killing innovation. There have been allegations of harassment of companies by FSSAI officials on trivial grounds. Objections are often raised to the quality of the products without getting them tested at recognised laboratories. Thus, the basic objective of the FSSAI Act of putting in place a transparent and scientific system of food safety seems to have been belied. This does not bode well for a sector that, after a prolonged period of infancy, had begun to grow at over eight per cent a year. Food processing not only adds value to, and prolongs the shelf life of, farm produce, but it helps reduce the huge wastage of perishable products like fruits and vegetables, estimated at anywhere between 20 and 40 per cent. The FSSAI has already finalised 12,000 standards for food ingredients and additives, which are in harmony with the globally recognised Codex norms. It should also follow the global convention of allowing the industry to self-certify compliance with these standards. Such a system would end the need for cumbersome product-byproduct approval, which takes years to complete. The FSSAI could monitor adherence to these standards by getting randomly selected samples tested in a non-controversial manner at accredited laboratories. The ultimate objective, after all, is to ensure that consumers get food products and health supplements that are good in quality, safe to consume, and varied in nature. Adventurism by the regulator is in the interest of neither the industry nor consumers.
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Vol. 8, Issue 07 - December - 2015
DAIRY NEWS
AMUL 'is truly the
pride of India': President
P
resident Pranab Mukherjee said AMUL enterprise is truly the pride of India, adding it personifies the spirit of selfless dedication and far-sighted leadership. President Mukherjee, who inaugurated a state-ofthe-art cattle feed manufacturing plant of AMUL here, said the onus is on the current generation of farmer-leaders, professionals and other stakeholders to expand the AMUL movement in a way that benefits farmers across the board.
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He urged all to ensure that this world-class institution continues to progress with the same passion and commitment and with the same values of integrity, efficiency and honesty which the founding fathers had instilled in AMUL.
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President Mukherjee said the journey of AMUL since 1946 from a 'drop' to a 'flood' of milk was challenging. "It was made possible because of AMUL's ability to be sensitive and proactive to the needs of farmers and dynamic to the changing circumstances. The institutional structure called 'AMUL Model' or 'Anand Pattern' that emerged from the dairy cooperative movement has created a billion rupee worth brand while embracing the poorest of poor farmers," said President Mukherjee. "Through logistics innovation, AMUL has ensured easy availability of high-quality packaged milk and dairy products across the country," he added Asserting that AMUL is today the largest liquid milk brand in Asia and the largest food brand in India, President Mukherjee said it is also India's largest exporter of dairy products.
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The President acknowledged the tremendous contribution of the 3.6 million farmers of AMUL family and saluted the 150 million Indian milk producers for their efforts towards nation-building. He said their dedication, ingenuity, sacrifice and hard work have ensured food security for our country in the critical area of milk and dairy products.
to increase productivity by over 30%
President Mukherjee said the sharp decline in global dairy commodity prices in the last one year has reduced milk prices for dairy farmers by 20 to 50 percent worldwide.
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"In pleasant contrast, farmers associated with AMUL Dairy have received higher prices for the milk they have poured into their cooperative. The spirit of cooperation espoused by the pioneering farmers of AMUL has triggered a socio-economic revolution in rural India transforming an entire nation," said President Mukherjee.
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"The winning combination of the AMUL experiment has been the convergence of farmers' wisdom, democratic set-up, professional management and adoption of right technology. It is a model worth emulating and following the same could help address problems in other areas faced by our farming community," he added.
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Vol. 8, Issue 07 - December - 2015
Beverages & Food Processing Times
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Vol. 8, Issue 07 -December - 2015
NEWS
With rising tomato prices demand for Tomato puree increased by 20-25%: Assocham
Tata Global launches Tata Coffee Grand
brand to compete with Nescafe, Bru brands earns over 70% of its sales from tea brands while coffee business accounts for 20% through brands like Eight o'clock and Grand outside India.
etc., the demand for tomato puree or ketchup has shot up by 20-25 per cent. Tomato prices have increased to Rs 65 per kg in Delhi from Rs 40 per kg, a month ago. The average prices of tomatoes across major cities have risen to Rs 55 per kg from Rs 30, a month ago. Similarly, onion prices have increased to Rs 37.52 per kg from Rs 36, a week-ago.
A
ccording to Assocham, the rising tomato prices has increased the demand for tomato puree and ketchup by 20-25 per cent within two weeks as people have turned over to this quick-fix solution to keep their kitchen budget intact. About 72 per cent of middle income group and lower income group find it difficult to manage their household budget and due to the sudden rise in prices of vegetables like tomatoes, onions, ginger
I
ndia's second largest tea maker Tata Global Beverages has launched Tata Coffee Grand, which will compete with NestlÊ’s Nescafe and Hindustan Unilever's Bru. The instant coffee brand was jointly developed by Tata Global Beverages (TGBL) and group firm Tata Coffee, which manufactures the product, TGBL said. The coffee beans will be primarily sourced from Tata Coffee's plantations in South India, popular for producing Arabica and Robusta blends. At present, the maker of Tata Tea and Tetley
Jubilant FoodWorks to invest Rs 200 crore for expansion and hire 5000 employees
J
ubilant FoodWorks, , plans to add around 5,000 employees by this fiscal ending March 2016. Most of these new recruits will be to man its 150 new Domino's Pizza stores and 40 new Dunkin' Donuts stores in India. The company, which is already a 30,000-people strong organisation, is looking to invest about Rs 200 crore for its expansion plans. Further, it is planning to set up a state-of-the-art factory in Greater Noida.
Jubilant FoodWorks holds the master franchise for Domino's Pizza in India, Nepal, Sri Lanka and Bangladesh and also for Dunkin' Donuts in India. Ajay Kaul, chief executive officer of Jubilant FoodWorks said that it will be the first of its kind in the world for Domino's Pizza and is going to be a total green facility." "Last two years have been tough for all in the food business as customers have hung on to their wallets. Yet, Jubilant did well," Kaul said. In February, the company is about to open its 1000th Domino's Pizza store. It currently has about 950 such stores. Pizza is still the revenue driver for Jubilant FoodWorks and India is the second largest market for its pizza business after the US. Jubilant FoodWorks operates Domino's Pizza brand with the exclusive rights f or India, Nepal, Bangladesh and Sri Lanka and in India it has around 70% market share. The company launched Dunkin' Donuts in India in April 2012 in Delhi and has 67 Dunkin' Donuts restaurants in India.
Beverages & Food Processing Times
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Vol. 8, Issue 07 - December - 2015
3.3 Crore packs of Maggi noodles sold within 10 days
I
n an phenomenal comeback, Nestle India has so far sold 3.3 crore packs of its instant noodles Maggi in 350 towns across India, five months after it was banned by central food safety regulator FSSAI. In an analyst presentation, the company said it is selling Maggi at 1.2 lakh outlets through 724 distributors. In the financial implications of the ban on Maggi, Nestle India said it had to bear an exceptional cost of Rs 476.2 crore, which included cost of destroying 34,663 tons of the noodles. Nestle India said it took hit of Rs 161.4 crore as third party commitments, reverse transportation, cost of incinerating stock, handling, repacking, laboratory testing among others, while Rs 314.8 crore included cost of finished goods and duties and taxes paid by the company. According to the company, the ban had impacted 3.97 lakh wheat farmers and 15,000 spice farmers besides over 10,000 employees of its suppliers. It had also impacted its 3,000 contract workers also. With Maggi back in the market, Nestle India said it is now aiming for "bring back double digit growth" and "back to stability".
BAKERY
All-Bühler technology boosts efficiency and sales at Philippines’ La Suerte
T
he Bühler Group, a global leader in rice processing technologies, has finalised a complete upgrade of milling equipment for the La Suerte Ricemill Corporation in Isabela, Philippines. The mill is now running exclusively on Bühler’s state-of-the-art technology, following this year’s installation of a 10-12 tonnes per hour (tph) rice whitening line, a 20tph rice hulling line in 2013 and SORTEX optical sorting technology in 2009. La Suerte Ricemill CEO and President, Mr. Ricardo P. Tan says: “By using Bühler machinery, our sales have grown significantly in a short period of time, largely as a result of the superior appearance and taste of the rice that we can now produce. “Naturally, the team at the mill are delighted. Bühler’s highly impressive technology has provided us with the all-important competitive advantage we need, to take the leading position in our industry. Our return on investment has already been fantastic and we’re delighted with the result,” he adds. La Suerte first trailed Bühler’s TopWhite™ rice
whiteners in 2007, running them alongside existing technologies, to compare the results. The Bühler equipment delivered an improved hull clean yield – producing 2-3 percent more head rice when compared to the mill’s existing whiteners. Says Mr Tan: “We started to run the machines side-by-side with our existing solutions and found that, when it came to head rice recovery, the TopWhite™ rice whitener from Bühler produced significantly higher yield, with less rice breakage. When you consider that head rice commands between 30% and 35% more per tonne, then the difference to our bottom line is considerable.” These early successes encouraged La Suerte to turn to Bühler for optical sorting technology – enabling it to identify and separate defective and foreign items from the product stream by colour, shape or other optical properties. Further installation of Bühler’s rice milling and dehulling machines enabled the mill to increase its paddy input to 20tph. The next stage in the mill’s development will come with Bühler’s de-stoner, for the removal of stones and other high-density impurities, such as metal and glass, a huller and separator to deliver
SHG’s bakery gets new bread manufacturing unit
M
ayor V V Rajan Chellappa inaugurated an additional bread manufacturing unit at the bakery run by Geetham self-help group at the zonal office near Grace Kennett Hospital. The bread manufacturing unit came up at a cost of Rs10 lakh, obtained through bank loan. For the new unit, the corporation has constructed an additional building at a cost of Rs4.45 lakh. In addition, the SHG has also opened a sales centre at Zonal I Office at a cost of Rs. 3.90 lakh. The bakery was launched under the National Urban Livelihood Mission a few months ago at a cost of Rs5 lakh, after the corporation allotted a portion of the building to the self-help group (SHG).
Beverages & Food Processing Times
excellent separating efficiency, grading solutions to classify rice by kernel size, as well as optical sorting solutions to deliver rice with a smooth, dust free and shiny surface. And of course, as part of its investment, the mill also receives ongoing 24/7 Bühler service, with localised support. Concludes Mr Tan: “We are confident that with Bühler as our partner, we can meet the increasing challenges facing the industry. We believe Bühler’s products deliver the best in leading-edge food safety innovations, and since updating most of our Mill equipment with Bühler technology, we have been able to consistently deliver perfect quality rice to our customers in the marketplace.” Rustom Mistry, Director, Head of Rice Processing, Asia for Bühler, says: “La Suerte’s significant investment demonstrates its strategy and commitment to meet the growing demands for its premium Ivory Grains Classic brand. La Suerte is one of the most respected rice millers in the Philippines. We’re delighted to know that using our technology has provided the team with the peace of mind and a 24/7 operation which is performing efficiently and delivering on the results required. We look forward to continuing our relationship with the Isabela La Suerte Ricemill Corporation.”
