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Vol. 11, Issue 04, September 2018,

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Govt to invite bids this month to set up NBFC for food processing sector be able to make consortium of banks to come together to put funds for this financial institution, which will not only lend to food processing sector but will also work towards risk assessment, capacity building and cut food wastage."As the demand for food is set to rise with increase in population, some funds may also be utilised for research and development, she added.

The minister emphasised the need to partner with private sector and set up a body to reduce post harvesting losses.

"The RFP (request for proposal) should be out hopefully this month. The NBFC will be in place by end of the year," the Food Processing Minister told media on the sidelines of a report launch. The report 'Fixing Asia's food system' is commissioned by Cargill India.

She further said western nations are facing food wastage on plate, while India has it in during harvesting, transportation and storage of food crops. The Cargill report highlights Asia's existing food system and talks about critical issues that the region will face in the period to 2030 and how companies and policymakers should strategise for the future.

The initial corpus of the proposed NBFC would be Rs. 20 billion. A small amount from the ministry will be put into it, she said, and hoped the corpus amount would increase manifold over the next few years. Stating that many international big funds have shown interest, Badal said: "We will

Nestle India Managing Director and Chairman Suresh Narayanan, Walmart India CEO and President Krish Iyer, FSSAI chief management services officer Madhavi Das, Niti Aayog member Ramesh Chand and Cargill India Chairman Siraj Chaudhry were present at the launch.

he government is inviting bids this month for setting up of a non-banking financial company (NBFC) with an initial corpus of Rs. 20 billion to meet credit needs of the food processing sector, Union Minister Harsimrat Kaur Badal said.

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Vol. 11, Issue 04 -September - 2018

FOOD PROCESSING NEWS

The Start-ups to tackle food loss in Asia will enable a more efficient use of raw materials and will improve the stability of food supply and efficiency of the food value chain.” The challenge focuses particularly on reducing food loss from farm to market in Asia, so they are looking for agri-tech solutions for the pre-consumption phase. This includes improving agricultural production and farm management, quality control, market access, logistics, packaging and preservation, and processing. Rabobank Foundation Head of Innovations Albert Boogaard pinpointed potential opportunities at the farmer’s level.

abobank is launching the Food Loss Challenge Asia, which encourages startups to present their tech-based solutions to reduce food loss. The world population is expected to reach 9 billion people by 2050, but there is a growing concern that global food production will not be able to meet this demand. More than a third of all food that is produced for human consumption is lost before it reaches the consumer, resulting in 1.3 billion tonnes of food every year.

“While productivity is increasing, the supporting post-harvest infrastructure has not kept pace and a substantial part of produce is lost even before the harvest takes place. Since the vast majority of farmers in Asia are smallholders, we are excited to be involved in this challenge as the impact for our target group can be huge.” Diane Boogaard said the challenge provides an exciting platform for product-ready start-ups to access mentor-ship and connections to grow their businesses.

The Food Loss Challenge Asia initiative aims to address these issues and facilitate discussions between solutions providers, food and agriculture corporates, and smallholder farmers. Rabobank Asia CEO Diane Boogaard said, “One of our priorities is to leverage on our food and agri knowledge and expertise, and advise our clients to adopt more sustainable food production. This

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Vol. 11, Issue 04 -September - 2018

FACE TO FACE

Appropriate & alternate material solutions can handle plastic ban challenges: Mrunal Joshi products. There’s already a lot of local government activity. Maharashtra, banned single-use plastic bags and other products in late June. More than 20 Indian states and territories have put some plastics restrictions in place. However, this blanket ban has created ruckus in plastic packaging industry equipment industry. Manufacturers/ suppliers of such machineries are now working on alternatives. Beverages & Food Processing Times have words with India’s leading packaging machinery manufacturer Nichrome India ltd. Executive Director Mrunal Joshi for the solutions of challenge cropped due to blanket ban. Here are the excerpts of an interview.

n the wake of a flurry of plastic packaging bans and restrictions in India, including Prime Minister Narendra Modi’s ambitious June announcement of eliminating single-use plastic by 2022, the country’s plastics industry and local governments are taking a hard look at extended producer responsibility plans.

Packaging (plastic ban) has been in discussion ever since ban on many of modes packaging in Maharashtra this year. How do you take this decision of Maharashtra Govt.? The implementation of plastic ban & specifically single use plastic items like carry bags, straws, cups etc. has yielded good results & its consumption has been drastically reduced .Though total ban on plastic film appears difficult , attempts shall be made to use more recyclable plastics.

At a recent conference in Mumbai, industry executives and government officials debated establishing EPR systems that would put more of the responsibility on companies for handling collection and recycling of their

Nichrome India Ltd has evolved retro-fit kits to use recyclable PE-laminates on their new machines as well existing machines in operation with their customers. In addition pack size optimization drive has been undertaken

Mrunal Joshi Executive Director - Nichrome India Ltd.

Having first started in Pune in 1948, Nichrome established itself in the world of packaging in 1977. Today the company incorporates 37 years of experience in providing innovative packaging solutions throughout a wide array of industries and applications. Nichrome provides packaging solutions for specific product lines with its high quality and flexible machine lines ranging from its food packaging machine lines to its liquid packaging machine product lines. Nichrome has developed a versatile range of machines that can meet the packaging specificities of a varied range of products. Company emphasizes on giving complete support to our customers, from consultation and development of the machine as per client requirements, to production of the packaging machine and providing extensive after sales service. Nichrome is dedicated to providing the highest production rates, maximum accuracy and consistent pouch quality as per each individual client’s requirements. Nichrome has a vast global presence across 45 countries with 6000 successful installations. The company also has a large market presence in the packaging machines India sector with 8 offices. The company is a pioneer of the Vertical Form Fill Seal Machine and the aseptic pouch packing systems for the dairy and beverage industry and is poised to become a premium global brand offering end-to-end integrated packaging solutions.

to reduce consumption of plastic per pack. Yes, definitely steps are to be taken for use of recycle friendly plastics. There is need of close working within plastic raw material manufacturers, film converters & packaging machinery manufacturers to handle the situation effectively & start offering recycle friendly plastics. The mechanism of effective plastic waste collection, segregation & recycling systems need to be put in place. Do you think industry should come with environment friendly solutions for packaging, packaging materials and along with compatible machinery before it become necessity? We are geared up to handle alternate film structures like paper /poly on our existing VFFS range of machines by offering upgrade kits to handle such film structures. The challenges related to possible reduction in shelf life of the product needs to be tackled by experts from food Industry while switching over to alternate packaging material options. Safe and sturdy Secondary and Tertiary packaging of the pouches in case of Paper-poly films will be very important. To control littering of plastic packaging some state government are planning to implement buy back system for used plastic packets and bottles for recycling of the same at food & beverages manufactures end. What are your suggestions on this and do you think this will be challenging for them initially? The mechanism for buyback of plastic pouches is difficult to implement. However food companies can be asked to setup mechanism for collection of waste plastic equivalent to their consumption. It is necessary to plan for programs to create awareness about responsible & optimum use of plastic at all levels. We could develop Mobile shred-

ding machines for dairies to handle plastic waste generated in-house to convert it into shredded clean plastic. This will offer better recycle friendly solution for dairies & food processing plants. The use of recyclable friendly plastic for certain critical food application is a challenge to be handled by all stakeholders thru continuous innovation in material offerings. There appears no choice than to handle such challenges cropped up due to plastic ban thru appropriate & alternate material solutions. Introduction of new modes of packaging and packaging materials will add cost at manufactures end. Do you think this will affect the MRP of the food & beverage products resulting into inflation? The use of recyclable friendly plastic for certain critical food application is a challenge to be handled by all stake holders thru continuous innovation in material offerings. There appears no choice than to handle such challenges cropped up due to plastic ban thru appropriate & alternate material solutions.

Vol. 11, Issue 04 -September - 2018

FOOD PROCESSING NEWS

Amid stakeholder concern, govt puts hold on proposal of red-labeling of packaged food nutrition background has been set up to look into the issue of labeling once. The expert panel will be headed by B Sesikeran, former director of National Institute of Nutrition (NIN) as also the current director Hemalatha, besides Dr. Nikhil Tandon.

ood safety regulator FSSAI in April had come out with the draft of Food Safety and Standards (Labeling and Display) Regulations 2018 that proposed mandatory red-label marking on packaged food products. The pre-draft was sent to the Health Ministry, but there were concerns expressed by some stakeholders and hence the government has put on hold the draft that proposes red-labeling of packaged food products containing high levels of fat, sugar and salt. And now a group of experts from health and

Goa has potential to be food processing hub, says Consul General of Japan

n an official visit to India, the Consul General of Japan Ryoji Noda, emphasized that food processing is a chief and fast growing industry and Goa has a good potential for establishing food processing units.

The labeling regulations have remained the major contentious issue in the food industry which sees it as an impediment to their sales. FSSAI CEO Pawan Kumar Agarwal said, “may be a little bit of tweaking (to the draft regulations) is required and we are open to it without compromising the basic directions of the labeling regulations. Agarwal also made it clear that Food Safety and Standards Authority of India (FSSAI) will go ahead with the labeling norms even if there is no full consensus on the matter after the panel’s suggestions.

Noda was on a visit to the Mormugao Port Trust where he expressed his views about eagerness on strengthening the trade relations between the two nations of India and Japan. He was welcomed

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by deputy chairman of MPT G. Rai and relevant heads of the departments. “My Consulate is looking after the trade interests of 5 states in IndiaGoa, Maharashtra, Gujarat, Madhya Pradesh and Chhattisgarh. We are undertaking an underground metro project in Mumbai. The Japanese port of Osaka and Yokohama has a sister port tie-up with the Mumbai port. The Mormugao port too should work towards having a sister port tie-up with other Japanese ports. We could work together on various aspects as the government of Japan wishes to promote people to people contact with the people of India and we are gradually working and promoting this relationship,” said Noda. “Food processing is an important and fast growing industry. There is a need to tap the food resources from the sea to meet the ever growing food demands of the increasing world population. Being a coastal state, Goa has a good potential for setting up food processing industries where the waste fish could be put to good use,” informed Noda. The traffic manager of MPT, Vipin Menoth, introduced the Consul General with the Ministry of Shipping’s ambitious Sagarmala Project which, he said, is aimed mainly for port-led development focusing on hinterland in Goa. The Consul General of Japan declared that in the near future around 300 Japanese entrepreneurs will be attending a Trade Conference in Goa.

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Badal-Mohali soon to get vegetable processing facility worth Rs.350cr

arsimrat Kaur Badal, Union Food Processing Minister said a Spanish company is ready set up a Rs. 350 crore vegetable processing facility at Mohali in Punjab, which will help the farmers. During her visit to a Spanish food processing company Conelodos de Navarra, the minister has promised to extend a helpful hand to the promoters there.

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Company’s President and CEO Benito Jimenez expressed his views that with this collaboration the new vegetable processing unit at Mohali will create around 500 jobs and parallel to it will directly benefit nearly 5000 farmers. Benito also stated that the operation will also focus on potato processing which create newer market in Doaba region. Badal was on a official visit to Spain and Netherlands, where she had a meeting with Carola Schouten, Minister of Agriculture in Amsterdam. They also discussed to improve ways and means as to how the two countries work together in food processing sector. The vegetable processing unit in Punjab is all set to see a visit by two Dutch investors. Besides opening 3 mega food parks, the food ministry has set up 20 cold chain and 4 backward-forward linkages for the hurdle-free working.

BAKERY NEWS

Vol. 11, Issue 04 -September - 2018

There’s Only One Way To Have Nestle India partners with Flipkart to launch its new Maggi variant Biscuits – DUNK It In Tea Or Milk! the convenience of their home. Nestle is confident that this product, with its special taste from 20 finely ground and whole spices and specially created bouncier non-sticky noodles, would be appreciated by consumers.

Which Is the Best Liquid to Dip Your Biscuit? No, definitely not tea. It is not the best liquid to dip your biscuit. That award goes to ... milk! Milk is basically tiny droplets of fat suspended in water. These droplets of fat do two things. Firstly they absorb the flavour molecules really well. And secondly, the droplets hang in your mouth so that the flavour and aroma chemicals can sit on your tongue and be released up to your nose.

e it a typical morning or evening tea or an evening togetherness with friends. The cuppa goes well with all the assorted and variant biscuits. Enjoyed at anytime, anywhere and by all ages the crunchy snack is best opted as a packed food. Don’t we all just love dunking biscuits in tea? Did you know that your biscuit becomes 11 times more flavourful after being dipped into the milky drink?! But First, What Is A Biscuit? Biscuits are nothing but dried up grains of starch. 2300 years ago the Romans invented biscuits, with the word coming from a Latin term Bis-coctum which means ‘twice baked’. It was made from flour and water, which was the best way to preserve carbohydrates for sailors and warriors who traveled long distances. The low water content in them ensured that it could be preserved for a longer time. And back then, tea and coffee had not made their way to Europe, so to soften their twice-baked hard biscuits; they had to dip it in milk or other beverages at that time. How Did All the Dunking Start? From the then-Romans to the present - desi variants, from the twice-baked harder versions of biscuits to the present-delicious softer ones, biscuits have come a long way. And so have our dunking habits. Did you also know there is a full-fledged experiment proving why biscuits become tastier after being dunked into a milky drink?! Mr. Len Fisher in 1998 on ‘National Biscuit Dunking Day’ presented this experiment in the UK. He said all the action happens between surface tension of the beverage and the porosity of the biscuit. He further argued that it gets wet because a biscuit is porous. It is riddled with interconnecting hollow channels. Once you dunk your biscuit into tea or coffee it gets access to these channels, and capillary action sucks the liquid deeper into the channels leaving your biscuits irresistible!

And Among Biscuits, Who Is the Undisputed Champion? Dunking is just great and makes the biscuit even more tastier and all, but if you don’t stop dunking it before the critical time, then your 11-times-tastier biscuit will end up in your tea cup before reaching your mouth. After doing some experiments ourselves we found out that, five seconds is the average time to safely dunk a biscuit – whereas Parle G is a few seconds less and Rusk a few seconds more.

estle India will partner with Flipkart to launch a new variant of Maggi called Special Masala Noodles inspired by India’s diverse culinary traditions. As part of this partnership, the new variant is exclusively available online from August 25-30, following which it will hit the retail shelves nationwide. Maggi Noodles now has a market share 60 per cent. This partnership with Flipkart will give a chance to Maggi lovers to try this innovation from

Nestlé and Flipkart’s association to launch the upcoming Maggi flavour exclusively on Flipkart cements the transition of FMCG’s physical goods into the digital space.” Nestle India has also announced its plans to expand brand Maggi further with the launch of a range of dips in the coming months.

Vol. 11, Issue 04 -September - 2018

FOOD PROCESSING NEWS

Urbanization, calorie dense diets to drive Asian food systems: A report

early half of the world’s urban population will reside in Asian cities by 2030, altering food production, demand and trade in the continent, said a report. Urbanization and income growth will lead to higher consumption of calorie dense convenience food, which will pivot Asia towards the double burden of undernutrition and obesity, said the report ‘Bringing Together Asia’s Food Systems’ by the Economist Intelligence Unit. The report is commissioned by Cargill, a global agribusiness and food company. Based on a survey of 400 business leaders in the region, the report identified six mega-trends which will drive Asian food systems in the coming years. These are growing urbanization, diets becoming energy dense, the double burden of obesity and undernutrition, rising agricultural R&D expenditure, consumers demanding safe and sustainably grown food, and a greater role of political choices in allocating resources between urban and rural areas. The report observed that although Asian consumers will move away from direct consumption of cereals like rice, in different countries they will still eat different food—like poultry in Indonesia, pork in China, and dairy products in India. “India’s strong vegetarian culture reduces the possibility that the country will emerge as a major meat consumer, but some projections estimate that India’s meat consumption will rise to 9 kg (per person per year) in 2050, from a base of 3 kg,” the report said. Releasing the report, India’s food processing minister Harsimrat Kaur Badal said India is the leading producer of several farm products but continues to suffer large losses and wastage due to poor post harvest management and during transport and storage of food. India needs technologies not only to reduce food wastage but also in food fortification, Badal said, adding that 70 per cent of adolescent girls in India are malnourished. Discussing the report, government think-tank Niti Aayog member Ramesh Chand said that the private sector in India spends less on agriculture research compared to other developed nations. Data from the report showed that Asian countries continued to under-invest in agriculture research — 0.5 per cent of agricultural GDP in China, 0.4 per cent in India — compared to 5.5 per cent in Japan and 3.6 per cent in Australia. Commenting on food fortification to address the nutrition challenge in India, Madhavi Das, chief management services officer at Food Safety and Standards Authority of India, said, “We are supporting fortification as a supplementary strategy and working with the industry to motivate them to sell more low fat, low salt and low sugar products.” “Our goal is to make India trans-fat free by 2022,” Das said.

Vol. 11, Issue 04 -September - 2018

Mizoram Governor believes Mizoram has chance in food processing

izoram Governor Kummanam Rajasekharan said that the availability of raw materials, changing lifestyles and appropriate policies in Mizoram has given ample scope for Startups and MSMEs in Food Processing sector. Speaking at a â&#x20AC;&#x2DC;Conference on Startups and MSMEs in Food Processingâ&#x20AC;&#x2122; organized by ASSOCHAM in collaboration with Ministry of Food Processing Industries (MoFPI), NABARD and Mizoram University, Kummanam Rajasekharan said the food processing industry has emerged as one of the important segment in terms of its contribution to Indian economy and is one of the major employment intensive industries and serves as a vital link between the agriculture and industrial segments of the economy. He said, Mizoram is endowed with various sorts of fruits, vegetables, and other agro-products, and there are immense opportunities present in food processing in the State. He highlighted that different agro based boards headquartered in Kerala have agreed to come and help the concerned people develop the sector. The chief guest said, development of the food processing industry will lead to generation of huge income and thereby lead towards self sufficiency of the State. He also said the initiative taken by ASSOCHAM will act as a first step in identifying the challenges, thus providing a roadmap for all the stakeholders to work on. Prof. KRS Sambasiva Rao, vice chancellor of Mizoram University emphasized on the need to expose the local talent to different technologies and schemes available. He said the budding entrepreneurs would then have a sense of the industry and become motivated.

He said, a proposal has been submitted to the State government for creation of a technological and innovation park on a public private partnership (PPP) mode, inviting entrepreneurs from all over the country and thus generate employment. He said the Mizoram University was willing to take mentorship on this front and guide the local entrepreneurs. He also said that Mizoram has huge potential on foods, fruits, spices, flowers and even beverages which has a good export value. Mr Chetan Vij, assistant director of ASSOCHAM gave a welcome address while Shri RK Srivastava, general manager of NABARD Mizoram presented a banking perspective on different financial assistance and schemes available for the entrepreneurs.

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FOOD PROCESSING NEWS

Vol. 11, Issue 04 -September - 2018

BEVERAGES NEWS

New design for the Coca-Cola can

oca-Cola Great Britain has revealed a new design for the Coca-Cola range featuring new look packaging for Coca-Cola original taste and Coca-Cola zero sugar. The changes unify both variants with the iconic Coca-Cola red and form part of the company’s commercial strategy to encourage more people to try Coca-Cola zero sugar. From September onwards, the cans and bottles of both variants will feature the iconic Coca-Cola red with a coloured band across the top of the bottle or can to denote whether it is the original taste or zero sugar. The bottles will also feature coloured caps to help consumers differentiate between the original recipe and no sugar variants. The packaging changes are the latest move in the company’s commercial strategy to drive sales of its no sugar drinks including Coca-Cola zero sugar. This builds on the launch of the new Coca-Cola zero sugar in 2016, when it was given a new recipe and look, and since then it has become the fastest growing no-sugar cola in UK retail. Today 58% of the Coca-Cola sold in retail in Great Britain is no sugar. A £5 million marketing campaign will communicate the changes to consumers and will include a ten second and 30 second TVC alongside out of home advertising. An extensive Coca-Cola zero

Chennai-based, Samrat Reddy, Founder and Managing Director of Drunken Monkey, though not a passionate tea or coffee drinker, took smoothies to his liking.

sugar sampling campaign will see seven million cans sampled by the end of the year. Simon Harrison, customer marketing director, Coca-Cola European Partners GB, said: “For more than 130 years, the colour red has been associated with the great taste and experience of enjoying a Coca-Cola and we want to make it even clearer that you can have that taste and experience with or without sugar. “Sales of Coca-Cola zero sugar has almost doubled in the last two years and we believe this latest change will help us grow it even further and encourage more people to give it a try.” All Coca-Cola packaging will continue to be 100 per cent recyclable and the company has a commitment to increase the recycled plastic in all of its bottles from 25 per cent to 50 per cent by 2020.

Manpasand Beverages to invest Rs. 70 crore in Varanasi plant “We have set-up this facility with an intention to further strengthen our position in the Indian and global fruit drink industry. The two facilities in Varanasi will provide strategic leverage in catering to the key markets of the north-west, the east, the north-east and a part of central India.

ne of the top India’s leading beverage manufacturer, Manpasand Beverages, has invested Rs. 70 crore in their latest venture of manufacturing unit at Varanasi, Uttar Pradesh. Adding this unit, the company now owns a total of seven manufacturing units in India. With the existing capacity of 50,000 processing activity per day, the plant is spread across 7 acres and located at UPSIDC Agropark, Phoolpur, Varanasi. The company has invested around Rs.170 crores and will now have a manufacturing capability of 2,75,000 cases per day pan country. Dhirendra Singh, CMD, Manpasand Beverages, said,

Apart from the existing range of products, this unit will also focus on new product segments like milk-based drinks and protein-based drinks.” In coming years, Manpasand’s future plans include entering new product segments of milkbased drinks, glucose drinks, protein-based drinks and fruit-based sugar-free drinks. This expansion will definitely give a major boost in its volume domestically and globally. Recently entering into a joint venture of 10-year distribution with a favourable tie-up with Parle Products Pvt Ltd to access their gigantic retail network, the company has chosen a right track to double its production capacity.

Coca-Cola India revamps its leadership structure

oca-Cola India has revamped its leadership structure with the appointment of Sundeep Bajoria as Vice-President -South West Asia Operations and Chandrasekar Radhakrishnan as Vice President - Strategy & Insights, Coca-Cola India & South West Asia.

portunities that lie ahead to grow the company’s portfolio and meaningfully penetrate the market. These changes will address developing business needs and pave the way to develop a stronger portfolio for the future. It also reinforces our commitment towards investing in talent development.

The change in leadership is designed to enable the India and South West Asia business to be a growth engine for the beverage giant by capitalising on emerging opportunities while continuing to build on talent development.

Sundeep Bajoria was Vice President Strategy and Insights of the company, prior to this new role, and Chandrasekar joins Coca-Cola India from Nestle and will take charge of the strategic initiatives for the company to accelerate the pace of innovation and assess opportunities to offer a much broader and deeper portfolio of beverages for consumers.

Coca-Cola India & South West Asia President T. Krishnakumar stated that there are significant op-

Drunken Monkey targets 10,000 outlets by 2025

wanted to do to smoothies what Starbucks did to coffee. The new generation, the millennials want to be catered to and are more willing than ever to experiment with new brands. People want a space to create meaningful social connections without restricting themselves to the regular coffee and chai outlets. Smoothies are the new social lubricant in town,” says Reddy. “Our operating model is mostly FOFO – franchise owned and franchise operated. The training, supply or raw materials and back-end support are taken care of by the brand; the front-end operations are taken care of by the franchise. However, there is a small percentage of outlets which are COCO – company owned and company operated,” he adds. “We operate out of a cafe sit in the model (600 to 1,300 sq.ft) or a kiosk take-away model (100 to 200 sq.ft). These are located on the high-streets of the city and in malls,” says Reddy. Drunken Monkey offers more than 170 types of smoothies made from locally sourced, natural ingredients, ranging from indulgence to detox, and more. The brand uses pure natural fresh fruit, no artificial flavours, no added sugar, preservatives or concentrates. It ensures that the customer is thoroughly spoilt with choices to make. There is always something with Drunken Monkey for every palette and every mood — from all natural fresh fruit shakes to extravagantly indulgent smoothies, from detox smoothies to protein smoothies, even a range of smoothies to cure hangovers! According to Reddy, “The Fresh Fruit smoothies and shakes are 100 percent natural, without any artificial flavors, preservatives or even ice. The functional range includes Meal Smoothies – wholesome, satisfying blends that keep you going all day, Protein Smoothies – blends of protein and fresh ingredients for a quick pick-me-up, and Hydrator Smoothies that are just perfect for summertime.” The brand is untouched by the competition and believes that they do not have any direct competition in this sector. “There are a few smoothie players, but they are restricted to limited regions. While, in India, we do not have any competition, internationally we have big players in the market such as Jamba

Juice, Booster Juice. However, the product range built by our R&D team is way ahead of any competition and it would take a lot of effort and time for any player to match it. Apart from that the market for smoothies is a hugely untapped market and the potential for growth is so immense that Drunken Monkey has a great first mover’s advantage by being the pioneers in the smoothie industry in India,” says Reddy. The marketing strategy of Drunken Monkey is aimed at doing to smoothies what Starbucks did to coffee. Four decades ago when coffee was not a culture, Starbucks made it what it is now. Consumers look out for more space to create meaningful social connections without restricting themselves to the regular coffee and tea outlets. Smoothies are very attractive and new social lubricant in town. “Our vision is to inspire people to feel beautiful, young and full of energy by living naturally high! When people discover and pursue their natural highs, they are more positively engaged, their stress levels are lower and they are able to actively help make communities better!” reveals Reddy. Elaborating on the expansion future plans, Reddy says, “Drunken Monkey is eyeing rapid expansion over the coming years. It is looking to expand to 150 smoothie bars in 2019; by 2021, spread across 5 countries with over 500 smoothie bars and by 2025 – 10,000 smoothie bars. Apart from expansion, we plan to reach out to people in different ways through different distribution models. For example – we can get into supermarkets or places where people can pick up smoothies by themselves. So, eventually, we will release a few smoothies with better shelf life, where they can be kept fresh for more time. Apart from this, with fresh fruits, we can do more (apart from smoothies). So, there are more products we can give out in our outlets – expanding our portfolio without leaving our base which is fresh fruits.” Keeping an eye on Rs. 115 crore as revenue in this fiscal year, the company is planning to spend Rs. 50 crore to aid the expansion plans. “We are totally self-funded; our initial capital was also self-funded. We will be looking for one round of funding after we reach 200 outlets in India, this funding will help us reach the 500 mark in quick time. Post which we will have another round of funding when we go for abroad expansion and look at expanding our product category and reach,” concludes Reddy. Drunken Monkey currently has 60 outlets in 16 Indian cities like Delhi NCR, Chandigarh, Bengaluru, Indore, Kolkata, Kakinada, Pune, Vijayawada, Visakhapatnam, Chennai, Guntur, Jalandhar, Surat, Thane, and Vellore.

For better growth Tata Global Beverages readjusts international operations Tata Global Beverages Ltd (TGBL) has ambitious growth that requires it to operate with greater efficiency, reduce cost base and fully tap the potential synergies across its businesses that operate on a global scale. Thus to achieve this it has restructured its international operations by merging its units in Canada, America and Australia (CAA) and the UK, Europe, Middle East and Africa (EMEA) regions into a single entity.

The Tata Group firm that sells Tetley tea has also exited non-core and sub-scale markets for better focus on its core regions. The company has restructured its operating model in Russia, divested its stake in plantations in Sri Lanka, and exited its joint venture business in China; the merged unit - International Business Division - will have country heads in key markets.

Vol. 11, Issue 04 -September - 2018

Jharkhand to give subsidy in the food processing sector

harkhand government will give a maximum 50 per cent subsidy to investors in the food processing. The state government is inviting investors from the country and abroad for the Global Agriculture Food Summit which will be organized at Khelgaon in Ranchi on November 29 and 30 this year. Jharkhand has possibilities in the food processing sector and increase in food

processing units would increase income of farmers, adding the government is making efforts with commitment to double the income of the farmers. About 10,000 farmers and other related people will take part in the summit with more than 5000 from Jharkhand. Pavilions will be made by all the 24 districts based on their respective special produce or food. From farmers to investors will share the stage. Of course special focus will be on technical transfer, equipment related to agriculture, organic agriculture, horticulture, and start up, dairy, poultry, feed and fodder. Also a road show relating to food processing will be organized in all the districts from the last week of October.

FOOD SAFETY NEWS

FSSAI promotes CII & IADSA in starting Nutraceutical Resource Centre

he country’s apex food regulator FSSAI, has promoted the Confederation of Indian Industry (CII) to institutionalize Resource Centre for Health Supplements and Nutraceuticals (ReCHaN) in partnership with the International Alliance of Dietary/Food Supplement Associations (IADSA), especially in vitamin and mineral element in health supplements in India. Pawan Kumar Agarwal, chief executive officer, FSSAI, said, “The health supplement sector is very important for the country, not only from the industry growth, but also from the public health point of view. FSSAI has taken up the task and is collaborating with various countries to create a data bank of knowhow on the subject of health supplement and nutraceuticals.”

FSSAI declares a last date for Food Fortification Regulations, FBOs informed

This year in July, FSSAI had signed a Memorandum of Understanding (MoU) with ReCHaN to support the practices and enable valuable science-based standards and regulations in the country.

The Resource Centre, established by CII and IADSA, since last one year, has been functioning proficiently to facilitate a vigorous ecosystem towards optimizing its maximum capacity of the health supplement and nutraceutical sector.

he Food Safety and Standards Authority of India (FSSAI), has requested the food business operators (FBOs) to comply with the provisions of the Food Fortification Regulations, 2018, by January 1, 2019. “The provisions of these regulations shall supersede the standards for fortification of food set out in any regulations, orders, or guidelines issued under the Act,” stated the spokesperson.

