Beverages & Food Processing November 2018

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Kellogg seeks mega collaboration with Haldiram’s

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crores. “Haldiram’s wants to scale up their domestic business & also improve global presence. The proposed transaction is limited only to the packaged products business of Haldiram’s and the restaurant business is not part of the ongoing talks,” clarified a source.

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ellogg a US-based morning cereal giant is planning to give a desi-touch to the Indian “nashta”. The Michigan company has already started negotiations with Haldiram’s for a mega union.

“Kellogg is keen to diversify beyond its core breakfast cereal category and enter the ethnic snacks & sweets segment and has initiated talks to invest a ‘significant’ amount in the Delhi & Nagpur arms of Haldiram’s. Deutsche Bank is advising Haldiram’s on this proposed transaction,” said the top officials. Haldiram’s has chosen an investment bank to advise and explore the alternatives in raising an amount around Rs. 2500

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Haldiram’s operate from three fronts in India. From North, known as Haldiram’s Snacks and Ethnic Foods has accrued Rs. 2,136 crore last year, Haldiram’s Foods International from Nagpur which looks after the market of western and southern India with sales of Rs 1,613 crore and Haldiram Bhujiawala of the eastern market with turnover of Rs. 298 crore. The presence of company is seen in 50 countries including Australia, Japan, New Zealand , UAE, UK, USA & others.

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FOOD PROCESSING NEWS

Vol. 11, Issue 06 -November - 2018

French to invest in Food Processing Industry in India

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nion Food Processing Industries Minister Harsimrat Kaur Badal has encouraged the French food processing companies to extensively increment their association and presence in the Indian market.

“The French have one of the world’s most renowned food processing industries and India has the fastest growing food and retail market in the world. Hence, it would be natural for the two to work together intensively. However, we find that some other countries have been much more aggressive in the Indian market and are taking the lead, while the French remain rather limited in their footprint in India,’’ Badal told the media con-

ference at SIAL in Paris, soon after having inaugurated, what’s touted as the world’s largest food processing fair along, with her French counterpart.

“India presents a unique opportunity in the food processing and retail domain. Food constitutes a very large share of the total retail market, which itself is set to treble in the coming few years. As the disposable income increases, an average Indian family will spend even more on food and hence will open up a large and untapped market,’’ Badal said. She also commented many different countries have seized the opportunities and are broadening their investments in India, the same footprints was not seen with the French companies. “Of course, the French enjoy a high reputation in this industry and they have a lot of know-how and technology to share with Indian companies.

However, the cooperation remains far from achieving its true potential and it is a pity because the moment of doing business with India is here and now,’’ Badal said.

25000 farmers will benefit from Gujarat’s Mega Food Park

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arsimrat Kaur Badal, Union Cabinet Minister for Food Processing Industries, recently inaugurated the ‘Mega Food Park’ in Surat district of Gujarat.

The Gujarat Agro Mega Food Park is stretched on 70.15 acre of land and at a cost of Rs. 117.87 crore.

The functioning of the Mega food Park is said to benefit the people of Surat District and also people from nearby area of Bharuch Narmada, Navsari and Tapi districts.

The Park encompasses a Multi Chamber Cold Store with total capacity of 3,500 MT. Of that 1500 MT Frozen, and 2000 MT MA. It also has a 5000 MT’s warehouse, IQF of 2 TPH, pulping Line, QC Laboratory and other related food processing facilities. The structure includes a common administrative building for office and for other purposes by the industrialists and 4 PPCs at Padra (Vadodara), Valsad, Bharuch and Navsari with primary processing facilities and storage near the farms.

Badal said,:”the Mega Food Park will leverage an extra investment of about Rs. 250 crores in 25

to 30 food processing units in the Park and will generate income of Rs. 450-500 crore per annum.

Additionally the Park will provide direct as well as indirect employment opportunities to 5000 people and benefit around 25000 farmers in the CPC and PPC catchment areas”.

Badal said that the Park will be beneficial to the farmers fitted with modern infrastructure for food processing, processors and consumers of Gujarat and neighboring areas greatly. She added that “the government is fully committed in providing an environment that is smooth, translucent and easy for investors wanting to start business in India and in a bid to make the country a flexible food economy and Food Factory of the World, the government has made Food Processing a major thrust area of Make in India”.

Moreover, the Food Processing Industries (MoFPI) is focused on enhancing the food processing industry in India, so that the agriculture sector develops exponentially and becomes the main contributor to doubling the farmers’ incomes.

Vietnam seeks new vision in technology from India to boost its food industry

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peaking recently at the Vietnam-India Business Forum, Tran Thanh Nam, deputy minister, Ministry of Agriculture and Rural Development, Vietnam, said that Vietnam is seeking new vision of technology from India so that Vietnam can modernize its food processing and strengthen crop protection base. The Forum was also keen on harnessing India’s potentials; cultivating and developing a mechanism for organic food production in Vietnam.

The Forum has planned for new vision for agriculture, building and strengthening multi-stakeholder partnerships, organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Embassy of Socialist Republic of Vietnam.

Nam emphasized that India holds substantial expertise in bio-treatment of agricultural waste and development of bio-pesticides. This, he added could be of great value to the Vietnamese agriculture sector on the whole.

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Pham Sanh Chau, Vietnam’s Ambassador to India, said that agriculture and farming between the two countries (Vietnam and India) were deep-rooted. There is a need to pool resources intensively with exchange of modern technology to lessen the adverse effects of climate change on agriculture.

As projected, India is the fourth largest producer of agro-chemicals with a growth rate of 8.3 per cent and is expected to reach $8.1 billion by (FY) 2025.

India is also seeking deeper to pursue greener agrochemicals to reduce adverse environmental impact, with mutual interest that offers opportunity for partnership in Vietnam.

Nguyen Quoc Toan, acting director general, Agro Processing and Marketing Development Authority of Vietnam, gave an indication of the great opportunities for agricultural trade and investment in Vietnam.

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Operation Greens gets green signal from Govt

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o ensure the availability and price stability of tomato, onion and potato across the country throughout the year without any fluctuation, the government has approved the operationalization strategy for Operation Greens.

This strategy will maintain a check and control over the prices of the named products.

Announced in the Budget speech of 2018-19, Operation Greens was sanctioned Rs. 500 crore to stabilize the supply of tomato, onion and potato

crops. Approving the measures, Food Processing Industries Minister Harsimrat Kaur Badal said that price instability of these crops creates havoc in the households of India. She said, this is a revolutionary scheme which has been evolved after sustained dialogue with all stakeholders. The Minister added that the government has specified special measures and has given grants-in-aid under the scheme to ensure enhanced production of these crops resulting in better quality.

FOOD PROCESSING NEWS

Food processing industry to double in two years

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he Indian Food Processing industry, which is 6th largest in the world, is slated to become Rs. 65 lakh crore industry by 2020 from its current size of Rs. 31 lakh crore, experts opined at the 1st conference on Opportunities in Food Processing Industry for SC/ST Entrepreneurs. The conference was held by Dalit Indian Chamber of Commerce and Industry (DICCI), Telangana chapter in association with Ministry of Food Processing Industries.

GST facilitation in Jammu to handhold food processing MSMEs

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ommercial Taxes Department has set up a GST facilitation desk at Excise and Taxation Complex Rail Head with a view to handhold food processing MSMEs of district Jammu particularly with regard to GST related issues.

The desk will remain functional for next 100 days to redress the GST related issues faced by food processing MSMEs of district Jammu.

Additional Commissioner Commercial Taxes, S.K. Gupta made the helpdesk operational along with the support of nodal team of officers, after the launch of ‘Support and Outreach’ initiative for Micro, Small and Medium Enterprises (MSMEs)

by Narendra Modi at Vighyan New Delhi. During

the occasion, participants from the food processing sector were also made aware about the procedures of GST registration, return filling, refund claims & e-way registrations by the resource persons besides provisioning of copies of Act, Rules & FAQs. Out of 80 districts of the country, district Jammu has been selected where this outreach and support program will run for the next 100 days with a view to provide greater synergy to the efforts being made for this growth sector.

Department of Financial Services (Government of India) is the Nodal Agency to monitor the overall progress of the program.

Dept of Agriculture and FDA agree to share regulation of ‘Lab meat ‘in US aving the way to get so-called “lab meat” US authorities has agreed on how to regulate food products cultured from animal cells. Hence Department of Agriculture and the Food and Drug Administration agreed to share regulation of cell-cultured food products.

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ogy and living bio systems and the USDA’s expertise in regulating livestock and poultry products for human consumption. So how successful is the lab meat among the customers, as production costs are very high and nobody has a product that is ready to sell yet.

While technical details have yet to be confirmed, the FDA would oversee the collection and differentiation of cells -- when stem cells develop to specialized cells -- while USDA would oversee production and labeling of food products.

This regulatory framework will leverage both the FDA’s experience regulating cell-culture technol-

The backers of “lab meat” argue avoiding slaughtering animals will reduce both suffering and greenhouse emissions -- and is a sustainable option to feed growing populations hungry for protein. But they are locked in disagreement with farming organizations about whether such products can indeed be called “meat.”