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Vol. 8, Issue 07 - December - 2015
FOOD PROCESSING NEWS
Domino's Pizza partners Hyderabad-based start-up Zippr for coding method for delivering
Instant rasam developed by Ready-to-eat pioneer P Sadananda Maiya
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Domino's would start Zippr services initially for Delhi NCR users and the same would be rolled out in other cities in the next 15 days. "Realizing that smart devices and laptop screens have become major touch points for our customers to reach us, we are investing heavily in technology and exploring all possibilities that enable us to offer better services".
J
ubilant Food Works, which operates Domino's Pizza chain, has partnered with Hyderabad-based start-up Zippr to use latter's coding method for delivering the orders instead of using consumers' address.
This is really exciting for us at Zippr, this partnership will enable our customers to use Zippr on Domino's checkout, solving the last mile logistics problems and saving costs," Zippr founder & CEO Aditya Vuchi said.
With this partnership, Domino's consumers will be able to share their address during checkout on its online ordering platform, Jubilant Food Works said in a statement.
fter a research of about 10 years, ready-to-eat pioneer P Sadananda Maiya has come up with two new types of masala cubes which dissolve into hot water to produce the aromatic South Indian soup, rasam. Maiya, heads the private equity-backed Maiyas Beverages and Foods said, "I can claim to be the first to have done this without using any chemicals or preservatives. I have used nanotechnology to create a product with a shelf life of one year," said. The firm used machines from Germany and Taiwan to make its rasam cubes.
The cube is made using dal, rasam powder, jaggery, tamarind, asafoetida, coriander, curry leaves etc, Maiya said, adding that nanotechnology has helped retain the the natural flavour of rasam. The
After Rs 800 crore funding round led by SoftBank, Grofers now valued at Rs 2,664 crore
Burger King into trademark fights with Food joints of similar names
the business, with a focus on strengthening its supply chain.
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Grofers' latest fundraise, it’s third this year, marks an over three-fold increase in the company's valuation in about four months. The company was valued at $115 million in July and $33 million in February. Gurgaon-based Grofers will use the money to expand
Rasam's taste differs according to the region or the community that makes it. Each region or community has perfected its own way of making it. A research by brand expert Harish Bijoor revealed that there are 211 types of rasams in South India alone. "Maiyas rasam cubes might convert rasam into a beverage in addition to being an additive to rice. It will be drunk as a hot beverage in winter.
Maiya started working on the product in 2004 when he was still with MTR Foods. "I worked for four years, but failed. I again resumed my work in 2010, and could see signs of success only last year," he said. Rasam, according to him, is a daily necessity, and many people cannot make it.
The location management platform has developed an 8-character code called a 'Zippr' which replaces the four line address. Now, Domino's online customer will simply use a Zippr code while checking out after placing the order online, instead of entering a four-line address.
rofers, a quick-delivery service for groceries and electronics, has closed a $120-million (Rs 800 crore) funding round led by Japan's SoftBank. The company is now valued at about $400 million (Rs 2,664 crore), according to people aware of the deal terms. Apoletto Asia, the personal investment vehicle of DST Global's partners including Russian billionaire Yuri Milner, also invested in the company, along with existing backers Tiger Global Management and Sequoia Capital India, Grofers CEO Albinder Dhindsa confirmed. ET was the first to report on October 7 that Grofers was in talks to raise more than $100 million (Rs 665 crore) from SoftBank and other investors.
Maiyas will launch two products — regular rasam and pepper rasam cakes — on December 6. The firm plans to launch the product in Chennai in January and add tomato rasam to its product line. Maiya plans to sell them between Rs 10 and Rs 15 a pack. The rasam cubes, Maiya said, will be sold only through the firm's online portal, and introduced in other retail stores later. Maiyas is targeting officer-goers, working couples, senior citizens etc. for its innovative product.
"We have to make investments in the supply chain, which we will now do with a longer-term view," Dhindsa said, adding that Grofers will step up focus on delivery as well. Grofers currently handles around 30,000 orders a day, and targets 50,000 in a few months. Grofers, which delivers mainly groceries sourced from neighbourhood stores, has so far signed up about 10,000 merchants in more than two dozen cities across India. The company for now wants to focus on strengthening operations in cities it is already present in, and slow expansion into new geographies. "We plan to expand categories and merchant base going forward," said Dhindsa. While vegetables and groceries are its biggest category, Grofers also offers electronics, bakery, home and office supplies, flowers, sports and fitness and pet care items.
Whopper burgers and opened its first store in India last year in a joint venture with Everstone Capital. The alliance has opened 33 outlets in the country so far. Burger King International filed at least six trademark cases against Indian operators in the Delhi High Court in the past two years and three of them are still pending, according to the court website. One of them involves Burger King Restaurant Pvt. Ltd., a chain of vegetarian outlets based in Gujarat.
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urger King has been locked in trademark cases in India - from a small pushcart called Mr Singh Burger King to joints in malls with deceptively similar names or logos. The legal effort is paying off in some cases. Ludhiana-based street vendor Ravinder Pal Singh Babbar, who operated Mr Singh Burger King, changed the brand to Mr Singh Food King, saying he do he doesn't have the money to travel to New Delhi to fight court cases. According to court documents, Babbar "acknowledged that the plaintiff’s trademark is a well-known mark" and filed an affidavit saying he would change the brand name. The court disposed of the case in September. A Varanasi-based restaurant called Burger King, too, changed its name to Taste King after a Delhi High Court injunction. It is still fighting the case, according to Virender Gupta, one of the brothers who own the outlet. Miami-based Burger King Corp., which was acquired by investment firm 3G Capitals in 2010, is known for its signature
Beverages & Food Processing Times
"Burger King has not been able to get any order against us," said Vishamber Shewakramani, proprietor of Burger King Restaurant. It filed a counter case in response to the US company's trademark lawsuit against it. Shewakramani said the case will come up for hearing on January 20. "We cannot comment on the ongoing cases but Burger King Corporation will take such action as is necessary within the confines of the law to protect against unlawful use or infringement of its trademarks," a company spokesperson said in an email. The US giant is also "closely watching" another local player - Gurgaon-based Burger Singh. Started by entrepreneur Kabirjeet Singh, Burger Singh, recently mopped up angel investment funding of Rs 2.2 crore.
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Vol. 8, Issue 07 - December - 2015
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Beverages & Food Processing Times
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DAIRY NEWS
Amul to serve better is expanding Dairy on Demand: Amul Goes Full processing capacity, distribution reach Mode on Expansion Plans including cheese and ghee, to countries where there is high concentration of NRIs like the US and Middle East, will continue to focus on the domestic market where the demand is growing, he added. With a turnover of Rs 8,000 crore in 2009-10, Amul touched Rs 20,700 crore turnover mark in 2014-15 fiscal. It is now eyeing a turnover of Rs 50,000 crore in 2020-21, said Sodhi, who was here to participate in the 'National Milk Day' celebrations to commemorate the 94th birth anniversary of Dr Varghese Kurien.
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CMMF, which markets the popular Amul brand of milk and dairy products, is expanding its processing capacity and distribution reach to serve the market better. R S Sodhi, Managing Director Gujarat Cooperative Milk Marketing Federation (GCMMF) said that the federation is investing Rs 800 crore to Rs 1,000 crore every year in Gujarat and outside the state and expects to invest about Rs 5,000 crore in the next five years. Sodhi added that the company's focus continues to be the domestic market and their focus continues to be India. There is a double digit growth in product and volume in all our products in the country. Last year, there was a 12 per cent growth in volume and this year it is expected to touch 13 per cent," he said. Amul, which is exporting its consumer products,
Launch of innovative, value-added new dairy products, expansion of fresh milk and milk products marketing operations to several new markets, besides expansion of distribution footprint through the vast network of stockists has led to quantum growth in Amul's business, he said. Amul expects its two new milk powder plants with 150 tonne per day capacity to be ready in another 18 months. When completed, these will be the biggest milk powder manufacturing plants in the country, he said. A cooperative institution like Amul has to ensure the best price to farmers and provide the highest quality products at fair price so that average Indian can buy it. "Because of this business philosophy, for the last seven decades, Amul is there and growing and we have won the trust of millions of milk producers," said Sodhi.
Government plans to allow two local dairy companies to export to Russia for six months
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ussia may soon get a taste of Indian milk and milk products with the Indian government working on a formula to allow two local dairy companies to export there for six months.
clearance to these two companies, it is also negotiating with the Russian government for relaxation in this norm. "Although we are negotiating with Russia to remove this condition, we have not been able to convince them. We are trying to find a mutually acceptable clause. If nothing works out, then we might settle for allowing these two companies to export and review this agreement after six months," the official said. In 2014-15, India exported 66.424 billion tonne of dairy products worth Rs 1,205.38 crore. The major export destinations were Bangladesh, the UAE, Pakistan, Nepal and Bhutan.
India, the world's largest milk producer, exports dairy products mainly to the Middle East, Pakistan and other neighbouring countries. It is now keen on tapping the market in Russia, which has become dairy deficient following Western sanctions after its military intervention in Ukraine last year.
"We have maintained that India follows cooperative farming in dairy products and there is not mass farming, but we haven't been able to convince them for this," the official said.
Russia had sent an inspection team to India last year to examine the country's dairy industry.
The six-month arrangement is being considered to prevent monopolisation by the two firms, besides finding a long-term solution to the problem and not losing the new market to others.
The inspectors set a condition that dairy product manufacturers meeting Russian standards must have at least 1,000 milch animals to be able to export to the country. Only two dairy units— belonging to Parag Milk Foods and Schreiber Dynamix Dairies-—got Russian approval, according to a commerce department official. While the commerce department plans to give
Meanwhile, Indian dairy product exporters want the government to charge a premium from Russia in lieu of meeting its norms. "With the sanctions, Russia looks vulnerable now, and if they are not willing to come to the negotiating table at this point, they may not do in the future," said Ajay Sahai, directorgeneral of the Federation of Indian Export Organisations.