“As per the new regulations, minimum and maximum range for the fortification of staple foods like wheat flour (atta), maida, rice, salt, vegetable oil and milk has been set and will be provided, while 30 to 50 percent of the daily requirements of micronutrients has been tuned accordingly. The unit of dosage for milk and oil has been changed to microgram Retinol Equivalent for Vitamin A and microgram for Vitamin D from IU. For wheat flour and rice fortification, other sources of iron are added, while vanaspati fortification has been excluded”. “Over two years since the operationalisation of the standards, the edible vegetable oil industry has adopted fortification as a best practice. Following this, mandatory oil fortification is proposed to be the way forward,” Pawan Kumar Agarwal, chief executive officer, FSSAI, said. “As a result of massive advocacy launched by FSSAI and Food

Fortification Resource Centre (FFRC), fortified staples (wheat flour, oil, and DFS) are being used in Integrated Child Development Services (ICDS) and the Mid-Day Meal (MDM) Scheme. It has been made mandatory since 2017 by Ministry of Women and Child Development and Ministry of Human Resource Development, respectively,” he added. “As of today, 15 states, like Odisha, Karnataka, Haryana, Gujarat, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Jharkhand, Rajasthan, Tamil Nadu, Tripura, West Bengal, Kerala and Andhra Pradesh and three Union Territories (UTs) have now adopted fortification of their chosen commodities at the district or at scale in the government safety net programs (SNP), namely ICDS, MDM and the public distribution system (PDS),” said Agarwal. This should be well understood that FSSAI operationalised the Food Safety and Standards (Fortification of Foods) Regulations in October 2016, for fortifying staples, namely wheat flour and rice (with iron, Vitamin B12 and folic acid), milk and edible oil (with Vitamins A and D) and double-fortified salt (with iodine and iron) to reduce the high burden of micronutrient malnutrition in India. Consumers can identify the fortified food products with the +F logo.

Regulatory vacuum in dealing with the transgenic food: FSSAI

Shweta Khandelwal, senior research scientist and associate professor, Public Health Foundation of India, said, “Dietary supplements are considered safe within a broad range of intake and safety problems with the supplements are relatively rare. ReCHaN was created to strengthen and cultivate a culture of food safety and quality among various stakeholders in the nutrition supplements and nutraceuticals segment. Since it represents both industry and food regulators (government), along with some independent experts, it is likely to boost the quality of products being manufactured and supplied in the markets.” Khandelwal further said, “Supplements sector is different than drugs or food because supplements are not seen as a danger to health, they are not regulated as strictly as drugs.” “Proper research

ccording to the Food Safety and Standards Authority of India (FSSAI), Chief Executive Pawan Kumar Agarwal Genetically Modified (GM) food is a “contentious issue” and there is a regulatory vacuum in dealing with the transgenic food. The concept is taking time since the GM issue is still evolving and the regulator is working on regulations and the draft will be ready soon. It is expected that this will clear uncertainty over the GM food. This concern on GM food comes after the havoc created by recent laboratory findings

It is a fact that FSSAI has not taken correct action against adulteration and safety enforcement due to lack of manpower. Man power is a real issue in India as the enforcement is not happening at the level it should be and there is an urgent need to make it stronger. But the FSSAI does not have its own enforcement staff.

“Unfortunately, supplements sold on the Internet have low barriers of entry, and almost anyone can establish a store on the Internet and sell anything they want anywhere in the world,” Khandelwal said. Agarwal said, “This sector poses new set of challenges not seen in the traditional food processing sector. FSSAI is gearing itself to face the challenges by learning from aboard. Indian opportunity in this space is particularly large due to plants and botanicals that are traditionally used in Ayurveda are included in the regulations.” He said, “Claim regulations on the health supplements would soon be notified. These regulations would help industry to grow further, and at the same time, safeguard consumer interest.” Looking that the growth rate, by 2025, India’s health supplement and nutraceutical sector is expected to reach a $10 billion industry. Analyzing the potential, growth and value of the discussed topic, Khandelwal stated, “It is a growing industry. People are becoming more aware of the role of several therapeutic benefits of many ingredients and have started consuming those.” “Thus, this industry has seen a huge rise in the volume of demand for health and nutrition supplements. Being a public health nutritionist, I would however add a word of caution. These fractions also are quite potent and may furnish an undesirable outcome if consumed erratically and without physician’s advice,” she added. “People should bear in mind that in general, a balanced diet provides all nutrients in moderation and because of its natural form and better bioavailability, benefits the body much better than synthetically-formulated concoctions,” Khandelwal said.

FSSAI plans third-party audit of food businesses to strengthen the surveillance system

he Food Safety and Standards Authority of India (FSSAI) is strengthening the food safety surveillance system and to do this it has envisaged audit of food business opera-

by the non-profit Centre for Science and Environment (CSE), which showed as many as 21 of the randomly picked 65 food products from different retail outlets in the country were found GM-positive. In fact FSSAI is considering labelling food that has GM ingredients of 5 per cent or more. And the “procedural regulations” would consider risk assessment of the GM food items to be introduced for public consumption, their scientific examination and provisions of appeal for companies against rejection of their products.

should be performed to develop effective dietary supplements and scientists must invest time and funds in research related to the formulation of dietary supplements. Online promotion is one of the major regulatory problems concerning supplements,” she added.

FSSAI to recognize an organization or an agency for carrying out food safety audit and checking compliance with the food safety management systems. FSSAI has temporarily recognized 22 audit agencies, including international agencies like DNV, Bureau Veritas, Intertek, MS Certification, IRCLASS, SGS, BIS, TUV, and Indocert. This is done as the third-party agencies will work in close coordination with the government’s food safety apparatus.

tors through third-party private agencies.. FSSAI said that the audit through “recognised” agencies in addition to existing enforcement and inspection procedure is critical to ensuring safety aspect of an extensive network of food businesses in India, an official release said.

These agencies will also be used to rate catering establishments under FSSAI’s Hygiene Rating Scheme and Responsible Place to Eat schemes under Project ‘Serve Safe’ and they can also be used by FSSAI for audits on central institutions/ Ministries like the railways and defense.

FSSAI has already notified the Food Safety and Standards (Food Safety Auditing) Regulation 2018.

Based on their audit reports, the frequency of inspections by regulatory officials will be decreased or increased, as the case may be.

FSSAI believes that this regulation will reinforce the food safety surveillance system in the country by encouraging self-compliance. It authorizes the

Satisfactory audits will lead to less frequent regulatory inspections, except regulatory sampling by central or state licensing authorities.

Vol. 11, Issue 04 -September - 2018

FOOD SAFETY NEWS

FSSAI to launch “Clean and safe meat” initiative dition, third-party food safety audits of meat units and municipal slaughter houses will also conducted in 40 cities in the next three months, in a bid to bolster surveillance and consumer trust. The decisions were taken after the Authority recently held discussions with key stakeholders to formalize a strategy to improve the quality and safety of meat and meat products.

he Food Safety and Standards Authority of India (FSSAI) is launching “Clean and safe meat” initiative with an objective to develop an ecosystem that will enable the availability of clean and safe meat and meat products for consumers. The “Clean and safe meat” initiative is focused on identifying food safety issues and bolstering quality and safety of the entire ecosystem beginning with animal feed till the level it reaches consumers through offline retail stores and e-commerce platforms. The regulator plans to conduct mandatory third-party audits of supply chains of e-commerce companies that sell meat and meat products. In ad-

Honey now to be standardized by FSSAI

It was attended by government officials, poultry meat industry representatives, animal feed companies as well as e-commerce companies. Under the FoSTaC programme, training and capacity building of such food businesses will also be undertaken by FSSAI. FSSAI, in coordination with BIS, will explore the possibility of including the BIS certification of feed — as one of the clauses in schedule 4 covering Good Hygienic Practice and Good Manufacturing Practice requirements.. If required, BIS, in collaboration with stakeholders, will also review and amend their feed standards.

FSSAI will employ Triple E-Strategy to work with Educational Institutions

ood Security and Standards Authority of India (FSSAI), has decided to use the Triple E- strategy for an efficient working with Higher Educational Institutions (HEIs) regarding food safety and applied nutrition. The application of this strategy was decided during a meeting with the vice-chancellors of different private universities, academicians, the industry and industry associations. The three ‘E’s – Engage, Excite, Enable, was another important initiative to contextualize and update the food safety ecosystem in India and to facilitate upcoming food professionals of the future. The discussion was attended by the joint secretary, ministry of human resource development (MHRD); the president and secretary general, ministry of food processing industries (MoFPI); the deputy director general, Association of Indian Universities (AIU), and representatives from the University Grants Commission (UGC), the National Institute of Food Technology and Entrepreneurship Management (NIFTEM); the Indian Institute of Food Processing Technology (IIFPT); the Confederation of Indian Industry (CII), the

Federation of Indian Chambers of Commerce and Industry (FICCI) and the Association of Analytical Communities (AOAC) India. Ensuring that employable skills are delivered by HEIs was the highlight of the discussion. A more holistic concept of ensuring safe and wholesome food instead of just preventing adulteration and the measures to co-develop and implement an updated curriculum that reflects this shift in thinking were also discussed. Practical learning through internships and fellowships, promoting interactive learning through opportunities for students to participate in socially-relevant, advocating merit scholarships for deserving students, along with a programme for faculty training and development were parts of the framework that was decided upon according to the publication. FSSAI will reportedly explore opportunities for collaboration with MHRD and the Ministry of Youth Affairs and Sports for the further distribution of information. The regulator believes that it will be able to create a future-ready skilled workforce for the future food industry in India with this initiative.

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f late, a lot has been spoken about adulteration of food industry and honey is one such product of nature whose purity is difficult to judge. Thus, to put an end to this honey trauma, the Food Safety and Standards Authority of India (FSSAI) has notified new standards for it. Major brand producers of honey have come under scanner of the food regulator. Honey adulteration has been growing as artificial colours, jaggery water and caramelized sugars are added in a very quantity of honey giving it a honey- like look. The report further elaborates on the mixtures that honey is commonly adulterated with corn and rice syrup, cane and beet sugars and sulphite-ammonia caramel. “A lot has been going on with regards to the honey sold in the market.

“We have collected samples of all the brands selling honey in the market, but the testing is not yet over. The results may take couple of weeks to come,” the official added. “If any food business operator (FBO) is found in violating of the new standards set for honey, they will have to pay a fine up to Rs.3 lakh and imprisonment up to six months.

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There has been a growing concern amongst the public of honey being adulterated with corn or sugar syrup,” said an official from FSSAI. The regulator has collected honey samples from Dabur, Patanjali, Zandu and other popular brands for lab testing.

Vol. 11, Issue 04 -September - 2018

Silo storage for foodgrain is gaining impetus in India

torage of foodgrains in large silos is gaining pace in India to overcome huge wastage of food faced every year due to lack of storage facilities at required regions. At present India stacks foodgrains in outmoded warehouses, godowns and sheds without any use of modern storage technology. This approach results in damage of foodgrains worth $14 billion every year. According to United Nations’ Food and Agriculture Organization, 194 million Indians go hungry every day. Thus, the necessity of the changing time decides the action for present and future. In a survey by UN, in 2010, India produced 68 MT of fruits and 129MT of vegetables and was the second largest agricultural and horticultural producer in the world. The sad part is that out of this harvest, about 30 per cent of the fruit and vegetables were wasted. India wasted an estimated 1.94 lakh tonnes of foodgrain between 2005 and March 2013. World-wide accepted, Silo storage, in not new in India as it was introduced a decade back. Now the perceptions of better storage are changing in the wake of the wastage across the value chain. Silo structures follow a systematic and scientific method of storing grains, which enables bulk preservation of produce for longer periods. “We forayed into this business to improve storage and transport infrastructure for foodgrains in India. The larger goal was to address the country’s food security concerns,” said Pranav Adani, Managing Director, Agro, Oil & Gas at Adani Group. Adani Agri Logistics Ltd was one of the earliest to adopt silo storage, the only silo storage operator in the country. The firm has the capacity of 8.75 lakh tonnes, and another 4 lakh tonnes silos are being built across country. Adani Agri has a presence in Bihar, Gujarat, Haryana, Maharashtra, Karnataka, Punjab, Tamil Nadu, West Bengal and Uttar Pradesh, handling some 1 million tonnes of

foodgrain for the Central and State governments with the entire quantity stored in silos. The company is planning to have silo storage capacity of 2 million tonnes by 2022. To solve the wastage problem, apart from Adani, LT Foods, National Collateral Management Ltd, Shree Kartikeyan Industries and Total Shipping and Logistics Corporation are building 21.5 lakh tonnes of silo capacity.

A letter to FAO Director-General Jose Graziano da Silva by Agriculture Minister Radha Mohan Singh penned, “To garner wider global attention and action, India has mooted a proposal to FAO for the declaration of the upcoming as International Year of Millets. Millets are not only nutritious but also resilient to climate change”. “Adoption of this proposal by FAO with the sup-

Bio-fortified pearl millet can fight iron deficiency problem

iofortified bajra (pearl millet) introduced into the diet of Indian adolescents led to reduced iron deficiency and improved learning skills and mental ability, a new study found.

There are two types of silos: one is silos with rail connectivity and the second is standalone silos without rail connectivity.

Biofortification is a process by which the nutritional value of a crop is improved through conventional plant breeding or bio-technology. This is different from fortification, a post-harvest process adopted by the food industry, mostly for salt, atta (wheat flour) and milk.

“We realized that silos are the ideal mode of storage, particularly for a nation such as India which depends on buffer stock for its food security. The concept also benefits all the stakeholders, be it farmers, government or procuring agencies,” says Pranav Adani. India stores around 65MT of foodgrains, most of which is in conventional style like open or covered godowns. In fact, more than 10MT of foodgrains are stored in open warehouses and are prone to damage and exposed to various weather conditions.

A randomised double-blind trial–where both participants and researchers are unaware which group is being given the intervention–was conducted in Maharashtra for six months among 140 adolescents aged between 12 and 16. One set consumed the iron-fortified millet while the other consumed conventional pearl millet twice daily as bhakri (a local flatbread) or shev (a savory snack). Computer-based tasks were administered before and after six months of the experiment to measure cognitive skills.

According to the World Economic Forum, food production has never been a concern for India. In fact, India produced more than 270MT of food in 2016-17, way higher than the annual requirement of 230MT to feed its teeming population. These figures put the focal point back on the use of new technology for grain storage. “Punjab, and to a large extent, Haryana are known as the bread baskets of India. Nearly two-thirds of the foodgrain requirement is sourced from these two States. A better silo storage infrastructure could certainly ensure that fewer people go hungry in the country,” said Rajeev Kumar, Area Manager, Food Corporation of India (FCI) at Moga district in Punjab, adding that India needs to tap into advanced grain storage infrastructure.

India wants 2019 to be declared as “International Year of Millets”, sends petitions to UN igh on the list of foodgrains, India now want to introduce and promote millets at international level, and has urged United Nation’s Food and Agriculture Organization (FAO) to declare the upcoming year as International Year of Millets

AGRO NEWS

port of its member nations will enable it to be moved to the United Nations General Assembly (UNGA) for declaration of the upcoming year as International Year of Millets,” the minister stated in his letter, and requested that this proposal be included in the 26th session of the Committee on Agriculture (COAG) meeting that has been scheduled to take place in Rome in October 1-5 2018. “It is highly desirable that global efforts are stepped up to bring these nutri-cereals back to the food basket of a wide range of consumers — rural and urban, as well as rich and poor — for boosting their production,” said the minister in his proposal, while adding that the subject received the substantial support of member countries when placed in the Bureau meeting of the Committee on Agriculture last month. “India is celebrating 2018 as the ‘National Year of Millets’ and is promoting cultivation by amending cropping pattern of areas which are especially susceptible to climate change,” he added in his proposal.

Those who consumed fortified millet showed improved learning and mental abilities related to perception, attention, and memory; found the study published in the Journal of Nutrition in July 2018. This group also showed a 50 per cent reduction in reaction time to certain tasks. “If we can improve adolescents’ performance in school by boosting their iron intake we may also have longer term impacts in terms of their ability to secure a good job, or be admitted to a college programme,” said the press statement issued by Samuel Scott, the lead author of the study and an associate research fellow at the International Food Policy Research Institute (IFPRI). A previous study involving 260 Indian adolescents had shown that biofortified bajra resolves iron deficiency 1.6 times faster than conventional bajra. Iron deficiency is the most common cause of anemia which limits brain development and learning capacity, hampering the potential of individuals and societies for generations. In India, 54 per cent of women and 29 per cent of men in the 15-19 year age bracket are anaemic, according to the latest National Family Health Survey (NFHS, 2015-16). This is the highest figure among all age groups from 15 to 49 years. Improved sanitation facilities and delayed pregnancy

in India could reduce the rates of anemia in pregnant women faster said a report. Adolescents are particularly vulnerable to iron deficiency because of periods of rapid growth, the onset of menstruation among girls, and poor dietary habits. Addressing adolescent iron deficiency is crucial to ending the intergenerational cycle of malnutrition, said the paper. “Adolescent girls/women experience a rise in iron requirements due to maturation (growth and menses),” said Erick Boy, co-author of the study and head of nutrition at Harvest Plus, a global alliance to improve mineral and vitamin-rich crops by biofortification. “Many young women reach pregnancy with low or no iron stores and therefore, high risk of adverse conditions for their health and that of their offspring.” Improved iron status among girls can lead to better maternal, child health. Anaemia causes 20 per cent of maternal deaths in India. It causes low birth weight among babies, putting them at risk for lifelong issues involving cognitive development and physical growth. Anaemic children go on to earn 2.5 per cent less as adults than their healthier peers. “Teenage girls are soon entering child bearing years and we know iron status carries over from one generation to the next,” said co-author Laura E Murray-Kolb, who is associate professor at the Pennsylvania State University. “Therefore, if we can improve a girl’s iron status in adolescence, it can allow her to enter pregnancy with better iron stores, and that benefit will be conferred in a positive way to the next generation.” Conventional supplementation has been a part of India’s strategy to fight anaemia but it has met with limited success–only 26.1 per cent of children between six and 24 months of age targeted for iron supplementation have actually received it, according to NFHS 2015-16. Once crops are biofortified, they do not need much further investment. Also, every $1 invested in bio-fortification gives benefits worth $17, said the review. “Fortification in free-market conditions reaches only population segments that can afford processed foods,” said Boy. “Biofortification reaches small landholders who produce and consume (or sell the surplus) these crops. It also benefits the landless who buy from small producers.”

BASF acquires Bayer’s global vegetable seeds business- Nunhems

ASF, the German chemical firm has finalized the acquisition of Bayer’s global vegetable seeds business, which runs under the brand name Nunhems. BASF originally signed the agreement to purchase further businesses and assets from Bayer in April, which built on a deal signed in October last year to acquire significant parts of Bayer’s seed and non-selective herbicide businesses for a sum of €5.9bn. The transaction will add a new brand to BASF’s portfolio.

tion of the vegetable seeds business is anticipated to further enhance BASF’s offering to farmers worldwide.

The closure completes BASF’s acquisition of a range of businesses and assets with combined 2017 sales of €2.2bn, which Bayer offered to divest as part of its takeover of Monsanto. The allcash purchase price amounts to a total of €7.6bn following the latest completion.

BASF completed the acquisition of various businesses from Bayer earlier this month, which included its canola seeds business in Canada and key field crop seeds such as cotton.

BASF Agricultural Solutions division president Markus Heldt stated that with strong solutions from seeds to harvest, enabled by even better R&D capabilities and scale, the company will increase the competition in the market. Also the acquisi-

Bayer’s vegetable seeds business includes 24 crops and approximately 2,600 varieties. It also includes well-established research and development (R&D) capabilities, as well as breeding systems comprising more than 100 breeding programmes featuring over 15 crops.

The deal is expected to complement and strengthen BASF’s seed platform, as well as its expanded portfolio of ‘Agricultural Solutions’ that includes seeds and traits, chemical and biological crop protection solutions, soil management, plant health, pest control and digital farming systems.

Vol. 11, Issue 04 -September - 2018

Nestle’s noodles and coffee viewed better in first half of 2018

he growth in Maggi instant noodles sales comes to more normal levels and has rebuild its brand, after they were banned and then reintroduced, is a closely watched metric. In the six months ended 30 June, Maggi’s market share in instant noodles was 59.1 per cent, down 40 basis points from a year ago. The trailing 12-month market share as of 30 June at 59.7 per cent is still higher compared to 58.7 per cent a year ago. The Maggi noodles market continued to contribute a growth along with the market and is slightly ahead by other rivals. Sales within this category which also includes sauces and soups, has risen by 15 per cent in the first half of the year, led by volume of sales. Nestle’s liquid beverage instant coffee rose by 3 percentage points to 50.2 per cent in the first half of 2018, self explains the sharp increase in sales growth to 23.1 per cent. This figures too add to

A statement released by FDA Commissioner, Scott Gottlieb, echoed many previous statements made by industry-supported organizations such as the National Coffee Association, saying that requiring cancer labels on coffee is more likely to mislead consumers than to inform them. “Strong and consistent evidence shows that in healthy adults moderate coffee consumption is not associated with an increased risk of major chronic diseases, such as cancer, or premature death, and some evidence suggests that coffee consumption may decrease the risk of certain cancers,” Gottlieb wrote. “To this end, current dietary guidelines published by the U.S. Department of Health and Human Services and the U.S. Department of Agriculture state that moderate coffee consumption (three to five cups a day or up to 400 mg/day of caffeine) can be incorporated into healthy eating patterns.” The chemical in question in coffee’s case is acrylamide, a chemical compound that occurs naturally in many foods as a result of heat application

Nestle India is one of the top consumer goods companies, which realizes that India is a country of many diversities. Here, distribution and sales vary according to the states and cities. Some products sell well and do fairy well. Penetration of some large companies finds ways to enter judging the size and demand of the market. What future shapes up for Nestle India needs to be seen.

through baking, roasting, frying, etc. The FDA has warned OEHHA that the state law may be in violation of the Federal Food, Drug, and Cosmetic Act, which is designed to prevent misleading labeling on food and other products. In the case of coffee, it seems a label that warns of health risks or cancer may indeed run counter to the mounting pile of scientific evidence suggesting coffee is part of a healthy diet that supports longevity.

With the detection of the caffine need, the drone is at service to deliver a hot cup of coffee. According

erala and Karnataka are coffee growing areas have been hard hit by torrential rain and floods and this has led to the shortage of Robusta beans, hitting hard exporters and local producers. The Robusta bean production accounts for majority of coffee exports from the country and is the main ingredient for instant coffee. As a matter of fact, even last year there was 10-20 per cent shortage of Robusta which was far lesser then the Coffee Board’s projection of 2.21 lakh tonnes. The severe weather is expected to pull down the crop

“The FDA previously wrote to California stating our concerns about acrylamide warnings for foods because such warnings may mislead consumers about the risks posed by foods containing acrylamide and encourage consumers to alter their diets in ways that may not benefit their health,” Gottlieb wrote. “A prime example is whole grain foods. We recognize that some of these products may contain acrylamide. But we also know that consumption of whole grains is beneficial for health and nutrition. Labeling whole grain foods with a cancer warning may cause American consumers to avoid foods that would have a benefit to their health, including avoiding foods that may reduce cancer risks.”

That is to say, it could either connect to your FitBit to sense if you’re losing energy, or it could even just use a camera to notice you’re nodding off based on your body language. Or it can take a help of Bluetooth or other GPS data from a device like your phone to ensure its hovering over the right person. “IBM encourages our researchers to pursue their interests even though not all of their inventions become commercial products,” said spokeswoman Amanda Carl. “By publishing their inventions as patents, we give our researchers the recognition they deserve and make their work public, so it can inspire new innovations.”

Heavy rains have caused widespread damage to coffee in parts of Kodagu in Karnataka and Wayanad in Kerala. The shortage has already increased the price of Robusta in the market by more than Rs. 10 per kg to Rs. 135-140 per kg now. Further rise is expected in the coming months. A good sunshine though can help in recovering the Robusta bean. A clear picture may emerge only by the end of September. Higher price of coffee may hit exports, which are already sluggish. Coffee exports in the calendar year 2018 may fall 10 per cent. Shipments may decline in the coming months as the local prices are higher than international prices. Also absence of much carryover stock is also a source of worry for exporters.

Pepsi bottler keen to run Costa Coffee even after Coke buy leveraged back-end synergies with Pepsi-Co at the stores, in addition to a distribution franchise for the beverage and snacks maker, and serving its products at the stores,” one official said.

This is not the first time the FDA has intervened in California on the subject of acrylamide and its relationship to Prop 65.

to the latest report, IBM has secured a copyright for a coffee drone that drops off coffee when it monitors certain facial, body, and biometric data to determine when people nearby may be in the mood for a drink.

for the next harvest slated to take place by December. The Arabica crop hasn’t been affected much.

New products must continue to support the company’s stand to maintain double-digit growth. In 2018, new products’ contribution to sales was 3 per cent compared to 2.8 per cent a year ago, which needs a quite boost.

Drone will deliver coffee for your caffeine urge

ur consumption and need for food is taken care by technology at a very enormous speed. Just too tired to make yourself a cup of coffee to satisfy the need to quench caffeine urge? IBM has solved that lethargic problem and has developed a state-of-art technology for a coffee delivery drone that predicts when you need a caffeine boost.

Shortage of Robusta Coffee bean due to flood in Kerala

growth as well. Nestle’s milk and nutrition products—infant formula and baby foods, and milk products—the growth seen in this segment has seen a slower growth compared to its other segments.

FDA votes for a tough support to exempt coffee from cancer warnings he United States Food and Drug Administration (FDA) recently has raised its strong support for exempting coffee from California’s Proposition 65 legislation, which requires warnings to consumers for products that may contain cancer-causing chemicals.

TEA & COFFEE NEWS

avi Jaipuria, the Indian operator of Costa Coffee, said he was keen to run the coffee chain in India even after its acquisition by beverages giant Coca Cola without any conflict of interest. Ravi Jaipuria’s RJCorp is the largest bottler for Pepsi-Co in India. Coca-Cola bought the UK-based coffee chain for $5.1 billion recently. “We haven’t got details of the transaction yet. We are excepting to hold talks with Costa Coffee early next week,” Jaipuria told from Nairobi. However, beverage industry officials involved with the companies said the conflict of interest is apparent. Jaipuria-owned RJ Corp is one of the largest bottling partners of Pepsi-Co, arch rival of Coca-Cola. “There is a clear case of conflict. Sooner than later, DIL operated Costa Coffee outlets could stock and sell Coca-Cola beverages. It’s not unusual for large franchise companies to deal with competing partners, but on clearly separated categories. Cresting a fire wall of separation would be required,” said Lloyd Mathias, former senior PepsiCo official and business consultant. While PepsiCo and Costa Coffee businesses are run by two separate companies- Varun Beverages and Devyani International (DIL)- both are owned by RJ Corp. “Jaipuria has the option of exiting the Costa Coffee deal, which will depend on the valuation between RJ Corp and Costa. Even though Costa has remained a very small business for RJ Corp, it has

“Jaipuria has the option of exiting the Costa Coffee deal, which will depend on the valuation between RJ Corp and Costa. Even though Costa has remained a very small business for RJ Corp, it has leveraged back-end synergies with Pepsi-Co at the stores, in addition to a distribution franchise for the beverage and snacks maker, and serving its products at the stores,” one official said. DIL’s bigger India businesses are Yum! Brands owned KFC and Pizza Hut quick service chains, stores at airports and its own restaurant chain Vaango. “Since Costa Coffee follows a franchise model in India and if RJ Corp exits because of conflicting interests, a new franchisee will have to be brought in to run the chain. Coca-Cola’s business model is not structured to operate a brick-and-mortar model,” another official said. Whitbread-owned Costa Coffee entered India with DIL in 2005 through an exclusive franchise agreement. The number of Costa Coffee stores has come down from 100 outlets in 2013 to 46 last year. Globally, Costa Coffee operates close to 4,000 stores and 8,000-plus Costa Express vending machines. For Cola-Cola ownership of Costa Coffee stores provides the expertise in coffee, a platform to further grow its non-aerated drinks portfolio and the opportunity to cross-leverage its soft drinks, juices and water at Costa Coffee stores.

Vol. 11, Issue 04 -September - 2018

SPECIAL FEATURE

Indian FPI needs much investment in quality equipments: Sanjay Kumar moforming and vacuum packaging machinery is supplied as per clients’ requirement. Our executive Varsha Singh caught up with firm’s MD Sanjay Kumar for an exclusive interview, excerpts are given below: What are the current technologies you are offering to Indian food processing industry? Please share brief information about your company and its offerings. SK-Our Business was established in the year 1947,we are a 71 year old company and we have a history. We have been selling machines to the Food Processing Industry since the early 60’s, since over 5 decades. SMMC only sells industrial equipments manufactured by reputed overseas manufacturers primarily from Europe. Company does not sell any local made machines. We are present in the following categories: chocolate, confectionery, bakery, snackfoods, vegetable processing & meat processing machinery &equipment. It is predicted that consumption of food processing & packaging machinery in India will double by 2022. Sanjay Kumar Managing Diractor - (SMMC)

ood processing is considered as one of the fastest growing industries in India. The growth of the industry is supported by the availability of a large raw material production base. India is the largest producer of milk, bananas, mangoes, guavas, papaya, ginger, okra, second largest producer of wheat, rice, fruits, vegetables, tea, sugarcane and cashew nut and the third largest producer of cereals, coconut, lettuce, chicory, nutmeg, mace, cardamom and pepper globally.

Given the natural supply advantage and a population of 1.3 billion people (that spend a high proportion of their disposable income on food), there is a potential to nurture mutually beneficial relationships with global food processing, food retail and related supply chain organizations who could realize significant business growth opportunities in India, through new technologies, innovations and other methods of value additions. Further, India’s geographical location gives it a unique advantage when it comes to exports, having convenient connectivity to Europe, Middle East & Africa from the western coast, and Japan, Singapore, Thailand, Malaysia, Korea, Australia & New Zealand from the eastern coast. Food processing is a priority sector for the Indian Government, as well as one of the focus sectors in the Make in India initiative. Further, the availability of affordable credit and other fiscal incentives has also led to India being considered as one of the most favourable markets. In light of the above factors, and with total consumption of the food and beverage segment in India expected to increase from US$ 369 billion to US$1.142 trillion by 2025, output of the food processing sector (at market prices) is expected to increase to US$ 958 billion for the same period. These estimates clearly evidence the vast market opportunity offered by the Indian food processing, food retail, transport, logistics and related infrastructure sectors to players in the food processing value chain.

The food industry needs high-quality, reliable equipment with superior functionality to produce effective results. The food industry combines several raw food ingredients to produce food products that can be easily prepared and served by the consumer. Standard Machinery Marketing Company Private Limited (SMMC) was established in 1947.