Speaking at the inauguration, DICCI founder and chairman Milind Kamble said, “We are planning to organize 11 such conferences all over India. We have already organized two each in Nagpur and Jodhpur and this one in Hyderabad is the third conference on this topic. The food processing industry is a sun-rise industry and there is huge potential and scope for technological intervention in this segment. Not only manufacturing but also food service industry is growing and we expect it to touch Rs. 65 lakh crore by 2020 from current Rs. 31 lakh crore.”

DICCI is also working with the Central and State

governments to provide support to SC/ST entrepreneurs in this space through various schemes and policies.

However, all is not honky-dory in this segment, Telangana government Tribal Welfare department secretary Benhur Mahesh Dutt Ekka said, “While the food consumption market in our country is set to become $1 trillion market by 2025 from current $370 billion, it still holds a lot of challenges.

Major challenges are high amount of wastage – about Rs. 92,000-worth of food gets wasted in our country annually due to lack of proper food storage and processing facilities.”

He added that the country has poor supply chain linkages, infrastructure bottlenecks and lack of quality standards.

“And unless these things are not sorted out, the country will not achieve right kind of growth. I would urge all the entrepreneurs working in this space to look at these challenges and develop solutions accordingly,” he informed.

The conference that had about 300 participants provided awareness about opportunities in food processing industry, various schemes of MoFPI to support the new/existing entrepreneurs, technology support in food processing industry and schemes of financial assistance.

Food adulterers in Maharashtra will face life sentence

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aharashtra government of late announced that it would make food adulteration a non-bailable offence and provide for life-term to the offenders. Food and Civil Supplies Minister Girish Bapat informed the Legislative Council that the government would amend the existing law, to provide for life imprisonment to offenders. Bapat said amendments to the Prevention of Food Adulteration (Maharashtra Amendment) Act will

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be tabled in the House before the ongoing winter session of state legislature ends. Responding to a calling-attention notice by Bhai Jagtap, the minister said the government was aware of the consequences of food adulteration and is committed to stop the malpractice. Jagtap said milk processing companies collect milk from farmers but the liquid turns “poisonous” by the time it reaches consumers.

“Substances like detergent powder, urea, skimmed milk powder, caustic soda, glucose, refined oil, salt and starch are mixed in milk to preserve it, thereby endangering lives of people who consume it,” he said. People cannot detect food adulteration easily and despite surprise checks by the Food and Drug Administration (FDA), such malpractices continue unabated.

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The minister said amendments to the Prevention of Food Adulteration (Maharashtra Amendment) Act, 1969 will be tabled before the end of the session.

“Apart from making the offence non-bailable, the law will also provide for life-imprisonment to the guilty,” Bapat said.

Earlier, those found guilty of food adulteration could face imprisonment of six months but the government now plans to amend the Act, which will provide for life imprisonment to them, an official said.

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FOOD PROCESSING NEWS

Agro and food processing unit set up inTamil Nadu

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he district Vegetable Farmer Producers’ Company, supported by the National Bank for Agriculture and Rural Development (NABARD) in association with Dalmia Bharat Foundation, has established an agro and food processing unit under the Mission on Sustainable Dryland Agriculture (MSDA) of the State government.

The estimated monthly turnover of the company is around Rs.75,000 to start with, out of which a net profit for the FPC would be around Rs.20,000 a month, according L.S.Naveen kumar, District Development Manager, NABARD, Ariyalur and Perambalur.

Named, Ariyalur Arima, the unit has machineries to produce value added products from farm produce. It procures commodities such as groundnut, sesame and other millets directly from members and farmers for this work. It has a capacity to produce 2500 litres of cold pressed gingelly oil a month and 3,000 kg of flour a day. Value added products such as vegetable oil and flour fetch a better price in the market as they are prepared by traditional methods.

The FPC was started with 125 farmers who were primarily members of Farmer Interest Groups (FIGs) from nine villages. It has 300 members now and is expected to have about 1,000 farmers by the end of 2019. It is expected to improve the bargaining power, net income and quality of life of small and marginal farmers.

R.A.Krishnakumar, Executive Director of Dalmia Cements, visited the centre recently, interacted with farmers, appreciated them and said that the unit would be a role model.

Mr. Naveen Kumar said the Board of Directors of the company would be oriented in areas such as business operation and management, market linkages, legal aspects of FPO, regulatory compliance, good governance practices, transparency, accountability and other related issues.

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FOOD SAFETY NEWS

High-tech lab for food testing to be set up in Goa The size of the lab covers 500 sq mtrs and the cost incurred for the laboratory is estimated to be Rs.15 crore. The high-tech lab is equipped with latest technology to conduct tests on various food items like vegetables, fruits, meat… most other products except

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high-tech food lab is to be set up in Goa. The lab will be operated by the Export Inspection Agency (EIA) and will be positioned at Margao’s South Goa Planning and Development Authority (SGPDA) market complex.

The site was inspected by the senior officials of the EIA as well as officials from the directorate of food and drugs administration (FDA) and SGPDA, minister for town and country planning (TCP) Vijai Sardesai.

After the inspection, Sardesai said that initially the lab was to be set up in Mapusa but later on decided to move it to Margao as there was a major fish-scare laced with formalin in the former town.

FISH. “The EIA officials are working hard to set up the lab in Goa and making it efficient enough to maintain high level of food standards”, said Health Minister, Vishwajit Rane. Commenting further on the laboratory, Sanu Jacob, Joint Director of EIA said that it would take six months for the lab to become fully functional. The time bound has to be considered keeping in mind for obtaining mandatory approvals from various authorities. Once the documentation is aligned, the EIA will run confirmatory tests and analysis on the samples given by the Food and Drug Administration (FDA).

FSSAI alerts FDA about unlicensed import of chocolates he Food and Drug Administration (FDA) is investigating the sale of unlicensed imported chocolates in Mumbai after the Food Safety and Standards Authority of India (FSSAI) complained that chocolates are available in markets and stores without import license.

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brand and meet the required standards. “There was some information that shops are selling chocolates without license. We also have information regarding biscuits and cookies being imported. And the import market for dry fruit is larger,” said Dr K Methekar, deputy director at FSSAI.

To regulate the large market for not just chocolate but also cookie and dry fruit from abroad, the FDA and FSSAI are coordinating to establish a supply chain of unlicensed eatables. Following inspections on October 30 and November 2 at three stores in Khetwadi, Cuffe Parade and Haji Ali, food safety officers seized chocolates from the Haji Ali and Cuffe Parade stores that were imported without license or required labels on packaging.

India has six ports where FSSAI officers are posted to inspect imported food items. “But there are over 250 tiny ports and entry points where we have no FSSAI officer stationed. Port officials inspect all goods,” he said.

The seized chocolates include big brands like Cadbury, Hershey’s and Ferrero Rocher. “Under FSSAI Act, the importer must adhere to licensing conditions. In this case, we found no import license number or address on the packaging,” said Dilip Sawant of the Intelligence Bureau department of the FDA. The chocolates have been sent for testing to check if they belong to the original

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Sawant said: “It is believed that the entry of unlicensed imported chocolates in Mumbai is from other ports, and goods reach Mumbai via road,” said an FDA official. The largest market in Mumbai that supplies these chocolates is in Crawford Market. “The shops we inspected, we were told they sourced the stock from Crawford Market. We are yet to locate the importer.”

According to Pallavi Darade, Maharashtra FDA commissioner, while the importer has to procure a license from FSSAI, a retailer has to ensure he buys only licensed food articles from an importer or distributor. The sale of unlicensed imported chocolates can attract a fine ranging from Rs 5,000 to Rs 5 lakh. According to the FSSAI Act, if a retail shop owner is different from the importer, separate licenses are required to sell imported chocolate.

“In Mumbai, most import of chocolates is through Jawaharlal Nehru Port Trust (JNPT). Some come from other entry points…,” said FSSAI Western region director P. Muthumaran

FSSAI reveals imported Moong and Masoor Dal pose harmful for human consumption

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oong, Masoor and other pulses/lentils are very essential part of our daily diet. Practically everyday every household prepares the pulses at every meal time. To the shock of all, FSSAI declared that these pulses which are imported from Canada, Australia and Russia are carriers of the harmful chemical used as herbicides in farms for weeding purpose. Glyphosphate is a weed killer that is also used to kill insects and rodents.

The studies conducted by FSSAI officials on Moong and Masoor dal show that the high level of residue present in Glyphosphate in the pulses could be poisonous to the consumers. ‘Since the maximum residue limits for Glyphosphate in pulses has not been specified in the FSSAI regulations, we have asked the concerned officials to follow the Canadian standards for the herbicide as specified in the Codex standards,’ he said.

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This critical matter came to light when an activist raised concern over the quality of the lentils cooked in Indian households. The test soon found out that the lentils had ‘an average 282 parts per billion and thousand parts per billion of glyphosphate, which is extremely high by any standards.’