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CMMF, which markets the popular Amul brand of milk and dairy products, is expanding its processing capacity and distribution reach to serve the market better, a top official said. "We are expanding our processing within and outside Gujarat, and expanding distribution reach. We hope to increase the organised market share," said R S Sodhi, Managing Director Gujarat Cooperative Milk Marketing Federation (GCMMF). The federation is investing Rs 800 crore to Rs 1,000 crore every year in Gujarat and outside the state and expects to invest about Rs 5,000 crore in the next five years, he said. Sodhi added that the company's focus continues to be the domestic market. "Our focus continues to be India. There is a double digit growth in product and volume in all our products in the country. Last year, there was a 12 per cent growth in volume and this year it is expected to touch 13 per cent," he said. Amul, which is exporting its consumer products,
including cheese and ghee, to countries where there is high concentration of NRIs like the US and Middle East, will continue to focus on the domestic market where the demand is growing, he said. With a turnover of Rs 8,000 crore in 2009-10, Amul touched Rs 20,700 crore turnover mark in 2014-15 fiscal. It is now eyeing a turnover of Rs 50,000 crore in 2020-21, said Sodhi, who was here to participate in the 'National Milk Day' celebrations to commemorate the 94th birth anniversary of Dr Varghese Kurien. Launch of innovative, value-added new dairy products, expansion of fresh milk and milk products marketing operations to several new markets, besides expansion of distribution footprint through the vast network of stockists has led to quantum growth in Amul’s business, he said. Amul expects its two new milk powder plants with 150 tonne per day capacity to be ready in another 18 months. When completed, these will be the biggest milk powder manufacturing plants in the country, he said. Already, the federation has a capacity of 750 tonnes per day for milk powder manufacturing and when the two new plants get ready, the capacity would touch around 1,000 tonnes per day, he added.
Kwality starts product sale of including milk and curd under brand name 'Kwality' Kwality. The three categories of milk i.e. full cream, toned will be available in pouches in Delhi NCR from November 30, 2015. In October this year, the company has secured rights from its founding father, P L Lamba, to use the Kwality artwork for its dairy products and beverages.
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airy firm Kwality Ltd has started selling its products, including milk and curd among others, under the brand name Kwality.
Till now, the company, which supplies dairy products to institutional customers such as MNCs and Indian firms, had been selling its products under the brand name Dairy Best. The company would start distribution of their products -- milk, curd and chaach under the brand,
In 1994-95, Kwality had joined hands with the erstwhile Hindustan Unilever for ice cream business. Later, HULBSE -0.98 %, which was earlier known as HLL, gained control of the brand. The current promoter Sanjay Dhingra acquired Kwality in 2002-03. The company had reported a 4 per cent increase in its net profit at Rs 37.89 crore for the September quarter. Total income from operations also grew over 10 per cent to Rs 1,432.96 crore in the same quarter.
Britannia to expand Dairy business rival Amul. The new division will be in addition to the existing dairy unit, which accounts for less than 5 per cent of the Bengaluru-based company's turnover. That business is growing 10 per cent every year and will continue to run the way it's running with the current team.
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ritannia Industries plans to expand its dairy products business into a full-fledged unit, targeting a fivefold increase in sales, and relaunch the portfolio of Tiger biscuits to improve market share. The company intends to set up a standalone division for its fledgling milk product business to compete with newcomer ITC and established
Beverages & Food Processing Times
The new model could involve milk procurement, processing and selling. Nusli Wadia-promoted Britannia's joint venture with New Zealand's Fonterra Dairy to sell milk and milk products, inked in 2002, was called off after seven years. The company also wants to fix its other weak link — the value biscuit segment, where it has a share of 8-9 per cent. Britannia is launching the Tiger brand portfolio, including glucose, cookies and creams.
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FOOD SAFETY NEWS
Nestle claims Maggi Pazzta is 100% safe President Pranab Mukherjee expresses concern over food security lashing out at Food regulator situation as quickly as possible. Nestle is no stranger to controversies on food safety. It brought back its Maggi noodles earlier this month after a country-wide ban on nine varieties of the product. In June, the country's apex food regulator FSSAI banned the noodles after it allegedly found lead in Maggi samples. The Bombay high court later lifted the ban and allowed Nestle to bring back the product only after it met certain
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estle lashed out at food regulators after a government food-testing laboratory in Lucknow allegedly found lead beyond permissible limits in its pasta products. Nestle said in a statement that the laboratory is not NABL accredited nor is notified by FSSAI. The results of the laboratories which are not accredited cannot be relied upon. Maggi Pazzta is 100% safe. We will work with the authorities to resolve the
conditions. On the current pasta issue, Nestle India said: "We have seen media reports claiming that lead has been found in the product and we are investigating these claims. We have not received any formal notification from the authorities in UP or from the FSSAI about such test results. The media reports also mention that the tests have been conducted at National Foods Analysis Laboratory, Lucknow."
Maggi pasta has lead beyond permissible limit according to UP lab Food Analysis Laboratory, Lucknow, in which lead was found to be much more that the permissible limit." "According to report received on September 2, they failed the tests," he added. According to him, the report has been sent to the FDA commissioner in Lucknow on October 12 for sanction to lodge a case and in case it is received, it will be filed in the court
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estle landed in more trouble after a Uttar Pradesh laboratory alleged that samples of its pasta were found to have lead beyond permissible limits. Pasta samples collected from Nestle distributor Sriji Traders in UP on June 10 were sent to a government laboratory in Lucknow, Arvind Yadav, designated officer at Food and Drug Administration, Mau, was quoted as saying in various media reports.
A Nestle spokesperson said that its pasta was 100 per cent safe. He added, the finished product and raw materials used to make it undergo rigorous testing during every stage of the manufacturing process. We have not received any formal notification from the authorities in UP or from the FSSAI about such test results.’’ Nestle will work with the authorities to resolve the situation as quickly as possible.
Yadav said, “After Maggi, the sample of macaroni pasta was taken from Mau and sent to National
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resident Pranab Mukherjee showed concern on the decreasing land availability coupled with a rising population, and hence stressed upon ways to preserve natural resources to ensure continuous supply of food and fresh water in the country. Citing about 120 million hectares of land at various stages of degradation, he also emphasized upon adoption of more sustainable land use systems and soil management practices. "We surmounted the challenge to food security then. But what about now, when we are confronted with decreasing land availability for agriculture coupled with a rising population? When deterioration in soil health and water quality is reducing agriculture productivity and input use efficiency?," Mukherjee said. He said the dimensions of food security are
many. The level of nutrition in food produce is an important determinant of food sufficiency in the population. In the Global Hunger Index 2015, which combines the three indicators of under-nourishment, child under-weight and child mortality, India is ranked 80th out of 104 countries. "This is totally unacceptable. We have to improve the nutritional status of our population in a timebound manner," the President said. He said people must work hard to preserve our natural resources to continuously receive provisioning service such as food and fresh water; regulating service like climate and pest regulation; cultural service such as educational and ecotourism; and supporting service like soil formation and nutrient cycling. "Agriculture has always received top priority in our policy formulation because early in our planning process, we recognized that we ourselves have to feed our growing population which today stands at 1.28 billion," he said.
Not broken any FSSAI norms, yet to receive FSSAI notice on noodles: Baba Ramdev
Once we receive the notice, we will reply to it at the earliest. We want to say we have not flouted any norms, rules or regulations of FSSAI. We have followed all the rules and regulations of FSSAI. We have not done anything illegal."
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he newly-launched Patanjali noodles may have been at the centre of a raging controversy, but yoga guru Baba Ramdev put up a brave face, saying it has not flouted any FSSAI norms and he is yet to receive any notice from the regulator. Ramdev said "We are yet to receive any notice.
Recently, the Food Safety and Standards Authority of India (FSSAI) Chairperson Ashish Bahuguna had said no approval or licence was granted to Patanjali for its instant noodles. The Ramdev-promoted Patanjali came out with 'atta noodles' earlier this week in 70-gram packs priced at Rs 15, claiming it to be cheaper than those from its competitors, with an aim to take on the market leader, Nestle.
Baba Ramdev’s Patanjali Atta noodles Ramdev to amicably sort product launched but without mandatory approval issue for its instant approval from Fssai
noodles brand with FSSAI
After making headlines and grabbing the attention of social media, with pictures of Ramdev scooping up the noodles when the brand was launched with much fanfare earlier this week, the product has come under scrutiny.
the mandatory product license for its Atta noodles brand. Patanjali spokesperson SK Tijarawala said all approvals are in place. "Our contract manufacturers have got approval and manufacturing license. We don't want to create any confusion and will resolve all matters soon," he said.
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aba Ramdev, promoter of Patanjali Ayurved, stated that his company officials will meet, Food Safety & Standards Authority of India (FSSAI) to cordially sort out the issue over product approval for its instant noodles brand. "We have original copies and all papers are in place. There is confusion of the selling licence. There is lack of coordination and it could be resolved by sitting together," Ramdev said. FSSA) had said that Patanjali had not obtained
FSSAI has already stated that it wasn't possible to continue with product approvals following a Supreme Court ruling in August that upheld an order of Bombay High Court on the issue. According to FSSAI's May 2013 advisory, food products covering a broad spectrum including "novel foods, functional foods, supplements, irradiated, genetically modified foods, foods for special dietary uses or extracts or concentrates of botanicals, herbs or of animal sources" should apply for product approval. The High Court had ruled that the advisory does not have any statutory backing.
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aba Ramdev’s Atta noodle came under the scanner of Fssai and tried to extract itself from a bit of a regulatory twist just days after its launch by insisting it had not violated any food guidelines. Ramdev's spokesman SK Tijarawala said that they had not broken any rules and followed all FSSAI rules and guidelines and committed no violation.
Beverages & Food Processing Times
FSSAI chairman Ashish Bahuguna said the instant noodles brand is yet to obtain mandatory approvals from the regulator.
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WOMEN'S HEALTH
India�s Only Monthly Newspaper for Food, Beverage & Allied Sectors
Return of theL
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Vol. 8, Issue 07, December 2015, 100/-
limate change affects all four dimensions of food security: food availability, food accessibility, food utilization and food systems stability. It will have an impact on human health, livelihood assets, food production and distribution channels, as well as changing purchasing power and market flows. Its impacts will be both short term, resulting from more frequent and more intense extreme weather events, and long term, caused by changing temperatures and precipitation patterns.
et's face it. We all missed Maggi. We all missed "cooking" Maggi in our own signature styles. It never took us "two minutes", but no one ever complained. Since the Maggi ban, a generation has been craving for its favorite instant noodle. And it's good to know the feeling is reciprocated.
Standards Authority of India (FSSAI) issued an order to recall Maggi noodles from the Indian market and banned its sale and production.
Social media brimmed brimming with love letters to Maggi since the ban and Maggi has finally responded. Maggi India came up with a new advertisement professing its love for the country, saying #WeMissYouToo.
the recall process was one of the largest in the history of India’s food industry.