What are your views on this? SK- The Indian food market is bigger than the IT sector, however there is a long-long way to go before Processed Indian Food research global markets. Indian clients have to invest in high quality equipments and good manufacturing processes which adhere to international standards and have to be mandatory in order to become a global leader in the processed food sector. There is unlimited availability of indigenous food products in-

Established in 1947, Standard Machinery Marketing Company Private Limited (SMMC) represents several large European Far Eastern and American manufacturers for industrial food manufacturing, processing and production equipment in India. India’s diverse agro-climatic conditions, large raw material base, rapid urbanisation and changing lifestyles, rising literacy and income levels as well as the increasing popularity of ethnic food overseas ensure that food processing forms one of the largest industrial segments in the country. It is to help meet this growing demand that SMMC offers end-to-end solutions comprising both new and pre-owned equipment for simple to sophisticated, high-end output in every area of the food market. SMMC represents several large European Far Eastern and American manufacturers for industrial food manufacturing, processing and production equipment in India. To meet this growing demand, SMMC offers end-to-end solutions comprising both new and pre-owned equipment for simple to sophisticated, high-end output in every area of the food market. SMMC presents state-of-the-art technical innovations that offer minimally labour-oriented production, hygiene and safety while also easing storage and transportation considerations. From the world’s leading food packaging manufacturers, SMMC solutions offer multidimensional functionality – increased shelf life, greater food safety as well as aesthetic appeal. Their equipment ranges from HFFS and VFFS machines for liquids and powders to wrapping machines for biscuits, chewing gum, semi-liquids, par-baked and frozen food and even high-performance ther-

ready-to-eat or cook segment which requires tailormade machines/systems to processorpack these products. How your company is catering to their tailormade machinery demands? SK-We have customised solutions and a few ranges of stand-alone machines. Since most of the equipment are industrial-scale we need to understand the customer’s exact requirements with product specifications and capacitiesin order to offer a suitable system to the end user. This approach reduces the chances of error and helps us in focusing on specific segments. We focus only on tailormade systems. Unlike developed countries, Indian manufactures or entrepreneurs are still hesitant in investing in best of the technologies and rather try cheap and unreliable technologies. What are your suggestions to them for the betterment of their business?

SK-The processed food industry has grown tremendously in the past 2 decades.There are more entrepreneurs willing to invest, take risk and enter into completely different segment such as the food industry due to the evergreen nature of the same. As you are aware Bangalore is the start-up capital of India.There are many young and vibrant businessmen willing to walk the extra mile to take their companies to a national and global level. However, there is a segment of businessmen who are still using traditional systems. They have to be educated and updated on latest trends, technologies in order to understand the long term benefits of automation and hygiene. Ofcourse, the Government has to take initiativein encouraging these companies. What are the challenges a manufacturer or a machinery supplier faces when it comes to selling food processing & packaging machinery/equipment in India? SK-India is a price sensitive market so the major challenge we face is during negotiations. What are your main products which youwill exhibit at International Food-Tec India 2018 and why? SK-We are the largest exhibitor at the FoodTec; our stand size is 500 square meters. And we have over 35 of our Business Associatesfrom different countries participating with us. They are for various categories in the foodsegment. The following unique machines will be exhibited at our stand: High-speed bunch wrapping machine for lollipops. Due to its compact and innovative design, these bunch wrappers make efficient and precise single twist wrapping accessible even to the entry level and medium level producers apart from large producers. High capacity Mango Peeler-Since India is a huge market for mango-processing, juices, dehydrated mango... this machine would be the perfect solution to address the high costlabour required in this industry. Compact Roaster-For all types of nuts and seeds is usually a hit in all the shows we participate.The customer can see the machine work live and consume the products to understand the superior quality and taste of these roasted products. RotaryOven-Unique Machine to save power consumption through option of partial baking so that you do not have to utilise the full oven at all times.

Vol. 11, Issue 04 -September - 2018

NEWS

Organic yoghurt is the most sugary for children’s consumption

rganic and children’s yoghurts are considered to be healthy snacks that are high in calcium and protein, but a new study has found they contain the highest amounts of sugar. Scientists from the Universities of Leeds and Surrey analyzed the sugar and nutrient content of 921 yoghurts across eight categories — children’s, dairy alternative, dessert, drinks, flavoured, natural/Greek, organic and fruit — available in major UK supermarkets.To achieve a green traffic light nutrition label in the UK requires a product to contain less than 5 g/100 g of sugar. The study found less than 9 per cent of yoghurts and only 2 per cent of children’s yoghurts were classified as low sugar

Revival of cooperative a must for farm sector: RBI director Satish Marathe

ccording to Satish Marathe, the cooperative sector was essential to improve food processing industry and ensure that the farmers get the due price of their produce. Making a strong case for revival of the cooperative sector in the country, he said that increasing minimum support price of agriculture produce alone will not improve the plight of the farming community. The cooperative sector, he added, was essential to improve food processing industry and ensure that the farmers get due price of their produce. “We only process 20 per cent of the farm produce, while in developed countries and in South East Asian nations as much as 80 per cent of the agriculture produce are processed,” he said, adding that “increasing in MSP alone will not improve the lot of farmers. We need to encourage cooperative sector..reactivate rural cooperatives”. Marathe further said that efforts were needed to persuade the Centre as well as state governments to amend all laws and rules in line with the 97th Constitutional Amendment, which, besides other things, made the right to form cooperative a fundamental right. The 97th Constitutional Amendment was aimed at freeing cooperatives from bureaucratic control and ensuring democratic and autonomous functioning through regular elections. One of the big problems being faced by the cooperative sector is lack of data, Marathe said, adding “one does not know the contribution of the cooperative sector to the GDP. This data is not there with Central Statistics Office (CSO)”. The availability of data on contribution of cooperative sector to the economy will make the task of advocates of cooperative sector easier, he said, adding that “the cooperatives should be viewed as economic entities and not as business enterprises going all out to maximize profits”. The cooperatives world over have helped in ensuring that essential commodities reach everyone at reasonable prices, he said, stressing in India it is “imperative to strengthen cooperative sector legally and financially”. Speaking on the occasion, Iffco managing director U. S. Awasthi attributed the ills of the cooperative sector to bureaucratic control. Several cooperatives have done very good work which was needed to be emulated and carried forward, the IFFCO chief said, adding that “there is need to look at the whole sector with an open mind” and not to highlight the bad work done by few. The cooperatives, he said, were also making efforts to encourage women participation in the cooperative movement through reservation. Awasthi also expressed hope that with the passage of time more youngsters will see merit in cooperative and use it as a vehicle to promote economic activity.

University of Surrey explained the reason for the high sugar content of organic yoghurts. “Sugar is often used as a sweetener to counteract the natural sourness from the lactic acid produced by live cultures in yoghurt. These live cultures — or microorganisms — are what make yoghurt a ‘good for your gut’ food and tend to be found in higher amounts in organic yoghurts. This may be why these products had higher amounts of added sugar to offset the and achieved the green label. The researchers found that organic yoghurts were particularly bad; containing a massive 13.1 g/100 g of sugar, while natural/Greek yoghurts were least sugary with 5 g/100 g. Natural/Greek yoghurts also contained much more protein and fewer carbohydrates than all other categories. Lead author Dr. Bernadette Moore from the School of Food Science and Nutrition at Leeds said the organic label leads to the assumption it is the healthiest option, but these yoghurts “may be an unrecognized source of added sugars in many people’s diet”. Study co-author Dr. Barbara Fielding from the

sourness.” Children’s yoghurts also contained a lot of sugar, with an average of 10.8 g/100 g. According to the NHS, four- to six-year-olds should have no more than 19 g of sugar a day, so a single serving of yoghurt could be around half of a child’s daily sugar allowance. Moore explained that children eat more yoghurt than adults in the UK, but their portion sizes are the same, and this may be contributing to increasing obesity rates. “Many of the products that were suggested for children’s lunchboxes were high sugar dessert yoghurts, rather than lower sugar options. Retailers

NSF INTERNATIONAL 4th Floor, Chimes Building, Plot No. 142, Sector 44, Gurugram, Haryana 122002 Mob: 096506 21118 E : india@nsf.org W: www.nsf.org

could play a positive role in promoting health by establishing boundaries for lunchbox recommendations and clearly labeling the amount of added sugar.” Labeling laws in the UK do not require manufacturers to distinguish between added sugars and naturally occurring sugars, or lactose. The researchers concluded that a reformulation of products to reduce free sugars is warranted, and study co-author Annabelle Horti said consumers need a better understanding of the nutritional values of their food in order to reduce sugar consumption. “Changing the public desire for ‘sweeter’ yoghurts may be a real challenge when it comes to reducing its sugar content. In general, consumers’ liking for yoghurt is often correlated with sweetness,” she said. “Helping people to understand the quantity of sugar that is in their yoghurt and its possible ill effects on health may go a long way to smoothing the road for when the sugar is reduced.” To help address childhood obesity, Public Health England challenged the food industry to reduce sugar in yoghurts, and other products, by 20% by 2020. A progress report in May 2018 stated there has been a 6 per cent reduction in sugar for yoghurts in the first year.

CORPORATE & TRADE NEWS

Vol. 11, Issue 04 -September - 2018

Global food waste may rise by almost a Amazon’s shopping list now comprises third by 2030;2 billion tonnes will be binned Spencer’s apart from More & Future

S online giant Amazon in its agenda to penetrate deeper into Indian market is scouring for alliances. It is in early talks with Spencer’s Retail to pick up a minority stake in the food and grocery retail chain.

With Walmart acquiring Flipkart, Amazon has increased its pace; The US Company is also in talks with the Aditya Birla Group on buying stakes in its More chain of stores and is likely to partner with Samara Capital and other investors to fully acquire the business. It is also aiming for a minority stake in Kishore Biyani’s Future Group. If all three deals go through, Amazon will have a stake in over 1,700 stores and a mine of data to further its business in India as it seeks to compete effectively with Walmart-Flipkart and Reliance Retail. Amazon’s rival Walmart already owns and operates a chain of cash-and-carry stores in India apart from its recent takeover of Flipkart. Alibaba, which has invested heavily in India in the payment and retail space through Paytm and BigBasket, is also seeking local retail partners in top domestic conglomerates such as Reliance and Tata. Amazon needs to have an omnichannel presence in order to make a mark in India’s food and grocery. This strategy will likely unfold through Amazon’s Prime Now hyperlocal platform that promises two-hour to same-day delivery of food and grocery. Without

the support of brick and-mortar chains that already have stores in all cities including the tier II and III markets, it will be difficult for Amazon to expand its play in food and grocery retail across the country.Having a stake in brick-and-mortar retailers like Spencer’s will help Amazon save on margins. Spencer’s is a subsidiary of R.P. Sanjiv Goenka group’s flagship power unit, CESC Ltd. Spencer’s Retail runs 128 stores in over 30 cities. These include 58 large-format, hypermarkets and supermarkets. Its revenue was Rs. 2,091crore in FY18 on a loss of Rs. 30 crore loss before tax compared with a loss of Rs. 129 crore in the year before. Spencer’s has plans to roll out 40 hypermarket stores in the next four years. Amazon will continue the marketplace model for the food and grocery format since India does not allow overseas investment in inventory-based ecommerce. The company has realised that despite government approval for a fully owned food retailing venture, it will take time to develop since it’s a difficult business to sustain and make profitable without a presence in other categories. Under this, Amazon can only sell food products produced or manufactured in India. Herein these strategic investments in top brick-and-mortar chains will come in handy.

Amazon plans to get Aditya Birla Group’s food and grocery supermarket chain

mazon, the world’s largest online retailer is planning to acquire Aditya Birla Group’s food and grocery supermarket chain at an enterprise valuation of Rs. 4,5005,000. For this it is teaming up with Goldman Sachs and homegrown private equity fund Samara Capital to form a consortium to help acquire it Birla’s food business. Samara and Aditya Birla Retail Ltd, signed an “exclusivity” agreement at the end of June for bilateral negotiations. But Samara, a mid-market India focused fund, reached out to Goldman Sachs and Amazon to join forces. Goldman Sachs Special Situations Group will be the likely vehicle within the investment bank for this transaction. The trio is planning to float a separate company or special purpose vehicle in which Amazon will pick up a 49 per cent stake as the

“strategic partner”. The final structuring exercise is ongoing ahead of a formal announcement at the end of this month or early next month. As per Indian overseas investment laws, foreign companies can only hold up to 49 per cent in multi-brand retailers but, foreign companies generally overcome this hurdle by creating holding entities in cash-and-carry retailing, where 100 per cent overseas ownership is allowed. These in turn let Indian-owned groups and entrepreneurs run the front-end stores as their franchisees. If the deal goes through, More will be the second direct investment in India’s brick-and-mortar retail space by Amazon after it picked a 5 per cent stake in September last year in India’s largest listed department store chain Shoppers Stop for Rs. 180 crore. It shook the US grocery sector earlier this year with its unexpected $13.7 billion purchase of Whole Foods.

ITC will soon launch milk-based beverages in south olkata-based ITC is planning to launch ready-to-drink, milk-based beverages with intent to compete with the similar products of Coca-Cola, Amul and Britannia in coming month.

shift to healthier beverages and we believe innovative offerings in this segment could have great potential for the future.” Sunfeast Wonderz range will be manufactured at the aseptic pet facility in ITC’s new unit in Kapurthala, Punjab.

The new product range named— Sunfeast Wonderz — will initially be launched in the states of Tamil Nadu, Karnataka, Telangana and Andhra Pradesh before it is introduced at national level.

Unlike other existing products made with artificial flavours, ITC will use real fruit pulp for the milkshakes, the company said. “This innovative range of milk-based beverages will be powered by the company’s institutional capabilities including agri-sourcing, distribution, infrastructure, among others,” said Hemant Malik, divisional chief executive – Foods, at ITC. “The ready to drink milk beverages market has seen high growth in the recent past with a paradigm

Many companies are in a race to bring out new products and capture the market first in flavour improvement; combination of various products and blending them with drinking milk products to cater to the needs of health-conscious consumers.

ic and environmental implications are serious if the trajectory isn’t changed. When we fight food loss and waste, we also fight hunger, poverty and global warming. Much of the projected increase was down to a swelling world population, with more people resulting in more waste. Even household waste will increase in developing countries as consumers gain more disposable income, which identified five key changes which it said could save nearly $700 billion in lost food.

ooming world population and changing habits in developing nations may lead to rise in global food waste by almost a third by 2030, when more than 2 billion tonnes will be binned. The United Nations has set a target of halving food loss and waste by 2030. But the Boston Consulting Group (BCG) study found that if current trends continued, it would rise to 2.1 billion tonnes annually - an amount worth $1.5 trillion. Around a third of the world’s food is lost or thrown away each year. Currently, 1.6 billion tons of food is wasted annually, worth about $1.2 trillion dollars. The amounts of waste and the social, econom-

They included more awareness among consumers, stronger regulations and better supply chain efficiency and collaboration along the food production chain. It is Important to take measures to cut wastage as the world would at least be on the way to meeting the 50 percent reduction target by 2030. Consumers, businesses and regulators would all have to play a role in driving change. It is important to make a shift in our attitudes to food waste – and understand that it just isn’t acceptable to throw food in the bin.

FMCG majors settled for healthier beverage drink

orld players of carbonated drink are shifting towards healthier drink options after having experienced stagnancy in the carbonated drinks segment as more and more consumers are getting aware of health risks. Coca-Cola’s acquisition of coffee chain Costa for $5.1 billion underlines the global shift in preference towards non-carbonated beverages. With its foray into the hot beverage territory, along with its intention to venture into the ready-to-drink segment (bidding for Horlicks), the entire beverage competitive landscape is getting redefined. With the Costa acquisition, Coca-Cola has added an important beverage sub-segment to its stable, adding about 4,000 physical stores worldwide. While this helps in reach, it also addresses the need for branding in an otherwise tea/coffee industry. As far as the Indian market is concerned, Costa is a small player (47 stores versus 1,722 stores for Café Coffee Day), however it does underline the expanding competitive landscape with relatively newbies like Chai Point and Chaayos garnering private equity investments. Chai Point, backed by Paragon Partners, operates through 100 stores, while Chayoos led by Tiger Global aims to scale up to 300 stores in 5 years from around 50 at present. This has interesting implications for Tata Global Beverages, whose joint-venture with Starbucks has recently broken even. Even as it continues to restructure, the management is focusing on its branded portfolio. It is also toying with the idea of a tea café by launching a branded tea cafe chain named Tata Cha. The shift from carbonated drink towards healthier drink options comes after having experiencing a major drop in the volume sales. This reflects in their India strategy as well. For instance, PepsiCo India aims to double the sales of Tropicana by 2020. PepsiCo’s franchise - Varun Beverages which accounts for over half of the former’s sales volume in India - is also witnessing a spurt in volume growth from the non-carbonated space. Varun Beverages manufactures and distributes carbonated drinks along with packaged water (Aquafina). It

currently distributes most of the fruit juice-based (Tropicana) and sports (Gatorade) drinks. This is going to change soon as it has a Rs. 450 crore capex plan for production of both Tropicana and Gatorade, which would aid margin. The stock is currently trading close to 50 times CY19 estimated earnings. Dabur India, which is leader in this segment (55 percent market share), was earlier struggling with competition from the unlisted players like Hector Beverages. In Q1 FY19, the juices segment, which contributes about 18-20 percent of total sales, saw a 27 percent year-on-year recovery in sales growth. Earlier catching up with this theme helped new players like Hector Beverages. The Sequoia Capital-backed company reported Rs. 69 crore in sales in FY17 and has a market share of about 3-4 percent in the Rs. 2,500 crore branded juices industry. News reports earlier this year suggest Tata Global Beverages had been interested in acquiring it. While there is no update from the management at present, a possibility of such a consolidation or entry for new players remain. Another interesting bet is from ITC’s B Natural which commands 7 percent market share and aims at 12 percent share by FY20 by focusing on concentrate-free juice drink offerings. Another interesting trend is consolidation in the health food drink space, which has a market size of around Rs. 10,000 crore. Newsflow suggests that Coca-Cola is a frontrunner to acquire GlaxoSmithKline Pharmaceuticals’ consumer health portfolio. Here too numerous players have forayed recently. Patanjali Ayurved has entered this market as a discount player with its brand Power Vita. Nestle has re-entered the market with its Milo brand and Danone, Venky’s (India) and Sri Sri Ayurveda have launched new brands. Meanwhile, Abbott India has worked with the medical fraternity to generate favourable opinion for its protein rich supplement Pediasure. The overriding theme however remains the consumer shift towards healthier drink options. From the investment universe, Varun Beverages, Tata Global Beverages, Dabur and ITC should be closely watched for their change in portfolio mix, positioning and volume growth.

Vol. 11, Issue 04 -September - 2018

DAIRY NEWS

To reduce methane emission, researchers feed seaweed to dairy cows

Mother Dairy expects Rs. 1000 cr turnover due to growing consumer demand

hile improved margin profile would be moderated by increased competitive intensity, the recent decline in stock prices offer some opportunity to keep an eye on dairy products.

The dairy sector’s recent quarterly results have been driven by two vectors: trend in milk prices and share of value added products (VAP). Since milk prices have been subdued in recent times, plain vanilla players were impacted, even as companies with higher share of VAP were better off. As the dairy sector has witnessed significant stock price correction, there is value emerging in selected pockets. Parag Milk Foods: Value added advantage Sales growth of 33 percent year-on-year (YoY) in Q1 FY19, majorly volume driven, was aided by value added portfolio (41 percent YoY) and skimmed milk powder (35 percent). Better product mix, with VAP constituting 66 percent of sales (versus 62 percent in Q1 FY18), helped expand margin. In addition, benign input costs and operating leverage have been advantage. Distribution expansion and a traction from new launches (whey protein, protein powder etc) have also aided earnings growth. Other prominent players weighed under weak pricing and competition Heritage Foods’ topline growth grew around 4 percent YoY, with most growth accruing from VAP (14 percent YoY). Improvement in earnings before interest, tax, depreciation and amortisation (EBITDA) margin was mainly due to lower procurement cost (-7 percent YoY) and a better product mix (29 percent share of VAP). Volume growth moderated (5 percent for milk sale volume) due to elevated competition. Further downward pricing pressure in some of the markets led to lower realisation of milk and fat products (ghee, butter). The management underlined that the excess supply of milk will continue to impact volume growth in the near term. Hatsun Agro Products, a major player in Tamil Nadu, posted moderate sales growth on account of subdued volume growth. However, EBITDA improved 18.9 percent YoY on account of lower procurement prices and product mix. In the case of Prabhat Dairy, the 7 percent sales growth was aided by volume growth (36 percent YoY) which offset weaker pricing. Operating margin improved 50 basis points on account of higher gross margin, but was partially impacted by investment for its distribution network. Trends in play Shift toward organised sector: As per the Department of Animal Husbandry, co-operatives and private players procure 20-25 percent of the milk produced. Around 35 percent is still sold in the unorganised sector. The department expects milk handling by organised sector

to grow from 20 percent at present to 50 percent by 2022-23. Regional players moving beyond local territory: Parag Milk Foods recently forayed into the north after acquiring Danone’s Haryana facility. It expects the latter’s Sonipat plant to generate about Rs 6080 crore in revenue in FY19. Similarly, Heritage Foods had entered north India after acquiring Reliance Dairy. Here the company is relying on the Reliance brand for increasing its presence in Punjab and Haryana. New entrants: Other entrants in the recent past were the likes of Godrej Agrovet, which acquired Hyderabad-based Creamline Dairy Products in 2015. French dairy giant Groupe Lactalis acquired Tirumala Milk Products in 2014. The joint venture of Future Group and Fonterra (a New Zealand co-operative) is expected to launch its products in mid-FY19. Consumer oriented companies figuring backward integration: Britannia Industries, for instance, is pushing for new launches, coupled with a sharp increase in milk procurement – from 20,000 litres at present to 3 lakh litres per day. Structural shift towards VAP: Recent reports from CRISIL suggests revenue from VAP is expected to grow at 14-15 percent compounded annual growth rate (CAGR) for the next three years. Dairy companies are gearing up for an increase of their share in VAP and hence laying emphasis on it in the ongoing capex cycle. As per CRISIL, organised dairies are expected to spend around Rs. 14,000 crore over the next three years to enhance processing capacity by 25-30 percent and strengthen their milk procurement infrastructure. Emphasis on increasing distribution reach: Parag Milk, for instance, plans to add about 9,000 retail outlets per month. As of now, its distribution stands at 2.6 lakh outlets. In the recent quarter, the management attributed 30 percent growth to expansion of its distribution channel.

n University of California researchers in their study are feeding seaweed to dairy cows in an attempt to make ruminants more climate-belly friendly. This study is carried out to study whether feeding seaweed to dairy cows reduces their emissions of methane a potent greenhouse gas that’s released when cattle burp, pass gas or make manure. Early results looks positive and promising, and more studies and researches are planned in near future. In a recent study early this year, researchers found methane emissions had reduced by more than 30 percent in a dozen Holstein cows that were fed on the ocean algae, which was mixed into their regular feed along with molasses to sweetened it. The molasses was added to disguise the salty taste of sea water algae.“I was extremely surprised when I saw the results,” said Ermias Kebreab, the UC Davis animal scientist who led the study. “I wasn’t expecting it to be that dramatic with a small amount of seaweed.” Kebreab further added that his team plans to conduct a six-month study of a seaweed-infused diet in cattle starting in October. More studies will be needed to determine and support its safety and effectiveness. Seaweed cultivators will have to rise up production to make it an

inexpensive option for algae growers. Dairy farms animals and other livestock businesses are major sources of methane contribution to the atmosphere, a heat-trapping gas many times more powerful than carbon dioxide. Worldwide researchers have surveyed ways to reduce cattle emissions with adding various food additives such as garlic, oregano, and cinnamon and even curry — with mixed results. “If we can reduce methane on the dairy farm through manipulation of the diet, then it’s a win for consumers because it reduces the carbon footprint, and it’s for dairy farmers because it increases their feed efficiency,” said Michael Hutjens, an animal scientist at the University of Illinois, Urbana-Champaign.

Parag Milk Foods launches in fresh milk category; targeting a 10 per cent market share in Delhi-NCR

arag Milk Foods has launched its fresh milk category under the company’s Gowardhan brand, and is targeting a 10 per cent market share in Delhi-NCR from this segment in the current fiscal year. Parag Milk Foods, established in 1992, is a private dairy FMCG company with pan-India presence. It has its manufacturing facilities at Manchar in Maharashtra and Palamner in Andhra Pradesh. The company has commenced commercial operations of its Sonepat plant, which it bought from Danone in April. The company plans to reach out to the regions within 250-300 km of the Sonepat plant.

Investment opportunity emerging as margin profile improves The organized sector in the dairy business is looking ahead to increased exposure to high margin high VAP in the milk value chain. This improves the margin profile and helps in reducing sensitivity to milk price volatility. Additionally, efforts are also on to disintermediate the value chain and hence enhance both distribution reach and backward integrate the procurement of milk.

The facility has a processing capacity of one lakh litre per day and depending on the demand the company can increase it up to three lakh litre, going forward. It is expected to reach full capacity of

While improved margin profile would be moderated by increased competitive intensity, the recent decline in stock prices offers some opportunity to keep an eye on. Parag Milk Foods with its high VAP exposure offers an interesting opportunity to look at the dairy consumption theme. Source : Money Control

three lakh litre by the end of this financial year,” said Shah. According to Parag Milk Foods chairman Devendra Shah, the fresh milk market in Delhi-NCR is close to Rs. 1,000 crore and north is one of the key priority markets for the dairy company. Dairy products consumption is the highest in this region and this expansion will allow Parag’s cow milk to reach Delhi-NCR and neighboring regions. Currently, 90 per cent of the fresh milk supply in the region is buffalo milk. In the coming weeks, besides fresh milk, this facility will also manufacture products including flavoured milk, butter milk, lassi, among others. Parag will begin to supply these products to the north and east markets from our Sonepat plant soon.

ages and we believe innovative offerings in this segment could have great potential for the future.” Sunfeast Wonderz range will be manufactured at the aseptic pet facility in ITC’s new unit in Kapurthala, Punjab.

The new product range named— Sunfeast Wonderz — will initially be launched in the states of Tamil Nadu, Karnataka, Telangana and Andhra Pradesh before it is introduced at national level. Unlike other existing products made with artificial flavours, ITC will use real fruit pulp for the milkshakes, the company said. “This innovative range of milk-based beverages will be powered by the company’s institutional capabilities including agri-sourcing, distribution, infrastructure, among others,” said Hemant Malik, divisional chief executive – Foods, at ITC. “The ready to drink milk beverages market has seen high growth in the recent past with a paradigm shift to healthier bever-

With an international ever-changing consumer’s preferences and tastes, this trend prompts beverages giants, including Coca-Cola and Pepsi-Co, to broaden the horizons for a large range of products. The growth has constantly slowed down in the Rs. 22,000-crore carbonated soft drinks market as consumers increasingly switch to healthier beverages such as fruit juices, energy drinks, flavoured tea, fortified water and dairy-based beverages. Many companies are in a race to bring out new products and capture the market first in flavour improvement; combination of various products and blending them with drinking milk products to cater to the needs of health-conscious consumers.

Vol. 11, Issue 04 -September - 2018

PACKAGING NEWS

Swiggy unveils a marketplace for Cloves, instant tea bags, many in list of rejected food consignments sustainable food packaging said in a statement. “With over 40,000 restaurants on the platform, we want to enable them to have seamless access to quality, eco-friendly material.”

wiggy has launched a marketplace for food packaging for partner restaurants called ‘Swiggy Packaging Assist’. Swiggy’s e-store stocks a range of custom delivery containers, categorized for dry starters and snacks, gravy items, carry bags, paper and pizza boxes and cutlery. The focus is on providing partner restaurants with sustainable, eco-friendly and food-grade certified packaging materials. The marketplace lists 30 products that serve different functions—leak-proof, sturdy, stackable and heat resistance. Many of these are made with paper or aluminum that is recyclable. Wooden cutlery is available too. “Packaging material for food delivery is fraught with challenges,” Swiggy

Swiggy launched a direct phase in Bengaluru two months back and in Maharashtra in August. So far, 300 partner restaurants have made purchases with the service. “We wanted to be environment-friendly, but the challenge was to source the right quality products at the right price,” says Girish D. Kulkarni, owner of Maharaja Wada, Pune, a restaurant that uses the platform. “We have received compliments from customers for our packaging, especially those that are sustainable options to plastic.”

The rejected consignments originated from China, Chile, Egypt, Germany, Malaysia, Russia, South Africa, Spain, Sri Lanka, Turkey, the United Kingdom, Tanzania, Vietnam, and the United Arab Emirates.

loves, instant tea bags, coriander seeds are among the list of rejected food import consignments for the month of July.

As per a recently-released report by Food Safety and Standards Authority of India (FSSAI), there were around 25 consignments that met with rejection as they did not meet the packaging and labeling norms and were of sub-standard quality along with the occurrence of insecticide deposits.

The products rejected included broken and split cassia, cloves, arecanuts, cocoa powder, coriander seeds, fresh apples, frozen tuna, instant tea bags kiwis, oranges, barnsberry, lacto coated gem biscuit, etc. As per the report, few of the consignments had inconsistency in non-rectifiable labeling like additional sticker label were stuck on the product not providing clear details like date of manufacturing and expiry, added flavours information were missing, printing mistake of wrong logo of veg with non-veg ingredients was printed. As per the FSS regulations, in case of imported packaged food consignments, the following special consideration on labeling shall be allowed for the rectification at the custom bound warehouse by sticking a single non detachable sticker or by any other non-detachable method next to the principle display panel namely Name and address of the importer; Food Safety and Standards Authority of India’s Logo and license number, Non-Veg or Veg Logo Category or sub category along with generic name, nature and composition for proprietary food.

Other rejected items had different criteria to be rejected like they were not stored in favourable storage conditions, sealed in plastic packaging, cartons had rotten fruits with fugal and mold growing on them, insects were detected in each cartons, missing nutritional information on the product label, non specified ingredients are mentioned on the label which does not comply with Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) Regulations, 2016. An official representing FSSAI said, “In a month, less than 0.5 per cent of the consignments are usually rejected in testing. Rejections also happen on basis of visual inspection, if they do not comply with labeling and packaging standards.” He added, “The sub-standard and bad-quality products are identified through visual inspection of the label and testing of the content through laboratory testing methods, and the rejected products are either re-exported or destroyed in the Customs’ hold area.”