It has passed through undetected since ‘India did not have any standard quality index for glyphosphate on its own,’ said the reports.

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BAKERY NEWS

Mondelez set to bring global offerings to India

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ondelez, which owns globally popular cookie brands such as Lu, Prince and Nutter Butter, plans to introduce some of them in India as it looks to expand its presence in this segment where it trails established players.

“Our aim is to bring the premium segments that we have globally, here (in India),” Mondelez India Foods Pvt. Ltd’s managing director Deepak Iyer said on the sidelines of the opening of its global research, development and quality centre in Thane.

Mondelez, which sells Bournvita and Oreo biscuits in India, is the market leader in chocolates where it offers a host of offerings under the Cadbury brand.

Mondelez, earlier known as Cadbury India, has been present in the country for over seven decades.

Globally, the company has BelVita breakfast biscuits, Wheat Thins, Ritz crackers and Nilla wafers, among its product offerings.

“We look at this segment by segment...we will get in cookies and surely down the line (other offerings),” said Iyer.

Mondelez’s centre in Thane is spread over 12,000 square metres.

It was built with an investment of $15 million to support new products and technologies for the company’s global brands in chocolates and bev-

erages. “Our mission at Mondelez International is simple—to offer consumers the right snack, for the right moment, made the right way. And our global Technical Centre network is crucial to support this,” said Maurizio Brusadelli, executive vice president and president (Asia, Middle East and Africa) at Mondelez International.

production as “the most destructive technology on Earth. “By the end of 2018, our goal is beat burgers made from cows decisively in blind taste tests.”

“Our AMEA region hosts three global technical centres—the other two being in China and Singapore—demonstrating that our dynamic markets are at the heart of the company’s growth strategy.”

Iyer said the company is working on a series of projects, from its Indian research and development (R&D) centre, which include products for sugar and health conscious consumers, among others.

Despite a growing recognition that animal agriculture is environmentally problematic, the global demand for animal-derived food is surging, according to Impossible Foods’ 2018 Impact Report:

Going ahead, Mondelez India hopes to gain more headroom for its products in the urban markets, and also grow its rural presence. The share of rural regions to the company’s sales has jumped to 20% from 10-12% previously.

The company, however, is facing the challenge of reaching out to consumers in rural markets, which is growing at a faster clip than urban regions, said Iyer. “The best way to reach (these) customers (are) through sales and distribution network,” he said adding that the company is also using technologies like Google Maps to reach out to remote markets.

Gourmet Chocolate Pizza Co. sees demand for its chocolate pizzas

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ourmet Chocolate Pizza Co. has partnered with ULMA Packaging to meet demand for its handmade chocolate pizzas over Christmas.

The company has installed a FR 200 horizontal ow wrapper to replace its L-Sealer to increase output for orders at its production facility in Nottingham, UK. Gourmet Chocolate Pizza Co. normally recruits extra staff over the festive season to keep up with demand but the machine has doubled its work capacity.

Helen Ellis, founder, Gourmet Chocolate Pizza Co. said its priority was faster throughput and ease of use. “I’m very pleased with the performance of the equipment and we’re not even using it to its full capacity yet. The machine gives us exactly what we wanted – a faster

process to market, protection of our products and staff savings in the run-up to Christmas this year,” she said.

The compact machine also utilizes the limited space at the facility thanks the flow wrapper’s cantilever construction with easy access for sanitation and it meets strict standards for cleanliness and hygiene.

The company produces novelty gifts in chocolate for the retail and corporate sector, with a variety of flavors and sizes using Belgian ingredients and has seen a growing demand for its products of late.

The machine seals lm on a range of chocolate pizzas, slices and popcorn bars at 30 items per minute and the products are presented in authentic pizza boxes, available online, in department stores, small independent shops and online retailers.

Dina Foods expands its Lebanese Baklawa collection

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ina Foods has expanded its Baklawa range, launching a sweet pastry called Filo-Delight.

The sweets feature layers of lo pastry, filled with mint, cashew and chocolate chip, mincemeat, orange zest and almond or walnut and ginger, available to buy in Morrisons stores, UK. Festive period soon to start, Suheil Haddad, MD, Dina Foods, said Filo Delight can be served all year-round, with the mincemeat and chocolate being ideal for the festive period.

“Filo-Delight is a range of four sweet lo pastries, which are light and refreshing, and perfect for serving with tea or coffee in the morning, after

Plant-based Impossible Burger to launch in retail stores in 2019

lunch, or as an accompaniment after dinner,” he said. “The range is a result of hard work between our creative formulators and New Product Designers who created this product utilizing our knowhow and successfully tried and tested baklawa manufacturing capabilities.”

In addition to its Lebanese Baklawa selection, Dina Foods manufactures Eastern Mediterranean bread including the Paninette, selling under the Dina brand in retailers and foodservice outlets in the UK and Europe.

“Our privately-owned family business has been sharing its baking expertise for 25 years and now exports to a dozen European and Scandinavian countries,” added Haddad.

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n response to “overwhelming demand from consumers,” Impossible Foods has confirmed plans to sell its plant- based Impossible Burger in US grocery stores next year, although it is not sharing details of the scope of the launch, pricing, merchandising tactics, or the names of potential retail partners.

“By far the No. 1 message from fans on social media is, ‘When will I be able to buy and cook the Impossible Burger at home?’” said Impossible Foods’ CEO and founder Dr. Patrick Brown.

“We can’t wait until home chefs experience the magic and delight of the first plant-based meat that actually cooks and tastes like meat from animals--without any compromise.”

Impossible Foods – which has raised a jaw-dropping amount of money ($450m in debt and equity) – says the Impossible Burger (which debuted in high-end restaurant Momofuku Nishi in New York City in July 2016) is now served at about 5,000+ restaurants in the US from White Castle to Fatburger, and about 100 restaurants in Hong Kong and Macau.

On a mission to ‘not only match, but outperform meat from animals in taste, nutrition and value’ The Redwood City, CA-based company – which is gearing up to start a second shift at its Oakland production facility that will double production of its plant-based Impossible Burger by the year-end, is also planning a second factory at an undisclosed location as it seeks to “not only match, but outperform meat from animals in taste, nutrition and value.”

“We’re not going to solve this problem by pleading with consumers to eat beans and tofu instead of meat and fish. We need to solve this problem another way — not by guiltying consumers into changing their diets, but by making delicious, nutritious and sustainable meats that are better than the meats from inefficient, animal-based technology.

“The surest strategy for replacing the most destructive technology on Earth is to deliberately create foods that deliver greater pleasure and value to consumers of meat, fish and dairy foods, then simply offer them as a choice, and let market demand take care of the rest.”

At Impossible Foods, the key components of meat have been identified, characterized and sourced from plants such as soy, wheat and potatoes, and processed using high-moisture extrusion and other techniques in order to meet precise functional, taste and textural criteria.

However, the secret sauce is ‘heme’, a molecule that’s “super abundant” in animal muscle. This is sourced from leghemoglobin, a protein found in nodules attached to the roots of nitrogen-xing plants such as soy that is similar to myoglobin and hemoglobin (which make blood look red).

In recent blind tests with meat-eating consumers, half preferred the Impossible Burger, “a big improvement from less than 10% five years ago,” said Dr. Brown, a Stanford biochemist and genomics expert who has described industrialized meat

Havmor Ice Creams has a new MD- Anindya Dutta

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otte Confectionery has appointed Anindya Dutta as the new Managing Director of Havmor ice cream. The South Korean conglomerate, bought Havmor from Ahmedabad-based entrepreneurs for Rs.1,020 crore last year.

Havmor was founded by Satish Chandra Chona in Karachi in 1944 and later moved to Ahmedabad after partition between India and Pakistan to create and start a revolutionary ice cream brand in 1951.

Later Pradeep Chona carried forward the legacy till Lotte bought it.

Anindya Dutta is going to be the first ever Managing Director after Lotte acquired Havmor Ice Cream. Previously Dutta served as the VP, international business at Britannia and brings over 20 years of leadership experience in the food industry across business verticals and categories, including

Bakery, Dairy and Confectionery. Holding different responsibilities at Britannia for 17 years, his last assignment at Britannia was head of the Dairy and Bread business. Of recent he led the international expansion of Britannia as Vice-President.

After joining Havmor, his responsibilities and tasks will be to enhance the market value and brand equity of Havmor ice cream bringing it towards a top national position and at the other end to evaluate and build synergistic expansion. Dutta will lead the vision of Lotte in expanding its footprint across the country.

Lotte is exploring the global market and the possibility to export Havmor to South East Asia, Africa and Middle Eastern markets.

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BAKERY NEWS

Vol. 11, Issue 06 -November - 2018

Rich’s Gourmet Guide - The Bakers Lounge showcases Global Bakery Trends this festive season Rich’s team of Chefs create an Art Gallery theme with hundreds of cakes on display

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ich Graviss, a leading manufacturer of Non-dairy whipped creams organized Rich’s Gourmet Guide -The Bakers Loungeat TajSantacruz, Mumbai recently. The event showcased Global Innovations and Trends in the Bakery Industry with a huge array of hundreds of cakes on display prepared by Rich’s team of Chefs. Mr. Pankajj Chaturvedi, ED & CEO, Rich Graviss and Mr. Pankaj Jain – G.M., Marketing, Sales & Culinary, invited Celebrity Chefs and renowned dignitaries from the hospitality sector in the day long celebrations themed on the upcoming festive season.