ValuingMaggi noodles stocks at around Rs.320 crore, NestleburnedMaggi at five cement factories across the country into fuel.The company also said
It is true that I do not see eye to eye on many issues that are pertained to BJP but I was definitely impressed by Prime Minister Narendra Modi - who stole the show at COP 21 in Paris. Modi had positioned himself as the loudest voice for the developing world, by pushing the term “climate justice.” In brief, India showed a stance and determined that poor, developing countries are not forced to pay the price for decades in which the U.S. and Europe have polluted the planet, at the very moment when countries like India are becoming major industrial nations. India is now the world’s fastest-growing economy, and is set to become the world’s most populous country in just seven years, according to the U.N. India is also the world’s third-biggest emitter of carbon, after China and the U.S. Also one thing that was really noteworthy was that at COP 21 India spearheaded a new International Solar Alliance, in order to dramatically expand solar-power technology and distribution in poorer countries. Solar power is something developing countries desperately need, even though many are ironically located in the sunbaked tropics. “The vast majority of humanity is blessed with generous sunlight around the year, yet many are also without any source of power,” Modi had said. The Indian Prime Minister outlined his plan for an alliance of countries, mostly African and Latin American, but including also the U.S., China, and France. The group would share solar technology and innovation, and invest in expanding solar power across emerging markets. Modi said India would invest $30 million in building the alliance’s headquarters in New Delhi. Coming back to Indian food processing industry, the cross sword between Industry and FSSAI doesn’t seem to end, so the government is taking steps to ease product approval system of food regulator FSSAI and working on a new mechanism where manufacturers may not need approval for their products if ingredients are cleared. Some 11,500 ingredients have been put on the website for the public opinion, with deadline for public comments to be December 13. So, instead of product approval now, there will be ingredients which are approved and you can go ahead with your innovation and production of the products. This is to harmonize with international standards. According to food Processing Minister Harsimrat Kaur Badal, this sector is facing several challenges like "inconsistent and restrictive regulatory environment" and poor post-harvest infrastructure. Seems like this month is a month of challenges; where on one hand India's second largest tea maker Tata Global Beverages has forayed into instant coffee business in the country by launching Tata Coffee Grand, which will compete with Nestlé’s Nescafe and Hindustan Unilever's Bru.On the other hand, Coca-Cola is planning an entry into the pure dairy segment, which will pit it against Amul, Britannia and Nestle. The maker of Thums Up cola and Minute Maid juice plans to introduce its global milkbased beverage brand Vio in India — without any carbonation. Coca-Cola's move to tap the dairy market comes as fizzy drink sales have been struggling with low single-digit growth over at least the past five quarters. While aerated drinks are at Rs 14,000-crore category, they are driven by seasonality and remain indulgence consumption. Packaged dairy is at Rs75, 000-crore market that's growing at about 15%. Packaged milk alone contributes as much as Rs 50,000 crore. Maggi is back people are happy but Nestles woes do not seem to end. As now a food regulatory lab In Uttar Pradesh has found that Maggi pasta is not safe for consumption as it has high level of leads….but Nestle has questioned the validity of lab test done by the UP government saying it was neither "NABL neither accredited “nor” notified by FSSAI". The Swiss giant also reiterated that its Maggi Pazztais 100 per cent safe, and persisted that Lucknow-based National Foods Analysis Laboratory and its reports cannot be relied upon. Finally on sweet note, I would like to tell that our Bengal’s 'mishti doi' may soon compete with French crème Brule. A staple of joyous Bengali occasions, the sweet yogurt could find its way to European dinner tables as French dairy giant Danone is piloting a reverse innovation project to launch desi dairy products in some of its international markets. Well this all I have for my readers today, Ending by appealing to my fellow Indians to please take care of our environment and not play with it. What has happened in Chennai is our own fault, we messed with nature and it reiterated …we need to take care of our milieu and work on climate changes to save our earth. My deep condolences with Chennai and hopefully we now understand what mistake we have done and learn from it.
In a very minimalistic and simple ad, Maggi voiced the query inside everyone's head: "Kabwapas aayega yaar? (When will it be back?)" Yes, most people have cooked Maggi in the middle of the night; while some woke up hungry, others were watching midnight football and thought it made a great midnight snack. The ad echoes all the times when we decided not to bother mom and cook up a storm. Maggi hasfinally hit the shelves this month. Swiss food giant Nestle Indiahad confirmed all samples of its instant noodles were cleared by accredited laboratories mandated by the Bombay High Court. What had happened? Early this year, an Indian government laboratory said it had detected lead levels above permissible limits in a sample of Maggi noodles. However tests by both Nestlé India and an independent laboratory showed lead levels in Maggi noodles to be well within the limits set by the Indian food safety authorities. In light of growing consumer confusion, Nestlé India announced that it would temporarily stop selling Maggi noodles until the situation was resolved. On the same day, the Food Safety and
Beverages & Food Processing Times
The actual recall of Maggi noodles from the market was immensely complex and a mammoth activity -the largest in the history of Nestle. Maggi noodles worth Rs.210 crore were withdrawn from the market and destroyed even as another Rs.110 crore worth of finished and related material stocks remained at its factories and distribution centres. 5,848 tonnes of Maggi noodles were collected from the market shelves by Nestle distributors and 5,635 tonnes of noodles reached distribution centres from where 169 tonnes of noodles were incinerated. The process of incineration was done in June this year. Nestlé India consequently filed a legal petition with the Bombay High Court, seeking a judicial review of this order. The Court ruled in favor of Nestlé and overturned the government’s ban on Maggi noodles. The Court also ruled that Nestlé India should conduct fresh tests in accredited laboratories out of the available samples; once the tests are in favour of the Company, it can manufacture the product, which will also undergo tests for lead before sale can commence. Nestlé India commenced with these tests and all three laboratories found Maggi noodles safe, with lead content well within the permissible limits. How had it affected on Nestlé’s Market
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WOMEN'S HEALTH
prodigal Maggi is back Bachchan and Madhuri Dixit in Uttar Pradesh in June when food regulators where testing the product. Narayanan said there will be a “fairly substantial” increase in marketing spends and advertising campaigns to bring back customers in whose minds “a seed of doubt has been planted” due to the crisis. Maggi would now be available across the country except in Bihar, Odisha, Manipur, Nagaland, Tripura, Punjab, Himachal Pradesh and Uttarakhand, where the company is yet to secure the requisite clearances. The company is engaging with these eight states to complete due diligence procedures. Narayanan added Nestle India has not changed the contents of Maggi. He informed, “We are giving what consumers have loved for 32 years, and the only change is on the package. There is a small set of words that conveys the company's commitment to quality and goodness that consumers can trust.” Post the Maggi crisis, Nestle India will go for product portfolio diversification with focus on dairy, coffee and beverages as well as chocolates and confectionery in order to avoid overdependence on a single product.
FSSAI scare of excessive lead and undeclared monosodium glutamate (MSG) banned Maggi noodles and this hit the company hard since it depended significantly on the instant noodles brand in the country—around 25% or Rs 2,500 crore of the company's 2014 annual revenues was through sales of the iconic brand. . Nestlé’s profit plummeted this year, and its Q3 net profit dived by around 60% to Rs 124 crore from Rs 311 crore in the corresponding quarter last fiscal year due to the absence of Maggi noodles from its portfolio. Prior to the ban, Maggi ruled India’s instant noodles market not just with its ubiquity in the remotest corners of India but also with its popularity as a quick-fix meal. The brand had over three-quarters share of the market. But the months-long ban on the popular noodles brand had severely hit Nestle India’s sales revenues for the last two quarters. The multinational has recalled and gutted over 30,000 tons of the instant noodles since the ban. Present scenario Nestle India has brought back its Maggi noodles to store shelves,at the time for India’s biggest celebration, the Diwali festival of lights, five months after it was banned over allegations that it was dangerously contaminated with lead. Nestle India said the noodles are “100% safe” and have cleared laboratory tests mandated by the Bombay High Court. The popular ‘doh minute’ (‘doh’ is two in Hindi) Maggi instant noodles were taken off the shelves across the country in June this year, for the first time since its launch over three decades ago, after the government-run food regulator Food Safety and Standards Authority of India found the product contaminated with lead and taste enhancer monosodium glutamate (MSG) beyond permissible levels. Now, the noodles are back. Besides store shelves, Nestle India has partnered with leading Indian online retailer Snapdeal to roll out online offers. Nestle offered at 144 rupees (just over $2) for 12 packs of 70 gms each quickly sold out. The variant that has made a comeback is the masala (mix of Indian spices) taste which is the most popular. It took just 5 minutes for 60,000 welcome kits of Maggi to be sold out on Snapdeal as consumers
thronged the e-commerce platform to lap up their 2-minute instant noodles. The welcome kit consisted 12 packs of Maggi, a 2016 Maggi calendar, a Maggi fridge magnet, Maggi post cards and a 'Welcome Back' letter. There has been much anticipation for the return of one of the favourite Indian brands and no one had imagined to witness a phenomenal response to this sale from customers across the country. Maggi has been relaunched in 100 towns through 300-odd distributors and is being rolled out in a staggered manner across the country, except in eight states where it is still not allowed. The company said it is engaging with those states where the noodles brand is still banned. The product is currently being manufactured in three of the five locations including in Nanjangud, near Bangalore. In the two other locations, Nestle India is in talks with the authorities to get permissions to commence manufacture. On the return of Maggi, Harisimrat Kaur Badal, Union Minister of Food Processing Ministry conceded that the controversy over the popular instant noodle brand had only left a bad taste in mouth. She said, "Industry must not be harassed and at the same time transparent systems should be put in place to ensure consumer safety." Badal added that the entire episode did not leave a very positive taste in anybody's and while the industry is given a free hand to blossom and grow, there has to be regular checks and transparent systems in place which they have to adhere to. If anybody is not adhering to it, they must be taken to task." Promotional strategy According to Suresh Narayanan, chairman and managing director, Nestle India, their promotional strategy will be across three platforms. Firstly traditional media will be used to reassure consumers regarding the safety of their product. Secondly Nestle would haveto connect digitally with our target group. Thirdly, there will be a lot of events for brand activation.