Sales Contact : Solus Jain Heights E-10 JC Road Bangalore- 560 027 ph: 80 22224222 /23 e: menonkkmts@gmail.com

www.agronfoodprocessing.com

Vol. 11, Issue 04 -September - 2018

PRESS RELEASE

Grinding the bran

ETZSCH Grinding & Dispersing offering a comprehensive range of Grinding & Dispersing Solutions like Wet Grinding, Dry Grinding, Mixer/De-Aerator, Laboratory Machines, System/Plants, Netzsch-Grinding Beads, etc. for multitude of industries for more than 15 industries since 1873. Worldwide, NETZSCH supports confectionery mass production initiatives from raw materials to finished product. To ensure the success of your investment, NETZSCH undertakes the planning and implementation of new production lines and trains plant personnel. Our state-of-the-art testing facility offers a full range of capabilities. Here you can test new recipes or optimize the production of existing products. NETZSCH Confectionery offers a comprehensive range of solutions for • Cocoa processing • Chocolate manufacturing • Sugar processing Products Fine grinding, mixing of solids in liquid and conching of chocolate masses NETZSCH machines and systems for the food and confectionery industry. NETZSCH is an innovative, internationally-active partner with sales and service locations in 35 countries. NETZSCH has decades of experience in the production of confectionery masses and the fine grinding of foodstuffs. You profit from economical, energy-efficient production processes that meet with the highest standards of hygiene and from the greatest production and investment security that comes from the many years of NETZSCH experience in the food industry. Worldwide, NETZSCH supports confectionery mass production initiatives from raw materials to finished product. To ensure the success of your investment, NETZSCH undertakes the planning and implementation of new production lines and trains plant personnel. Our state-of-the-art testing facility offers a full range of capabilities. Here you can test new recipes or optimize the production of existing products. Application With technical know-how in wet grinding and dry grinding, NETZSCH Confectionery offers machinery, and solution for the manufacturing of • Chocolate mass • Compounds • Coatings and covertures • Filing cream with rework • Rework of wafer and nuts • Spreads • Refining of cocoa liquor • Fine grinding of sugar • Fine grinding of cocoa press cake and shell • Dearation of coatings • Direct processing of crystal sugar and cocoa nibs • And many more Services NETZSCH Confectionery is equipped with laboratory in Selb, Bavaria, Germany which serves exclusively for chocolate industry where you can • Test – Meet your desires and requirements • Develop New Product – Formulate and make your own unique chocolate with no hesitation • Optimize Production – Scale up your production requirements In the White Lab, Germany an area set up solely for food and confectionery applications, the customers can run trials and test the product on rheology, particle size, moisture and others. The results serve as a basis for our customer’s decision making and for NETZSCH to satisfy the customer by meeting their needs and demands. For the grinding and dispersing projects, we also maintain “state-of-the-art” applications laboratories in

Hanau (Germany), Exton, PA (USA), Shanghai (China), Tula (Russia) and Pomerode (Brazil). At these centers research and testing is conducted often together with our customers. Please visit us @ANUTEC Show Hall No. 1, Booth No. B12. We will present you our System MASTERCREAM (our Pre-cutting-system) & Impact Mill Condux® 220 We delighted to announce the live demonstration of Master Cream and the flexible and economical solution for Nuts, Rework and Food” Please make sure your presence on the scheduled timing (1) 11:30 am , (2) 14:00 pm, (3) 16:00 pm MasterCream

The MASTERCREAM was developed for the flexible and efficient refining of confectionery raw materials such as nuts as well for the reprocessing of rework. Whether integrated into NETZSCH RUMBA® or SALSA® plants, into your existing line or as a stand-alone machine – the NETZSCH MASTERCREAM is an optimal complement to your production. The pre-ground paste of nuts or rework can be directly transported to a process tank for further processing. The combination of the pre-cutting unit and a horizontal agitator bead mill for fine grinding allows the production of premium products like nut creams or rework pastes. Reduced and closed machinery components, equipped with optimized grinding technology, lead to low processing temperatures (40°C to 50°C) and an improved flavor profile of your product but also to longer storage life. Impact Mill The Impact Mill Condux® 220 is a high speed fine impact mill for the dry grinding of various products up to a Mohs hardness of 3 - 3,5. The diversity of grinding tools allows the mill to be used universally depending on the application and area of operation. This of course also applies later on, when circumstances such as product characteristics or requirements have changed, the grinding tools can be changed as well. Simple Sugar Grinding – ATEX-compliant

The grinding of products, whose dusts are potentially explosive, places particularly high demands on the technology used and the design of a grinding plant with regard to safety. The most frequently used variant is a complete grinding system which is pressure shock resistant up to 10 bar (g). However, this usually means considerable costs for peripheral equipment. With the new ATEX-compliant plant concept Condux®, the installation of a more efficient grinding plant for many products is considerably easier: With this newly developed plant concept, explosion protection valves or explosion suppression equipment, explosion-decoupling devices, ventilators and even dust filter systems are no longer required in the classical sense.

Menon Technical Services Private limited

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TRIDIS

Bucket -Elevator

TOMRA Sorting Solutions TOMRA SORTING SOLUTIONS is a Norwegian based company with it food sorting HQ located in Leuven, Belgium. TSS creates sensor-based technologies for sorting and process analysis within the recycling, mining, food and other industries. TSS offers a unique range of complementary sorting technologies, the most extensive service base, and the widest geographic and market segment coverage in the industry. TOMRA is the leading provider of optical sorting and processing technology for the fresh and processed food industry. With approximately 8,230 sorting installations globally, in order to provide hazard free food for its end customers. Tomra is launching its all new series of sorter in this Foodtech exhibition – Tomra 3C which is an ideal solution for grains, cereals and nuts, dry fruits etc. industry. Visit: www.tomra.com

Vanmark Brings Together Global Quality Standards and Local manufacturing With New India Location.

Bengaluru, India: Vanmark, a potato and produce processing equipment manufacturer, has announced a new facility in Bengaluru, India, expanding its capabilities in the Southeast Asia food processing market. About Vanmark Vanmark expertly manufactures industrial potato and produce processing equipment that optimizes in-process storage, washing, peeling and cutting processes. Now, we are bringing that same quality and dedication to manufacturing the new 1820 Series in our new facility in Bengaluru. For more information, visit www.vanmark.com

FAM…forerunner in - new cutting technologies…… Innovation and advanced machine design are two words normally associated with FAM.FAM has many “Firsts” to its credit…unique machinery designs that have helped processors Increase production and efficiency as well as improve cut quality and cut operation costs. FAM is known for its simplified & rugged construction and all machines are designed to fast thorough cleaning.

w: www.fam.be Meyer Industries And KOFAB Merge To Become Precision Food Innovations (PFI)

Visit: www.pfi-global.com for more details

Menon Technical Services Private limited. Web: www.mtsfoods.com. Email: mtsinfo@vsnl.net Phone: 080 22224222/23 Blore. Solus – Jain Heights E-10, Floor 10, No.2, 1st Cross JC Road. Bangalore – 560027 Foodtech Show Stall no: C-02 Hall No 1

Vol. 11, Issue 04 -September - 2018

SNACKS & NAMKEEN NEWS

Dominos may terminate its global partnership with Coca Cola, going for Pepsi

RP-Sanjiv Goenka Group wants a bigger bite of India’s snacks business

uiltfree’s early launches have all been innovative low-calorie snacks such as packaged fox nuts (makhana), chipsized khakhras, flavoured veggie sticks and quinoa puffs. A brand name for the new offering is yet to be announced and the formal launch may be in October. Having established a presence across the country, Goenka is now ready to move into more conventional products and ramp up numbers. The RP-Sanjiv Goenka Group’s (RPSG) snacks business is part of a larger FMCG foray that the company has on its drawing boards. Apart from “guilt-free snacking”, Goenka says, the company will be in a few other categories of foods. It will also enter other non-food FMCG segments. Goenka said that the FMCG snacks business clocked around Rs. 43 crore worth of sales in August 2018, and is growing at 22-23 per cent month on month. He expects to achieve annualised revenue of Rs. 900 crore by March 2019. RPSG’s revenues are likely to be around the Rs. 24,000-25,000 crore mark for 2018-19. Goenka wants FMCG to clock sales of Rs. 10,000 crore in another four-five years, becoming a major contributor to the group’s financial muscle. Goenka had said he sees himself managing situations, rather than businesses. Today he is leading the charge with the FMCG snacks foray. His son Shashwat, who heads the retail business, is also involved with the FMCG launch. While things are a little chaotic now, and no CEO has been identified for the business, Goenka says: “At the entrepreneurial stage, a business needs junoon. It is something stronger than passion.” Currently, the company is building a new manufacturing unit in Thimmapur in the Warangal district of Telangana. Around Rs 200 crore is being invested in the plant. The company already has another unit in Hyderabad. In July 2017, the company acquired a 70 per cent stake in Rajkot-based Apricot Foods for some Rs 300 crore. It has a manufacturing plant and a wide range of 57 packaged snacks in distribution in Gujarat. Apart from these two plants, five more manufacturing units are being used by the group to get its products manufactured across the country. The group is in talks to set up more manufacturing units — each will be set up at an investment of some Rs. 200 crore. The Too Yumm brand has also reached four retail lakh outlets across the country, according to the company. Goenka says that the growth need not be entirely organic, and talks are on for possible acquisitions of manufacturing facilities, products brands as well as distribution capacities. “Several talks are

rant chain in the country operated by the listed JFL with a store count of 1,144 and beverage deals are seen as significant opportunities for sampling and consumer connect.

underway, but there is no point talking about them unless they happen,” Goenka says.

The Michigan-based Domino’s Pizza, which has a global footprint across 85 countries, has historically had exclusive partnership deals with Coca-Cola worldwide, with only a few exceptions such as Australia, New Zealand and Malaysia where it serves PepsiCo brands.

Patanjali Question Goenka is expanding his FMCG business at a time when no discussion can be complete without discussing Baba Ramdev, and the products that he has launched under the Patanjali brand. The unconventional business venture has plateaued to an extent at the Rs 10,000 crore revenue level over the last year, after posting scorching growth for a few years. Goenka points out that the growth of Guiltfree in the first year has been faster than Patanjali in its first year. “Patanjali grew very fast subsequently, but no other FMCG foods business could ramp up like we have done in the first year,” Goenka says.

ubilant Food-Works (JFL) operated Domino’s Pizza may change its choice from Coca-Cola for PepsiCo. This move may result in JFL ending its 20-year exclusive deal with Coke in the country and it’s among rare example of a multinational brand seeking to terminate a global partnership in India.

He points out that hitting a beat-rate of Rs. 900 crore in 18 months (beat rate is latest monthly revenue multiplied by 12) is huge for him and there will be at least three more platforms of foods, apart from the low-calorie baked products platform. These will be unveiled soon.

PepsiCo India launches 3D Cheetos to increase sales

Has the company considered entering the ayurvedic products market that Patanjali has evangelised so well in the last few years? Goenka says anyone in the space will have to consider the segment. “We will be on three more platforms that we are yet to zero in on. We are working on it and I think we will have some answers in the next few weeks,” Goenka says. He explains how no one can be quite sure what will work and what will not in the FMCG foods business, and more products are rejected at the development stage than are launched. RPSG has a research team based out of three cities — Mumbai, Delhi and Kolkata — working on new products. “They suggested creation of multigrain chips with the dahi-papdi flavour. Personally, I felt it was a stupid idea. But it worked like magic. So you see, there is much to learn for all of us,” he says. Goenka says he is ready to play every market, and go wherever he has to. Too Yumm has products in Rs. 5 packs for the rural market, as well as in Rs. 10 and Rs. 20 packs for other more mature markets. The company has also just started exporting Too Yumm. Initial samples have been sent to markets like Dubai and other cities in the Middle East. He points out that Too Yumm is among the bestsellers on Amazon.

Domino’s is in active negotiations with rival beverage makers such as PepsiCo as part of a move that industry watchers say is aimed at cost savings. The officials declined to be named. Domino’s is the single largest quick service restau-

Rivals such as McDonald’s has always been associated with Coca-Cola, while Yum! Brands that operates Pizza Hut, KFC and Taco Bell, has had a long-standing partnership with PepsiCo. India is an important market for Domino’s. With accelerating growth in dining out as a habit, JFL is looking at boosting profitability. It reported an over three-fold increase YoY in its net profit for the quarter ended June 30, riding mainly on Domino’s everyday value pricing and menu innovations.

epsiCo India has launched Cheetos Ocean Safari in a bid to compete with the rival producers of snack products that a presented with gifts.

He added Lay chips and KurKure snacks are generating revenue of more than Rs.1,000 crores ($141m) each in India, while “Doritos chips and Cheetos are growing brands.”

Cheetos Ocean Safari is designedespecially for kids and comes in four 3D animation shapes: a dolphin, a shark, a star fish and an octopus – Cheetos is available only in the southern and western parts of the country.

The launching of Cheetos Ocean Safari is PepsiCo India’s first stride towards doubling its salty snack sales in the approaching four years, according to Kotecha.

According to Jagrut Kotecha, VP of PepsiCo India’s snacks division, the Cheetos Ocean Safari is a first of its kind in the puffed snacks category.

He said the company will continue investing as the domestic market for salty snacks is worth Rs. 20,000crores ($2.82bn) and growing between 10-12 per cent year-after-year.

“We don’t want to put toys in our package, but a healthier product with less than 10 per cent of recommended daily allowance of sodium and energy, driven from saturated fat for children,” he said.

“We are growing at a higher pace than the salty snacks category. We will continue to post good double-digit growth,” added Kotecha.

Premji supported iD Fresh Food to enter into North Indian market

D Fresh Food- The Ready-to-cook food company that dominates the market for idli and dosa batter in South India, is now entering the North Indian market, starting with Delhi and Kolkata, by early next year. The expansion is in line with the Premji-backed company’s goal to reach Rs. 10 billion in revenues within the next five years. For present the company will use its existing manufacturing units in Hyderabad and Mumbai to cater to the markets in North India as both these plants have a production capacity of 50,000 kg batter per day. Besides Mumbai and Hyderabad, iD Fresh has production units in Bengaluru, Chennai, and

Dubai which serves the UAE market. The Dubai plant will also start supplying to Oman and Saudi Arabia markets by the end of this financial year. P. C. Musthafa, founder and CEO of iD Fresh Food stated that they were in talks to enter developed markets such as the US and UK and hoped that it would happen by end of FY20. According to a Market Research Future report, the Indian ready-to-cook food market was at $233 million in 2013, and is projected to reach $755 million by the end of 2022, registering a compounded annual growth rate of 14 per cent.

RETAIL NEWS

Vol. 11, Issue 04 -September - 2018

Food processing attracts heavy investment, US a key contributor: minister Stating that the relations between India and the US in recent years has deepened, she said that the government has worked tirelessly towards the mission of ‘Sabka Saath, Sabka Vikas’. “This spirit of inclusive growth is not only beneficial for Indian farmers whose income the government has sought to double by 2022, but also for international partners like America, and can create economic prosperity for all,” she added.

ndia’s food processing sector has attracted heavy investment and the US has played a key role in the industry’s initiatives, Minister of State for Food Processing Sadhvi Niranjan Jyoti said.

Speaking at the event, YES Bank Senior President and Global head (Food and Agri Strategic Advisory and Research) Nitin Puri said Indian government is catalysing a revolution in food processing, and this environment has created many opportunities for collaboration between India and the US.

“India’s goal of bringing food processing to global standards has brought about heavy investment, and America is playing a significant role in the industry’s initiatives,” a statement quoting the minister as said at the 14th Indo-US Economic Summit hosted by the industry body IACC.

A recommended pathway for this collaboration can be investment in entire value chains. These can mitigate food wastage losses, bring global best practices and technologies like superior cold chains to India, and sell Indian goods in global markets, he said in a statement.

Walmart purchases Mexico food delivery app spurs e-commerce Walmex said it would absorb Cornershop’s Mexico operations.

Kwality Q1 net profit slumps to Rs 1 crore

wality Ltd said its net profit saw steep fall to Rs 1.04 crore during the first quarter of the 2018-19 financial year, on poor sales.

Net profit during April-June, 2017-18 stood at Rs. 27.87 crore, the company said in a regulatory filing. Net income declined to Rs. 1,265.78 crore from Rs . 1,573.18 crore in the year-ago period. Kwality informed that it is currently facing an issue of receivables management. “This started when the company could not service its customers with the required goods due to liquidity crunch, a situation that emerged primarily towards the end of the quarter triggered due to non-disbursement of sanctioned working capital from banking partners,” it said. This impacted the company’s plans to monetise its investment already made on setting up of a new facility dedicated for high margin value-added products, it said. Further, considering significant delays in recovery of receivable balances, the

Amazon.com Inc, which bought Whole Foods Market last year, began selling nonperishable groceries online in Mexico in late August.

Shares of the retail company’s Mexico division, known as Walmex, jumped more than 3 per cent on the news, closing at their highest level since late July.

Walmart said it expects the Cornershop deal to close by year’s end, adding that the app would remain an “open platform” serving various grocery and specialty food stores.

Walmart’s acquisition of three-year-old Cornershop, which offers its service through a mobile app and was founded in San Francisco, will help it quicken deliveries for its Walmart, Superama and Sam’s Club stores in Mexico, analysts said.

Mexican grocery chains Chedraui and La Comer as well as U.S.-based retailer Costco Wholesale Corp, which all offer deliveries via the app, declined to comment.

“We believe the transaction is positive and will result in greater efficiencies and higher growth in online sales,” Signum Research said in a report.

Judith McKenna, chief executive of Walmart International, said in a statement that the deal was expected to provide a learning experience for the company’s other markets.

Startup Makers of Milkshakes to expand overseas

tartup Makers of Milkshakes has firmed up a plan to expand overseas through franchise route and to nearly treble its domestic network to 200 stores by 2020 from 75 now, said its chief executive Rahul Tirumalapragada. He said the Hyderabad-headquartered startup is gearing up to open its first overseas outlet in California next month, and is in talks with a few prospective partners in Italy, Dubai, Singapore and Australia for franchise outlets. Addressing media in Hyderabad Tirumalapragada

also said the company expects the total number of stores to cross 100 by the end of 2018-19. He said the company, which reported revenue of Rs. 25 crore, in the previous financial year, hopes to close the current fiscal with a revenue of more than Rs. 40 crore. With an estimated enterprise value of at least Rs 150 crore, the company, which had earlier refused private equity investments at early stages, is now open to divesting significant stakes in favour of strategic investors, he said.

“While the decision is expected to optimise the earnings on a long-term horizon, it has a shortterm impact of delay in the collections from the parties to whom the company is no longer supplying the goods,” Kwality said in the filing. During the quarter, few of the lenders have sold the shares of Managing Director Sanjay Dhingra, amounting to Rs. 54.14 crore pledged with them till June 30, 2018. Kwality Ltd. is a processor and handler of dairy products in India in the private sector. The company produces various types of dairy products, which include Milk, Ghee, Butter, Milk powder, Curd, Yogurt, Cheese etc.

tail Forum this year, the best place to connect, collaborate and create outstanding concepts. Through this excellent platform, various business organizations will get a chance to collaborate with The ThickShake factory and own a piece of this beverage heaven.

In Mexico, traditional retailers are increasing investments in logistics, technology and product offerings to meet the growing demand for online shopping, including in the food and drink sector. Just 3 percent of all retail sales in Mexico are online, according to market research firm Euromonitor International.

The deal mirrors Walmart’s growing investments and tie-ups in online delivery services across the globe, as it aims to compete with Amazon.com Inc, the world’s largest online retailer.

In view of the consistent recession in the global market, Kwality has decided to discontinue in a phased manner its operation of the wholly-owned subsidiary “Kwality Dairy Products FZE”, it said.

The ThickShake Factory is arriving on the shores of Mumbai

Walmart aims to deliver food to more than 40 percent of U.S. households by year’s end using delivery companies like Uber Technologies Inc. In Canada, the company will team up with startup Instacart for on-demand grocery deliveries.

almart Inc will acquire Latin American food delivery service Cornershop for $225 million, it said in a move to ramp up its online grocery business in Mexico and Chile.

lenders have proposed forensic audit and also the company has suo motu initiated a forensic audit to check the sanity and ability of the parties to pay, thereby enable fast monetisation, it added.

he winners of several accolades and awards including “The Times Nightlife-Best Beverages, 2015 & 2018”, “Coca-Cola Golden Spoon Awards 2018”, “IMAGES, Most Admired Startup of the Year”, Best Shakes Parlour Award at “Indian Restaurant Awards 2018”, “Best Business Growth in F&B”, “Best Beverages Swiggy Award 2018”, “Franchisor of the Year Award, Franchise India 2016”, and many more. The ThickShake Factory, India’s first premium thick shake brand brings the concept of running a cold dessert beverage quick service business (QSB) for the first time in the country. With the fast growing rate of business in terms of retail, The Thick Shake Factory, a vibrant hashery which has 90 outlets currently operational in 20 cities including one in US, is all set to expand its footprint in Maharashtra by launching its outlet in Bandra, Mumbai. The founders of The ThickShake factory, Mr. M. Yeshwanth Nag and Mr. Ashwin Mocherla, were inspired by the global trend of growing appetite for sweet savories and therefore brought the most appealing range of tastiest ‘Thick’ Shakes to India. With the scheduled launch of their outlet on 13th September at Bandra in Mumbai, The ThickShake Factory is aiming at increasing its footprint in the state of Maharashtra in the coming months with a simple concept and built a category around it. As a precursor to the launch, the company will also be the official beverage partner for India Re-

Talking about their venture and being the Official Beverage partners of India Retail Forum, Mr. M. Yeshwanth Nag said, “We are happy to be soon entering Mumbai with our 1st outlet in Bandra and are going to expand our business in Mumbai & other cities of Maharashtra as well. Over the years, the brand has steadily grown to close to 90 stores already and is projected to cross the 200 mark by the end of 2019. We are now poised for exponential growth. We are currently present in 20 cities across India and have an outlet in the USA. Our vision is to have 1000+ outlets Pan-India, along with a strong global presence with an objective to generate more job opportunities for the less privileged sections of the society.” Ashwin Mocherla, Co-founder of The ThickShake Factory added, “We are extremely bullish about the market in Maharashtra and want to add 50 stores within the next 1-year and expect to do Rs 50 crores sales in Maharashtra in a year’s time. As the official beverage partner for India Retail Forum, we aim at expanding our business in the fast-growing market of the retail sector. We believe it is a great opportunity to network and collaborate with other organizations that share the same goal as ours and enable key partnerships.” The ThickShake Factory is India’s 1st Premium Thick Shake Brand founded in 2013. Thick Shakes’ complete range of cold coffee varieties, slushes, chocolate & fruit flavour drinks too.

Vol. 11, Issue 04 -September - 2018

PRESS RELEASE

Fulfilling Legal Requirements Maximum Product Savings Accuracy and the minimization of variation are of paramount importance in the area of filling and packaging. Raw materials must be used as economically as possible while remaining within legal limits.

illions of packages are filled every day. This includes packets, bottles, tubes or containers ofall sizes. Every package should contain the ingredients and the amount declared on the label. Filing these packages has been a trade-off between following local net-content legislations (legal Metrology) and reducing overfilling to the minimum. Net-content package control has two main goals. First, a producer must be able to evaluate performance to ensure the production is within the governmental limits for net content. Second, in the producer’s own interest, they want to minimize overfilling.

METTLER TOLEDO SQC (Statistical Quality Control) systems act as extremely valuable information sources since they can provide information at any time about the current fill quantity based on the evaluation of sample data from the production line, and therefore help to optimize the fill quantity while avoiding under filling. The METTLER TOLEDO SQC product range includes compact standalone scale based solutions as well as the networked and flexibly extendable FreeWeigh.Net® software system. Free Weigh.Net® offers, in addition to filling process control, a variety of further options for quality control such as documenting sensory testsand/ or integrating measuring devices like check weighers, moisture analyzers and metal detectors. Process control and optimization in the area of filling process control help food manufacturers to optimize costs and hence to remain competitive and profitable, despite uncontrollable factors such as the price of raw materials. METTLER TOLEDO offers appropriate process control solutions that can be easily expanded to suit businesses of all sizes. The investment is easily justified by improved process control, and pays for itself within a matter of months due to the savings that can be achieved.

Vol. 11, Issue 04 -September - 2018

AGRO NEWS

Punjab’ basmati rice will see lesser pesticides for its growth with pesticide dealers, commission agents, farmers and rice industry. Dealers meetings are being held at district level as well as block level to put off these chemicals from selling. “Posters are informing dealers markets across rice growing districts to aware farmers of harm caused by these chemicals,” an official of Punjab agriculture department said.

unjab’s renowned Basmati rice running year will witness a reduced dosage of pesticides and fungicides that often lead to rejection of export consignments on international platform. Worried by the constant impediments and obstruction in export of basmati rice from India, the Punjab government is approaching farmers through agricultural institutions, gurudwaras, public meetings and social media to discourage the use of Acephate, Cabandazim, Thiamethoxam, Tricyclazole and Triazophos—chemicals responsible with higher residue level in rice. Farmers have to be made aware of the harm done to human tissues by these pesticides. “There will be significant decline in use of hazardous chemicals in rice this year that cause hurdles in exports,” K.S. Pannu, Commissioner Food and Drug Administration Punjab said. “Any adverse effect on export of rice will have adverse effect on Rs. 50,000 crore businesses in India and hit hard economy of the state,” he said. He emphasized that a comprehensive awareness campaign is already underway by joining hand

Aware of the danger, Punjab Agriculture University has already recommended alternatives to the five pesticides and fungicides. This season, Punjab, is expected to harvest a record output of rice. As per a recent study of Indian Council for Research on International Economic Relations (ICRIER), nearly 400 rejections have been recorded of rice exports from India owing to presence of higher ratio of pesticides residue more than approved level. In process of cultivating paddy, much of the pesticide and chemical is used during September and October. “But banning these chemicals is beyond the purview of state government as they are registered with the Central Insecticides Board and Registration Committee, ” Pannu said. A nodal officer has been appointed to function in each district to monitor the awareness campaign. For maximum awareness, rice exporters and millers have also recruited people to push the drive in rural areas so that more and more farmers are educated on this issue.

Vol. 11, Issue 04 -September - 2018

MEAT & POULTRY NEWS

Meat start-up Licious to raise funds up to $30 million

ourmet meat start-up, Licious, run by Delightful Gourmet Pvt. Ltd, is in process and negotiating talks with Bertelsmann India Investments, a strategic investment arm of German media conglomerate Bertelsmann SE and Co, to raise the fund for expansion. Licious is trying to raise $25-$30 million from new and existing investors, said officials. There has been growing investor interest in the on-demand food segment, which has particularly gathered enthusiasm after millions of dollars were poured by investors into companies like BigBasket, Grofers and a whole host of food brands including Veeba Food Services. Licious last raised $10 million in its Series B funding round led by Mayfield Fund and 3one4 Capital with participation from Neoplux Technology Fund and Sistema Asia Fund in March 2017. Prior to that, it had raised seed funding, followed by Series A funds of $3 million from 3one4 Capital and Mayfield Capital. Founded in July 2015 by Abhay Hanjura, a science graduate from Bangalore University, and Vivek Gupta, a chartered accountant, Licious delivers fresh meat to consumers in Bengaluru, NCR and Hyderabad. It runs an end-to-end business ranging from procuring fresh produce to processing, storage and delivery.

Licious mostly had to compete with traditional, local meat shops and a few organized names in Bengaluru. But competition from within the start-up world, both in Bengaluru and other cities, is likely to increase. India’s largest online store BigBasket, which raised $300 million from Alibaba Group Holding Ltd this year, said that it will soon start selling fresh meat on its portal. The company was already selling some types of meats under its Fresho with private label but planned to create a separate category and a deeper supply chain to focus exclusively on the business.

KM Egg has won every conceivable export award in the country. It has set up subsidiaries in Japan, Russia and Europe, and its products go worldwide. SKM Egg Products Export (India) Ltd, based in Erode, Tamil Nadu, has recently introduced ‘egg white cubes’ in the domestic market. SKM Shree Shivkumar, the managing director of SKM Eggs, says this is the first such product in India.

Online meat store Zappfresh, Licious’ main competitor, also raised funds recently. In March, the company raised Rs.20 crore from Dabur India vice-chairman Amit Burman and SIDBI Venture Capital, the direct investment arm of government-owned Small Industries and Development Bank of India.

The egg white cube, made from chicken egg white, has been developed in-house by the company and can be used in various dishes and is also ready-to-eat. A serving of 100-gm of egg white cube provides 14-gm of natural egg white protein. “It’s a zero-fat and no-cholesterol product,” says Shivkumar.

Zappfresh had said it planned to use the proceeds to expand its teams and increase capacity as it looked to expand its service to other cities. The company began by selling products in Delhi and parts of the National Capital Region (NCR).

The company, which was set up in 1997, has one of the largest egg processing plants in Asia. It has the capacity to process 18 lakh eggs per day, to produce 7,500 tonnes of egg powder annually. It has received all quality certifications globally required for egg production, including halal and kosher certificates. Its quality management systems are in compliance with the United States Department of Agriculture (USDA) and European Union (EU) norms.

Licious owns and operates fully automated meat processing units and delivery centres. It associates closely with farmers to ensure that it meets the supplies of meat that is ethically produced. It follows FSSAI (Food Safety and Standards Authority of India) hygiene standards to handle and process meat, and guidelines for the safe food are followed to make sure the meat is as fresh as possible rather than frozen.

Vegetarian India secretly loves chicken Even these numbers may well be underestimates as some would not prefer to disclose their consumption of it and eating it secretly due to religious and cultural stigmas associated with it.

ndia is reputed to have a vegetarian background and thus called a vegetarian nation. True Indians certainly consume far less meat than consumed on the global platform. But the actual view of the nation as a predominant herbivorous nation is not quite accurate. As total vegetarianism is rare, the country’s population is forecasted to overtake China, is rapidly changing owing to industrial economy with increasing metropolitan population. This trend is driving the fastest-growing poultry market in the world, as cultural norms changing and eating meat becomes a status symbol.Vegetarianism in India has been gradually becoming lenient over the past 30 years. Only about two in every ten citizens claim to be vegetarian, and a 2016 national survey found more than half of people aged between 15 and 34 eat meat. A recent National Family Health Survey found that only 30 per cent of women and 22 per cent of men categorize themselves as vegetarian, while other studies have found that a relatively small minority practice vegetarianism.