Bakery enthusiasts experienced an Art Gallery Walk-through feel with Violins playing in the background accompanied by a tour of the sensitizing cakes, desserts, savouries and desserts on display. Live Counters at the event with a team ofExpert Chefs demonstrated Global Trends guiding customers & aspiring bakers through their recommended recipes.

Some of Rich’s esteemed clients aka Bakeries Ribbons & Balloons, Hangout, Brownie Points, Just Bake, Mr. Brown Bakery were also present at the event. The event brought live, one of its kind lounge experience for Rich’s customers with an inspiration zone created by the chefs. Rich’s team displayed new trends within cakes & desserts with a new outlook that focuses on festivals to help boost sales for customers and aspiring bakers alike by inspiring them through their Global designs on display.

Commenting on the initiative, Mr Pankajj Chaturvedi, ED & CEO, Rich Graviss Products Pvt. Ltd, stated, “The response from our customers in the last two years has been overwhelming.

We aim to continue this trend and build stronger bonds with our customers, by making them a part of such educative experiences more often. These interactions also allow us to inform the versatility and quality of our product offerings for all our bakery channel partners.”

About Rich Graviss Rich Graviss Products Pvt. Ltd. came into existence following the collaboration between M/s Rich Products Corporation (USA) and GravissFood Solutions Pvt. Ltd. (India).

www.agronfoodprocessing.com

The launch of Rich’s Whip Topping in 1996 sparked a revolution in the Indian bakery industry; as it became the first-ever and the largest-selling non-dairy whip topping of the country. Since then, the market reputation and business growth has only elevated.

both the plants is approx 24000 tonnes per annum. This directly translates into assured quality products for its customers, as well as a consistent supply throughout the year. The company caters to more than 150 cities across 27 states through a highly competent cold chain distribution network.

Today, Rich’s produces a wide range of products for both the bakery as well as the food service segments.

Spokesperson Profiles: Mr. Pankajj Chaturvedi is the Executive Director & CEO of Rich Graviss Products. Before joining Rich’s in April 2008, he was the Executive Director-South Asia of Baskin Robbins. Mr. Pankajj skilfully improves the operations and support capabilities of India Business unit and assures a

Rich’s in India has 2 manufacturing facilities at Pune (Maharashtra) & Kala Amb (Himachal Pradesh). The combined production capacity of

smooth flow of Rich’s India leadership and managements, and that they are well-synchronized with the strategic decisions of the company.

Mr. Pankaj Jain is the General Manager Marketing, Sales & Culinary at Rich Graviss Products Pvt Ltd. As a corporate chef, Mr. Pankaj leads the development of culinary expertise and skills in the organization. He adds value to product development and maximizes sales by bringing greater understanding of applications, potential and attributes. He also leads and supervises all activities in relation to increasing market share and profitability, adding value to product development and maximizing sales.

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Vol. 11, Issue 06 -November - 2018

SNACKS NEWS

Global snack players compete for piece of Indian market

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graphic and economic potential and the expected consumption growth rates in the years ahead,” according to Buck.

A race of multinational companies to acquire apex position, are struggling to keep up the pace. U.S. Company Hershey has launched its iconic Kisses chocolates recently, while South Korea’s Lotte Confectionery has acquired Havmor Ice cream in the country.

At the augment of its footprint in India in 2004, Lotte has steadily expanded its lineup, which now ranges from candies and gum to chocolate pies. In 2017, Lotte Confectionery bought the Gujarat-based Havmor Ice Cream for 10.2 billion rupees ($139 million). Along with Havmor, operates a network of ice cream parlors including the Baskin-Robbins chain.

argeting huge shares of Indian market, global confectionary giants are lining up in India to secure bigger proportion of businesses.

Kameda Seika of Japan has marketed Indian versions of its best-selling rice crackers. With prevailing condition of the consumer market and severe competition, many MNC and Indian makers are considering mergers and acquisitions.

Hershey entered the Indian market through a joint venture with Godrej Group, and later acquired its partner’s stake. “At Hershey, our international business is key to our overall success, and India is a critical part of that success,” CEO Michele Buck announced at the launch of Hershey’s Kisses.

Milk Chocolate, Cookies ‘n’ Creme and Almonds are the 3 varieties of the bite-sized chocolate drops available for Indian consumers -- The Milk Chocolate is at Rs.50 for a 36 gram pack and Rs.140 for the 108 gram pack.

The product first goes on sale in southern India, where chocolate consumption is larger, and the company plans to expand to other areas gradually.

Operating its manufacturing plant in the central state of Madhya Pradesh, Hershey has been selling chocolate syrup, cocoa powder, beverages like milk shakes and the Brookside brand of chocolate products in India.

According to the market survey and data analysis, annual chocolate sales in India stand stands at $1.2 billion wherein the market is dominated by Mondelez International, the U.S. confectionery company best known for Oreo cookies, which has a share of over 60%.

Hershey remains undaunted, as India “offers significant growth opportunities given its demo-

In 2017, Japanese player Kameda Seika introduced its popular Kaki-no-Tane rice crackers through a local joint venture, rebranding it as Kari Kari and giving them slightly modified touch of flavors to suit Indian tastes. They come in two sizes -- a 70 gram pack for Rs. 50 and a 150 gram pack at Rs. 99.

Currently, Kari Kari is available in supermarkets of New Delhi, Mumbai and Bangalore, but Kameda will soon plan to expand to other parts of the country.

After the U.S., Thailand, Vietnam and China, India proves to be Kameda’s fifth overseas market.

Rice crackers are rich in proteins and carbohydrates with low fat and calories than most snacks.

Kameda is ready to roll its products as a healthier alternative to cookies.

“Demand for healthy confectionery is also growing in India”, opined Chairman and CEO Michiyasu Tanaka.

With an exchange of 10 empty packs of Maggi noodles, consumers can now avail one new packet free at retail shops. The programme has already started at two places in Uttarakhand and would be later introduced in other states too.

As a lead project in Dehradun and Mussoorie, Nestlé is also working with 250 retailers. This

Hemant Malik, Div Chief Executive,Foods division said, “The brand is less than eight years old in the market and has captured a significant share.

It’s become a Rs. 1,000 crore brand as reported by Nielsen India. When we got into the space, there was one very large competitor and it was very important for us to innovate and offer a differentiated product in the market. After seven-and-a-half years now, we have more than 22% market share led by innovations like round, long and non-sticky noodles sold along with vegetables in sachet. This was followed by another innovation 18 months ago in the form of mood masala for consumers who’d want to have a bit less or more spice in the noodles. The market share is higher at 37% in some of the markets in South India”.

The findings were from a joint study by Gati Foundation and Uttarakhand Environment Protection & Pollution Control Board. “We are hopeful that this will bring about a behaviour change in consumers and help create awareness for responsibly disposing plastic waste and prevent littering,” the Nestlé spokesperson said.

Indian Pollution Control Association will take care of the collection of empty packs to dispose it efficiently. Officials report that the cost of giving away the Maggi packs would likely be clubbed under the company’s promotional expenditure.

Adopting a unique approach as marketing strategy, ITC has partnered with the food and grocery e-tailer bigbasket.com to vend noodles of My range noodles with 4 variants exclusively on the latter’s e-commerce platform. Malik said, “e-commerce platform is an effective tool to strengthen the brand’s visibility and build consumer franchise. Accordingly, the Yippee! My range noodles are being exclusively sold across the country on bigbasket.com for a period of one week. Thereafter, it will be available across retail stores nationwide.

“We believe a lot in the e-commerce space as it is growing over 120% for us in the last couple of years. While it’s still not a very large part, but certainly a very crucial part of our portfolio as we find that for certain categories, this channel can deliver much more. Digital/ e-commerce is very important opportunity areas as it offers a huge amount of consumer insights and shopping behaviour data that can be used to further grow the market for our products as well as build our portfolio of products,” said Malik.

McDonald’s and NBA in a one month knot

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n a one-month tie-up starting from November 14, Mc’D will give away an NBA-branded basketball along with every family meal purchase at any of its outlet in the western and southern regions.

porters the feel of the atmosphere of being at an NBA game through a range of interactive experiences.

McDonald’s and The National Basketball Association (NBA) have agreed into a partnership for one month to introduce NBA-themed promotions and interactive NBA Experience Zones in select McDonald’s locations in 39 cities across India.

“We are excited to partner with a global iconic brand like McDonald’s,” said Yannick Colaco, managing director, NBA India. “This campaign with McDonald’s is a perfect way for us to deliver new and engaging NBA experiences to our fans.”

Mc’D in India is aiming to convey a sporty message for encouraging kids to be more active and participate in all sports.