War is on In fresh trouble for Nestle India Ltd, the Food Safety and Standards Authority of India (FSSAI) moved the Supreme Court against the Bombay High Court order lifting the ban on Maggi noodles in India. India’s apex food safety regulator, FSSAI challenged the Bombay High Court ruling that allowed Nestle India to get fresh samples of Maggi noodles tested by accredited laboratories and resume selling them if found safe for consumption. The FSSAI petition said that the high court had “erred” by asking Nestle, instead of a neutral authority, to provide the fresh samples for testing. FSSAI termed the High Court's August 13 order as "erroneous" and questioned the sanctity of the samples provided for re-test to governmentapproved labs. The same day when Fssai moved the Supreme CourtBaba Ramdev’s Patanjali Ayurved announced its entry into India’s market for instant noodles through a ceremony choreographed with corporate-style announcements, advertisement campaigns and chefs recruited for cook-and-serve demonstrations. Ramdev thinks that theword, ‘noodles’, is stuck in people’s minds, so Patanjali did not see any point changing it to sevaiyan.“But we are bringing a product that is made from Atta (whole-wheat flour) and not from Maida (refined wheat flour). We also use rice bran oil, which is superior in nutrition to palm oil, he added. Baba Ramdev believes that they could give stiff competition to Maggi noodles. But has he forgotten that Nestle sells both Atta and Maida noodle varieties but did not say which oil it used
Thecontracts with brand ambassadors Amitabh Bachchan and Madhuri Dixit for promoting Maggi have not been renewed. Though it is not being ruled out but as of now Nestle has no plan to use brand ambassadors for promoting the product. A court case had been filed against Amitabh
Beverages & Food Processing Times
in them. Ramdev appeared to be borrowing a promotional line from Nestle, which uses the slogan “Taste bhi, health bhi (Taste, and health too)” to promote its vegetable Atta noodles. Ramdev, just before taking a bite of Patanjali’s Atta noodles, said: “Our noodles come with health and taste.” Saying this, the most amusing thing is that even though Ramdev had a filmy style of launch for his noodles but did not obtain mandatory product approvals from the Food Safety and Regulatory Authority of India, even though Patanjali Atta Noodles packets display an “FSSAI license number, 10014012000266. Ashish Bahuguna, FSSAI chairperson who also holds additional charge as its CEO said that Fssai has not given any approval to Patanjali Atta Noodles and they are pursuing it, and how can license be given for a product that has not been approved? Licenses are issued by the state government to manufacture certain items. But approvals for (non-standardized) products are given by regulatory authority. That approval was not taken and Bahuguna doesn’t know how the license was procured.” Oil and Food Insight FSSAI, petitioned the Supreme Court to block the return of Maggi noodles on a day a company mentored by yoga teacher Baba Ramdev launched its own brand of instant noodles. Isn’t it a bit coincidently that the FSSAI challenge and the launch of the Patanjali brand appeared to be just a coincidence. But anyway it is far-fetched to connect the two, but let’s see how things play out. Nestle expressed surprise at the FSSAI plea. “We’ll want to read the petition in detail but any samples of Maggi noodles can only come from the company. Who else can provide them?”Said Nestle. Amid all the speculation of the connection of Nestle, Fssai and Ramdev, FSSAI has claimed that Ramdev has not taken approval from them but still has an Fssai license number, so according to Fssai CEO the matter has been brought to and relevant step will be taken. I don’t know if it was an instrumented move but Ramdev had tried to cash on Maggi’s predicament and must have felt a set back by Maggi’s comeback because the much loved noodle was welcomed with open arms. Yesterday while shopping in a supermarket I saw a lady buying a whole carton of Maggi, while a kid buying about 15 packets of Maggi and group of teenagers talking about Maggi party. All in one place imagine cumulative effect of Maggi noodles.
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Vol. 8, Issue 07 - December - 2015
CORPORATE NEWS
Sanjeev Puri promoted as Director FMCG of ITC
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n a top-level change, diversified group ITC has elevated Sanjiv Puri as Director of its FMCG business. Puri would take charge from P Dhobale, who is a director on the board of ITC and has responsibility for the group's FMCG businesses. With effect from December 6, 2015, all responsibilities currently discharged by P Dhobale will vest with S Puri. Puri would also have responsibility for ITC's Packaging & Printing Business (PPB) and Paperboards and Specialty Papers Division (PSPD) business from January 22, 2016.
With effect from January 22, 2016, Puri will oversee PPB and PSPD and consequently both the chief executives would report to him," it said. Puri is currently, President of ITC's FMCG Businesses which includes cigarettes, foods, personal care, education & stationery products, matches and agarbattis. "The visibility of new roles will ensure appropriate participation in the planning process of taking over the new responsibilities," Deveshwar said. In 2014-15, ITC had revenue of Rs 36,507.40 crore with net profit of Rs 9,607.73 crore. Shares of ITC today settled at Rs 342.60 at BSE, up 1.96 per cent from previous close.
ConAgra Foods plans to split into two independent public companies
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onAgra Foods plans to split itself into two separate public entities; one consisting of its consumer portfolio, and the other comprising a foodservice portfolio of frozen potato products. The consumer business will be branded as Conagra Brands, Inc, and the frozen potato business will operate under Lamb Weston. The split is expected to be completed in the fall of 2016. Expected to be structured as a spin-off to the Lamb Weston business, it will be tax-separate both to the company and its shareholders, who will own shares of both the entities. ConAgra Foods CEO and President Sean Connolly said: "The decision to separate into two pure-play companies reflects our ongoing commitment to implementing bold changes in order to deliver sustainable growth and enhanced shareholder value. "We carefully considered a variety of strategic alternatives, and believe that the separation of our Lamb Weston specialty potato business from our consumer brands business is the best way to drive shareholder value. The separation will enable each company to sharpen its strategic focus and provide flexibility to capitalise on the unique growth opportunities in its respective market." ConAgra Foods expects the split to provide other material benefits to individual companies, such as greater management focus on standalone companies; greater flexibility to capitalize on long-term opportunities; and the ability for investors to value and invest in the two companies based on individual operational and financial performances. Consumer Foods segment reported revenues of approximately $7.2bn in fiscal 2015.
Conagra Brands will also include several businesses currently operating under the Commercial Foods segment, which comprises the traditional foodservice business (sales of branded products to foodservice companies), Spicetec Flavors & Seasonings, JM Swank, and some private label operations. These businesses, which generated revenues of approximately $1.8bn in fiscal 2015, will be moved under the Consumer Foods segment in the first quarter of fiscal 2016. The company's stake in the Ardent Mills jointventure is likely to remain with Conagra Brands. Lamb Weston's portfolio will include frozen potato, sweet potato, appetizer and other vegetable products, and retail frozen products under licensed brands as well as private label. For fiscal 2015, Lamb Weston reported revenues of approximately $2.9bn. Following the split, the Lamb Weston entity will retain the firm's interests in several joint-ventures, including Lamb Weston / Meijer in Europe. The company is yet to decide on the capital structure and capital allocation policy for Lamb Weston. The management team for Lamb Weston will be announced later. Goldman Sachs and Centerview Partners are serving as financial advisors, and Jones Day and Davis Polk & Wardwell LLP are serving as legal advisors to ConAgra Foods. Meanwhile, ConAgra Foods plans to use the proceeds from the sale of its Private Brands business, which is still pending, to cut debt.
To impress Investors Kraft Heinz will have to cut more jobs
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ayoffs at Kraft could lead to better profitability for Kraft Heinz, according to a Credit Suisse analyst. "Kraft needs to get smaller before it can begin to capitalize on its scale," wrote analyst Robert Moskow. Since the merger, Kraft Heinz has already announced two major rounds of layoffs, including 2,500 nonfactory jobs in August and 2,600 factory jobs earlier this month. "The Kraft restructuring plan thus far entails a 10% reduction in the workforce with half at the headquarters level and half in the supply chain," Moskow wrote. "But Heinz' workforce shrunk by 27% after 18 months under 3G's management." After more jobs cuts, Kraft Heinz could "achieve if
not exceed expectations for EBITDA growth even if revenue continues to decline," Moscow wrote." Earnings recently declined for the combined company, dropping 3.4% to $1.48 billion for the three months ending in September as compared to the previous quarter. It reported revenue of $6.36 billion falling 9% from a year ago, which took into account pro forma revenue. Cost-cutting measures have become a necessity for many food and beverage companies, from Coca-Cola to Mondelez, to attempt to alleviate falling profits. In addition to layoffs, Kraft has made other cuts to trim down its operations, like no more free snacks for employees.
Nestle India’s main focus on Maggi, Nescafe and e-commerce are key focus areas for NestlÊ India
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n analyst has written in a report after meeting the consumer products company's new head, Suresh Narayanan that Nestle India is focused on bringing back double-digit growth and ensuring a healthy mix of volumes and pricing,. The report said that the primary focus of the maker of Maggi noodles and Nescafe coffee is volume and market share, and then sustainable growth. Another big focus area is ecommerce. The company has just restarted the sales of the popular Maggi instant noodles in India, five months after it withdrew and destroyed 37,000 tonnes of the packaged noodles after the food regulator reported excessive levels of lead in it. This led the Indian unit of the Swiss company to post an AprilJune quarter loss, its first in decades. It posted a sharp fall in profit for the July-September period as well. Since the relaunch last week, Nestle India has sold 3.3 crore packs of Maggi in 350 towns across
India. "Nestle is targeting the middle class of India which is aspirational. This (middle class population) is expected to become 980 million by 2020. Narayanan replaced Etienne Benetin in August as the CMD post the Maggi controversy. He was previously chairman and chief executive of Nestle Philippines and before that head of sales at Nestle India. Narayanan has a fair mix of experience in developing and developed markets. According to the report, Narayanan said he is a man in a hurry but also pragmatic and has identified a list of 10 must win battles. These include fixing the Maggi issue, targeting spaces in chocolates and confectionaries, coffee and beverages as well as focusing on new categories. New categories need to have size, sustainable growth and margins and also have possibility of differentiation by Nestle and the company is also looking at moving beyond the crisis, greater engagement and commitment to corporate social responsibility and bringing Nestle India back to stability. The company with 7,200 employees is looking at productivity-focused culture, enabling, empowering, engaging and energizing employees to make them fit for the battle and bringing in accountability with responsibility, the report said. The overall degree of sensitization has gone up significantly across the organisation and all suppliers are now closely audited by Nestle, it said
NCDRC reserves order on
testing of 31 more Maggi samples
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he apex consumer court reserved its order on whether 31 more samples of Maggi noodles should be sent for testing in connection with the government's Rs 640 crore suit against Nestle India for alleged unfair trade practices. A bench of National Consumer Disputes Redressal Commission (NCDRC) reserved its verdict after the Department of Consumer Affairs said it wished to test 31 more samples, which would be the last batch to be tested. The department had said it had identified 31 samples from different batches in a Food Safety and Standards Authority of India (FSSAI) godown which it would like to test. The consumer court asked the government to provide a list of accredited laboratories for testing of the samples.
Beverages & Food Processing Times
In its petition, the Department of Consumer Affairs has alleged that Nestle India had "indulged in unfair trade practices by false labelling of Maggi Noodles in as much as it states 'No added MSG' prominently on packet, despite presence of MSG." Monosodium glutamate is a salt used in the food industry for enhancing flavour. The department has also alleged that the company sold "defective" goods to the public with the presence of lead and MSG and indulged in unfair trade practices by offering for sale Maggi Oats Masala Noodles with Tastemaker without risk assessment and product approval. Among other things, it has sought a direction to the company to recall all "defective" and "hazardous goods" with respect to Maggi noodles with Tastemaker in all its variants and Maggi Oats Masala Noodles with Tastemaker.
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Vol. 8, Issue 07 - December - 2015
MEAT NEWS
India global supremacy in Buffalo Meat export to continue in 2016 increase in quantity than a year earlier at 710,791 tonnes valued at Rs 12,171 crore as per the data of 'Agricultural and Processed Food Products Export Development Authority (Apeda). However, Indian companies are expecting the situation to get better in the coming months.