How thinking out-of-the-shell helped SKM Egg launch innovative egg-based product

Poultry is India’s most favourite and popular type of meat, is projected to be one of the world’s largest growth markets for poultry consumption. The rise in meat consumption is predominantly driven by urban India, and the highest percentages of non-vegetarians come from almost every part of the country barring very few which can be numbered. Another reason may be that chicken can be considered a universally acceptable meat, given the religious taboos associated with beef among Hindus and pork among Muslims. Although 80 per cent of Indians are hindus, still chicken meat consumption is equally distributed amongst the different sects. Vegetarianism is less common among Muslims, Sikhs, Christians, Bahais, Parsis, and Jews who collectively make up 15 per cent of India’s population.

It seems urban Indians today face a difference of opinion. On one hand, increasing exposure to new lifestyles is creating cultural change, but there is still pressure to adhere to traditions that have prevailed for centuries. Meat eating in India is a complex issue, with many facets. However, recent trends and figures certainly seem to indicate one thing: it will be a mistake to tag India as a vegetarian nation.

It contributes to more than 50 per cent of Indian exports and accounts for more than 10 per cent of Japanese Imports, in its products (egg liquids, egg powder) category. More than 90 per cent of the company’s income of Rs. 250 crore comes from exports. It is now hoping to grow in the domestic market, too, with the launch of value-added products. Shivkumar has been in the poultry industry for 25 years, starting in his teens. He is currently the president of the Indian Egg Processors Association and a member of the International Egg Commission. He is also a governing board member of the Indian Institute of Food Processing Technology. Shivkumar has been working with his father SKM Maeilanandhan who had set up an animal feeds company. Maeilanandhan would sell the feed to farmers and, in return, purchase 15 lakh eggs every day at predetermined prices before selling them in the market. “We were making losses in egg trading. My father asked me to look after this business. I was able to cut down losses by better logistics management.” Around the same time, the Tamil Nadu Industrial Development Corporation (TIDCO) was looking for a co-promoter for an egg processing unit, which would cater to exports. Since SKM was already trading in eggs, it seemed a good match. SKM Egg was set up in association with TIDCO, with an installed processing capacity of 10 lakh eggs per day. TIDCO’s shareholding was 11 per cent, which has since come down to 7.58 per cent. SKM Egg went into a 10-year marketing partnership with Belgium-based Belovo, which was also helping with technology. The early days were disastrous. The company got into difficulties within a few months of its launch. There was global recession to deal with, and prices fell for processed eggs. To make matters worse, the presence of pesticide residue in its egg products led to rejection of the company’s finished products in the EU markets, the major market for egg yolk powder.

This forced the company to operate its sophisticated egg powder plant at 20-22 per cent of the installed capacity between 1997 and 2000. “Although Indian labs cleared our products, we realised we had to be much more specific about the tests,” says Shivkumar. The company started putting in strict controls. “Farmers were paid a premium if they followed SKM Egg’s conditions. They had to stop using pesticides and antibiotics.” After taking these measures, in 1999, Shivkumar decided to host with its partner Belovo a conference for potential distributors and customers. “I felt things would change if they saw our facility and quality controls at work,” he says. Many potential customers from 27 countries were invited and many of them slowly started placing orders. Capacity utilisation went up to 45 per cent and the company could break even. After financial restructuring to bring down debts, Shivkumar started working towards making SKM Egg one of the most modern facilities in the world. It is the only unit in the country with commercial layer compartmentalisation. Its poultry feed is 100 per cent vegetarian. Every ingredient that goes in is tested for food safety. Filtered air, used in the process, is monitored daily for microbiological air quality. Sanitised processed water is regularly analysed for physio-chemical and microbiological purity. SKM Egg has won every conceivable export award in the country. It has set up subsidiaries in Japan, Russia and Europe, and its products go worldwide. The business still remains tough, challenging and unpredictable. “The European and American farmers are heavily subsidised and our price is no longer the cheapest, as it was when we started. We compete with the Europeans in egg whites and the Americans in egg yolk. We have to keep fighting. Some years are good and some are not. We have to be alert all the time,” adds Shivkumar. He is convinced that it is in the B2C area where the growth is going to be good. The recently introduced egg white cubes are expected to be a game-changer in the country where there is high protein deficiency. “Egg is a complete protein, and 50-gm of complete protein per day is adequate for adult human beings. Our egg white cubes can be used in place of meat, poultry and fish,” says Shivkumar. SKM Egg’s egg white cubes are simple boiled egg whites with a shelf life of 21 days. It is packed just like paneer in tetra packs and is available in Tamil Nadu and Karnataka. SKM Egg is planning to go pan-India in a phased manner. Currently, the company has a 5 per cent market share in the domestic market. It hopes to reach 15 per cent market share by 202122, and achieve a Rs. 500 crore turnover. “Thinking out-of-the-shell was a mantra we adopted consciously to keep pushing ourselves to innovate,” adds Shivkumar.

Vol. 11, Issue 04 -September - 2018

CHOCOLATE NEWS

ADM opens Shanghai innovation centre including confectionery facilities

rcher Daniels Midland has celebrated the opening of its new regional office and state-of-the-art flavour and ingredient creation site, and customer innovation centre in Shanghai, China. The new facility includes confectionery and bakery labs, as well as food and flavour analytics capabilities for the wider food market, and was marked with a ribbon cutting ceremony. According to the company, the Shanghai technical innovation centre will enable ADM to work closely with customers to create complete flavour and specialty ingredient solutions. It will be staffed by a team of food scientists, flavourists and applications experts, along with sales, marketing and regulatory personnel. The new site comes in addition to its recently opened Singapore Innovation Centre in helping ADM meet growing demand in the region. “With today’s busy lifestyles, people are turning to healthier eating habits, accelerating changes in consumer tastes and preferences at an unprecedented rate. For ADM, Shanghai has played a critical role in our continued growth and innovation. To help Asia-Pacific food and beverage customers remain a step ahead, we’re excited to leverage our technology, expertise and global scale,” said Donald Chen, ADM’s president, Asia.

Dark Milk Chocolate is made with 40 per cent cocoa solids and14 per cent milks olids. Dark milk offers“ a more grown-up taste” than Dairy Milk, which is 23 per cent cocoa and 20 per cent milk, said Cadbury owner, Mondelēz International. After a great success of Dark milk in Australia, where Mondelēz reported first-years sales of A$18m ($13.30m), the company said its ambition in the UK was “for a £10m

Maharashtra-based former stockist and distributor of products of Mondelez had purported that the Mondelez had terminated the distribution agreement between the two entities on “frivolous and false grounds” after it had raised the issues of abuse of dominance and anti-competitive practices by the confectionery giant.

The new innovation centre features a wide range of capabilities, including a food and flavour analytic lab; beverage and dairy applications labs and pilot plants; a bakery lab; a confectionery and personal care lab; a culinary kitchen; flavour creation labs; sensory evaluation facilities; and a customer innovation centre.

But as of now The Competition Commission of India (CCI) has dismissed a case alleging unfair business practices against confectionery giant Mondelez India Foods, the maker of Cadbury chocolates, with regard to termination of a distribution agreement. Noting that “no contravention of either Section 3 or Section 4 of the (Competition) Act” is made out against Mondelez, the fair trade regulator disposed of the matter.

China is home to approximately 675 ADM employees, with application labs in Beijing, Shanghai and Guangzhou; a flavour production facility in Beijing; sweeteners and soluble fibre complex in Tianjin; animal nutrition facilities in Dalian, Tianjin, Nanjing, Zhangzhou and Xiangtan. ADM has more than 1,000 employees throughout the wider Asia-Pacific region, where the company operates a wide range of processing facilities, including several animal feed facilities; a flavour and ingredient facility; food and flavor labs in Japan, Singapore and Australia; and sales offices in every major market in the region.

($12.9m) brand by the end of its first fully ear of distribution–around 18 months to two years’time”. The Dark milk chocolate will surely appeal to older consumers who find dark chocolate a little too bitter” said Mondelēz spokesperson.

Two bakers’ associations quoted rising price of “maida” (refined flour) and Maharashtra government’s plastic ban as the main causes of this untoward decision. “The price of refined flour has increased from Rs. 1,150 /50kg sack to Rs. 1,300. It is not possible for us to absorb these costs,” said Jafar Irani of City Bakery, Worli, who is an IBA member. Satyajit Dhargalkar of National Association of Bakery Industries, said per kg of maida was selling for Rs. 26 instead of Rs. 18 earlier. “Also, using eco-friendly plastic at every stage is an expensive proposition,” he added. When asked,

While Section 3 deals with anti-competitive agreements, Section 4 pertains to abuse of dominant market position. CCI considered the ‘market for chocolate in India’, as the relevant one and also observed that Mondelez was in a dominant position in it.

n the past many believe things were simple, consumers would go to the grocery or convenience store, walk down aisles, pick up a Reese’s, Kit Kat or Krave Jerky at the checkout and impulse buy products they didn’t need. As consumers purchase more of their groceries online, it has forced food and beverage companies like Hershey to prioritize e-commerce and rethink how they go about getting shoppers to click, rather than grab, their product. For Hershey, securing the top search result online is the equivalent of getting its candy prominently placed on shelves.

Dark milk was aimed at “democratizing dark chocolate” said Benazir Barlet-Batada, marketing manager & Cadbury brand equity lead at Mondelēz. “Arange of products and tastes are required to give consumers variety and choice, and that’s why we are expanding the Cadbury range with a brand new type of chocolate,” she added.

Online grocery sales are forecast to reach $100 billion by as early as 2022, and that 70 per cent of shoppers will at least occasionally shop for groceries online by that time, according to the Food

smaller manufacturers too blamed the plastic ban, expressing that manufacturers of packaging industries are being forced to change infrastructure and raw materials due to new guidelines. “They will now have to imprint their names on each pack, and increase micron thickness,” said Aslam Khan of Worli’s Gold Star Bakery. “Packaging will change in a few days. We have held back so far but may increase rates by a rupee or two,” he added.

Jafar Irani said, “It is not merely bread packets. The absence of carry bags is a big problem. Every item was packaged and dispatched in carry bags.” With this price rise scenario which will gradually grip other sectors, will definitely shake up every household budget of average consumers. Breakfast and evening snacks will now cost more said a housewife. Stalls owners, quick snacks and sandwich sellers, bakeries are already affected by this pinch.

On the allegation that Mondelez’s requirement that its software be mandatorily used by the distributors for distribution of its products amounted to abuse of dominance, the regulator, in a recent order, said that the “condition appears to be an organised set up for data and inventory management” and is not abusive in nature. Regarding the other allegations such as resale price maintenance by Mondelez (Opposite Party) and restriction on distributors to come up with their own discount schemes, the regulator observed that “no supporting evidence or communication” has been furnished by the complainant to substantiate them. “Further, resale price maintenance is not a per se violation of the provisions of the Act and there is nothing to suggest that the conduct of the OP (Opposite Party) has an appreciable adverse effect on competition in the market,” the CCI said. “Therefore, no prima facie case of violation of the provisions of Section 3 of the Act is made out on this count also,” it added.

Hershey’s goes all digital

Despite the challenges of the new market, Hershey will become complete digital including in everything from their data analytics of online shoppers to whom they hire to work for Hershey. The company also restructured its departments earlier this year so that digital-focused employees could be integrated directly into the company’s sales and marketing sectors.

Rise in bread price. Reason- Plastic Ban ne of the repercussions of plastic ban is now seen in form of price rise in bakery items. Breadmanufacturers have reluctantly increased the price of bread by Rs. 3 on small loaves and Rs. 4 on larger ones. Britannia, Modern, Wibs have hiked their rates from Rs. 22 to Rs. 25 for 400grams bread and Rs. 44 to Rs. 48 for 800gm pack. It is assumed that the smaller local bakers will also follow the trail.

“Around the world, ADM continues to invest to ensure that we are the go-to solution providers for clean label, sustainable ingredients and great taste,” said Vince Macciocchi, president of ADM’s Nutrition business. “This new facility enhances our portfolio and capabilities ensuring our customers meet consumer demands for new, innovative food and beverages.”

Cadbury launches dark milk chocolate bars in the UK hocolate manufacturer, Cadbury, will introduce ‘original’ plain favor and a roasted almond Cadbury is that has a much higher cocoa content than its popular Dairy Milk option to reflect the increasing demand for ‘pure’chocolate bars.

CCI dismisses case alleging unfair business practices against Mondelez

Marketing Institute and Nielsen. From the growth of home delivery to click-and-collect, one downside to digital is that a quarter of shoppers have cut back on snack purchases because they are able to avoid checkout lines. But Hershey says they have a method to combat this change. Hershey has started implementing more data-driven targeted advertising, which it plans to expand in the coming years. It has used pop-up ads to give suggestions to shoppers about candies or snacks they can add to their online cart, especially when consumers aren’t making the minimum for free shipping. Hershey also has given consumers an option to reload the cart with previously purchased items and show recipes that allow then to buy all the ingredients with one click. When it comes to impulse purchases and prices online, Hershey executives said their average selling price and basket size has actually increased. In stores, people would buy a candy bar at the checkout, but online consumers purchase that same candy in bulk. Hershey is also working to overcome other obstacles beyond just where its products are sold. Shipping products also can be difficult, especially with items like chocolate that can melt during the warmest months of the year.

Mondelēz on track to meet 2020 environmental sustainability targets

ondelēz International has indicated in its report that the company is on track with its 2020 environmental sustainability targets. In its 2017 Impact for Growth Progress Report indicated that the company has made progress in achieving sustainable agriculture and environmental footprint goals, as well as the global expansion of healthy lifestyle and nutrition programmes in at-risk communities. According to Mondelez International chairman and CEO Dirk Van de Put, having a positive impact on the planet and the communities that do business in is core to who we are as a company. He added, “Today, we’re producing snacks more sustainably, with less energy, water and waste, and sourcing our key ingredients in ways that reduce

deforestation in our supply chain, and empowering farmers and investing in community programmes that help improve the well-being of children and their families.” The company focuses on four key areas that include sustainability, well-being snacks, safety and community. As part its programme, the company reduced carbon emissions from its manufacturing by 10 per cent, water usage by 25 per cent in water-scarce locations, in addition to eliminating 53,500 metric tonnes of packaging. Last year, the company registered a 31 per cent increase in its sustainable cocoa sourcing programme in comparison to 2016 figures. It also promoted environmentally sustainable practices in wheat production across Europe through its Harmony sustainable wheat programme.

TEACH OUT LOOK

Vol. 11, Issue 04 -September - 2018

resent scenario Nearly 145 years ago, Brothers John and William Horlicks from Gloucestershire, in south west England developed a malted milk drink which the world would soon come to know and love as Horlicks. Legendary explorers like Roald Amundsen and Richard Byrd took the drink to the farthest corners of the world as Horlicks became an important provision for expeditions to the North Pole and the South Pole. Byrd even named a mountain range on the Ross Ice Shelf after the beverage. Yet, perhaps, nowhere has the drink been loved more than in India. Horlicks arrived here during the First World War and quickly became a popular family drink across the well-to-do families of the erstwhile Punjab, Bombay, and Madras presidencies. India remains the one market where Horlicks’ popularity remains unchallenged. According to Euromonitor International, Horlicks has a 42.8 per cent market share in the malt-based beverages segment. Bournvita, owned by Mondelez International, comes in a distant second with 12.6 per cent market share. But the popular beverage is up for sale. Its current owner, GlaxoSmithKline (GSK), recently announced that it has reached an agreement with Novartis to buy out the latter’s stake in their global consumer healthcare joint venture for $13 billion. In the same announcement, GSK announced that it is undertaking a strategic review of Horlicks and other consumer healthcare nutrition products like Boost. The business generated £550 million in 2017 and roughly 80 per cent of the sales came from India. GSK’s 72.5 per cent holding in GlaxoSmithKline Consumer Healthcare, the company which sells these products here, is also on the block. It is a move that analysts and brand consultants see as positive for the Horlicks brand. Horlicks is a heritage brand it has a deep connection with generations of customers in India. Reinventing that is a big opportunity and the new owner will need to focus on reinventing the magic. Horlicks could thrive if it goes to a consumer goods company. GSK is largely a pharmaceuticals giant and Horlicks has emerged as a platform for nutrition that behaves more like a food brand rather than a pharma brand. Horlicks brand has been successfully expanded to include biscuits and GSK’s focus is on pharmaceuticals and pharma research which is not ideal for the growth of a food brand. Clearly, though Horlicks over time has disappeared from our television screens and billboards, the hunger for the brand is thriving. What ails Health food drinks market? As per Euromonitor, the market size for the Indian health food drinks (malt-based health

drink and supplemental health drink) is of the order of Rs. 9,600 crore wherein brands (Horlicks and Boost) dominate the category with about 49 percent share in trade volume terms.This is a bit divergent from GSK Consumer Healthcare’s annual reports where the company claims 64.4 and 56.3 percent share in Health Food Drinks category in volume and value terms. However, looking at market share trends from company’s annual reports, one finds that share has shrunk over the years. Weak market standing can also be implied by the GSK consumer healthcare’s revenue trajectory which has remained stagnant for last four years. Euromonitor’s findings suggest that market is getting increasingly fragmented as the competition heats up.

Horlicks search Horlicks has always been synonymous to health drink in Indian families. Known to be the best malt based drink, Horlicks was for the young, for the kids, for the old…….But now thisdrink that has been a favourite of Indian families is changing house as GlaxoSmithKline may sell Horlicks to buy Novartis’ stake in its global consumer healthcare joint venture. Agro and food processing analyses the reason behind the rise and fall of the best health drink. value-add. With child obesity rising, additional calories in the form of sugar and maltodextrin are not a great idea. A health drink is worth it if it can offer

India Health Food Drink market share Analysis Last generation, if asked about Horlicks, would swear by it. Most of our childhood days have been spent gulping a glass of one of the top malt-based drinks daily. But awareness and health consciousness has made sure parents of today don’t believe in passing on the “irrational legacy. As growth of brain and height is not linked to any drink. Many have shunned the malt-based drink brands and this has caused the health food drinks segment to reach -6.8 per cent in 2016-17. But what is most alarming, perhaps, is another grey statistic: the fall in volume in this category happens to be the first in a decade in India. GSK Consumer, the maker of Horlicks and Boost, has grown at a slow pace in an already slow growing category. A sudden fall in the prospects of the estimated Rs. 7,000 crore health food drinks (HFD) segment might turn out to be the biggest challenge for the new owner of the 144-year-old heritage brand, which was put on the block by the UK-based GlaxoSmithKline (GSK) as it hunts for funds to buy out Novartis in their global consumer healthcare joint venture. Horlicks can be categorized as a priced catch that would bring huge gains for the buyer — brands being reviewed amounted to sales of approximately £550 million in 2017, most of which were from Horlicks in India — the challenge is equally daunting: reviving a segment that has been on a slide for three years. The past three years, has been challenging for most HFD players in India. Apart from in-

tense competition, rising popularity of substitute products such as syrups has also affected growth. Add to it demonetisation, the goods and services tax and a slowdown in urban and rural economy, and the picture has been bleak for players in the sector. The companies that are bidding to buy Horlicks needs to focus on health, rather than taste. Over the past few years, Horlicks has been bullish on taste and that people were increasingly becoming aware about the ingredients present in a food product as well as price conscious. Also for the rural areas in India Horlicks has always been expensive, and undoubtedly one of the reason for its weakening market. Thus the company needs to explore the option of operating with smaller unit packs and sachets in the range of Rs. 10-20 to tap the lower end of India’s population, which is highly nutrition deficient. If innovation is not there in FMCG growth rate comes down drastically. To bounce back Horlicks needs the mentoring of a company that has FMCG in its DNA. Whoever buys the brand needs to revamp the marketing strategy and approach. And that can only be good for Horlicks, which is the leader in a category that is seeing drop in Volume and vitality. And parents who sweared by Horlicks, are increasingly looking for healthier alternatives. Most of these so-called proprietary drinks have maltodextrin, sugar and milk protein added, which don’t make much of a

something that milk does not have and parents would be happy buying products which has more Vitamin D and more DHA and more choline. Big players like Horlicks and Bournvita faced competition from an unexpected part, the health drinkcalled PediaSure. The brand from Abbott has been the sole bright spot in the HFD category. It has bitten into the market share of top HFD players and when brands like Horlicks and Complan were talking to mothers of the world, PediaSure smartly took a different route to reach the moms through pediatricians. Competition has been another reason for Horlicks losing its market share. The market faces challenges in terms of growing competition, varied consumer preferences, health food drink substitutes and distribution reach. In order to cater to the latent demand, consumer, pharma, and Ayurvedic companies have upped the ante by providing premium variants of health drinks addressing protein needs, specific age group requirements, heart and diabetic ailments. In recent times, Patanjali has entered this market as a discount player with its brand, Power Vita, though pricing discount of about 10 percent doesn’t seem too disruptive in nature. Further, Nestle has re-entered the market with its brand, Milo and Danone and Sri Sri have launched new brands. Meanwhile, Abbott, of course has worked with the medical fraternity to generate favorable opinion for its protein rich supplement PediaSure.

Vol. 11, Issue 04 -September - 2018

for a new family But GSK has been doing its bit to claw back its market share. It is looking to be more rational on pricing and also to focus on sachets. Though the sachet category is 10% of sales, it acts as a great introductory incentive to a category that still has fewer than 40% penetration across the country. A massive distribution reach of over 3 million out-lets gives GSK an enviable position to leverage on new launch- e s . The brand just needs a reboot, and hunting for new owner comes at a right time.

Consumer, Heinz (Complan) and Mondelez (Bournvita) lose their core consumers once they turn 13 years old. Lapse in marketing strategy; Pricing: When commodity prices were benign, gross margins were significantly above long-term average and volumes were

comes

Horlicks gained immense market also due to the lack of availability of milk in south and east India. This led to the growth of Horlicks in India. But now India being one of the largest milk producers, milk over took the thereby decreasing the dependence on Horlicks for nutrients. Cereal penetration in the market has been another reason for the downfall of HFD, as these were used to get kids to drink milk. There is now a growing preference to have cereals with milk, so parents don’t bother about HFDs. Also Companies like, GSK

Where would Horlicks go? News flow suggests Coca-Cola could be interested in acquiring Horlicks as it moves away from carbonated drinks business and position itself with a portfolio of healthier beverages. In recent times it has introduced beverage options like the Vio dairy drink, Zico coconut water, Fuze iced tea and Minute Maid Vitingo. Similarly, Nestle as well fits in as its portfolio shift t o wards

with more than a century of history, particularly in India - where it is much loved and served to children in the morning to give them an energy boost before they go to school. But now GSK went into a strategic review of the Horlicks business and a string of nutrition products. Analysts say the strategic review of Horlicks was triggered by GSK’s decision to buy out Novartis’ 36.5 per cent stake in a consumer healthcare joint venture for £9.2bn.

Horlicks brand would be an attractive target and its sale would help meet its priorities of overhauling its pharmaceutical division and maintaining a dividend. healthier products. Last y e a r, t h e global major

Where did Horlicks fail? The health food drinks (HFD) category, which contributes 94 per cent of GSK Consumer’s sales and where the company has over 65 per cent market share, is under stress. For the first time in over a decade, HFD volumes witnessed a fall in growth of 6.8 per cent in fiscal 2017. Also HFDs were used as flavouring agents to mask the poor quality of milk. But today the Milk quality has become good and hence better milk has reduced the need for HFDs.

erages business and implementation of the GST.

Horlicks review would help fund its deal to seize full control of a range of products, including Sensodyne toothpaste.

Horlicks for a long time has been a winning and performing brand, primarily in India- but in today’s situation will it be able to live up to its promise? Well, that will depend on the kind of drink the new

owner with.

TEACH OUT LOOK

had identified beverage as its core category.

poor, there was no need to hike price in FY15 and FY16. Sachets and Brand Extension: Sachets are less than 10% of sales. Category penetration is low at less than 40%. Roll-out of Women’s Horlicks, Mothers’ Horlicks and Horlicks Lite has been too late and their contribution is still small. Market Share drop:GSK Consumer has been losing market share over the past few quarters, which means that it has grown at a slow pace in the already slow growing category. Nigeria to GST: The annual report of the parent company attributes fall in the growth of nutrition business to sale of Nigeria bev-

In case of HUL, FMCG leader can add another strong brand to its beverage kitty and leverage from rationalization of media and distribution spend. While some of the other FMCG majors could be interested in this, midsize companies might find it out of reach due to the size of the entity. Market cap of GSK Consumer Health is currently 60 and 40 percent that of Marico and Dabur respectively. However, in terms of competitive landscape and synergies, a couple of things to keep in mind are Horlicks has significantly higher presence in South & East of India wherein competitive intensity from other players is lower. Secondly, there is scope for overheads optimization and margins rationalization. Company’s overhead cost as a percentage of sales is about 30 percent compared to FMCG sector average of about 20 percent. Thirdly, cost synergies in terms distribution reach are possible by reducing duplication. Insight Morgan Stanley, the US investment bank, advised GSK to sell off the drink invented in 1873 by Ruardean brothers William and James Horlicks. At the family granary in Ruardean the brothers experimented with mixing fresh milk and wort, a liquid extracted from malted barley and wheat during the brewing process, and reducing it to granules. Their health drink for infants really took off in the US and Horlicks supplement tablets were used by British and US soldiers during the Second World War. Horlicks is an absolutely extraordinary brand,

It is understood the review of Horlicks is ongoing and no decision over a sale has been made. The deal will need the approval of GSK’s shareholders and GSK expects the strategic review to be finished by the end of this year. The race for GlaxoSmithKline’s consumer nutrition business in India—including its brand Horlicks—is heating up. Now Coca-Cola is said to be willing to join the lineup of suitors such as Nestle, Danone and Hindustan Unilever. The scramble for Horlicks underlines the immense brand value of the product. GSK Consumer’s Horlicks and Boost brands have strong positioning in Indian market and command approximately 70 per cent of overall value market share in Indian malted food drinks market. However, GSK Consumer has grown at a slow pace in an already slow-growing category. With consumer beverage preferences changing swiftly in favour of low-sugar or functional options such as juice and juice drinks, flavoured water, dairy-based beverages and tea, Coca-Cola or whichever company buys Horlicks will have to contend with adverse market conditions .

Vol. 11, Issue 04 -September - 2018

PACKAGING TECHNOLOGY

India�s Only Monthly Newspaper for Food, Beverage & Allied Sectors

www.agronfoodprocessing.com

Vol. 11, Issue 04, September 2018,

20/-

he food and beverage industry with time has made an important place for itself in the map of most happening industry in India. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment. The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times by 2020. I know most of you being a part of the food industry are very much aware of the statistic that I have given above. But I just wanted to peruse the fact that how visible this industry has become in a matter of time. And now our industry is becoming one of the most responsible industry towards sustainability of environments. Food companies can and should be doing more to lead and drive positive policy action for the people who buy and enjoy the foods and beverages we make, the people who supply them, and the planet on which we all rely. For example Danone, Mars, Nestle and Unilever will fight for progressive food policies — from conservation programs to prominent nutrition labels — that have long been eschewed by major food-makers. The four companies in the new alliance could prompt other foodmakers to foreground nutrition and sustainability. Indian food processing industry has attained global standards and has brought about heavy investment, and America is playing a significant role in the industry's initiatives. This heavy investment in India's food processing sector will not only benefit the Indian farmers whose income the government has sought to double by 2022, but also will help international partners like America, to create economic prosperity for all. Still talking about food and Beverage industry, Coca cola has been in news for a long times, from revamping its leadership structure, with the appointment of Sundeep Bajoria as VicePresident -South West Asia Operations and Chandrasekhar Radhakrishnan as Vice President - Strategy & Insights, Coca-Cola India & South West Asia. Coca-Cola is also poised for its second big acquisition here, it has emerged as the frontrunner to buy the consumer brand portfolio of Kraft Heinz — which includes children’s milk drink Complan, Sampriti Ghee and energy drink powder Glucon D — for around Rs 4,000-5,000 crore. Coca-Cola is also interested in drinks infused with CBD -- the non-psychoactive ingredient in marijuana that treats pain but doesn’t get you high. The Atlanta-based soft drinks maker is in talks with Canadian marijuana producer Aurora Cannabis Inc. to develop the beverages. Coke’s possible foray into the marijuana sector comes as beverage makers are trying to add cannabis as a trendy ingredient while their traditional businesses slow. Indian FMCG giant Patanjali Ayurveda is creating a fierce competition for all multinational and domestic companies; it has announced its entry into the dairy products segment, with cow milk, curd, buttermilk and cheese. Yoga guru Baba Ramdev’s company expects the category to generate around Rs 1,000 crore revenue by 2020. It is aiming to achieve Rs 500 crore dairy revenue by end of this fiscal. The 53 years old company, Cargill is changing its way of doing business, the corporation — known as the middleman to the world — is now undergoing a significant business recast. In India, though, it is learning to customise its strategy, as it is one of the very few countries where it has forayed into the business-to-consumer segment with oil and wheat flour, using brands such as Nature Fresh and Sweekar. However Cargill now plans to focus on areas such as corn processing, baby food, blended oil and import of cocoa & chocolates — areas in which India is deficient. Animal feed is another area it sees as promising, given the rise in India’s protein consumption. Indian giant retailer Future Group is developing its food and grocery supply chain, as this segment is set to be a battleground for global retailers, with Walmart buying Flipkart and Amazon eyeing stakes in grocery retailers. The group is all set to invest Rs 500-800 crore in the next four years to create a nationwide food supply chain network of refrigerated trucks and temperature controlled distribution centres (DCs) to eventually manage the entire supply through this network. India is going to get another bumper harvest with output to be similar to last year’s or better, as crop planting and the monsoon season are at the tail end. It also doesn’t expect floods to have any major impact on production. But some analysts raised concerns over the distribution of rains that they said were erratic, and in deficit in several states. But trade doesn’t expect any impact on food prices as they claimed there would be ample supplies to meet domestic needs. And talking agriculture, Canada has opened its market for pineapple and mandarin import from India. Our Union ministry of commerce had sent its first request on April 10, with a reminder on May 18. Responding, the Canadian Food Inspection Agency of their government conveyed its approval on August 9, noting general phytosanitary requirements would apply, beside some specifics. Indian Agri and Food Industry have created a thunder in the worldwide industry. It won’t be surprising we would be recognised as the food security hub in the coming years. GOOD luck for that!