Indian confectionery makers are developing more competitive products and expanding capacity as they face growing competition from foreign companies wherein some domestic players are also exploring potential tie-ups and acquisitions.

move is one of the company’s various other plastic waste management programmes, a Nestle India spokesperson said.

Maggi, along with PepsiCo’s Lay’s chips and Parle’s Frooti were identified among the top brands responsible for causing plastic pollution as consumers were not disposing of empty packs in proper manner at India’s most-visited hill stations in Uttarakhand.

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TC’s second-largest selling instant noodles, Sunfeast Yippee! has become a Rs. 1,000 crore brand. The brand secures over 22% market share in the overall market in India. With two major goals achieved, ITC’s management is now aggressively looking for growth and is intensifying competition with market leader Maggi, Nestle India.

Along with ice cream market, sales of confectioneries in India grew by 13% to $14.4 billion in 2017. The market is on track to grow at a double-digit rate again in 2018, as it has for the past several years.

Maggi helps Nestle to fight the plastic nuisance

ith the growing concern of the nuisance of plastic in the environment and its impact, Nestlé India, has started a return back campaign for its brand product Maggi noodles.

ITC’s Sunfeast brand Yippee worth Rs. 1,000 crore product

McDonald’s is about to introduce NBA Zones in more than 30 outlets, giving the chance to the sup-

“We at McDonald’s believe that playing sport is crucial to the overall development of children,” said Seema Arora Nambiar, SVP of Strategy, Innovation and Capability at McDonald’s India. “Globally McDonald’s is associated with various sports and this Children’s day we are partnering with the NBA to encourage children to step out and play to have fun and create happy childhood memories.”

Kellogg delves in cookies and fruit snacks businesses

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o sharpen focus on its core businesses, Kellogg Co said it would restructure its North American division in sale of its cookies and fruit snacks units, which include brands such as Keebler and Stretch Island. As consumers are shifting their choices towards healthier eating habits making it hard for Kellogg who has been struggling to boost sales to keep up with the pace. Another factor is severe pricing pressure which has also taken its toll, as grocers are aggressively competing against Amazon.com Inc and other online retail businesses.

cut its full-year profit outlook, citing increased spending on advertising and higher distribution costs.

“We need to make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio,” Chief Executive Officer Steve Cahillane said in a statement.

The company said it would consolidate its U.S morning foods, snacks and frozen foods businesses into a single unit, comprising 80 percent of North America revenue.

The news comes less than two weeks after Kellogg

Analysts have long voiced their concerns that the “carb-centric” brands in Kellogg’s U.S morning foods business - which houses Corn Flakes and Fruit Loops - are out of step with health-conscious consumers.

Kellogg said it would be restructuring its North America business beginning next year.

The announcement comes a day before its investor day.

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Vol. 11, Issue 06 -November - 2018

Greek kiwifruit harvest underway

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ith volumes from New Zealand expected to last until the end of the year, Greek kiwifruit exporters are prepared for heightened competition on the European market As the Greek kiwifruit harvest gets started, exporters are eyeing the remaining volumes of Zespri kiwifruit from New Zealand with impatience.

“There is still lots of New Zealand kiwifruit around, which will slow demand for European kiwifruit,” says Christina Manossis, general manager of Greek exporter Zeus Kiwi. “The global market is being cautious, especially the Chinese. Intake from Europe will be delayed while good-quality Zespri is still available. Volumes from New Zealand are not expected to finish until the end of December.”

In the meantime, Zeus Kiwi is closely monitoring its own production, both on-site and remotely. “We have a cloud system so we can check the database from anywhere to find all the latest information on pruning, treatments and the harvest date,” says Manossis. “It was developed by our in-house developer and is upgraded each year. We have cameras installed all around the packhouse, so we can see how things like quality control are going even when we’re out of the office.”

According to Manossis, exports to overseas markets are set to start immediately, including to Latin America and the US. Sendings to China are anticipated in the second week of November, while exports to Europe will commence towards the end of the month.

“It is important to start as quickly as possible in markets like Latin America,” says Manossis. “As long as the quality is good, we should ship large volumes to our markets until May.” However, high taxes continue to make life difficult for Greek companies. “They make us less competitive, as do the bank interest rates,” says Manossis.

“Energy costs are much higher for us than for our competitors, which increases the costs in the field and in the packhouse.”

Faced with intense competition for the green Hayward variety, Zeus Kiwi views golden varieties as the future of kiwifruit. “We are trialing golden kiwifruit,” reveals Manossis. “In five years we will have sufficient volumes to test in the UK, China and Indonesia. We want to get feedback from the field first to evaluate the suitability of the varieties and then check the market’s reaction. Then we will be in a position to choose the right variety with the best shape, size and taste.

Manossis believes that it is crucial for a company to differentiate itself at this time. “The future is with golden, especially in Asia,” she says.

“There is so much green Hayward that prices are suffering as a result. So we need an alternative to become more profitable and to differentiate ourselves from the competition, while providing guidance to our growers for viable cultivars.”

The company is currently investing in new-technology sorting machines complete with 3D cameras, mainly for use on kiwifruit.

“You need good production, but you also need ultra-modern machinery to sort and pack correctly and cost-effectively,” says Manossis. “This will give our fruit more uniformity in terms of quality, while we will also require less labour.”

SPICE NEWS

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Vol. 11, Issue 06 -November 2018

CHOCOLATE NEWS

Mondelez launches state - of- Fabelle presented India a Diwaart research, development and li gift of its Ruby Chocolate quality center in Mumbai

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ondelez has launched a state-of-art research, development and quality center in Thane, Mumbai that would exclusively cater to R&D activities in the chocolate and beverage segment. So gear up chocolate lovers as The next time a new chocolate variety is launched as part of the popular Cadbury brand anywhere in the world, chances are that it would have been developed in India.

Mondelez cannot afford to ignore India where it has the lion’s share — more than 60% — in the chocolate segment and is also the highest growth market for the confectioner. Nowhere else does Mondelez have such a significant share of the chocolate market!

This is Mondelez’s only second such research centre after Bourneville in the U.K. that caters to chocolates. In all, Mondelez has 10 such centres spread across countries such as Brazil, Poland, Singapore, France and Germany, focusing on various product segments in which the company is present globally.

That the latest centre dedicated to chocolates has come up in India also highlights the fact that India is one of the most important markets for the global major, which is valued at more than $61 billion.

The research facility has come up with an investment of $15 million and is spread across more than

12,000 square metres. It houses over 150 specialists, including food scientists, engineers and analytical chemists among others.

The new facility is an upgraded version of the old centre that has been in existence for over two decades. The Thane facility will also work closely on innovation with sites across the Asia-Pacific, Middle East West Asia and Africa (AMEA) region and the global manufacturing network.

Some of the products that have been developed at the Thane plant and made available all over the world include Dark Milk, Cadbury 5Star (which is exported to Brazil, Philippines, Malaysia and South Africa) and Bournvita for Nigeria.

Products such as Dairy Milk Crispello, Dairy Milk Lickables, Fuse, 5Star 3D and Bournvita for Women have also been developed in India exclusively for the domestic market.

The upgraded version, however, is a big step forward since it is a part of the company’s overall strategy to invest $65 million in developing a global network of state-of-the-art technical hubs across the world.

The facility is also a zero-water discharge unit with zero waste going to landfills and 100% rainwater harvesting and care has been taken about gender diversity with 50% women representation.

Ferrara Candy shifting to Old Main Post Office in Chicago believe it would reflect the brand, culture and community we’re building for the next chapter at Ferrara,” she said. “We appreciate the support from the City of Chicago and Mayor Emanuel as we prepare for our move to the city.

“Our focus is on finding the best possible office space to accommodate our continued growth, while providing a great work experience for our employees.”

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onfectioner Ferrara is considering moving its headquarters from the western Illinois suburb of Oakbrook Terrace to downtown Chicago.

The company’s spokesperson, Sarah Kittel, said it has not finalized a lease with any locations, yet remained impressed by the future vision for the Old Main Post Office – a long vacant building that recently signed Walgreens as its first tenant. “We

Ferrara is overhauling some of the classic US confectionery brands, including Butternger, after merging with Nestlé’s US candy unit. Both companies are currently owned by Nutella maker Ferrero.

Ferrara, which also manufactures gummy brands including Trolli and Black Forest, is now the third largest confectioner in the US after Mars and Hershey, according to Euromonitor.

Ferrero’s sale decline; poorest performance since its entry in India

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he maker of Kinder Joy chocolates and Nutella chocolate-hazelnut Italian chocolate maker Ferrero India sale depleted this year as it posted a 17% decline in profit and slipped into losses during FY17-18, its worst performance since it entered the country a decade ago.

It posted revenues of Rs. 1538 crore, with net loss of Rs. 89.6 crore during year to March 2018, as per filing sourced from research platform Tofler.

A year back, Ferrero had posted sales of Rs. 1848 crore with net profit of Rs. 21 crore. The company said sales were impacted due to new taxation

has a multiple use in desserts and cuisines.