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he latest report of United States Department of Agriculture (USDA), states that India’s current global supremacy in the buffalo meat export is expected to continue in 2016 as the demand improves in Southeast Asia, Middle East and North Africa. The report predicts gains for major countries including India, Brazil and the US. The global production of beef is forecast to rebound 1 per cent higher to 59.2 million tonnes in 2016 as exports by the main traders are expected to rise 3 per cent to 9.9 million tonnes on stronger demand. Unlike other countries, India exports only buffalo meat as slaughter of cows and bullocks are banned in most states. India's exports in the first six months to September, 2015 have shown a dip. The buffalo meat exports have fallen 10 per cent in value despite 3 per cent
The devaluation of Brazilian currency real seems to have hit buffalo meat exports from India. Brazil is currently the principal competitor of India. India has been attracting buyers because of competitive rates in buffalo meat. Another dampener for exports has been that Russia has restricted imports from India because of several cases of foot and mouth disease (FMD) reported from Uttar Pradesh. Russia had started buying from India early this year after approving four processing plants in India including three in Uttar Pradesh, which is the largest buffalo meat producing state in the country. The general unrest in India over the beef ban also has affected the export sentiment making it difficult for the exporting companies to operate. According to the report, reduced slaughter will drive Australian production lower as inventories have been depleted. The US production is expected to rise for the first time since 2010.
Consumption slows down for live chicken giving way to processed chicken on every plate an investment of ` .100 crore. "We are hopeful that by that time the demand and awareness for processed chicken will go up," he said.
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oultry farms such as Sneha Farms and SR Hatcheries are spreading their wings to the processed chicken business as food chains including KFC and McDonald's expand in India and a decline in rural consumption sent prices lower. With the sale of live chickens accounting for more than 95% of India's consumption, any decline in demand affects poultry companies, which are seeking new opportunities for growth. "That is why we have started exploring new avenues for generating business for us," Ram Reddy, MD of Hyderabad-based Sneha Farms said. "The processed chicken business is at a very nascent stage in India, but as these big food chains like KFC, McDonald's and others are expanding, we see the demand for processed chicken going up." Sneha Farms is investing Rs 100 crore to set up a plant in Telangana with a capacity of processing 6,000 birds per hour. Sneha Farms produces 2 lakh chicks a day. Ranjith Reddy, managing director of SR Hatcheries, said his company, too, plans to build a chicken processing plant in 2017 with
Norway to double sea Food exports to India
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orway eyes doubling seafood exports to India Norway, the second largest seafood exporting country in the world, is hopeful of doubling its exports to India over the next few years. It has also urged the Indian government to improve the country's marine regulatory framework. 3 0 Google +0 1 Norway eyes doubling seafood exports to India Norway, the second largest seafood exporting country in the world, is hopeful of doubling its exports to India over the next few years. It has also urged the Indian government to improve the country's marine regulatory framework. "India has a large potential when it comes to expanding its fishing fleet and improving its marine regulatory framework," Norway's Minister of External Affairs Borge Brende said here today. Norway is the second largest seafood exporting country, whereas India is the second largest aquaculture producer in the world. "We would be happy if we are able to double the export of seafood to India over next few years. Hence, we have asked that the import duty of 30 percent
Gadre enters frozen Sea Food segment The company, he said, is eyeing a turnover of Rs 650 crore by the end of this fiscal (including exports), of which Rs 25 crore will be from retail operations in India.
In West Bengal, companies are thinking about entering the processed chicken business. Madan Mohan Maity, general secretary of the West Bengal Poultry Federation, said, "Definitely, processed chicken is the way forward for the poultry industry in India. In fact, our neighboring nation Sri Lanka only produces processed chicken." While urban India may settle for processed chicken, live chicken will still be preferred in the rural areas, Maity said. India's per capita consumption of poultry meat is estimated at about 3.1 kg compared with the world average of 17 kg. The market is growing and chicken meat consumption is forecast at 4.19 million tonnes in 2016, up 8% from levels in 2015, according to a US report on the Indian poultry industry. This year, the country's poultry industry has suffered because of the dry spell during the kharif season, which affected rural India. Sneha Farms estimates rural consumption has declined d 25% in the past three months. "Things have started looking up, but poultry farmers have taken a big hit as the price they are getting is less than the cost of production. While a kg of chicken is available at Rs 60-62, the cost of production has been Rs 70 per kg," Reddy said. Tamil Nadu, Telangana and Maharashtra are the largest consumers of chicken in India.
on seafood should be completely removed by the government here," said Terje E Martinussen, managing director of Norge. Norge is 100 percent owned by the Norway government's Ministry of Trade and Fisheries, which promotes its seafood exports across the globe. Norway had exported 275 tonne of salmon fish worth USD 4 million to India in 2014. But it eyes doubling its export of salmon fish to India over next few years. Exporters from Norway are demanding the removal of import duty on seafoods. At present, an import duty of 30 per cent of total import value is levied by the Centre on seafood. Norway is also looking for speedy handling of the seafood imports coming from there. Martinussen said, "Seafood provides business opportunity to India because lots of people are involved in processing and fish trade and its transport here." "There must be speedy handling of seafood goods coming to India in terms of handling of import document to get goods cleared in an expedite manner because it's related to fresh fish," he added.
Its total turnover last year stood at Rs 525 crore. It has six plants – two in Gujarat, three in Maharashtra and one in Karnataka.
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aharashtra-based Gadre Marine Export, which has entered into the packaged frozen premium sea food segment, is looking to double its turnover from retail operations in India by the end of this fiscal. Majority of the company’s revenue (over 95 per cent) comes from exports that include processing and packaging of frozen marine products and value-added ones. Gadre Marine’s offerings include Surimi-based (Japanese fish paste) products, marinated readyto-cook fish and cut & clean raw fish. “We are targeting the urban customers in India and have accordingly expanded our SKUs (stock keeping units). “While around Rs12 crore of our total turn-over came from Indian operations last fiscal, we expect it to double to around Rs 25 crore by FY16,” said Arjun Gadre, Owner of Gadre Marine Export. Turnover target
Beverages & Food Processing Times
According to Gadre, products like Surimis, mackarels and crab claws are slowly finding their presence amongst the urban population. The company, however, hopes to get the first mover advantage and create a niche for itself in the segment. At present, the segment in India is dominated with offerings like prawns and basa fillets from players including IFB, Sumeru and Cambay Tigers.
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Vol. 8, Issue 07 - December - 2015
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Vol. 8, Issue 07 - December - 2015
INGREDIENTS NEWS
New research shows that sugar seen as “friend AND foe” by European consumers
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ew quantitative consumer research commissioned by functional ingredients manufacturer BENEO shows that consumers perceive sugar as both a ‘friend and foe’ in their nutrition. The results also underline that sugar and carbohydrates play a key role in consumer behaviour when dealing with health concerns. More than 5000 consumers across five European countrieswere surveyed on their perception of sugar, carbohydrates and nutrition, with regard to blood glucose response. Consumers see carbohydrates as key in health issues The results show that consumer health concerns in order of importance are weight management (43 percent), fatigue or low energy (36 percent) and stress (35 percent). Consumers are aware that the amount and type of sugars, as well as carbohydrates in general, play a major role in coping with these health issues. Consumers’ main motivation for sugar reduction in their nutrition was because of its negative effects on their health. 58 percent of those respondents who wanted to eat less sugar said that their major driver was to control their weight. Also, the detrimental longterm effects of sugar consumption such as diabetes were a concern, being mentioned by nearly one out of three consumers who were trying to cut their sugar intake. Although wanting to reduce the amount of sugar consumed, respondents were not prepared to forego the feeling of sugar-like indulgence: 60 percent said that they ate sugar because they liked the taste and one out of three participants (33 percent) responded that sugar improved their overall mood. Consumers increasingly differentiate between ‘good’ and ‘bad’ carbohydrates Despite consumers seeing the benefits of less sugar intake, they also recognised that carbohydrates are the major energy source for body and brain. 46 percent of respondents stated that the main reason they consumed carbohydrates was that they
Cargill develops new starch enabling 50% reduction fat in yoghurt
“give energy”. At the same time, consumers are starting to differentiate between different types of carbohydrate, with more than one out of two participants making a distinction between ‘good’ and ‘bad’ carbohydrates. Wholegrain, fibre, complex carbohydrates and slow-release carbohydrates were seen as ‘good’; with 51 percent of respondents regarding slowrelease carbohydrates as generally better and 60 percent linking slow-release carbohydrates with sustained energy. Choosing ingredients such as the slow release carbohydrate Palatinose™ (isomaltulose), the chicory root fibres Orafti® Inulin and Oligofructose, or the sugar replacer ISOMALT, can help manufacturers to meet consumer demand for alternatives that support healthy weight and energy management. These functional ingredients are naturally derived from beet sugar and chicory root. Having a mild sweet taste they help meet consumer desire for sugar-like indulgence, while improving the nutritional profile by reducing high glycaemic sugars and/or calorie count. BENEO has received positive EFSA opinions for the blood glucose lowering properties of its dietary fibres oligofructose and inulin, as well as for the unique slow release carbohydrate Palatinose™ and the sugar replacer ISOMALT with corresponding health claim approvals. Gudrun Dold, Consumer Insights Manager at BENEO: "The research results show that sugar and carbohydrates play a decisive role in daily nutrition. Although consumers want to eat less sugar, they do not want to sacrifice that all important sugar-like taste and indulgence. Consumers are also beginning to distinguish between ‘good’ and ‘bad’ carbohydrates, making it even more important for producers to consider the quality of the carbohydrates used, when developing game-changing food and drink products for every lifestyle and age group.” For further details and insights on the consumer research Gudrun Dold, Consumer Insights Manager, BENEO, is available for comment.
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argill has developed a new starch, which can reduce fat in yoghurt by 50%, while retaining taste and texture.
Called C CreamTex 06329, the new modified starch has been created using Cargill's proprietary technology to bolster the texture and rheological feature of the final product. Cargill Texturizing Solutions EMEA starch product manager Denis Palacioglu said: "Yoghurt has become an irreplaceable component of the European diet. In particular, fat-reduced yoghurt has grown to become a top seller in the overall dairy health and wellness segment." "If we look closely at this segment, we can see that fat reduction is by far the most popular option in health and wellness yoghurt. But we also know that, while increasingly looking for healthier options with fewer calories and less sugar, consumers do not want to forsake the sensorial aspects connected with eating dairy, preferring those products that are both good for you and offer a creamy, silkysmooth texture. Certainly not an easy combination to achieve for dairy manufacturers." The company claimed that most Hydroxypropyl (HP) starches available in the market cannot meet sensorial aptitude of yogurt with complete fat, often it is seen that the yoghurt's flavor is lost when fat is replaced with starch. "Yoghurt has become an irreplaceable component of the European diet." However, this patent-pending starch is claimed to balance between technical impact and sensorial aptitude, even after enabling fat reduction of more than 50%. Cargill Texturizing Solutions senior dairy application specialist Fabien Bouron was quoted by the website as
Last month, Cargill developed a next-generation zero-calorie sweetener, called EverSweet, using a fermentation method to separate molecules found in the stevia plant. The sweetener was launched at the Supply Side West event, which was held between 7 and 8 October, and will be commercially available in the US by 2016. EverSweet was invented in conjunction with Evolva Holding, a Swiss biotech company. This development was claimed to offer a solution to soft drink companies, which have been looking for a caloriefree sweetener that not only tastes good but will also allay the concerns of consumers who are reluctant to consume products containing unnatural ingredients.