Indian Packaging machinery industry needs technology upgradation

he food & beverage industry is expected to grow at a notable rate over the forecast period. Majority of this demand is expected from emerging countries due to the rise in demand for ready-to-eat packaged food. This has increased the demand for packaged food worldwide, which in turn offers lucrative market opportunities for the packaging machinery market. Wrapping machines are the second fastest growing segment in the global packaging machinery industry. The majority of the growth in the market is expected to be witnessed from the emerging regions of Asia-Pacific and Africa. Moreover, Asia-Pacific accounted for the highest share in the global packaging machinery industry in 2016, and is expected to maintain its dominance throughout the forecast period, owing to existence of wide array of food & beverage and personal care product manufacturers in the region. The region is anticipated to grow at the highest rate in the near future, owing to high economic growth rate and high demand in emerging markets of China and India. The current scenario in India India is among the top five markets for packaged food in the world, while the second largest in Asia, with a sales volume of 34 million tonne. According to Euromonitor International,the total sales of packaged food will increase by roughly seven per cent annually within the next five years. And hence by 2020, packaged food sales will reach 47 million tonne. Euromonitor has forecasted that India will become the third biggest market for packaged food in 2020, after China and the United States.The food packaging industry is India’s fifth largest sector with a current worth of nearly $40 billion. By 2020, it is expected to reach over $65 billion.With a per capita consumption of 24kg per year, the Indian packaged food market is still at an early stage. The rise of the Indian middle class, the growth of organized retail, the rapid growth of exports and India’s e-commerce boom are all fueling industry growth. Thus, adopting better packaging methods, materials and machinery to ensure quality has become very important for Indian businesses. The Indian packaging industry constitutes about 4 percent of the global packaging industry. The industry is underpenetrated, and thus offers significant business opportunities, since India’s per capita packaging consumption is only 10.5 kg per year, as compared to 109 kg in the U.S., 65 kg in Europe, 45 kg in China and 32 kg in Brazil. Manufacturers of packaging machinery and materials in India find demand for their products mostly in the food processing and pharmaceuticals sectors. About 45 percent of the packaging machinery and materials produced is absorbed by the food processing sector alone, 25 percent by the pharmaceuticals sector, and 10 percent each by the personal products, tea and coffee, and industrial products industries. India’s imports of packaging equipment currently stand at over $130 million a year. India’s imports of packaging equipment for food processing are mainly automated machines and systems. Flexible packaging is the fastest growing subsector of India’s packaging industry. Plastics dominate the Indian

flexible packaging industry, as plastic is aesthetically attractive, cost-effective and sturdy. Furthermore, plastics improve the hygiene quotient and shelf life of products, especially foods and beverages. The flexible packaging segment is estimated to be growing at a rate of over 35 percent annually. The main categories of packaged food are bakery products, canned processed food, frozen processed food, meal replacement products and condiments.Some emerging categories in this segment are processed dairy products, frozen ready-to-eat foods, diet snacks, processed meat and probiotic drinks. Packaging Machinery in India Machineries are designed every minute to meet the rapidly changing market requirements. Though many companies around the world try to depend on man power for several production activities, the aspect of packaging perfectly remains a matter of great concern. While utilizing man power works on a moderate level, coping up with the demand in production requires quiet a speedy action when it comes to packaging. Hence, many of the industries prefer to buy machineries for packaging needs. Among the machinery suppliers globally available, India is considered to be one of the most commonly preferred countries that have grown tremendously in the field of designing and manufacturing packaging machineries. Some of the important reasons that industrialists quote while preferring machinery from India are; • Competitive cost • Quality of service • Innovative technology • Availability of in house professionals to design • Customer support • Reliability over machine quality • Maintenance • Availability of Machineries for a range of packaging solutions such as pharmaceuticals, food, clothe, etc. Depending on the industrial necessities several Indian companies have come forward in providing a range of packaging equipment models. In addition, the growing variety of industrial sectors in many parts of the world is yet another reason behind new machines being introduced in the market. On the other hand, since many of the industries are looking for favourable solutions to reduce the cost of staffing, automatic packaging equipments have relatively reduced the cost of man power management, time consumption and breakage. As a competitive approach several Indian manufacturers have plunged into the designing field with the help of designing software available and try to find out various means with which work can be simplified. Hence, we can find innumerable options in choosing the right packaging equipment. Indian manufactures are emerging out with latest designs of packaging machineries to cope up with the industrial demand worldwide. It is also due to the reason that since equipments for product processing that are manufactured in India has a good demand globally; the market for advanced packaging equipments such as stretch wrapping machines, carton sealer machines, shrink sleeve applicator appears to be on the rise. In addition, equipments such as pallet stretch wrapping machine, and shrink sleeve appli-

Vol. 11, Issue 04 -September - 2018

cator reduces the time of processing manifold times lesser than that with staffing. These machineries are economically designed that can produce more than 20 pallets per hour and almost 95 to 100 per cent accuracy in delivering respectively. The technical support, quality and competitive pricing which the client can get from Indian manufacturers are some of the most important reasons for India emerging successfully in the market. Food packaging machinery plus food processing industry The food processing sector is one of the biggest users of flexible packaging, accounting for more than 50 percent of total demand. The challenges the industry is facing today include a lack of clarity in food packaging regulations, consumers’ opinions on sustainable packaging, and stress on eco-friendly packaging materials. There are between 600 and 700 packaging machinery manufacturers in India, of which 85 to 90 percent are from small and midsize companies. Due to growing demand for packaging, the industry is gearing itself to adopt scientific and functional packaging. Due to increasing domestic consumption and high potential, India is emerging as one of the prime destinations for plastics companies and downstream players worldwide. Huge investments in the Indian food processing, personal care and pharmaceuticals industries create significant scope for expansion and development of the Indian packaging industry. The Institute of Packaging Machinery Manufacturers of India (IPMMI) acts as technical authority for the packaging machinery industry sector. According to a report, with a turnover of $ 32 billion and a growth rate of 15-18 percent annually, the Indian packaging industry is expected to reach $73 billion by 2020. These figures show the wide scope of opportunities for Indian packaging machinery industry. India still imports significant packaging equipment which consists mainly of highly automated advanced machines and systems from countries like Germany, Italy, Switzerland, Japan, South Korea and the US. Presently, in India about 85 percent of these machinery manufacturing firms are micro, small & medium enterprises (MSMEs). As this industry grows and matures, there will a need to upgrade the technology & performance to match the global standards. Few global companies like Leepack from Korea & Topack from Japan are catering widely to quality & automated driven markets. The driving factor for this industry is the fast-growing Indian population who wants to use well packed & hygienic essential products like food, beverage, milk, vegetable, food grains, and pharma. The per-capita consumption of packaged beverage and food in India is around 8.5 kg per person per year which is still very low compared to other countries like Japan, China & the USA. Within the next five years, it will increase by another 18-24 percent per cent annually, as the demand for processed food is rising due to growing disposable incomes, urbanisation, and the young population. These figures indicate an immense opportunity to Indian machinery industry & challenge from global packaging machinery industry. The Indian food, beverage, cosmetic & pharma companies strive for high quality packaging with optimum investment which must be used as an USP for Indian packaging machinery manufactures. The need of automatic lines with high efficiency on long run, safety features & good service back-up is the need to stand head to head with global companies. Rigid and flexible are the two most significant types of packaging in used in food industry. Rigid packaging dominates with about 80 per cent market share. However, there is a

shift in demand and the demand for flexible packaging is increasing. The key advantages of flexible packaging over rigid include light weight, small pack size, energy saving, ease of storage and transportation and convenient disposal. Moreover, spouted stand-up bags are a smart innovation for packaging liquids of all kinds. After pouring, the caps can be tightened to keep the product safe. For sauces, etc., stand-up pouches can be fitted with pour spouts and easy screw-on caps.

As the Indian food and beverage industry is growing rapidly, creating awareness of product possibilities by utilising advanced packaging and processing technologies is very important, so that the latest and best technologies can be adapted. With India being the second biggest producer of food and beverages after China, the market has a huge potential for foreign direct investment (FDI) concerning the technology of food processing and food packaging machines. The packaging machinery industry must tap these new trends and invest in new innovations, technology upgradation to cater to these requirements. The ready-to-eat & serve market is the most demanding product where retort packaging & packaging in premade bags are in trend. Challenges The challenges that the packaging machinery industry is facing today include the lack of regulatory clarity in packaging, insufficient consumer awareness of sustainable packaging and uncertainty about green packaging materials. For raw and processed foods, India needs packaging material which is suitable to the country’s climatic variations. The country’s heat and high humidity are two problems that can reduce the shelf life of packaged goods. It would be particularly important to focus on the seals and maintaining their integrity. But more important than the climate is perhaps the lack of a good supply chain or refrigeration in retail outlets and homes. This is a big barrier to many of the packaged food formats familiar to consumers in the West. At the same time, a heavy focus on cost means that cheaper flexible packaging formats are often chosen over rigid packs that may offer greater protection for the product, but that would force a higher retail price. Indian imports of packaging equipment consist mainly of highly-automated advanced machines and systems. The major equipment suppliers to the Indian market include Germany, Italy, Switzerland, and others including Taiwan and the United States.Technology, price, delivery and performance standards are critical factors that determine whether packaging equipment can be sold in the Indian market. Due to intense competition in the end-user market, the cost of equipment and the low running cost remain the primary fac-

PACKAGING TECHNOLOGY

tors that influence the sale of the packaging equipment. Upgrading would be another extremely important factor in the buying decisions of Indian end-users. After-sales service is also a key concern of buyers. Food safety Packaging is not only used to wrap the product, but it also plays a vital role in product differentiation and gives a positive impact of the product to consumers.Quality, safety and

performance are the most essential aspects of packaging products. The unorganised sector probably represents the largest opportunity in terms of volume. The key factors that affect sales to this segment are the cost of the equipment, the lower processing cost and the ability to seamlessly incorporate the equipment in facilities. As in all cases, the presence of after-sales support would be treated as a prerequisite. Printing ink is an integral part of packaging products. Due to the complexities involved in designing the composition of the printing inks, the risk of migration of the ink component to the food needs to be considered starting from the selection of the raw materials. In the Indian market, toluene-free (TF) or non-toluene non-ketone (NTNK) inks are considered to be safe. For this purpose, various countries have laid down regulations for the food contact materials. In the European Union (EU), the Commission Regulation (EU) No. 10/2011 of January 14, 2011 on plastic materials and articles intended to come into contact with food, supersedes the previous Directive 2002/72/EC. There are tests for plastic in food packaging and food contact materials on overall migration and specific migration of monomers, additives, and other trace residual substances like metals, phthalates, PFOS, PFOA, BPA and BADGE. Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM), including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry offers several benefits.It would enable adherence to stringent quality and hygiene norms and thereby protect consumer health, prepare the industry to face global competition, enhance product acceptance by overseas buyers and keep the industry technologically abreast of international best practices. What the packaging industry needs now Sustainability continues to be a major global trend in the packaging industry as consumers consistently seek out healthier food options and manufacturers whose innovative packaging and processes positively impact the environment and the quality of their goods. In fact, sustainable packaging has never been

more important. Sustainable packaging used to simply mean packaging that may be composted, recycled or reused, but nowmanufacturers will need toput a focus on packaging technologies and trends that allow for the reduction of waste and provide a safer product while enhancing their brand message. Here are four areas where sustainability is making a significant impact in food packaging. The reduction of food waste is a priority As the impact of wasted food gains awareness, consumers are taking steps to reduce their contribution by composting leftovers, sharing food and selecting perishables that will stay fresher longer. To meet the consumers’ demands for healthy and longer lasting foods, manufacturers must develop packaging that is able to extend a product’s shelf life without impacting the quality or integrity of the product it contains. Currently, implementing barrier technology—such as multi-barrier technology (MBT), which involves embedding a barrier layer such as ethylene vinyl alcohol (EVOH) within layers of polypropylene packaging, or inert barrier technology (IBT), which involves adding a silicon oxide layer to the inside and outside of the plastic cup—is the method of choice to extend the shelf life of plastic-packaged products without adding preservatives. This is an important consideration for manufacturers in 2018 as health conscious consumers are seeking “natural” foods with fewer additives. Food safety must be taken seriously Extending a product’s shelf life does more than reduce global food waste and prevent consumer health issues, as maintaining food freshness and eliminating contamination may have environmental implications as well. Any food safety recall, those relating to shelf life or contamination during production, could potentially mean enormous quantities of wasted food, as well as the use of additional resources during the reproduction and transportation of the product. Still, it’s no surprise that balancing food safety and sustainability is an integral aspect of maintaining customer trust and loyalty as consumers today are demanding more information about the quality of their food. Recalls have been known to be particularly damaging to a company’s brand and may also negatively impact a company’s financial stability. Manufacturers may wish to pursue certification from the Safe Quality Food Institute (SQFI) to minimize risk. Recognized by the Global Food Safety Initiative (GFSI), SQFI links primary production certification to food manufacturing, distribution and agent management certification to ensure food safety throughout the supply chain. Sustainability will become part of the brand message Consumers are more environmentally conscious than ever, often seeking out ways to make a positive impact on the environment without making major adjustments to their lifestyle. So selecting products in sustainable packaging or engaging with companies known for their sustainable practices is often a relatively easy way for consumers to feel like they’re making a difference. Sustainable Brands, a global learning, collaboration and commerce community of forward-thinking businesses, reports that 42% of consumers are willing to pay more for products and services provided by companies that are committed to green initiatives. This means manufacturers must not only consider incorporating new and interesting materials into their packaging—such as opting for plastic packaging over glass or adding a paperboard element—but become more transparent about their processes, as well.

Vol. 11, Issue 04 -September - 2018

TEA NEWS

The Tea Shelf

for many generations and fuelled by his love for tea, it did not take much for Atulit Chokhani to get into the fray. From learning the art and expertise of tea business from his father who is a tea planter, researcher and an expert tea taster to taking over the reins of the family business and managing tea estates starting 2008, a lot came naturally. Since then, he has been developing the business not only as an entrepreneur but also as an ardent tea lover.

The Tea Shelf - an online tea store offering a range of the finest teas carefully selected from the best tea plantations across India. he Tea Shelf offers an array of fresh signature teas, bringing a unique tea taste experience for its customers. Under the guidance of an expert team of tea tasters, the brand sources its teas directly from the tea estates of Kangra, Darjeeling, Dooars, Assam, Nilgiri and Munnar thus reducing all delays and hassles. It gives the freshest of premium, hand blended Indian teas right at the customers doorsteps in no time.

The aim of The Tea Shelf has been to provide tea lovers around the world with the finest, most premium, loose leaf, Indian teas online. It caters to you, no matter which part of the globe you belong to! The Tea Shelf curates an exquisite range of whole leaf teas, retailed in loose leaf form. It sources fresh, premium teas across the supreme estates of India, and delivers them to your doorstep; straight from the estates to your cup.

Since, its inception in 2015, The Tea Shelf has already sold 0.5 Million cups of tea and have already reached international customers in markets like USA, Australia, UK, Germany, Singapore, Netherlands amongst many others. The Tea Shelf has been winning the hearts of tea lovers across the world with their creative mix of natural infusions with quality tea which are exquisitely selected, curated and customized by tea experts.

The Tea Shelf is brought to you by Cha Bazaara subsidiary of the JM Group of Companies. The group has been a part of the tea industry for over 150 years now, and is only growing stronger! With a valuable experience in all areas concerning tea, four tea estates in Upper Assam, a tea engineering unit to manufacture tea machinery, to a state of the art blending and packaging unit in Kolkata, and bulk tea wholesaling for the domestic and export market, the organization has an all-round set

It’s his passion for good tea, sharp business acumen and his desire to share the love of fresh premium teas with co-tea drinkers worldwide that led to the birth of The Tea Shelf in 2014. Hence, adding on a new dimension to the traditional family business of planting, producing and exporting teas. Atulit Chokhani Founder, The Tea Shelf

up in tow. All this expertise gave birth to THE TEA SHELF, an online tea buying shop, providing a superior customer experience. The Tea Shelf brings to you the best tea experience, as the team has tea experts and tea tasters with vast knowledge in the field and their participation is instrumental in bringing you the best! Born into a family that has been in the tea business

Chokani has a degree in Chemical Engineering from RV College, Bangalore and an MBA in Family Managed Business from the SP Jain Institute of Management & Research, which has backed his entrepreneurial journey to set new standards and benchmarks in the tea trade through the use of technology, innovation while maintaining the originality and authenticity of the family’s tea provenance from the estates to the cups. Apart from being the Tea Curator and Founder of The Tea Shelf, Atulit has the added responsibility as the Partner, JM Agro Industries, Partner, Bharat Engineering Works, CEO & Sales Head, Mahadeobari Tea Co Pvt Ltd and CEO & Sales Head, Sadiya Frontier Pvt Ltd, which neatly encapsulates his roles around the tea industry.

A tea enthusiast with a masterful tea-palate and strong hold in the tea business, what sets him apart as a “teapreneur” is his hands on experience in the entire tea manufacturing process. However, this is not just a place of trade alone, for Atulit Chokhani, it is also an outlet for his tea tasting chronicles which is reflected in the heartfelt products and flavours his company creates for tea lovers. For now, he is here to bring the best tea surprises and experiences for discerning tea lovers around the world through The Tea Shelf.

www.agronfoodprocessing.com

Vol. 11, Issue 04 -September - 2018

NEWS

Not yet REACH compliant? Here’s what you need to know

t’s already been eleven years since the introduction of REACH, the European Union’s regulation for the Registration, Evaluation, Authorization and Restriction of Chemicals.

The latest milestone in its history came recently when chemical companies were given the final deadline to register substances they manufacture or import from outside of the EU of over one metric ton per year. Until this deadline, companies were able to sell and import pre-registered substances of this quantity freely on the EU market. Companies must now commit to a complex and lengthy registration process through the European Chemicals Agency (ECHA) to become REACH compliant. Failure to comply can result in administrative and/or criminal penalties, which are managed on a national level in each member state. If you are not yet on the road to becoming one of the 13,620 companies already registered under REACH, here are some important thoughts for you to consider.

Safety and commercial benefits: There are many benefits to gain from becoming REACH compliant. Ultimately, the aim of REACH is to help build better knowledge and awareness on the hazards of chemicals. Having a standardized approach to managing these hazards offers better protection for those working in the chemical industry, as well as for the environment. With instant access to a wealth of online reports and news articles, today’s consumers are far more conscious of health and safety issues surrounding the chemical industry. As a downstream user, being REACH compliant would help boost final consumer confidence in your products and give your business a competitive advantage in the market. Getting it right the first time: To make a registration, a technical dossier containing all required data on physio-chemical, toxicological and eco-toxic properties, manufacture and uses of a substance must be submitted. If a substance classified as hazardous is to be sold in quantities of over ten metric tons per year, the registrant must additionally carry out a chemical safety assessment to define the conditions of use and exposure levels under which the risks can be controlled. The assessment data must then be documented in a chemical safety report, to be submitted with the technical dossier to ECHA. Registering just a single substance requires a huge investment in both time and cost. Companies must make sure that a registration is compiled accurately with the scientific data behind a substance to

www.agronfoodprocessing.com

avoid rejection or even withdrawal of the dossier. Availability of substances: According to ECHA, out of the 106,211 substances listed in the European Chemical Inventory, only 21,551 were registered under REACH as of August 6, 2018. The most common chemicals, like ethanol, propane-1, 2-diol, silicon dioxide and titanium dioxide, have already been registered by various companies. If your business relies on using substances that are not very common or readily available, you will need to work closely with your supply chain network to ensure long-term commitment and investment in the REACH registration process. It is possible that some companies, for business reasons, may decide not to pursue the registration process and withdraw specific substances from the market. If so, downstream users would need to secure an alternative manufacturer, or importer, to avoid production issues. Working with business partners: Becoming REACH compliant can be a tedious and time-consuming process. Many businesses have opted to work with an experienced Europe-

an-based business partner to help them become compliant and undertake the tasks and responsibilities of importers. Companies with extensive supply chain networks and a broad knowledge of regulatory environments can act as invaluable consultants, helping inexperienced companies to maximize their return-on-investment. For example, DKSH, a global distributor of specialty chemicals, supports its

business partners to become REACH compliant through its dedicated regulatory function. It has already registered more than 70 substances to date and is currently working on the registrations of more than 20 additional substances for this year. Understanding REACH is only the beginning of the journey but it is never too late to make sure your product portfolio is REACH compliant. Do contact me to find out more.

EDIBLE NEWS

Vol. 11, Issue 04 -September - 2018

Adani’s Rs. 6,000 crore bids get the Palm oil monitoring: Nestlé approval to acquire Ruchi Soya adopts “game-changing” cutting

jali Ayurved had also sought clarification from the RP (resolution professional) of Ruchi Soya related to eligibility of Adani Group to participate in the bidding process.

Adani Wilmar’s bid was approved by the committee of creditors (CoC) with about 96 per cent votes in favour and now the resolution professional will now seek approval from the National Company Law Tribunal (NCLT). Adani Wilmar emerged as the highest bidder with Rs. 6,000 crore offer for Ruchi Soya, while Patanjali group came second with a Rs. 5,700 crore bid. Following this, Patan-

Patanjali had also questioned the appointment of Cyril Amarchand Mangaldas as the RP’s legal advisor as the said law firm was already advising Adani Group. In turn it was asked to submit a revised bid by June 16 to match or better the highest offer of Rs. 6,000 crore by Adani Wilmar under the Swiss Challenge system adopted by the RP and the committee of creditors. Instead of submitting a fresh bid, Patanjali wrote to the RP seeking clarifications and hence Adani Wilmar has been selected by the CoC after two-rounds of bidding.

ccording to sources lenders of Ruchi Soya have approved the Rs. 6,000 crore bid of Adani Wilmar to acquire the debt-ridden edible oil firm, thereby backlogging Patanjali Ayurveda. Adani Wilmar and Baba Ramdev’s Patanjali group had locked horns for a long time for the acquisition Ruchi Soya.

Cooking oil imports rises by 11per cent since August the data compiled by the Solvent Extractors’ Association of India (SEA), the import of vegetable oils during August 2018 is reported at 15,12,597 tonnes compared to 13,61,272 tonnes in August 2017 consisting 14,65,594 tonnes of edible oils and 47,003 tonnes of non-edible oils, an increase by 11 per cent.

espite rupee decline, import of vegetable (cooking) oils in August leaped to 15.12 lakh tonnes from 11.19 lakh tonnes in July, as pipelines dried up due to lesser import during June and July 2018. This coupled with improved uniformity in import of palm oil due to reduction in spread between palm oil and other cooking medium, resulted into higher import. According to

The overall import of vegetable oils during November 2017 to August 2018 is reported at 1,22,78,673 tonnes. Import from neighboring countries particularly Bangladesh and Nepal under SAFTA by land route continued. As per unconfirmed reports, about 800-1000 tonnes either in tank lorries or consumer packs per day, entered eastern India, seriously affecting domestic players, BV Mehta, executive director, SEA said. SEA has once again taken up this issue at higher level to regulate the import, he said.

Stop reuse of edible oil used in farsan, sweets-with Biodiesel as a better solution

ven as a new amendment in the Food Safety and Standards Act (FSSAI) mandates that the Total Polarized Compound (TPC) value in edible oil must be less than 25 per cent since July 1, several leading farsaan and sweet makers have found a sustainable way to dispose of used edible oil that can pose a threat to food safety standards and ultimately to people’s health. Close to 10 leading sweet and snack makers who are members of the Gujarat Sweets Merchants Association (GSMA) have committed to give up 1 crore litre of used cooking oil annually to the Biodiesel Association of India (BDAI). This will be converted into biofuel so that the used oil does not find its way back to food supply chain through black market. BDAI launched a software RUCO (Repurpose Used Cooking Oil) in the state, GSMA members set the ball rolling on going the sustainable way for disposal of edible oil by enabling BDAI to collect their edible oil in state. Himachal Mehta, member of GSMA which has 2600 members in state said, “We were part of discussions with BDAI and found that this is a winwin situation for snack makers as we face difficulty in disposing oil used several times to fry food. While as a body we have not signed any formal MoU but it is in the pipeline. Earlier we would know that the oil is stale or bad from its texture, colour and aroma but since FSSAI’s amendment, this move towards contributing to making biofuels is better way to go for. Bigger companies use a high quantity of oil every day. The move will set customers to get quality food items and also solve energy needs of the nation in long run.” Ahead of FSSAI amendment, FDCA had taken up a drive

to check TPC levels of oil in establishments in Ahmedabad where 40 per cent were found reusing oil which they have used before for frying, cooking etc and FDCA Gujarat had also procured a special device to test TPC value in oil and penalize eateries that reuse edible oil. AMC sources also contend that 80 per cent of street side vendors reuse oil multiple times while making food. Sandeep Chaturvedi, President of Biodiesal Association of India (BDAI) stated, “Gujarat has taken the lead in this initiative from among other state with top players signing up for giving their edible oil to creating biodiesel. If we don’t take this oil then it can be diverted back into the market which can pose huge health risks. The new RUCO software will facilitate this, whereby sweet-makers can get real time data on oil collection. Ten of Gujarat’s top snack makers have committed that they will give us 1 crore litres of oil annually under this initiative. We are already collecting such used oil from various McDonald’s chains in state for past one year.” Ahmedabad leading brands like Jaihind sweets, Rasmadhur, Kandoi Bhogilal Mulchand among others are part of the discussions with BDAI for collection of used edible oil, sources said.

edge satellite system

estlé is stepping up its game when it comes to no deforestation commitments by becoming the first food company to use a high-tech satellite-based service to monitor its palm oil supply chains. In a bid to distance itself from the controversy associated with deforestation and hit its 2020 no-deforestation targets, Nestlé has implemented Starling, a global verification system using cutting-edge technology combining high-resolution radar and optical satellite imagery to provide constant unbiased monitoring of land cover changes and forest cover disturbances. Hailed as a game-changer in transparency, the satellite monitoring verification system has been piloted in landscapes in Malaysia and is ready to be rolled out across Nestlé’s palm oil supply chain by the end of this year. The system will track changes on the ground, monitoring palm oil plantations for signs of deforestation. It collects data and analysis to allow companies to manage risks and perform field intervention strategies to drive changes. Operating as an “eye in the sky” 24/7 monitoring system, Nestlé can track what is happening on the ground in precise detail and will be alerted to any problems. It says that any non-compliant suppliers will be suspended. Starling was developed by an international pioneer in the aerospace industry Airbus and The Forest Trust (TFT) – which helps businesses bring responsible products to market – as a global verification system evidencing that no deforestation is taking place throughout the supply chain. Starling is a fully digital service, offering bestin-class machine learning and cloud technologies to provide very precise and near-real-time forest cover change information, according to François Lombard, Head of the Intelligence Business at Airbus Defence and Space. It’s a significant step forward in the fight against the devastating impact deforestation has had as a result of the growing demand for palm oil. Deforestation is a serious and complex issue and addressing it requires the entire industry working together towards greater transparency, inclusiveness, direct supply chain engagement and capacity building throughout the supply chain, says Nestlé. However, the Swiss food giant was itself suspended from the Roundtable on Sustainable Palm Oil (RSPO) in June for breaching its code of conduct. But Nestlé said the organization’s approach “is not conducive to achieving the levels of industry transparency and transformation the sector so urgently needs” and pointed out that although the company shares RSPO’s ambition for improving the social and environmental performance of the palm oil sector, “our approaches to this do differ.” The following month, the sustainable palm oil body reinstated Nestlé’s membership after the company submitted its action plan to achieve 100 percent RSPO-certified sustainable palm oil. “Nestlé has always been committed to source the raw materials we need to make our products responsibly. In 2010, we made a No Deforestation commitment stating that all our products globally will not be associated with deforestation by 2020,” said Magdi Batato, Executive Vice President, Head of Operations, Nestlé SA. By 2017, 63 percent of Nestlé global supply chain was deforestation-free. “To accelerate this journey, we have worked with Airbus and TFT since mid-2016 to embark on a pilot project over the Perak landscape in Malaysia. Starling satellite monitoring is a game-changer to achieve transparency in our supply chain and we

are pleased to extend this collaboration to cover 100 percent of Nestlé’s global palm oil supply chains by the end of the year,” he adds. The satellite program will also be extended to cover Nestlé’s pulp and paper supply chains next year as well as soya at a later stage. “Terabytes of satellite images are turned into actionable information, to provide our customers with a reliable service to monitor their supply chains and to early identify potential deforestation events,” he says. Starling utilizes Airbus’s high-resolution SPOT 6 and SPOT 7 satellites as well as third-party sensors, which are designed for large geographical areas. With sharp accuracy and detailed resolution, Starling’s reference maps differentiate between production forests that include palm plantations, protected forests and other regions. “We welcome Nestlé’s commitment to using Starling to monitor 100 percent of its palm oil supply chain,” says Bastien Sachet, CEO, TFT. “When we started our No Deforestation journey with Nestlé in 2010, no tools existed for them to monitor their suppliers in this way effectively and a solution had to be created. Now, we are pleased to say, there is a ready and able tool to help companies rid deforestation from their supply chains. We see this milestone as the next step in our journey with Nestlé.” Earlier this year, Nestlé committed to achieving 100 percent RSPO certified sustainable palm oil by 2023 and by this December 100 percent of Nestlé’s palm oil supply chain, approved or not, will be monitored for deforestation using satellite imagery. To further increase transparency, Nestlé has made available the names of the direct suppliers and mills that it buys palm oil from. This covers 91 percent of the total volume of palm oil Nestlé sources annually. “Our ‘eyes in the sky’ will monitor our palm oil supply chain 24/7, regardless of their certification status. This will enable us to disclose publicly further what we find, where we choose to suspend non-compliant suppliers, and where we choose to engage and improve the situation. This will come with a request to suppliers to share their concession information, and work within the value chain with our partners to improve based on non-disputable evidence.” “This information along with our progress reports will be shared with our stakeholders, including consumers, investors and retailers. They will be made available in our Transparency Dashboard to be published on our website by March 1, 2019,” explains Benjamin Ware, Global Head of Responsible Sourcing, Nestlé S.A. Palm oil, how it is sourced, where it comes from and third-party suppliers in grower countries have been heavily scrutinized in recent years as industry steps up efforts to clean up the supply chain. There is also significant pressure from non-government organizations and environmental groups like Greenpeace which continually investigate the palm oil supply chain. Increasing consumer awareness about the major issues of palm oil has led to many companies committing to only using “deforestation-free” palm oil products – those made exclusively using palm oil from plantations that have not cleared forests. In May, a study from the Imperial College London examined the challenges of “deforestation-free” palm oil claiming that achieving this is not as simple as it sounds. Researchers say a better approach is needed that goes beyond the public shaming of companies in the supply chain and that genuinely “deforestation-free” palm oil products are problematic to guarantee.