Chef Ruby too opined Chef Todd’s views that the chocolate can be combined sour fruits, rose wine and wasabi!

policy and reduction in exports. Net sales was not comparable as turnover in the last fiscal was calculated net of GST while earlier, it was gross of excise, which in turn was part of the cost. The company said changes due to the statutory reporting and indirect taxation were the key reasons for the gap.

For many years, Ferrero has spent over Rs. 1500 crore in ramping up production and distribution capabilities and has plans to invest Rs. 500 crore additionally. It is the second largest confectioner in India trailing Mondelez that is by far the market leader with 66% share in the $1.2-billion chocolate category.

With no added artificial flavours has nutty, fruity and tart notes and simply when tasted has a burst of flavour in the mouth. The enhanced flavour come from the hazelnuts tactfully incorporated into it. abelle Exquisite Chocolates unveiled their Ruby Gianduja Chocolates at ITC GRAND CENTRAL addressing the media. The launch was followed by a masterclass by Fabelle’s Master Chocolatier Chef Ruby and Celebrity Chef Sarah Todd. The magnificent chocolate brand has collaborated with Barry Callebaut to source the ruby chocolate for their special Diwali launch.

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“It is a proud moment for Fabelle Chocolates as we introduce the very first Ruby Chocolates to the Indian chocolate connoisseurs,” said Mr. Hemant Malik, Divisional Chief Executive – Foods, ITC Ltd. “It has been our continuous endeavour to provide unique chocolate experiences to the Indian consumers and today’s launch is a firm step in that direction.

This launch had only limited edition of Ruby Gianduja with a fabulous packing in pink coloured mini-carton, especially made for the Diwali festive season. Each box carried a dozen gianduja chocolates and was rated at Rs. 1295. Being present at the launch, Chef Todd was very pleased and expressed Ruby Gianduja as one among her favourite chocolates. Ruby chocolate is a versatile chocolate and

“It is said that Milk chocolates with nuts appeals the most to Indian chocolate aficionados and our Gianduja is made of rich milk chocolate and Ivory Coast Cocoa with Turkish hazelnuts, making it one of our best-selling creations. Thus, we have recreated Gianduja with the infusion of Ruby Chocolates to render another extraordinary experience to Indian consumers.”

Mars Wrigley introduces DOUBLEMINT brand product in India

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ars Wrigley Confectionery recently announced launch of DOUBLEMINT Chewy Mints gums product category in India. DOUBLEMINT brand intends to widen its scope and presence felt in the freshness category, as recognized worldwide.

After an extensive research in consumer market, this exclusively oval shaped product is known by its multiple layers and a soft chewy center, gives a unique experience to the consumer.

With its signature line of ‘Every Chew, Brings Out A Fresh New You’ the product makes sure the consumer gets a flavor burst and lasting freshness with every chew. “The launch of DOUBLEMINT Chewy Mints is a significant milestone in our journey in India. Ever since its launch in the Indian

market, DOUBLEMINT has successfully built on its proposition of long lasting freshness and with the launch of DOUBLEMINT Chewy Mints, consumers will get the same promise of freshness through a differentiated product. We are confident that Chewy Mints is relevant to Indian consumers and are hopeful the product will be well received by them.” said Yogesh Tewari, marketing director, Mars Wrigley Confectionery.

The DOUBLEMINT gum is one of the largest brands on global platform. And with the launch of Chewy Mints, India now joins the ranks amongst those nations which have three forms of the brand available, and that is gums, mints and the distinctive Chewy Mints.

Germany’s best chocolates ranked

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hat does a perfect chocolate taste like?

A German consumer foundation put 25 milk chocolate brands — including Milka, Lindt, and Merci – through rigorous testing and tasting. The most expensive chocolate finished last. Most chocolates you can buy in Germany are good, and more money does not always buy you more quality, Germany Warentest foundation discovered during a thorough examination of 25 different kinds of milk chocolate.

Internationally known brands such as Lindt, Merci, and Milka faced the consumers’ testing along with discount chocolates by supermarket chains and fair trade brands.

The group ranked chocolates based on taste, touches, aroma and the “mouthfeel”, but also considered presence of any harmful ingredients and bacteria, packaging, and the accuracy of the provided ingredients list.

The best chocolate should taste creamy with a noticeable note of cacao and smell like caramel, the foundation said on their website. The testers also appreciate bars with a smooth surface and no air bubbles that break away easily along the grooves.

Unexpectedly, fair trade product “Gute Schokolade” was named as one of the winners, alongside Swedish “Marabou Mjölk Cjhoklad”, “Merci Edel-Rahm” and “Milka Alpenmilch.” Moser Roth, provided by the discount supermarket chain Aldi, also placed near the top, as cited by German media. While the testers found Lindt’s whole milk

product could match “Gute Schokolade” in taste and consistency, they took away points for misleading packaging. Lindt’s chocolate spots vanilla beans on the box, but contains only vanilla extract.

The most expensive chocolate on the test, Godiva’s “Milk Chocolate”, ranked at the very bottom.

A 100-gram Godiva bar goes for €6.95 ($7.92) in Germany, but the Warentest foundation discovered it contains more nickel than any of its cheaper rivals. Even so, the foundation emphasizes that the amount of nickel found in Godiva’s chocolate is still low enough to be completely harmless to humans.

Ultimately, 15 of the 25 brands were graded as “good’ and nine as “satisfactory.” Godiva’s candidate was only graded “sufficient,” according to results published recently. For even more enjoyment when eating chocolate, the Warentest foundation recommends letting the bars breathe after opening the package, similar to opening a bottle of wine. At the same time, you should keep the bar away from products with a strong aroma, such as coffee and tea, to prevent the chocolate from changing scent.

Another important tip is to store chocolate between 12 and 18°Celsius, (53.6 – 64.4 Fahrenheit) and avoid temperature shocks. A sudden jump in temperature can prompt condensation and sugar particles to appear on the surface.

Of course, these tips are only useful for those among us who don’t eat their chocolate right away.

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Vol. 11, Issue 06 -November - 2018

India exempted from Iran sanctions, tea producers, exporters cheer

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ea producers and exporters, after a dip in tea prices of more than 7 per cent, anticipate a rebound in demand for the orthodox tea variant as well as price recovery for exports to Iran after the US decided to exempt India from trade sanctions on the West Asian country.

After the US announced in July its plans of putting an embargo on Iran, Indian tea firms and exporters, wary of the situation, had halted some of the shipments and some tea producers switched to CTC from orthodox tea.

Prices didn’t firm up inspite of orthodox tea production dipped by an estimated 10 per cent. Exporters who had stocked tea or had entered into contracts with Iranian importers tried to clear the stocks at lower prices. Average price realisation from exports to Iran dipped by over 7 per cent at $3.61 a kg.

“During the peak season of orthodox tea cultivation (March-June), sanctions were announced, which caught tea companies off guard and some of them shifted to CTC production”, said Vivek Goenka, chairman of the Indian Tea Association.

Tea companies had also halted contracted shipments because Iranian importers had been insisting on payments in dollars or euros instead of the

rupee. In 2011-12, after the Obama administration imposed trade sanctions on Iran, the Indian and Iranian governments put in place the rupee-riyal payment mechanism, where up to 45 per cent of India’s purchases of Iranian oil could be paid in rupees, covering tea, rice, medicines and commodities not sanctioned by the UN. However, lately, Iran, in the wake of US sanctions, has been insisting on payments in dollars and euros, which are convertible. On the other hand, it has been insisting on paying in riyal.

“There was huge uncertainty on how payments would be made to India and thus many shipments got stuck at the Kolkata warehouse. However, for two weeks, payments from Iran have started coming, which is restoring confidence,” said Azam Monem, director at McLeod Russel, the world’s largest tea-producing company. At the Kolkata and Guwahati tea auctions recently, large quantities of Assam orthodox tea, mostly exported to Iran, had remained unsold.

Goenka, however, said that since mid-October, around 90 per cent of orthodox tea, put up for sale in the auctions, had been sold. “Exports to Iran are poised to increase in the coming days. Prices will also increase,” Atul Asthana, chief executive officer and managing director at Camellia Plc-owned Goodricke Group, said.

On the other hand, fearing US sanctions, some Indian companies had been routing exports to Iran via Russia, Azerbaijan, the UAE, and other countries at a discounted rate. Although trade between India and Iran, of $10.6 billion, mostly comprises oil imports, accounting from $8 billion, Indian exports — primarily tea and basmati rice — account for $2.6 billion.

TEA NEWS

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Vol. 11, Issue 06 -November - 2018

CRUCHY MUNCHY

Crunchy and

The saga ofworld’s third largest bisc

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ndia is very important and is a country for today and tomorrow’- Maurizio Brusadelli, president — AMEA (Asia, Middle East and Africa) at Mondelez International.

Why did he say this? Mondelez International has recorded sales of about $900 million last year and that the country’s share in chocolates ranked among the highest globally. It is hoping to double the business as sky is the limit for it.