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C CreamTex 06329 modified starches will be showcased at the Food Ingredients Europe event to be held in Paris from 1 to 3 December.
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saying: "Through our dairy lab research, done via both rheological tests and sensory panels, we identified a clear gap in terms of creaminess, mouth thickness and shine when using HP starches, with a high degree of undesirable stickiness. So we developed a new technology and created C CreamTex 06329 modified starch to offer our customers the opportunity to fill that gap and achieve a greater level of fat reduction in their recipes. Additionally, being a starch-based solution, it is a reliable, costeffective and non-animal derived fat replacer."
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Pearl - For Sea Food Corino - For Cheese Gusto - For Meat Noodlephos - For Noodles Flour P - For Atta
PEROXIDE DIVISION Hydrogen Peroxide (Food / Tech) Per Acetic Acid (Food / Tech)
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Vol. 8, Issue 07 - December - 2015
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Vol. 8, Issue 07 - December - 2015
NEWS
DuPont Nutrition & Health Brings Substantiated Science to Customers at CPhI India DuPont will showcase HOWARU® premium probiotics and OsmoAid® Lactitol among other health ingredients solutions at CPhI India 2015, 1-3 December, Mumbai, India
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uPont Nutrition & Health continues to focus on bringing industry-leading science and research to its dietary supplements and pharmaceutical customers in India. Reinforcing its deep market knowledge, product insights and innovative science know-how the company will showcase a range of health-enhancing benefits at CPhI 2015 from Dec 1-3 in Mumbai, India.
DuPont Nutrition & Health combines in-depth knowledge of food and nutrition with current research and expert science to deliver unmatched value to the food, beverage and dietary supplement industries. We are innovative solvers, drawing on deep consumer insights and a broad product portfolio to help our customers turn challenges into high-value business opportunities.
At the event, visitors will interact with experts on the range of DuPont™ Danisco® products that promote good health, driven by substantiated science. The platform will provide an opportunity to experience the company’s healthier profile of dietary supplements that address consumer needs in sync with emerging health trends. Visitors at the booth will have a chance to experience a selective range of DuPont™ Danisco® portfolio in finished formats with an array of bioactive ingredients that deliver clinically documented, health-enhancing effects. This will include products solutions in the range of Probiotics, OsmoAid® Lactitol, Betaine and Litesse®. With science at the center of its market leadership, DuPont Nutrition & Health will host an insightful technical presentation on probiotics on December 2 (12:0012:45 PM IST) at the CPhI event. The topics covered will focus on both digestive and immune health of the consumer. DuPont will appear at CPhI India in collaboration with Indian distributor S.A. Pharmachem. Placed at the exhibition Hall No. 1 inside Booth E -6, DuPont will highlight finished formats in dietary supplements prototypes in three principle areas: Cardiovascular Health: solutions that promote the maintenance of healthy cholesterol levels. Sports Nutrition: health ingredients demonstrated for optimal sports performance and to support muscle health. Immune Health: clinically documented, demographic-focused solutions to help consumers maintain a healthy immune system that can deal with the challenges their bodies face every day whilst supporting general well-being. DuPont™ Danisco® is the brand for a range of products that help provide enhanced bioprotection, an improved nutritional profile, and better taste and texture with greater cost efficiency and lower environmental impact, meeting the needs of manufacturers of food and beverages, dietary supplements
DuPont (NYSE: DD) has been bringing worldclass science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit www.dupont.com.
and pet food. Through the work of the global network of food scientists and technologists in DuPont, the Danisco® range is supported by a uniquely broad spectrum of know-how across applications and processing.
Parag Milk Foods partners German cheese maker Hochland to bring Almette in India
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arag milk ties up with German cheese maker Hochland to import and market its cream cheese brand Almette in India, which will be co-branded as 'Go Almette'. Parag Milk Foods Chairman Devendra Shah said, "With the launch of Go Almette in the country, we are broadening our portfolio of consumer health and nutrition based products. With this co-branding, we are also embarking upon a new relationship with Hochland Group". The partners have launched two variants of Go Almette - original and fine Herbs - and will soon be launching other variants as well to enhance the consumer taste buds. In near future, the company will be expanding its product portfolio with an increased focus on health and nutrition products to suit the Indian palate, he said. With the launch of Go Almette, we are looking forward to a fruitful cooperation with various possibilities to introduce new products and strengthen Parag Milk Foods' position in the Indian market," Hochland SE, Division Manager New Business Development, Johannes Rogg said. Initially, Parag Foods will be launching the product in select major metros of the country starting with Mumbai and subsequently, they will be expanding the reach to the other tier II cities, it said. Besides offline and digital advertising, the company also plans to tie up with major e-commerce portals.
Beverages & Food Processing Times
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Vol. 8, Issue 07 - December - 2015
CHOCOLATE NEWS
Cargill and Mondelez partner on cocoa sustainability programme in Indonesia
UAE-based luxury chocolate brand Al Nassma introduced a first-of-itskind camel milk chocolate in India
Sitti Asmayanti said, "After a successful first collaboration with Cargill in Indonesia in 2014, we are very excited to be working in partnership again on a large scale project in Indonesia. "Mondelez International plans to reach 40,000 farmers in Indonesia, and we believe this project will be a major step forward in reaching this commitment."
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argill's cocoa and chocolate unit and Mondelez International have introduced a two-and-a-half-year programme to bolster the livelihood of cocoa farmers with smallholdings, as well as to encourage sustainable agricultural practices in Indonesia. The companies expect that the programme will benefit 6,000 farmers and their families in the Kolaka and Kolaka Timur districts of southeast Sulawesi. Part of the Green Prosperity Sustainable Cocoa Production Partnership (GP-SCPP) national initiative, which is led by Swisscontact in Indonesia, the programme is supported by a grant from the Millennium Challenge Account, which has provided funds to match with that of Mondelez and Cargill. Cargill Southeast Asia Cocoa Life manager Andi
The programme is expected to provide training in sustainable farming practices in order to boost productivity and reduce carbon footprint. As part of this programme, Mondelez Cocoa Life will tie up with an NGO to empower cocoa communities. This programme is aimed at securing farmers' livelihoods and ensuring the supply of cocoa in the long term. Since 2014, Mondelez and Cargill have been working together to help farmers in Sulawesi in order to push Indonesia as a leading producer of sustainable cocoa. Earlier this year, the two firms inked a formal partnership agreement to support the Cocoa Life programme of Mondelez International.
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AE-based luxury chocolate brand Al Nassma introduced a first-of-its-kind camel milk chocolate in India. This will be retailed by Nuance, a travel retail brand that is part of the Dufry Group, at the duty-free section in the Kempegowda International Airport, Bengaluru (KIAB). Al Nassma's luxurious offerings are sold across the Gulf Cooperation Council (GCC) and Europe. Talking about their first point of sale in India, Patrick Dorais, director of sales at Al Nassma, said that the partnership with Nuance will strengthen their presence in India. "It (the collaboration) opens doors to some of the most important airports in the world....we are excited to continue our company's journey with Nuance in Bengaluru."
Beverages & Food Processing Times
KIAB is the third busiest airport in India, which is introducing more luxury and F&B brands in its fold to enhance customer experience. Some of the existing fashion brands in the airport are Dior, Fabindia, Hidesign and Haute Curry, while F&B outlets include Glenfiddich, Moet & Chandon, Laurent-Perrier and Cafe Coffee Day. The airport also has a day-hotel and payin lounges by Plaza Premium Lounge. Speaking about the new addition, Hari Marar, president, airport operations at Bangalore International Airport Limited (BIAL), said, "Al Nassma is renowned for its exquisite range of camel milk chocolates globally. We are delighted they chose our airport to introduce their premium chocolate range in India."
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Vol. 8, Issue 07 - December - 2015
INGREDIENT NEWS
Cargill makes significant investments to grow its presence in Vietnam
1. Invests US$30 million in new animal feed mill in Binh Duong province 2. Enters into US$10 million agreement with SITV for dedicated grain and oilseeds warehousing facilities in Phu My 3. Commits to building an additional 25 schools in rural Vietnam by 2020 Cargill continues to grow its business in Vietnam and reveals plans for a new US$30 million animal feed mill in Binh Duong province and a US$10 million agreement with Saigon International Terminals Vietnam (SITV) for dedicated grain and oilseeds warehousing facilities in Phu My. The company is also committing to building 25 more schools across rural Vietnam by 2020 after having fulfilled its initial goal of building 75 schools by 2015. The latest school located in Phu Xuyen district – the 75th school opened by Cargill in its 20 years in Vietnam – was inaugurated by Cargill Chairman and CEO David MacLennan.
Cargill currently has 10 animal feed mills that produce compound feed for both livestock and aquatic species, and one facility in Dong Nai which provides premix animal nutrition ingredients to feed manufacturers and vertically integrated producers. The company has made strong headway in the animal nutrition business in Vietnam over the past 20 years and now stands as one of the most trusted leaders in that industry. An integrated supply chain for grains and oilseeds As one of the leading suppliers of grain and oil seeds in Vietnam, Cargill prides itself in delivering an integrated supply chain solution to its customers. The company has entered into a US$10 million agreement with SITV for 80,000 metric ton of warehousing facilities at the SITV port in Phu My. This will facilitate the storing and distribution of grains and oilseeds for Cargill’s customers and give them a distinct competitive advantage.
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Commitment to improve farmers’ livelihoods Cargill is extending its school building program to build 25 additional schools by 2020. The employee-led volunteering program aims at providing better education to less privileged children in rural Vietnam. Cargill has raised more than USUS$3.8 million for the program and has achieved its goal of building 75 schools by 2015. More than 13,000 children have benefitted from the program so far.
Growth of animal nutrition business The US$30 million new animal feed mill in Binh Duong will have a total capacity of 260,000 metric tons per year and will become operational in the first half of 2017. It will incorporate the latest technologies currently available in the industry. The feed mill will bring Cargill’s total number of animal nutrition production facilities in Vietnam to 12. This investment comes at the back of an announcement made by Cargill in October 2015 of the construction of an animal feed mill in Nghe An which begins operations in the first half of 2016 and a US$7 million expansion of its existing animal feed mill in Dong Thap.