DAIRY NEWS

Vol. 11, Issue 04 -September - 2018

Around 68.7 per cent of milk Coca-Cola, Zydus Cadila fray for and milk products not according Kraft Heinz India brands to FSSAI standard Sadly adulteration in milk is more prevalent in northern states as compared to the southern states. In fact the National Survey on Milk Adulteration had conducted a survey some years back and found that due to lack of hygiene and sanitation in handling and packaging, detergents used in washing containers and other surfaces find their way into milk and milk products.

ccording to the Food Safety and Standards Authority of India (FSSAI) around 68.7 per cent of milk and milk products sold in the country is not rendering to the standards laid. The most common adulterants are detergent, caustic soda, glucose, white paint and refined oil. And a report by the Ministry of Science and Technology affirms that 89.2 per cent of such products are adulterated in one form or the other. The production of milk in the country up to March 31, 2018 has been registered at 14.68 crore litres per day against the consumption of 480 grams per capita per day.

FSSAI asks Dairy companies to begin voluntary milk fortification

Detergent and other contaminants like urea, starch, glucose and formalin are also used to deliberately adulterate milk as they provide thickness and preserve the milk for longer periods, The World Health Organization (WHO) had recently issued an advisory to the Government of India stating that if adulteration of milk and milk products is not checked immediately, 87 per cent of citizens would be suffering from serious diseases like cancer by the year 2025.

he Coca-Cola Co. and the Zydus Cadila Group have come out as the two strongest competitors for the consumer portfolio of Kraft Heinz in India, which includes the children’s milk drink Complan. Amid final negotiations the two are expected to submit binding bids.

Kraft Heinz had narrowed the list of bidders for a second round of talks and shortlisted some of the biggest food and consumer companies including Tata Group, Wipro Consumer, Dabur India and Danone along with Coca-Cola and Zydus Cadila. Nestle, Emami and ITC were the other contenders that had explored the opportunity but were either not shortlisted or didn’t want to participate after initial evaluations. Kraft Heinz has been seeking about $1 billion for the assets and had mandated investment bank JP Morgan earlier this year to manage a formal sale process. Bids are mostly expected to be in the $550-600 million range. If

a deal is struck, it will be the first big acquisition by Coca-Cola in a key market after it bought Parle’s beverage brands, including Thums Up, in the early 1990s.

Entry into products such as glucose, its key target, and milk-based drinks would give Coca-Cola bandwidth in new distributor channels as well, the person said. For Ahmedabad-based Zydus Wellness, the listed consumer business subsidiary of Pankaj Patel-led Zydus Cadila Healthcare, the Kraft Heinz portfolio will add to its existing offerings of personal and skin care, sugar substitutes and health foods. The business, accounting for 4 per cent of the Zydus Cadila Group’s total revenue, grew 7 per cent in FY18 from the year earlier. The three mainstay brands — Sugar Free, Everyuth, and Nutralite — registered faster growth despite challenges such as the rollout of the goods and services tax (GST).

Pro-biotic & protective Culture available

he Food Safety and Standards Authority of India, CEO, Pawan Agarwal has urged the private and public dairy companies to begin voluntary milk fortification as it is the most cost-effective and globally-recognized strategy to address micro-nutrient deficiencies. He informed that most of the stakeholders were in favour of food fortification but a few misinformed elements have been creating confusion around the issue. So it is the food regulators duty to ensure it does not get derailed due to misinformation or lack of awareness.

Gum Arabic / Gum Acacia (Spray dried)

Last month, FSSAI notified standards for fortifying staples such as edible oil, milk, atta, maida and salt. The food safety authority has been urging industry to undertake voluntary fortification of their products especially edible oil and milk, before it is made mandatory. Agrawal highlighted that several ministries and government bodies have written to FSSAI to make fortification mandatory. However, FSSAI wants to first assess whether the industry is ready. Fortification needs to be scaled up step-by-step before being made mandatory. Talking about costs involved in fortification, Agrawal said he said, “Costs of fortification in the case of milk with Vitamin A and D is minimal, about 2-3 paise per litre, and players such as Mother Dairy who have undertaken large scale milk fortification have absorbed such costs.” He also said as per FSSAI regulations, premixes used for fortification need to be manufactured from vegetarian sources, and not from animal sources. He said the prescribed dosage of the premix used in fortified staples is within safe limits and the focus is on ensuring the safety of the fortified food products rather than whether they are natural or synthetic. Currently 13 state co-operatives and 11 private dairies have begun offering fortified milk to consumers.

Flavours

Increase Yield & Softness. Improve Whiteness,Taste , & Body Texture . Better Mouth feel. Increase Shelf life.

Bakery

,Potato Flakes

Vol. 11, Issue 04 -September - 2018

Cashew industry requests the Centre to extend fresh working capital

t is sad but the cashew processing industry is on the brink of total collapse due to heavy losses. It’s about 700 factories have been shut down, out of 834 registered factories. This is seriously impacting livelihood of 3 lakh plus women laborers, especially from backward communities. Besides being a mass employment sector, the annual foreign exchange earnings of the industry used to be in the region of Rs.7,000 crore. To stop further dishevel, Kerala’s cashew industry has requested the Centre to extend fresh working capital with a subsidized interest rate for three years with the same collateral banks currently hold. The Central Government, in the past, had supported the Textile and Leather sector and a similar gesture could help revive the cashew processing industry, one of the oldest traditional industries in Kerala, which is going through its worst crisis. Sasidharan Achari, Coordinator of the Council stated that attention has not been paid to the cashew sector crisis, while bank accounts of more than 150 industrialists have been made NPA based on the Sarfaesi Act, the State-level Bankers’ Com-

mittee meeting had agreed to extend a moratorium till August 31. The Council also requested the Centre to influence the banks to stop all recovery measures with immediate effect and take out all penal interest from NPAs. The bank interest of NPAs in the last three years needs to be written off and the same needs to be borne by the Centre and the banks, it said. The remaining part can be converted into a term loan — of 10 years or at least seven years — with a minimum interest rate with the assistance of Nabard and Sidbi. The introduction of 9.36 per cent import duty in 2016 on raw cashew and 36 per cent wage hike by the State Government in 2015 sped up the downfall of the industry. The Council pointed out that 70 per cent of the raw cashew nuts, the raw material of the industry, is imported mainly from African countries since domestic production is low. The exorbitant price of raw cashew with the entry of Vietnam and China, government policies, lack of mechanization is being blamed for the present situation.

FRUITS & VEGETABLES NEWS

Chile seeking to position itself in India

hile is seeking to position itself and trying to make its presence felt as an important supplier of fresh, high quality fruits.

A faction of Chilean fruit exporters has recently visited India as part of their trade mission organized by Asoex and ProChile to make an awareness of Chilean fruits in Indian market. “India is very important for various reasons, including its large population which according to the United Nations will surpass China’s by 2024, growing economy and expanding middle class, and it is vital for Chile to develop a long-term strategy for the market,” said Carolina Vásquez, Chile’s commercial attaché in India, who accompanied the mission. “With this type of activities, Chilean exporters can begin to visualize the dif-

Ever since the augment of BJP-IPFT government in Tripura on March 9 this year, they had strongly put forth the views on developing skills on local resource-based industries and entrepreneurship. ‘Queen’ pineapple as one of the three varieties of the tropical fruit that grows in Tripura has gained a special focus. Farmers of Sonamura, where the ‘Queen’ grows in abundance, is refer to it as “the sweetest variety of the fruit ever grown.” During his visit to Tripura in June, President Ramnath Kovind declared it as the state’s official fruit, setting off an outbreak of celebratory headlines. But after the media reel died down, the ‘Queens’ were left alone to die a lonely death in the fruit gardens in different parts of the state. Another blow was the sealing of the Indo-Bangla border (Tripura shares a 856 km-long international border with Bangladesh) to the fruit sales. Motinagar, Kamalnagar, Kalamchowra and other villages are located right beside the border. Barbed wire fence along the border has been erceted in most parts of the state. However, patches of 9km border area in Sonamura, and few parts of Dhalai district, are still unfenced and opened to illegal trade. Smuggling of clothes, rice, vegetables, foodgrains, narcotics, electronic gadgets, fish and pineapples used to be some major commodities till the early 2000s. After the sealing of the Indo-Bangla border and tight security, pineapples from Sonamura don’t have much of the mobility towards Bangladesh market anymore. “Earlier, we didn’t have barbed wire fence in the border and many people used to smuggle the fruit to Bangladesh. But now there is no such scope,” pineapple grower Jakir Hussein of Kulubari village in Sonamura said so. Moreover, the domestic market was limited and there was nearly no State-promoted procurement of pineapples. Tripura’s pineapple growers have a different version of the drawback. “Government assured us that our pineapples would be procured for export and we grew them alright. But nobody

came to pick them up and tons of the fruit just rot away,” says Hussein. According to the state horticulture department records, Tripura grows 1.28 metric tons of pineapples every year across 8,800 hectare orchards both government-owned and privately-owned farmlands. Over 4,000 pineapple growers are directly connected to cultivation of the fruit. Hussein, who is qualified engineer, owns two ancestral pineapple orchards. He says he planted ‘Queen’ pineapple in all the gardens and harvested the crop around two months back when the government announced that private entrepreneurs would procure and export them to Dubai. “Someone came here and announced that they will buy pineapples at Rs. 10 per kg. We stock piled the fruit after we got news that dealers would come. But nobody came!” Hussein said. Even the consignments which were exported never made it to their destination. The first consignment of 1 ton ‘Queen’ variety pineapple was dispatch to Dubai — via Delhi —on June 3. The consignment had 1,000 pineapples procured from eight farmers in Bilascherra village in Dhalai district. However, with the outbreak of Nipah virus scare in India and adjoining countries, the fruits were reportedly halted in Kolkata for many days, leading many to rot in the cargo. The horticulture department officials denied any confirmation on the issue since the export was done by private parties. During the ‘flagging-off’ ceremony at Agartala on June 3, Agriculture minister Pranajit Singha Roy said promised that similar shipments would be made every two days. However, not a single pineapple was purchased from Sonamura for the purpose. Another pineapple grower of Motinagar village, Delowar Hussein said that he harvested all his pineapple plants which were growing under the shade of his rubber plantation. Seeing no future sales prospect in sight and a huge maintenance cost, Delowar slashed them all. Director of Horticulture and Soil Conservation Arun Debbarma, admitted that there were some issues regarding marketing and export of pineapples. “Efforts were taken to export pineapples to other countries this year. There was a problem regarding marketing earlier. We have noticed that there was a reduced sized crop due to certain practices. Those are not exportable. We don’t offer any compensation for such crops. But we are hoping to start a massive skill development training for pineapple growers from September this year to help them grow better crops”, he said.

“Small, medium and large exporters of cherries, plums, kiwifruit, table grapes, apples and pears took part in the mission,” Carvajal said. “There is a special interest among exporters to see the potential of this market, especially for cherries and pears.”

Special quays for fruit, vegetable export at major ports: Union minister Mansukh Mandaviya

‘Queen’ Pineapple of Tripura rots in orchards ripura’s newly-declared state fruit --The ‘Queen’ pineapple —takes to rotting itself in orchards due to low sales and false export promises. The ‘Queen’ pineapple recently cornered the market of global attention with courtesy to the series of exports to Dubai, Bahrain and other countries earlier this year, is now rotting in the orchards of Sonamura sub-division of Sipahijala district, 70 km south of Agartala.

ferent options presented by the market and at the same time start to build long-term relationships with importers, while also taking advantage of the opportunities offered by the recent extension of the bilateral trade agreement that has been in force since 2017.” Charif Christian Carvajal, Asoex’s marketing director for Asia and Europe, said as part of the mission business conferences were held in New Delhi and Mumbai with local importers and distributors, as well as visits to the wholesale markets and supermarket chains.

n order to ease the movement of fruits and vegetables from the ports of the country, the government has decided to build a special quays in all the major ports, said Union minister for shipping, Mansukh Mandaviya. “There are nine nations in the Gulf (Middle-East). They do not have fruits or vegetables. All they have is oil and money. These are currently being supplied by Europe and African countries…. We can send our cargo to the markets in the Gulf by the sea route in just three days from Mundra, Kandla and Pipavav ports. We have decided that we will develop a special jetty on the all the major ports under the Government of India. From these jetties, farmers’ produce like fruits, vegetables, will be sent with relative ease,” said Mandaviya while speaking at an annual general meeting of Gujarat State Cooperative Marketing Federation

Ltd (Gujcomasol) held recently. “The farmers cannot send these fruits and vegetables directly, but farmers’ cooperative bodies like Gujcomasol surely can. I have studied the Dubai market… We should open a consultancy office overseas who can tell us about the local demand and the same can be exported… This will help prevent situations where the farmer has to sell cabbage at Rs. 2 per kilogram. It will help farmers get better remuneration,” he said adding that farmers’ cooperatives in Maharashtra have already opened similar offices in the middle-east. The Union minister said that the government is also mulling on providing subsidies to help farmers’ produce reach foreign shores. “Till now, Government of India used to provide subsidies for goods send by air cargo. Now, we have decided to provide similar subsidies to agriculture produce sent through sea routes. This will help our goods sustain in foreign markets,” he said. The minister said that an irradiation plant in Bavla in Ahmedabad district is helping mango farmers in Gujarat to export their produce to the European markets. “The air cargo hub at Ahmedabad airport helping flowers from Gujarat to be sold in markets of Japan,” he told farmers attending the meet.

The flourishing business of exotic fruits in India People switch to plant-based foods and ‘clean-eating’

ocal fruit vendors in Indian cities selling pink dragon fruits, haired rambutan, creamy avocados, mangosteen, and more is not a rare sight today. Exotic fruits like kiwi, egg-sized passion fruit, and thick-skinned butternut squash are increasingly catching people’s eyes. They have grown in popularity over the past few years as more specialty and traditional grocery stores have increased and diversified their offering of these ‘unusual’ fruits. India’s annual import of exotic fruits is gradually growing over the years. Fresh fruit imports to India are pegged at 4,00,000 tonnes annually and valued at roughly INR 40 billion, according to customs data. The exotic produce is priced higher and commands a premium of 50 pc or more over local fruits. For example, imported avocados are priced between INR 200 and INR 400 per piece. Fruits like imported apples and kiwis are now consumed on a daily basis by average consumers, which was not the case earlier. The import of kiwi has been growing at a magnificent 60 pc annually, along

with citrus fruits at 30 pc and apples at 20 pc, respectively. The low availability of local apples is also a reason for a rise in demand for imported ones. Also, exotic fruits fill up the shops during off-season for fruits. For example, local apples are generally available during the winter season, while imported apples are always available and are eventually becoming more popular. Fruits like dragon fruit – a superfood that is almost entirely imported from South-east Asia, is witnessing a sharp increase in demand since 2014 in India. Its potential has led many farmers in the states like Himachal Pradesh, Karnataka and Kerala to cultivate the crop locally to meet the rising demand.In Kerala, farmers are quick to latch on to what they believe would be the next big lucrative produce. They have tried growing cocoa and vanilla and now rambutan is piled high along the highways. The farmers of the state are also increasingly tying up with retail chains so that their produce can be marketed outside their state at higher prices, but low enough to compete with the imported ones.

PRESS RELEASE

Vol. 11, Issue 04 -September - 2018

When colour is a value

successful example of the use of coloured standard elements is Clifton Food Range® (part of Nickel-Electro Ltd.) with baths and immersion circulators. ‘Cliftons’, as chefs regularly refer to, are used in the most acclaimed kitchens worldwide. The origins of the product lie in the precision range for scientific applications, in which Nickel-Electro already had an extensive knowledge and manufacture expertise. In 2005 it became apparent that some forward-thinking Michelin starred chefs were starting to use Clifton Science products for “sous-vide” cooking (under vacuum cooking). Sous-vide cooking, today, uses a water bath to accurately cook the vacuum packed item at a precise temperature. Therefore, Nickel-Electro started designing a more robust product range for professional kitchens with specific features such as timers and side-lifting handles. The

new range was supposed not only to perform the accuracy of the original scientific products but also to withstand a continuous use under more intensive working conditions. Nickel-Electro selected a few products out of the Elesa+Ganter range in one of the available Elecolors*, for aesthetical features – the availability of colour elements as a standard – and for the quality of the material and for their technical performances: M.843 bridge handles, in technopolymer, glossy finish PR-PF flush pull handles, in technopolymer, matte finish VTR. knobs in technopolymer, glossy finish. Orange identifies Cliftons’ products differentiating them from all other kitchen appliances, becoming a distinctive feature.

FRUITS NEWS

Vol. 11, Issue 04 -September - 2018

Turkish blackberries reach int’l markets with Turkish Cargo

urkish Cargo is carrying the Turkish variety of the Chester blackberry to different countries around the world in protected and air-conditioned containers. The Chester blackberry, which stands out with its flavor, aroma, large size and quality is freshly shipped to Dubai, Jeddah, Riyadh and Hong Kong in temperature-controlled environment - 2 degrees Celsius - via the national flag carrier Turkish

Airlines’ (THY) commercial aircraft. The berries are harvested in May, June, July and August in Batman, the largest blackberry production area of Turkey. This particular blackberry species is rich in antioxidants, vitamins and minerals, with a 13.5 percent brix fruit level, giving it a distinct taste from other blackberries. The berries are collected and packaged before sunrise to avoid exposure to high temperatures

since they are a sensitive product and then stored without any loss of heat in the cold storage tanks of Turkish Cargo. “Our mission is to develop products that can be produced in our region as part of a national development campaign, to create logistic and industrial infrastructure and to present them to the international market,” Mehmet Sabit Ceylan, an exporter, said. “We are currently making it possible by producing fresh fruits, frozen fruits, fruit juice concentrate and juice.” Ceylan said they carry these rare high-sugar berries around the world thanks to Turkish Cargo. “An important factor in our success is the quality service of Turkish Cargo which brings us to the international market. The speed and capacity of Turkish Cargo is a great opportunity for us, exporters,” he added.

Turkish Cargo has once again proved its support for the Turkish economy by making a significant contribution to the shelf life of the Turkish blackberry and its expansion to the world market with the opportunities it offers to producers. Turkish Cargo, which can easily respond to import-export demand from any country in the world, develops trust for private cargoes with its fleet of aircraft, operational diversity and supply chain of cold air transport.

Vol. 11, Issue 04 -September - 2018

Maharashtra govt seek to confined fish breeding

o help fishermen and improve the fishing occupation more sustainable and productive, the state government is looking at cultivating the first cage culture of fish at sites along the coastal line of Mahim, Mumbai.

Aqua officials said that fish like sea bass, shrimp, lobsters and crabs can be bred in such captive environment and help the projects to prosper. “Cage culture is more sustainable and involves less mortality. The catch for conventional fishermen is falling,” said Arun Vidhale, commissioner, fisheries, adding this was the first such project in Maharashtra that has been taken on an organized scale. The marine department is considering to set up around 200 such submersible cages at 10 coastal area. An official from the fisheries department said the sites for which they had received proposals included Mahim in Mumbai (one proposal), Satpati in Palghar district (two proposals), and Kalsuri in Raigad (two proposals). “At Mahim, the site may be on the Bandra side of the creek as it is less polluted. However, water samples will be tested before giving it the final nod.

It is essential that the sea water should not have traces of chemicals as it is harmful for fish. The cages will be put in areas near the shoreline which are not used for navigation by boats,” he added. “The National Fisheries Development Board (NFDB) will provide subsidies and technical inputs for this pilot project. The private parties will run it on a profit-sharing basis,” the official explained. Each of the 10 sites will have 20 cages, depending on the type of the fish and the area of the tank, each cage culture unit will hold between 5,000 and 10,000 fingerlings. “These cage culture projects provide an assured catch with just around 5-6 per cent mortality due to controlled conditions,” the official said. The department has decided to bring a maximum of 1% of the surface area of dams and reservoirs under fresh water fish cage farming. Varieties like tilapia, pangasius, basa, Asian bass and types of shrimp will be bred in such captive projects in dams.

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SEAFOOD NEWS

SEA FOOD NEWS

Vol. 11, Issue 04 -September - 2018

West Bengal comes close to 6 per cent growth in fish production

est Bengal has produced close to 17.4 lakh tonnes of fresh and brackish water fish in FY–18 and in 2018-9 it is expecting close to 6 per cent growth in fish production, at 18.5 lakh tonnes. The State exported nearly to 1.7 lakh tonnes of fish to others states and overseas in 2017-18. Of this, export of shrimp accounted for nearly 70,000 tonnes, estimated at around Rs.8,000 crore. According to Chandra Nath Sinha, State Fisheries Minister, there is a demand-supply mismatch of around 0.6 lakh tonnes in West Bengal, which is currently being met by imports from other States, such as Andhra Pradesh. Categorically the growth in production this year might help counterbalance the shortfall to some extent. However, this may not be enough to bridge the gap totally as demand is also growing steadily. West Bengal government is concentrating to maximize production of fish through intervention of technologies, adding more water bodies under aqua farming and promoting scientific feeding and improved man-

agerial practices to improve production, he said. Rajarshi Banerji, president of the Seafood Exporters Association of India told that West Bengal has close to four lakh hectares of brackish water acreage, as compared to only about 1.5 lakh hectares in Andhra Pradesh. But Andhra Pradesh has been able to cultivate close to 3.5 lakh tonnes of shrimp on nearly 1.3 lakh hectare of brackish water acreage, while Bengal has managed to produce only around 60,000 tonnes, utilising about 60,00070,000 hectares or about 15 per cent of the total area so far. The fishery industry in West Bengal is hindered by small land holdings, high electricity tariffs and expensive lease-rent structures. These push up the total cost of production by nearly Rs. 60/kg to Rs. 240/kg in Bengal, as compared to Rs.180/kg in Andhra. Another factor affecting fishery market is that any fall in price of shrimp in international markets squeezes the margins of cultivators and exporters from Bengal, who are already reeling under the pressure of the high cost of production.

US tightens norms on imported shrimps

he United States has tightened two norms related to its shrimp imports that could hurt India’s shipments even as New Delhi and Washington try to iron out their trade issues. The US wants all fishing nets and vessels to have turtle excluding device (TED) so as to conserve turtles and also wants traceability information on imported seafood to prevent any illegal, unreported and unregulated fishing. “This is a non-tariff barrier especially when we are engaged in a dialogue to resolve our trade issues,” an official in the know said. India’s seafood export rose 22 per cent on year to $7.1 billion in 2017-18 with frozen shrimp and frozen fish being the prime items. Of this, almost $2.3 billion or 33 per cent of the exports were to the US. Frozen shrimp was 95 per cent of this in value terms. However, meeting these requirements will not be a tall task though they would incur some additional cost, as per the official. TEDs are not needed in country boats and most of India’s fishing happens through those, not large fishing vessels. As for the traceability norms, the Seafood Import Monitoring Program

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(SIMP) is stated to be the first phase of a risk based traceability programme that establishes permit, reporting and misrepresented seafood from entering the US. Exporters of shrimp have to report this data. Both these norms have to be complied with by December 31, 2018. Though the US restricts imports of shrimp harvested with fishing equipment, such as shrimp trawl nets not equipped with TEDs, that results in incidental sea turtle mortality, India, Malaysia, Thailand and Pakistan had challenged this law in the World Trade Organization (WTO) claiming that it was inappropriate for the US to prescribe their national conservation policies. While the initial ruling favoured the complainants, the WTO later reversed the findings of the dispute settlement panel in 1998. The issue of sustainable fishing is high on WTO’s agenda and curbing subsidies by next year tops it. The department of commerce has asked exporters to declare their catch and type of boats. A team from the US is expected to visit India to familiarize exporters with these requirements.

From fish to dish

state-of-the-art fish rearing and retail facility is set to come up in Nalban near Nicco Park, Kolkata from the end of this month. The State Fisheries Development Corporation (SFDC) has already received funds from the National Fisheries Development Board to start the project. And as a bonus for residents of Salt Lake, the fish reared here will be sold in the township as a pilot project. According to Soumyajit Das, the managing director of SFDC, this is the first time that the central body is funding a project that will have a waterbody fed by sewage water. “They were very happy with our proposal and have released funds for the same. We will start work later this month,” said Das. According to Das, unlike other fishery projects they will have fish hatcheries in Nalban. “They will be similar to hatcheries for chicken where we will raise the fish inside specially-curated waterbodies from fish eggs.” In most centres, SFDC would release fingerlings or small fish into the water and then raise them into bigger fishes. However, this time the body will create special pools with proper ambient temperature to raise fish from eggs. “This facility will encompass everything that is required for a modern fish breeding centre,” said Das. According to him, while home grown varieties of freshwater fish like Rohu and Katla will be reared Silver Pompano and Cobia will also be hatched here. At present, the SFDC has a fish hatchery project at Jamunadighi. The 10-hectare Nalban waterbody will be divided into sections where the fish will be reared. “The Nalban waterbody is unique as it is a brackish water project where fish is reared in sewage fed pools of water,” said Das. Apart from the rearing of fish, the project will focus on direct marketing of the fish and the corporation has zeroed in on Salt Lake for doing the same. “We will get solar powered vans and sell the fish in the township,” Das said. According to him, everything on these vans will be powered by solar cells. “From the drive mechanism to the cooling unit fixed on the van, everything will be powered by solar cells that will charge the batteries on the go,” he said. Residents will also be able to order fish through Smartfish, an app launched by SFDC earlier this year to get fish delivered at their doorstep in fillet, dressed, dry or pickle form.

COLATE NEWS

Vol. 11, Issue 04 -September - 2018

Small choco holders can set the pace of cocoa says Seattle Chocolate CEO

eattle Chocolate’s CEO has said that small chocolate companies can make a big difference in cocoa sustainability even though many of them source their beans from big suppliers like Barry Callebaut.

Jean Thompson recently noted the difficulties of getting regional chocolate makers directly involved with cocoa farmers, and her company is no exception. “When you are trying to buy beans you don’t personally deal with, you have to partner with a Barry Callebaut brand of company that is conscientious about the best farming practices,” she said. Previously reported, about 36 per cent of Barry Callebaut’s cocoa beans are sustainable in 2016/17, up from 23 per cent the previous period. The chocolate supplier aims to achieve 100 per cent sustainable cocoa by 2025 through its For-

ever Chocolate program. Even though major suppliers and chocolate companies have set their sustainability targets, Thompson said it will probably take a longer time to achieve them unless small companies decide to be proactive in tackling issues such as child labor. “We certainly can move the needle by coming together,” said Thompson, and one of the ways to do it is to make more bean-to-bar chocolate.

by adopting a more contemporary packaging. We have always been known for our nice packaging. Our brand before had tons of colors and graphics for 10 years. But we decided to work with artists and designers to give our chocolate a more modern, Seattle-themed look – green, outdoorsy and organic,” said Thompson. She added rebranding for a chocolate company could be risky as new packaging may drive some of its previous con-

sumers away, and it usually costs tens of thousands of dollars. However, “the initial investment is important because packaging is what consumers are looking for on shelves when they are shopping,” Thompson believes. “But [the cost of rebranding] is not something we will pass on to our consumers.” Seattle Chocolate expects a 30 per cent sales increase by the end of 2018, said Thompson.

She said Seattle Chocolate has just made its first line of bean-to-bar products earlier this year under its Jcoco brand. She added Seattle Chocolate sources cocoa beans directly from Nicaragua. “Those beans are exported to Portland, Oregon, where we partner with a small bean-tobar manufacturer, and then we’ll give them directions such as whether adding a fruit-forward note or giving it a little acidic flavour,” said Thompson. Seattle Chocolate’s bean-to-bar line currently comes in two varieties: 72 per cent and 80 per cent dark chocolate made from a blend of different Nicaraguan cocoa varietals. They are available in highend grocery, drug, boutique and specialty stores, including Whole Foods, across the US. According to Thompson, Seattle Chocolate has been making twisted trues since it started 27 years ago. It has evolved to become an iconic confectionery brand in the Pacific Northwestern region. However, she said the company’s bigger ambition is to become a “trend setter” in the US market, and producing bean-to-bar chocolate is just a beginning – the company also finished rebranding

Mondelez take offs operations in Bangladesh the snacking industry in Bangladesh by leveraging its global brand portfolio. Kallappa Pattanashetti, who was earlier with Mondelez India Foods Pvt Ltd, has been appointed the country lead and will play a pivotal role in running the company's operations in Bangladesh. Tang - Mondelez International's powdered beverage brand has been a market leader in Bangladesh since 1995 and is exported into the country.