After investing in Greenfield plant in Andhra Pradesh, Mondelez has inaugurated a $15-million global research, development and quality (RDQ) hub on the outskirts of Mumbai that will focus on chocolates and beverages for India and other markets. The centre will employ more than 150 scientists, engineers and other specialists, and focus on developing technology platforms for chocolates and beverages, consumer science, packaging and cross-category productivity.

Inversely to Mondelez, Italian chocolate maker Ferrero India has posted a 17% decline in profit and slipped into losses during FY17-18, its worst performance since it entered the country a decade ago. According to Ferrero, sales were impacted due to new taxation policy and reduction in exports. Net sales was not comparable as turnover in the last fiscal was calculated net of GST while earlier, it was gross of excise, which in turn was part of the cost. The company said changes due to the statutory reporting and indirect taxation were the key reasons for the gap.

India presents a unique opportunity in the food processing and retail domain, as food constitutes a very large share of the total retail market, which itself is set to treble in the coming few years. And as the disposable income increases, an average Indian family will spend even more on food and hence will open up a large and untapped market.

Many countries have spotted the opportunities and are stepping up their investments in India, but France is still restraining.

Though France enjoys a high reputation in food industry and has a lot of know-how and technology to share with Indian companies. However, the cooperation remains far from achieving its true potential and it is a pity because the moment of doing business with India is here and now. Hence Food Processing Industries Minister Harsimrat Kaur Badal has encouraged the French food processing companies to significantly enhance their engagement with the Indian market.

The French have one of the world's most renowned food processing industries and India has the fastest growing food and retail market in the world. Therefore, it would be natural for the two to work together intensively.

India's largest food service operator, Jubilant FoodWorks, has taken on PepsiCo as its beverage partner for Domino's Pizza. This ends a two-decade partnership with Pepsi's arch-rival, Coca-Cola. The partnership will see PepsiCo's portfolio of carbonated drinks -- including Pepsi, Mountain Dew, 7Up and Mirinda, along with Lipton Ice Tea -- available at all Domino's outlets in the country.

Now Coca-Cola will be associated with mainly one major fast-food brand, McDonald's.

The company's decision to bring down its engagement with fast-food companies comes as it sets its sights on rejuvenating Costa Coffee in India, following a global acquisition in August. This will give Coca-Cola a retail footprint in the country, allowing the firm to push its products through this channel, since beverage deals with fast-food majors are intended for that.

Speaking of PepsiCo, it plans to invest $5 million (Rs 36.6 crore) by 2020 in India for expanding its agricultural programmes in the country. The company currently works with 24,000 farmers in India to grow potato, rice, corn and citrus for its products such as Lays, Uncle Chipps, Kurkure snacks and Tropicana juice.

And of course Zydus Wellness has acquired subsidiary of Kraft Heinz, Heinz India Private Limited, jointly with Cadila Healthcare Ltd., at a valuation of Rs. 4595 crore.

This would bring brands like Complan, Glucon D, Nycil and Sampriti Ghee in its bag.

In the era of acquisition, Amazon is all set to acquire a minority stake in Future Retail providing the ecommerce podium access to nearly a third of the country’s organised food and grocery market through the Big Bazaar and Nilgiris supermarket chains and other outlets. The ecommerce giant has increased its marketing strategy after Walmart’s entry in India with acquisition of Flipkart.

Amazon, through the foreign portfolio investor (FPI) route, will buy about 9.5% stake in Future Retail and has already signed a term sheet and the deal by Amazon’s investment arm is pegged at about Rs 2,500 crore.

Lotte Confectionery has appointed Anindya Dutta as the first Managing Director of Havmor Ice cream after acquiring it last year. Having 17 years of experience with Britannia, Dutta’s responsibilities and tasks will be to enhance the market value and brand equity of Havmor Ice cream bringing it towards a top national position and at the other end to evaluate and build synergistic expansion. He will lead the vision of Lotte in expanding its footprint across the country.

West Bengal's home grown ice-cream maker is in advanced talks with two Italian frozen dessert companies for technical and financial joint. Though the deal is not yet sealed, but Rainbow Dairy Food Product will divest 40 per cent stake in the company having its product brand name Milkberry.

Before I end this write-up, I wish all my readers, friends, colleagues, acquaintances, employees and entire Agri-food processing industry a heartiest happy Diwali. A festive that lights up lives of people and contributes a lot in the upgrading the food industry’s market…..

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ndian biscuit market has created space for itself in the international arena; it has actually become the third largest in the world. Faced with competition from imported products, the Indian manufacturers are innocuously and aggressively focusing on the new needs of the urban and middle class, making the Indian biscuit industry move rapidly towards higher value or premium segment.

Biscuit story via history Biscuits are delicious mouthwatering substances made from flour and mixed with several flavors today. It is a very delicious item which ever body loves to munch and enjoy as a snack. Biscuits may be cookies, crunches, and biscuits produced by companies. Everybody is eager to know the history of biscuits because everybody wants to know the person who made this mouthwatering item that is always consumed. Biscuits are commonly made from fine flour. The biscuit that was prepared earlier was a cake that was re-inserted in the oven after the cake was removed from the tin. The item was named as ‘biscuit’ because it means ‘an item that is cooked twice’ according to French. The biscuit was originated by the French. The biscuit that was prepared was very hard. It become popular among the warriors and navigators who went for their journey. The biscuits also were popular during the rule of King Louis XIV and they were called stone bread. These biscuits were prepared in order to provide nutrition and were known as animalized biscuits.

By the 19th century travellers used biscuits that were cakes in hard form. Later on lite and crunchy biscuits were introduced to make it easier to chew.

People in United States used biscuits during meals.

The hard biscuits were beaten to make them softer. Anyhow biscuits meant different for different nations. In the United States biscuits are the soft cakes or breads. For Britishers it is a product from the flour that is made sweet. It may mean a cake that is made hard from flour or bread that is removed from the oven and rolled and cut into pieces. It was highly nutritious as it contained nutrition like cereals and nuts that was processed with flour.

The substance was prepared hard because it would survive under any temperature. These biscuits were used during the Spanish Armada in 1588.

Earlier the biscuits were cooked out of bread by placing in the oven twice to serve it. They were recommended for the health purposes and hence most of them were not sweet as prescribed by physicians.

Later on in the 7th century, the Parsis who had learnt the art of cooking mixed a number of ingredients in the flour such as butter, cream, and honey to make it tastier. One of the Armenian monks in 992 from Europe prepared a substance called

gingerbread. These items were sold in the market with high price. The Crusaders who learnt the art of cooking spicy breads spread the trend into the entire northern parts of Europe. In the medieval period biscuits were items that were sweet substances prepared from the bread by placing in the oven. During the rule of King Richard they were the substances that were prepared by mixing flour such as barley, rye and bean flour.

The biscuits that are prepared today are the substances made of several ingredients and available in various flavors, colors, sizes and tastes. Today people consume biscuits very fondly during the time of snack. Today Britishers consume digestive biscuits along with tea during the snack time. biscuits are usually those substances that are sweet to taste. People are very fond of biscuits that resemble sandwich i.e. layered with cream between the two biscuits. The substances that are mixed with flour may be cream, flavors of fruits and nuts, chocolate, jam and many others. The savoury biscuits have captured a huge market today. The type of savoury biscuits is cream crackers, oatcakes, crisp breads, etc. Rusk is also a type of biscuit that is a hard substance made from bread usually used for teething of a baby. Rusk is a biscuit that is usually consumed by placing it in tea or coffee. Dog biscuits are also widely in use that is served for dogs only.

Present Scenario of biscuit industry in India The biscuits and cookies industry in India has been growing at a CAGR of 10 per cent for the last three years, and is currently valued at Rs 145 billion.India is currently the world’s largest biscuit consuming nation. The industry is expected to grow at a CAGR of 14 per cent till financial year (FY) 2019.

It will be worth approximately Rs 279 billion (approximately $4.65 billion) by FY 2019.

Compared to other fast-moving consumer goods (FMCG) products, the penetration of biscuits and cookies, in both the urban and rural areas, is quite high (94 per cent and 83 per cent, respectively).

East and North India have the highest consumption of biscuits and cookies in the country. Eighty per cent of the market is currently organised.

The top four players in the market for biscuits and cookies are Parle Products, Britannia, ITC and Surya Foods and Agro. Both Britannia and Parle account for 61 per cent share of the market.

Parle is one of the top biscuit manufacturers, but it has the tag of being Indian first biscuit. Even as the bugle for World War II was sounded in 1939, the company baked its first biscuit.Back then, biscuits were mostly imported, expensive and meant for consumption by the elite classes. United Biscuits, Huntly& Palmers, Britannia and Glaxo were the prominent British brands that ruled the market.

It was to counter this trend that Parle Products

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Crusty

cuit industry

launched Parle Gluco as an affordable source of nourishment for the common masses. Made in India, meant for Indian palates and accessible to every Indian, the humble biscuit quickly became popular with the public. It was also much-in-demand by the British-Indian army during World War II. However, in 1947, a severe shortage of wheat (India was left with only 63% of its wheat cultivation area after Partition) immediately after Independence meant that the production of Parle Gluco biscuits had to stop for a while.