‘Giving back to the communities we live and work in is in our company’s DNA. Every child deserves an education and what our Vietnam team has achieved with their school building initiative is nothing short of remarkable. It makes me proud to be part of the Cargill family and I am sure my 155,000 colleagues worldwide will agree,” said MacLennan. MacLennan is in Vietnam from 16 to 19 November
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The main grain and oilseeds products Cargill supplies to its customers in the country are soy bean meal, wheat, and sugar, as well as supply corn, copra meal and canola meal. Customers include animal feed producers, integrated fish processors, food and beverage manufacturers as well as flour millers.
MacLennan said: “Vietnam represents a very important market for us globally and presents clear growth opportunities. This year, we celebrate 20 years in the country during which we have leveraged our access to global markets and 150year industry expertise to help contribute to the development of the agriculture sector here. These new investments and the extension of our school building program only reinforce our commitment to the Vietnamese market and its people.”
In
2015 to celebrate with the company’s more than 1,500 employees, its customers, dealers and partners Cargill’s 150th anniversary and 20 years in the country. During his visit, he inaugurated a school in Phu Xuyen province – the 75th school that Cargill has built across Vietnam. He also visited customer pig farms and spent some time at our animal feed mill in Ha Nam.
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Vol. 8, Issue 07 - December - 2015
BEVERAGE NEWS
Ban demand on groundwater extraction by Coca-Cola bottler in Varanasi by villagers "Hindustan Coca Cola Beverages operates its plants in compliance with all regulatory norms. HCCB, not being a party in the matter before the National Green Tribunal (NGT), hasn't been served with a copy of the stated report filed by the authorities before NGT. Thus, we are unable to make any comment."
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everal villages around Coca Cola's bottling plant in Mehdiganj, Varanasi, have demanded that groundwater supply to the beverage maker be stopped in view of the growing water crisis in the area. A statement issued by activist firm India Resource Centre (IRC) on behalf of 18 village councils said the villages, which are within a 5-km radius of the Coca Cola plant, have been facing water shortage since the company began operations in the area in 1999.
The statement from IRC claimed that in letters to the Uttar Pradesh Pollution Control Board, the heads of the village councils had noted that it was not acceptable that Coca Cola should continue to extract groundwater for profit while people in the area face water shortage. "The letters ask that the groundwater extraction by Coca Cola be stopped immediately," it added. New guidelines to regulate groundwater came into effect on November 16, 2015, and a significant addition was to bring existing industries under its purview.
Coca Cola uses the same common groundwater source to meet its production needs, placing its groundwater use in direct competition with the community in an area running short of water," India Resource Centre said in the statement. Hindustan Coca Cola, the bottling arm of Coca Cola, said in a statement,
World Franchise Congress 2015 to be held by PepsiCo India and Franchise India association with Franchise India is aimed at building greater awareness of, and appreciation for, this very critical business model. We are positive that this platform will benefit the franchise vertical immensely as it will give the business the focus it deserves and further amplify franchise management capabilities in India."
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epsiCo India and Franchise India announced their partnership for the 'World Franchise Congress 2015'. The leadership convention scheduled to take place on November 24, 2015 at Hotel Pullman, Aerocity, New Delhi has been convened to fuel the growth of franchise industry in India. Presided by Shiv Shivakumar, Chairman and CEO, PepsiCo India, the leadership convention will explore and assess the impact of current and future franchise trends on businesses, investors, financial institutions, technology, government's entrepreneurial drive, and at large on society. Speaking on the launch of World Franchise Congress, Samudra Bhattacharya, VP and GM India Franchise Commercial Unit, PepsiCo India said, "In the last two decades, our Franchise partners have played a critical role in the growth of the company. They bring with them the much required investment and execution capability to ensure we win in the marketplace. Our
Beverages & Food Processing Times
The leadership convention will bring together the likes of Andy Williams, President - Global Franchise, PepsiCo, Rod Young, Chairman, DC strategy, Australia; Ravi Jaipuria, Founder Chairman, R, RJ Corp; Shailesh Chaturvedi, CEO & MD, Tommy Hilfiger India, Vasanth Kumar, Executive Director, Max Retail , OP Manchanda, CEO, Lal Path Labs, K B Kachru, Chairman - South Asia, Carloson Rezidor Group, Alok Gupta, Chief Architect & CEO, Essar Retail, Sandeep Kulhalli, Senior Vice President - Retail & Marketing, Titan, Gaurav Mahajan, President, Raymond Group, Anuj Jain, CEO, JSL Lifestyle Limited and others.
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Vol. 8, Issue 07 - December - 2015
CHOCOLATE NEWS
After Maggi, booze chocolates on Food watchdog radar
Liquor chocolates, popular as Diwali gifts and otherwise, may soon be withdrawn from shop shelves as the government is planning a crackdown on sale of these chocolates.
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aggi may have returned to the market but Delhiites are in for another disappointment soon. Liquor chocolates, popular as Diwali gifts and otherwise, may soon be withdrawn from shop shelves as the government is planning a crackdown on sale of these chocolates. According to the Food Safety and Standards Authority of India (FSSAI), liquor chocolates are strictly prohibited in India and its sale is illegal. \ The FSSAI said it would pick up samples to conduct quality check and if alcohol content is found in these chocolates, action would be initiated against the manufacturer and the seller. During festive season, markets in several Indian cities, particularly the metro cities, get flooded with liquor chocolates. The sale goes up by almost two to three times during Christmas and New Year. The sale of liquor chocolates is also in violation of the Delhi Excise Rule. An excise department official said it is mandatory to procure license to sell any commodity containing alcohol in Delhi. In addition to this, consumption of liquor is prohibited for those below 25 years of age in the Capital. In a crackdown, the Mumbai Police had arrested a woman for making liquor chocolates without obtaining license from the excise department. In Mumbai, it is also mandatory to have an alcohol permit to buy these chocolates, violation of which can lead to penalty or arrest under the Bombay Prohibition Act. In response to an RTI query, the FSSAI said even imported chocolates containing alcohol is not permitted in Indian markets. "The FSSAI does not permit alcohol in chocolates. Hence, liquor chocolates imported from other countries are not allowed to be sold in Delhi's markets," said the RTI reply. The food safety regulator admitted that it has never conducted any quality check of these chocolates and hence there has been no penalty against violators. "It is a serious matter. Consumption of liquor chocolates could be injurious. We will take strict action against the manufacturers and sellers if the samples are found to have alcohol content," said a senior FSSAI official. "If ingredient lists of imported chocolates contain alcohol, the entire consignment is immediately rejected," said the official. The RTI applicant had also sought information on the countries from where liquor chocolates are imported in India and penalty imposed on these sellers. However, the department had no information in this regard. Sources said liquor chocolates are also available in duty-free shops at various airports in India.
like amazon.com, craftsvilla.com, candywarehouse. com, germandeli. com and many more. The popular liquor chocolate brands being sold in Indian markets include VooDoo and Anthon Berg. Local manufacturers told that these chocolates are preferred by youths in the age group of 20 to 30 years. "Liquor chocolates are manufactured on a large scale in Delhi. Orders are generally placed online. The price varies between Rs 20-25 per piece or Rs 1,000-1,500 per kg," said a Delhi-based seller of liquor chocolates. Another seller in Gurgaon said local chocolates are in demand due to easy availability. These chocolates
come in the shape of tiny edible bottles made of chocolate and filled with liquor. Doctors and experts have also warned against consumption of liquor chocolates. Doctors said liquor chocolates contain hydrogenated fats or the trans fats that can lead to a host of lifestyle illnesses like coronary heart disease, stroke, obesity, diabetes, and cancer. Hydrogenated fats are fatty acids created while making these chocolates.
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Ice cream Congress & Expo 2016
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In Delhi, not only are imported chocolates mostly from Belgium sold, but a large number of local chocolate manufacturers openly operate. Liquor chocolates are also sold through online portals
Contactr�for�tStallsr�&rtPartners Indian Ice Cream Congress & Expo
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Vol. 8, Issue 07 - December - 2015
NEWS
Rural India hit by skyrocketing Food prices in 2016
I
ndia's first back-toback droughts in three decades also complicates government spending calculations as Prime Minister Narendra Modi tries to prune a subsidy regime that has long propped up the rural economy, and he can ill afford to alienate rural voters after a bruising weekend electoral defeat in Bihar. It is bad news for the central bank, too, which faces a conundrum achieving its 4% inflation target for the medium term as levels diverge in town and country, and infrastructure development would
Surana said the response to test marketing in Telangana and Andhra Pradesh in the last few months was phenomenal.
India's overall retail inflation eased to 4.41% in September, helped by falling commodity prices, but rural inflation was at 5.05%, mostly due to food prices. That, some analysts argue, could worsen, despite the dampening effect of lower wages and sluggish growth in the agricultural sector. While urban dwellers have seen some cheaper imported food products, benefiting from global deflation, that has not filtered through to rural areas, given poor roads, rail and a lack of storage facilities for perishable goods.
take years to fix it.
CLASSIFIED
DS Group takes its Pulse candy as trump card and expects Rs 100 crore in sales
Prices of vegetables like onions, tomatoes and potatoes have already been rising, with some staples up as much as 20% in a month. Palm oil prices have also climbed in the last two months, while milk prices have risen by 10%.
According to A.C. Nielsen, Hyderabad ranks number two as a consumer city for hard boiled candy and south India is the second biggest market after the north with a contribution of around 26 percent.
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S Group's confectionary division is expecting Rs.100 crore in sales during the current financial year from hard-boiled candy product Pulse.
The Rs.6, 500-crore group's confectionery division, which operates under the 'Pass Pass' mother brand, currently, has three products - PassPass, Chingles and Pulse.
Announcing the launch of mango-flavored product in south Indian market, the Noida-based Dharampal Satyapal group's (DS Group) vicepresident (new product development) Shashank Surana said Pulse, launched in in Gujarat and Rajasthan earlier this year, will have pan India presence by December.
The confectionary division is expected to have Rs.220 crore turnovers during the current financial year. The hard-boiled candy market in India is currently estimated at Rs.1, 800 crore and is the largest sub-segment of the NGNC (non gum, nonchocolate) category. It is growing at 9 percent and therefore we saw a great opportunity in this segment," said Surana.
The 'kachcha aam' (unripe mango) flavoured product priced at one rupee has tremendous response in the two states and has already clocked sales of about Rs.50 crore, he said.
The company has outsourced manufacturing of Pulse to two manufacturers each in Hyderabad and Gujarat and one in Uttarakhand. It plans to have two more units in NCR.
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Vol. 8, Issue 07 - December - 2015
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Vol. 8, Issue 07 - December - 2015
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