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ondelez has launched operations in Bangladesh, expanding the company's presence in South Asia. The giant company inaugurated its corporate office in Dhaka, rolled out billing systems and is currently in the process of establishing a new warehouse. Over the next two years its focus will be to invest in building the route-tomarket and growing market share for theirr muchloved brands. With the establishment of its own operations, the company said it is now well positioned to tap into

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Vol. 11, Issue 04 -September - 2018

TURNING LEAF

Timeline Indra Nooyi outgoing CEO of PepsiCo An Indian woman who broke glass ceiling in corporate America PepsiCo rounds off 2009 with the purchase of Egypt’s International Company for Agro-Industrial Projects (Beyti) through International Dairy and Juice Limited (IDJ), the US group’s joint venture with Saudi food major Almarai, for an undisclosed sum.

ndra K Nooyi is stepping down as the company’s CEO following more than a decade of strong performance. The company’s board has elected Ramon Laguarta as PepsiCo’s new CEO. Nooyi is slated to step down on 3rd October but will remain chairman until early next year in order to ensure a smooth and seamless transition. Nooyi had recently said, “Leading PepsiCo has truly been the honour of my lifetime, and I’m incredibly proud of all we have done over the past 12 years.” Nooyi has been associated with the food and beverage firm for more than 24 years, serving as CEO for the last 12 years of her tenure. PepsiCo is noted to have delivered strong results under Nooyi’s leadership. The company’s net revenue increased from $35bn in 2006 to $63.5bn in 2017, representing a compound annual growth rate of 5.5 per cent. Indra Nooyi is to step down as PepsiCo CEO in October after more than a decade at the helm of the US food and beverage giant. Agro * Food Processing looks at the stand-out moments and drills under Nooyi at the Quaker, Lay’s and Pepsi maker. Nooyi at the helm of PepsiCo and first acquisition - 2006 Just before her 51st birthday, Indra Nooyi formally takes the reins at PepsiCo, moving up from her dual role of president and CFO to succeed Steve Reinemund as chief executive, an appointment first announced two months earlier. While announcing the handover Reinemund depicted that Nooyi had a sharp talent for turning insightful ideas and plans into realities and for developing and replenishing talent base. PepsiCo’s first piece of M&A under its new CEO comes in the drinks industry, with the purchase of self-styled US super-premium juice

producer Naked Juice Co. from US private-equity group North Castle Partners. More purchase in food and drinks - 2007 Six months later and PepsiCo made another purchase. Together with bottler PepsiAmericas, it acquired 80 per cent of Ukrainian juice company Sandora. Several months later, the pair purchased the remaining 20 per cent. In the same year, PepsiCo snapped up Brazilian snack firm Comercio de Doces Lucky for an undisclosed sum. Brands included Torcida and Fofura and assets included two manufacturing plants near Sao Paulo. Hat-trick deals in beverages during - 2008 She did a hat-trick of deals in beverages during the spring of 2008. In March, PepsiCo teams up with Pepsi Bottling Group, through their Russian joint-venture PR Beverages, to purchase SobolAqua in Russia for an undisclosed sum. That same month, PR Beverages acquires a major ity stake in Russia’s leading branded juice company, JSC Lebedyansky. The company pays $1.4bn for a stake of over 75 per cent in the Russian juice company, excluding the company’s baby food and mineral water business. In May, PepsiCo snaps up the vitamin water brand V Water in the UK and extended its distribution deal with UK-based Britvic to manufacture, sell and distribute the brand. Financial details of the deal were not disclosed. Major bottling moves in US, snacks acquisition further south and JV in Egypt - 2009 April 2009 is the start of PepsiCo’s move to acquire the outstanding shares in The Pepsi Bottling Group (PBG) and PepsiAmericas. PepsiCo already owns 33per cent of the outstanding shares of PBG and 43 per cent of the outstanding shares of PAS. The transaction completed in February 2010 in a US$7.8bn deal..

Forms “global nutrition group” and makes major M&A deal in Russia- 2010 Amid waning demand for high-sugar fizzy drinks and salty snacks, particularly in developed markets, PepsiCo announces plans to set up a business unit focusing squarely on nutrition and targeting sectors. “The creation of this global nutrition group is part of our long-term strategy to grow our nutrition businesses from about $10bn in revenues today to $30bn by 2020,” Nooyi says. Also forms joint venture with India’s Tata Tea to sell healthy drinks in India. The first major M&A deal of Nooyi’s tenure, with PepsiCo striking a deal to buy a 66 per cent stake in Russian dairy, baby food and juice manufacturer Wimm-Bill-Dann for US$3.8bn, a move the US group would make it the “largest food-and-beverage business” in the country. Going for health drive, two acquisitions in Latin America, PepsiCo sells bottling operations in China - 2011 PepsiCo’s business in the UK and Ireland publishes an update against a list of 27 commitments unveiled in 2010 when the company set out its 2020 target for sales from healthier products. The report says PepsiCo has achieved or was on track to achieve some targets in its drive to make its product range healthier but has made no progress or was off the pace on others.PepsiCo also bought Russian juice and dairy company WimmBill-Dann for $4.4 billion. Might split PepsiCo in two - 2011? In November that year, activist investor Nelson Peltz, through Trian Fund Management, buys $146m of PepsiCo shares, fuelling speculation the US food and drink giant may look at splitting its snacks and drinks divisions. Analliance of PepsiCo directors are said to want to examine a possible business split - while Nooyi, who is said to be opposed to the move, is reportedly working on two major acquisitions. PepsiCo offloads its bottling operations in China to Tingyi (Cayman Islands) Holding Corp. in ex-

change for a stake in the noodle and soft drinks maker’s business. The US group operates its China beverage business through 24 company-owned and joint venture bottling operations. Under the deal, Tingyi’s beverage subsidiary, Tingyi-Asahi Beverages Holding Co Ltd (TAB), will become PepsiCo’s franchise bottler in China. TAB’s products include ready-todrink tea, bottled water and juice beverages. PepsiCo forms US dairy venture with German group Muller - 2012 The Wimm-Bill-Dann acquisition had given PepsiCo a presence in dairy in Russia and a batch of former Soviet states and, in early 2012, the company sought to bring that experience home with a tie-up in the buoyant US yogurt sector. PepsiCo and Unternehmensgruppe Theo Müller set out plans to open a yogurt plant in New York State. The factory opens in June 2013. Three years to save carbonated soft drinks, warns Nooyi and talks on merger with Mondelez - 2013 The PepsiCo boss tells an analyst conference makers of carbonated soft drinks may have just three years to win back US consumers before they abandon the category. Nooyi says the industry has a “once in a lifetime opportunity” to bring back “lapsed” CSD consumers. She adds PepsiCo is working on sweetener and flavour innovations that can “address the barriers to consumption”. Trian announces PepsiCo should merge with Mondelez and spin off its beverages business. While it has a leading portfolio of 22 billion-dollar brands, PepsiCo has underperformed its peers as it grapples with the differing needs of its fast-growth (snacks) and slow-growth (beverages) businesses and the resulting inherent conflict in allocating its resources. Peltz says the best way to maximise value at PepsiCo would be to merge with Mondelez, creating a leading global snacks company with one of the most valuable brand portfolios in the world. PepsiCo rebuffed the call, with Nooyi urging the market to “look beyond the noise”, disagreeing: “PepsiCo is an extremely well-architected portfolio geographically. From a product perspective, we are hitting our stride. Every part of

TURNING LEAF

Vol. 11, Issue 04 -September - 2018

54, to succeed 62-year-old Nooyi. Nooyi, one of the most powerful and influential business leaders in the world, was regularly featured on the power lists compiled by Forbes and Fortune magazines. She was also among the few female executives to lead global corporate giants. Apart from being a prominent face of women leadership across the world, she was also the epitome of success for the millions of young Indians who aspired to be like her as they watched her journey through the ranks of PepsiCo and eventually leading the global conglomerate.

the business is functioning well and we do not need large scale M&A to deliver on our financial goals.” Peltz ends call for Mondelez merger but still wants PepsiCo split - 2014 Peltz would focus instead on “Plan B”, for PepsiCo to split in two. But earlier in January, Nooyi tells that PepsiCo’s snacks and drinks business “are better together, not just in the United States, but around the world. A month later, the PepsiCo board publicly backs Nooyi and once again rejects calls from Trian to split into two companies. Not letting go, the US billionaire investor continues his quest to get PepsiCo to split in two and reportedly suggests a proxy battle with the company could be on the horizon. Indra Nooyi also announced a $5.5 billion investment in India by 2020. PepsiCo names Peltz appointee Bill Johnson to board and PepsiCo and Muller end US yoghurt venture -2015 PepsiCo hands a board seat to former Heinz CEO Bill Johnson, who is also an advisor to Peltz. Nooyi insists PepsiCo has had “constructive discussions” with Trian for nearly two years. “They have provided valuable input to many aspects of our business, and the recommendation of Bill as an independent director to the board. We respect Bill’s strong track record of shareholder value creation at Heinz. Bill’s extensive consumer packaged goods experience will be an important addition to our board.” Muller Quaker Dairy, the US yoghurt joint venture between PepsiCo and Muller, comes to an end, with the factory sold to giant US dairy co-op Dairy Farmers of America. Struggling to find right M&A targets and another acquisition in drinks- 2016 The PepsiCo chief tells the Consumer Analyst Group of New York investment conference the company is looking to acquire businesses but is finding it difficult to find the right companies to buy. “One of the things we don’t shy away from is investments that can grow this business meaningfully in a value-creating way over the long term.

We have the management bandwidth, we have the capabilities, we have the talent. We can do it. What we are struggling with is finding the right opportunities out there,” Nooyi says. PepsiCo buys US probiotic and kombucha drinks producer KeVita - in which it already owned a minority stake - for an undisclosed sum. The company declines to comment on how much it paid to take full control of KeVita but Fortune reports it has agreed to pay around $200m. PepsiCo India enters the value-added dairy segment and sets 2025 nutrition, sustainability targets - 2017 The company is extending its brand Quaker to the packaged dairy segment and is set to launch Quaker Oats + Milk. Co-Created with cricketer Sachin Tendulkar, the product will be launched in 17 cities, over the next few weeks, in the

She was among the first of a handful of India-born executives to helm global corporates. She was appointed as CEO in 2006, becoming PepsiCo’s fifth chief executive in its 41-year history, and the first woman. MasterCard’s President Ajay Banga, Microsoft CEO Satya Nadella and Google CEO SundarPichai were all named to the top jobs in their companies in the years that followed. Nooyi was also very vocal about the challenges women faced in trying to find a balance in managing their home and work. She had famously said at an Aspen Ideas Festival in Colorado in 2014 that women “cannot have it all.” She had told the Aspen audience that she has died “with guilt” several times in her life as she tried to bring up her two daughters with her husband. She recounted that she felt guilty for not being able to attend several activities at her daughters’ school as she could not take time off from work. Nooyi is an alumnus of Indian Institute of Management, Calcutta and Yale University. In January 2016, Yale School of Management announced

country. The Walkers owner outlines a series of targets on selling healthier food and drinks and on trying to make its business more sustainable in areas including sourcing, water and waste. PepsiCo strikes deal to buy US firm Bare Snacks and enters into agreement to acquire SodaStream International Ltd. - 2018 PepsiCo agrees a deal to acquire US firm Bare Snacks for an undisclosed sum. It had paid less than US$200m for the company. PepsiCo, Inc. and SodaStream International Ltd. announced that they have entered into an agreement under which PepsiCo has agreed to acquire all outstanding shares of SodaStream for US $144.00 per share in cash, which represents a 32 percent premium to the 30-day volume weighted average price. Who is PepsiCo CEO Indra Nooyi? Chennai-born Indra Nooyi not only broke the glass ceiling in corporate America when she was named CEO of global beverage giant PepsiCo in 2006 but, through her journey, inspired millions of young Indians who dreamed of and aspired to emulate the success the India-born woman achieved in America. PepsiCo today announced that Nooyi will step down on October 3 after 24 years with the company, the last 12 as CEO. PepsiCo’s Board of Directors unanimously elected Ramon Laguarta,

that N o o y i made a landmark gift to endow the deanship of the school and inaugurate the Fifth Decade Innovation Fund. With this gift, Nooyi became the most generous graduate of Yale School of Management in terms of lifetime giving to the school. She is also the first woman to endow the deanship at a top business school. Nooyi said leading PepsiCo has been the “honour” of her lifetime, and she is “incredibly proud” of all the company has done over the past 12 years to advance the interests of shareholders and stakeholders. Nooyi had also created history by being

among the few India-born females to lead a global giant when she took over the reins at PepsiCo. She was named PepsiCo’s Chief Executive Officer in 2006 and assumed the role of Chairman of the Board of Directors in 2007. She was elected to PepsiCo’s Board and became President and Chief Financial Officer in 2001, after serving as Senior Vice President and Chief Financial Officer since 2000. Nooyi had also served as PepsiCo’s Senior Vice President, Corporate Strategy and Development from 1996 until 2000, and Senior Vice President, Strategic Planning from 1994 until 1996. She got married in 1980 to Raj Nooyi, President of AmSoft Systems. They have two daughters Preetha Nooyi, born in 1984 and Tara Nooyi, born in 1993. Preetha holds an MBA degree from Yale School of Management, the same school where Nooyi studied. Tara studied at New York University and according to her LinkedIn profile, she is currently a resident at global marketing communications firm Omnicom.

NEWS

Vol. 11, Issue 04 -September - 2018

Minebea Intec to PresentQuality Inspection Products at the PackExIndia Show 2018

tail, and also offers fasterprocessing speeds. “The success of our in-line checkweigher Flex us has shown us that hygienic design is right at the cutting edge. “The Flexus High-speed theperfectsolution to the demand for a checkweigher specifically for weighing smaller products quickly.

he leading supplier of industrial weighing and inspection technologies will present, among other things, its full product portfolio for foreign body detection including metal detection and x-ray systemsat the PackEx exhibition 2018. Reliable X-ray inspection systems for packaged food The Dymond series of X-ray inspection systems from Minebea Intec offers the perfect solution for the food industry. Theinnovative systemsdetect contaminated products and discharge them safely. Both processes are carried out automatically and are documented so that the data is available in the long term for the statistical evaluation of the control process. The Dymondcan easily be fitted into existing system architectures.It can also be reset to handle new products quickly and without great expense. Operation is easy and intuitive thanks to a 15“LCD color monitor with touchscreen display. The stainless steel housing and Hygienic Design also ensure that the device is easy to clean. The X-ray inspection system works automatically in harmony with the production line and requires no specially trained operating personnel.

i s

The Flexus High-speed from Minebea Intec offers

The Dymond X-ray System from Minebea Intec

Hygienic design meets high speed: the checkweigher Flexus Highspeed The FlexusHigh-speed from Minebea Intec features hygienic design right down to the finest de-

processing

speeds of up to 2.6 m/s

The Flexus High-speed from Minebea Intec offers processing speeds of up to 2.6 m/s The in motion checkweigher Econus offers a reliablesolution for all food processing industries Econus is the ideal economic solution for non-approved weighing applications, completeness checks and for optimizing filling processes. Furthermore it offers extreme operator friendliness and through its open tubular construction, easy

inspection and cleaning. Further features include: Maximum throughput of 120 pcs. per minute.An integrated learn function allows an easy and fast product change by line operators without the involvement of an engineer.Inaddition the Econus provides IP54 protection class(IP65 available as an option). Dumped, pumped or individually guided?Freefall metal detection system Vistus When it comes to processing granulated raw materials and foodstuffs, Minebea Intec offers another reliable checkpoint in form of the freefall metal detectorVistus. This modular detection system can be equipped with tubes and rejection devices that are suitable even for dusty products or granules. It detects and eliminates all metal foreign bodies including ferrous, non-ferrous and even non-magnetic stainless steels.

Minebea Intec in India produces among other products the proven in motion checkweigher Econus

The real highlight of the freefall metal detection system is its“True In-Process Validation”which, unlike conventional detectors, validates performance at the center of the search coil. This is the least sensitive part of detectors; the targeted functional test offers here the best possible safety. Using an applicator, a test piece is inserted in the very center of the tube above and then collected underneath via a test piece stopper.This process enables proper performance validation - in the center of the search coil and during the production process. The modular freefall metal detection system Vistus enablesreliable in-process validation Facts and figures on Minebea Intec Minebea Intec is a leading manufacturer of industrial weighing and inspection technologies. With its headquarters in Hamburg, Germany, for over 147 years the company has been offering products and services which have become synonymous with innovation, performance and reliability. Its product portfolio includes platform scales, load cells, vessel and silo scales, checkweighers, metal detectors, X-ray inspection systems and user-friendly software solutions. With around 1,000 employees worldwide, 19 sites and a network of over 185 certified international distribution partners, Minebea Intec is a global player in its industry. Having sold more than 90,000 inspection systems, 350,000 industrial scales and indicators, around 1,000,000 industrial load cells, and services worldwide, the company can be relied upon by its customers and partners from a wide range of industries. Minebea Intec is part of the MinebeaMitsumi Group, one of the leading suppliers of high-precision production components, such as ball bearings and engines, as well as high-quality electronic components, such as sensors, antennae and IoT solutions. The group, based in Tokyo, has over 78,000 employees worldwide and reported a consolidated net turnover of JPY 638,926 million (approx. EUR 4.8 billion) for 2016.

Vol. 11, Issue 04 -September - 2018

PRE- PRESS RELEASE

Chennai is about to witness South Asia’s only ice cream event on 8th -9th October 2018

Being the biggest show in the history of Ice Cream Industry, the Indian Ice-cream Congress (IICE) will be held at Hall no. 2& 3 at Chennai Trade Centre on 8th and 9th October 2018…

exhibitors in the expo. Last year in Mumbai IICE 2017 received 4000 visitors, 125 exhibitors and over 800 ice cream companies.

ncreasing per capita expenditure, rising youth population, introduction of world class flavours, changing consumption patterns, is witnessing the steady growth of Indian Ice Cream Industry. The change in the consumer preference from traditional ice cream to premium brands has now created the market base for international companies to launch their premium ice cream brands. The industry is seeing a growth of 35 per cent year-on-year basis, which makes it an attractive destination for international brands. With increasing consumption, the production capacity of the ice-creams is set to increase with many manufacturers planning for expansion. Most of the ice cream projects are in the mode of expansion due to various reasons in this region. Companies are also working on new innovations as Indians are now looking for premium tastes with international quality and standards and IICE from last six years is continuously providing a platform to showcase their abilities. After a grand success in India’s financial capital Mumbai last year one of the most significant events in the global ice-cream industry, IICE 2018 is going to be held at Hall no- 2&3, Chennai Trade Centre, Nandambakkam- Chennai between 8th -9th October. Entering in its 8th year the India’s biggest ice cream show always provides the Hundreds of ice cream manufacturers from different parts of the country and world to exchange their views on this platform. The IICE with its aim of a higher degree of service to its client is laddering its growth by 100% year on year. The show includes all that activities which led ice cream industries as well as manufacturers to their peak. The show will be co-organised by IICMA & AIM Events with Bluestar India as its ‘Title Sponsor’. IICE with its other event partners like Barry Callebaut, 2m Cocoa, Morde Chocolate, Dupont, VKC nuts, Tetrapak, Kerry Ingredients and IC Icemake refrigeration is expecting around 250 exhibitors and 4000+ visitors from all over the country and different parts of the world, in upcoming show. According to the organizers of IICE Blue Star, Voltas Refrigeration, Godrej, Kap Frost, Haier, Elanpro, GEA refrigeration, Indicool Carry Cool, Innocool, Ace Technology, IC Ice Make, Super Refrigeration, Rockwell, Blue Cold, ColdTech, Halycon (Prijal) and Frick India Ltd are the leading companies dealing in refrigeration industry have showed their interest in the event. Process machinery like Tetra Pak, , ISF, Unique Equipments, Micron, Goma, V-Smart, Bhogal Cycle, Cart Studio, Harvest, Snowball Machinery (China), Tecknoice (Italy), Emox, Shruti Icemac Engineers, Bry Air and Mitora Machinex, Progressive PolyPack, are leading brands who show their interest in Asia’s one n only one ice cream show.

Ltd, Tessol, Kapcones, Adani Wilmar, Promens (Seaplast), Glaxo, Euronova, Jaya Industries, Hyperpack, Foodcoast, Rishabh Enterprises, Raghu Polypack, Manik Engenieers, A.A.KAMANI Oils, 2M Cocoa, Farmer Fresh, CEC Flavours, Tessol, Garuda Engineers, Plasto, Amar Splints, Fab Flavours and Print n Pack, Smart Engrs, Weining Ice Stick (China), Bio Natura (Canada), Tianyi (China), Ice group (Poland), Itagel (Icono-Italy), Mahi foods, ROHA Dyechem, Mukesh Graphic, Rexnold, Garg Polypack, Balaji, Baltic Sticks (Lithu�r�anised��

ania), Micron, Pacific Shanti Engg, Amar Splints, Plasto, Guru Laminator, Diamond, Parry Enterises, Bakersville, KwalityPrdoucts, Ashtvinayak, Deepal Trading, Davar (Tropilite), Swedinox Impex (Sweden), Pluss Advanced, Garuda Engrs, Agrana Food, VKC, IDMC, GMG Polypack, Visu Polypack, R&D Engrs, Ether Coprn, Frostech, Technogel, The Cone Company also will be displaying their best of the services. Along with these, many more top ice cream allied companies have already booked their stalls to participate as

According to Sudhir Shah Secretary of IICMA, “this year ice cream industry has witness not less that 25% growth and it was one of the best in last one decade”. He also added due to unprecedented growth of the ice cream sector and growing scope of ice cream parlours and franchise trend, IICE 2018 in Chennai is going receive huge number of visitors. IICE 2018 is expected to be bigger in size than all previous shows. Indian Ice Cream sector has become one of the faster growing sectors in Indian food processing industry. Investment in technologies and new trends has broken all previous records in the last 4-5 years.

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South Asia’s One & Only Ice Cream Industry Event

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Raw material and Packaging Companies like Morde, Barry Callabaut, Kerry Ingredients, Adare Ingredients, KP Manish, 2M Cocoa, Gemini, VKL, Kavitha Poly Pack, Kanchan Metals Pvt. Ltd., Progressive Polymers, Satnam Flexipac, Delta, Dukes, Pellagic Food, Neelkanth Herbs, Gujrat Enterprises, Carry Cool, Tulsi (K.B.B Nuts), Tatva, Devi Technocraft Pvt Ltd, Mold-Tek Packaging

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Indian Ice Cream Expo

Firoz H. Naqvi : +91-9867992299 Seema Shaikh : +91-9022092302 121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068. Email: info@indianicecreamcongress.in Web: www.indianicecreamcongress.in

INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General � IICMA) Regd. Ofce : A/801, 8th Floor, �Time Square� Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: info@iicma.in Web: www.iicma.in

Vol. 11, Issue 04 -September - 2018

Vanmark Brings Together Global Quality Standardsand Local Manufacturing With New India Location

engaluru, India: Vanmark, a potato and produce processing equipment manufacturer, has announced a new facility in Bengaluru, India,expanding its capabilities in the Southeast Asia food processing market. Vanmark is also associated with MTS Foods in India. In addition to two locations in theUnited States, the new facility supports the company’s growth

strategy in SoutheastAsia by manufacturing and distributing its washing, peeling, hydro-cutting, storage and conveying equipment–most notablythe new 1820SeriesPeeler/Scrubber/Washer and its complimentary machines. The 1820Series integrates continuous washing and peeling into one machine,with a maximum flow rate 1,814kg per hour. Machines are easily configured, operated

andmaintained for a variety of uses and products. It’s ideal for regional potatochip and produce processors looking to automate or upgrade their processing. The new facility is run by General Manager Veeresh Gowdru, who brings years of processing equipment experience. “Vanmark is known formanufacturing top quality, easy-to-use equipmentfor potato and produce processors,”says

Gowdru. “We are excited to bring that same quality and dedication to India and ultimately all of Southeast Asia at a larger scale.”

Coinciding with the opening, Vanmark is exhibiting in the mts foods stand in Hall 1, Stand C-02 atFoodTec India. Stop by to see the 1820Series Peeler/Scrubber/Washer and discuss the full range of solutions. Vanmark is associated for sales and services in India with MTS Foods based in Bangalore led by KK Menon a known name in food processing circles in Indian.

Enterprises

CoolBiz Enterprises

CoolBiz Enterprises is a leading trading company fully focused on food processing & Ice cream industry and have solu�ons for all industry needs. Our product range consist of Homogenizer, Ice cream filling machine, con�nuous freezers and deep freezers, upright freezer, chest freezer, milk coolers, display freezers, blast chillers, visi coolers and electronic fly Catcher, of popular brands. We offer custom made FOW and carts on wheels as per specifica�on of the clients.

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B-407 Om Narmada CHS, Station Road, Near Nupur Palace, Mira Road (E), Thane- 401107, Mumbai Mob: +91-8779231570/9769278424 Email: salse@coolbizent.com Website: www.coolbizent.com

Vol. 11, Issue 04 -September - 2018

ANUTEC- International FoodTec India September 27 – 29, 2018 at Hall No. 1, 5 & 6, Bombay Exhibition Centre, Mumbai. Largest Congregation of the Food and Drink Industry in SAARC region to meet at one place

ome this September witness India’s No#1 supplier fair for the Food & Drink processing and packaging industry - ANUTEC- International FoodTec India and PackEx India. With a successful history of 12 remarkable years, ANUTEC- International FoodTec India and PackEx India is once again back to Mumbai and is all set to showcase new innovations in the field of Food, Drink & Packaging Technology, Equipment & Supplies. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year and offering an immense employment generation opportunity. Availability of raw materials, changing lifestyles and relaxation in policies have given a considerable push to the industry’s growth. This sector is among the few that serves as a vital link and provides synergy between the two pillars of our economy, industry and agriculture. The industry is witnessing significant reforms by the Government of India and several state governments offering 100 percent FDI under government approval route for trading, including through e-commerce, in respect of food products manufac-

tured or produced in India; enhanced investment in the food processing sector; proactive steps simplifying ‘ease of doing business’, delisting of horticulture crops, exemption & reduction of excise duty for dairy, food processing and packaging machineries, establishment of new cold chain projects, food parks, food testing labs and fiscal relief, insurance schemes to support the vulnerable farmers and farm products which shall make this sector more competitive, market oriented and a step closer to achieve nation’s Food security. Inline with these objectives ANUTEC- International FoodTec India and PackEx India 2018 scheduled during September 27-29, 2018, has been aptly positioned to kick start new business opportunities to ensure sustainable growth in the food processing and packaging sector in India. The Trade Fair With immense business potential being offered by food processing and packaging sectors, Koelnmesse YA Tradefair Pvt Ltd, an Indian subsidiary of one of the world’s leading trade fair organizers Koelnmesse GmbH, Germany will be organiz-

ing the 13th edition of ANUTEC- International FoodTec India – International Supplier fair for Food & Drink Industry along with its concurrent exhibitions PackEx India, Food Logistics India and ANUTEC Ingredients India during September 27 – 29, 2018 at Hall No. 1, 5 & 6, Bombay Exhibition Centre, Mumbai. The USP of ANUTEC- International FoodTec India and PackEx India and its concurrent events has

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Federation of Sweets & Namkeen Manufacturers

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always been the perfect mix of buyers from the food & beverage sector thereby creating the best of the platforms to discuss and deliberate the latest technological developments for both these sectors. Keeping to this faith, the show has grown many folds and has now become not only the meeting place for the whole industry to exchange their ideas but also has become stage for the World leaders in the food and beverage processing technology suppliers to use it as a launch pad for the whole industry from SAARC region. With over 700 exhibitors from India and abroad covering an area of over 40,000 sq. mt., this exhibition has become the most coveted show for the suppliers of food, drink and packaging industry in the Indian sub-continent addressing the needs of the business owners, product managers, production line and R & D personnel and other allied industry sector. Continuing the success trends, this exhibition is receiving an overwhelming participation response from both national and international companies with group participation from China, France, Germany, Italy, Korea, Spain, Taiwan, & Turkey showcasing the technological strength of their respective regions. Many other international food processing and packaging solution providers from Australia, Belgium, Brazil, Canada, Czech Republic, Greece, Japan, Lithuania, Malaysia, Monaco, Netherlands, Poland, Russia, Slovenia, Spain, Sweden, Switzerland, Taiwan, UAE, UK, Ukraine and USA are part of this exhibition. With the presence of 48% International Exhibitors, this show signifies its importance to the Industry and make it the most sought-after trade fair for the Food and Beverage Processing Industry in India and neighbouring countries. ANUTEC- International FoodTec India and PackEx India 2018 will once again bring together some leading names to the food and beverage industry viz., ACG Worldwide; Andritz; Azo GmbH; Bosch; Buhler; CKD India; Domino Printech; Festo; Frsitam Pumps; GEA; Heat & Control; HRS; Hosokawa group; Huhtamaki; ifm Electronic; IMA; Intralox; Ishida; Kanchan Metals; KHS, Krueger & Salecker; Maddox Metal Works; Mespack; Multivac; New Era Machines,; Omori; Paharpur 3P; Parle Global; Pavan Group; Netzsch; Nichrome; Sanko Machinery; Shanghai Precise; Siemens; Sollich; Sacmi Filling Spa; Sapal SA; Sarp; Sealed Air, Standard Machinery Marketing Corp.; Uflex; Veripack; Yamato and many more.. Key Highlights for the present edition: • Over 700+ exhibitors • New product launches • More then 300+ live demonstration of machines • High level Technical seminars by leading associations like IPMMI & IFCA • Business Matchmaking • Save Food…With Technology – An initiative by Koelnmesse to promote usage of technology to the Indian food & drink industry Visitors are bound to have an indelible experience by witnessing the latest technological offerings for the Food & Drink Industry. This exhibition is actively supported by Institute of Packaging Machinery Manufacturers of India (IPMMI) an exclusive national body representing the Packaging machinery manufacturers in the country. They cater to the need of the packaging industry covering -package conversion, packaging line operations, packaging systems, online and end of line systems, ancillary machinery and equipments besides testing and quality control equipments. IPMMI will be organising seminar on “Packaging – Value Creation through Innovation” on 27th September 2018. This show is also supported by The Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA) helping in raising the innovation and creativity capabilities of the industries. As a national body the Association also addresses to the industrial and fiscal issues faced by the industry. IFCA shall also be organizing a one day seminar on “Technology for sustainability in Consumer Packaging” on 28th September 2018. Team Koelnmesse YA Tradefair Invites you to be a part of this important trade fair as an Exhibitor / Visitor and make the most of

Vol. 11, Issue 04 -September - 2018

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Vol. 11, Issue 04 -September - 2018

EDITOR

CONSULTING EDITOR

Firoz H. Naqvi

Basma Husain

MARKETING EXECUTIVE Varsha Singh

PRODUCTION MANAGER Syed Shahnawaz

GENERAL MANAGER Gyanandra Trivedi

CIRCULATION MANAGER Seema Shaikh

GRAPHIC DESIGNER Naved H. Kazmi

121, 1st Floor, Rassaz, Multiplex, Mira road (E) Thane -401107. Tel: +91-22-28115068/28555069. Email:info@agronfoodprocessing.com Website: www.agronfoodprocessing.com Printed, Published By - Firoz Haider Naqvi, RNI No- MAHENG13830 Printed at: Roller Act Press Services, A-83 Ground Floor, Naraina Industrial Area, Phase-1, New Delhi-110028, Reg Office : 103, Amar Jyot Apts, Pooja Nagar, Mira Rd (E) Thane-401107, Delhi Office-F-14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi-110025 The views expressed in this issue are those of the contributors and not necessarily those of the newspaper though every care has been taken to ensure the accuracy and authenticity of information, "Beverages & Food Processing Times" is however not responsible for damages caused by misinterpretation of information expressed and implied within the pages of this issue. All disputes are to be referred to Mumbai jurisdiction