The main reason behind Parle G’s unmatched success is that the brand is also ranked the top food brand in India and remains appeal of the masses.

With its price remaining affordable for practically every Indian consumer, Parle G, has become a sort of staple Indian food, with most mothers giving it to the children with their afternoon glass of milk, while adults still love to dip the biscuit in their tea and eat it.

Parle G continues to dominate the mass-market, despite competition from other domestic brands.

The Indian biscuit market has also been evolving over the past two decades, with introduction of several premium products, mainly cookies and cream biscuits.

Today, the company boasts of astounding sales figures of over a billion packets a month. That is around a hundred million packets of Parle G every month, or 14,600 crore biscuits in the entire year, which adds up to 121 biscuits each for 1.21 billion Indians.

In fact, the biscuit is so popular that some restaurants have started using it to make high-end desserts. For example, Farzi Cafe has invented a Parle G cheesecake and Mumbai’s 145 has a Parle G Eatshake!

Having competed fiercely over the mass market products, Parle’s main rival in India, Kolkata-based Britannia, has been focusing on bringing newer products to the premium market. Last year, Britannia relaunched its premium cream biscuit brand, Treat, to fight the increased competition from its main rivals, Parle and ITC. The relaunch came with a marketing budget of INR 500 million (EUR 6 million), besides a complete repackaging and focus on the two most popular flavours, vanilla and chocolate.

Despite having a formidable brand and having presence in over 60 countries around the globe, Britannia recently went for an image makeover by reimagining its core identity — the brand logo.

While many companies would be averse to experimenting with a new identity, Britannia has traditionally taken the reinvention game in its stride.

In 1997, the brand played the reinvention game, which helped it further consolidate its leadership position.

In 2018, the brand has done the reinvention formula again.. The objective was set up-front. The relaunch is aimed at strengthening Britannia’s presence in the premium cream biscuit market, which accounts for only seven percent of the total biscuit market in India, but is the centre of attention due to the growth potential that it offers. This niche commands 30 pc of the entire media spend by biscuit companies in India. Britannia says it wants to increase its market share in this category from the current 35 pc to over 50 pc within two years. Britannia is hoping the relaunch will help it get there within the defined time frame.

Premium biscuits now account for over 60 pc of the Indian biscuit market and this trend is set to grow faster.

Britannia is not the sole player looking at tapping the premium segments, ITC and of course Parle are also tapping the higher segment of biscuits as consumers in urban areas begin to trade up. Premium biscuits now account for over 60 pc of the Indi-

CRUCHY MUNCHY

an biscuit market and this trend of moving higher in value chain is set to grow faster, fuelled equally by demand as well as supply.

Mondelez, through its Oreo brand is one international biscuit brand making big in Indian Premium biscuit segment. Oreo was introduced in India close to seven years back and in such a short span; India has emerged among its top-five markets by volume. Today, twist, lick, dunk has become a ritual; it has been at the heart of numerous warm family moments. Oreo has always stood for bringing people together and the Oreo People campaign takes ahead this proposition.

Mondelez is expected to continue Oreo’s marketing aggressively by pushing into rural areas as well as traditional trade in India. Biscuit growth is going strong, led by Oreo.

Hershey India is also set to enter the premium biscuit segment in the biscuit category with the launch of Sofit Protein Cookies. The brand plans to drive the unique Sofit proposition and invest appropriately across all mediums relevant to its target audience. With a robust marketing plan that will span across TV, digital, PR, activations and in-store presence through an engaging and all-encompassing 360-degree campaign, the brand is aiming to strengthen its footprint in the $2.8 billion biscuit segment.

Others, including domestic players like Bakeman’s, Champion, Kwality, Priya and multinational corporations (MNCs) like SmithKline Consumer, Kellogg’s, Sara, Heinz, Excelsia (Nestle) and United Biscuits are also targeting the premium category more aggressively.

Not just the large, industrial players, even the unorganised biscuit producers are focused on higher value goods. Neighbourhood specialist bakers such as Karachi Bakery in Mumbai or Kayani’s in Pune, as well as a host of others all over the country, have also begun targeting the higher value customers by introducing or focusing on exotic biscuits and cookies, often made of wholegrain cereals or a mix of cereals or the coarse cereals that had almost disappeared from the Indian kitchen but have been staging a strong comeback of late.

These stores have an advantage of rather focused clientele, distribution in the neighbourhood as well as lower cost of packaging and storing. They are also helped by their lower overheads due to limited staff and production, focused product lines and less expenditure on marketing, besides having family management.

Food for many Besides being a quick snack, easy to store and transport, biscuits have penetrated the Indian market like few other Fast-Moving Consumer Goods (FMCG) products. The penetration of biscuits and cookies, in both the urban and rural India, is extremely high, with 94 pc of stores in urban areas and 85 pc of outlets in rural parts stocking the snack.

In parts of rural India, especially in the less affluent eastern and central parts of the country, even today, the basic biscuits like Parle G often act as an entire meal, rather than a tea-time snack. Farmers take biscuits along to the fields where the packet can stay on the ground and yet good enough to eat later, which is not always the case with food and other snacks.

To increase their margins as well as expand the market for premium category biscuits to the rural areas as well as smaller towns, many manufacturers have begun to offer their premium biscuits in smaller packs of 100 gm or so, priced below Rs 15 in most cases, making it within the reach of practically everyone.

India is already the world’s third largest biscuit producer, after the United States and China and its market is evolving rapidly as consumption patterns, consumer tastes and preferences begin to vary. Yet, the country is home to the world’s most promising market. According to a report by market research firm Technopak the per capita consumption of biscuits in India is currently only 2.1 kg per year as against 21.76 kg in Ireland, which is the highest in the world. Even in the neighboring Asian nations, the per capita consumption is more than double that of India.

Pricing problem India is one of the most price sensitive economies in the world, regardless of higher disposable incomes, on the back of the economic boom that the country has witnessed for nearly 15 years. This is a challenge for the biscuit manufacturers, as much as any other FMCG company, which has to check on retail prices, even though their own input costs – in this case prices of raw materials such as cereals, sugar, milk as well as operating costs including electricity, wages and equipment – keep rising sharply, nearly 5 pc a year.

Another problem for biscuit companies is the highly fragmented nature of the Indian market. Even though Britannia and Parle are market leaders, with a collective 70 pc of the market, over a dozen international, national and regional companies are battling over the balance 30 pc of the market.

Another reason for the fragmentation of the market is the extremely diversified product portfolio, with nearly two dozen categories in the market, the companies find it challenging to focus on a particular brand and reach a certain critical mass. This results in higher expenditure on marketing and other promotional activities, eventually, shrinking the profits. Little wonder then that besides Parle G, no other brand in the country has any significant market penetration. Also, due to price sensitivities and extremely low net margins, companies don’t find it viable to have their exclusive retail outlets and hence unable to directly push their products to athe consumers. Despite the challenges, the Indian market remains the conqueror for biscuit manufacturers and consistent growth over the past decades

The critical success factors of the biscuit industry in India

India’s lower- and middle-class segment will continue to hold the key to success of the biscuit industry in India Distribution (in rural markets), advertising (in urban markets, innovation) and launching of new brands are being adopted by the companies to grab the market The companies have added new variants into their existing brands; including stylish packaging The focus on urban markets has also contributed significantly to the growth of the biscuit industry Standard grocers are the leading distribution channel, with one-third of the Indian biscuit market byvalue. Traditional grocers are the only other channel to take a double-digit share Alliances The biscuit manufactures able to maintain good relations with distributors, wholesale suppliers and regional institutions will have greater market share due to word-of-mouth publicity and media attention The industry players will try to lower the procurement, production and distribution costs through programmes such as JIT, JITD, TQM and per stock-keeping unit (SKU) cost-revenue analysis and will pass on these benefits to the end consumers in terms of lowered

ensures that manufacturers will keep trying to be the first to bake the smart cookie.

The GST burden The GST has called up the biscuit industry to look through the higher possibilities emerging for taxation hike. As the Rs. 36,000-crore Indian biscuit industry demanded finish waiver of Good and Services Tax (GST) on Low Price-High Nutrition (LPHN) biscuits valued under a most extreme retail cost of Rs100 a kg. The dread of the appearance of negative edges stage powers makers to diminish creation leaving demand unsatisfied.

Glucose biscuits retailing at Rs70 a kg today draw in net charges of Rs 7.21 which is higher than the value expansion earned by the business. Glucose biscuits offer buyers 72-kilo calories/per rupee (Kcal/re) contrasted with 55 by bread, 18 by potato chip and 29 by namkeen. Every one of the three appreciates concessional rate of expenses. A 70gram pack of glucose biscuits which retails at Rs 5 offers 315 Kcal, which is around 16 percent of the day by day dietary proposal of the legislature.

Sugar costs have dramatically increased in the most recent decade and the present wheat flour and vegetable oil costs make net edges on LPHN biscuits decreased to only 3 per cent. There is a 62 percent weighted normal climb in info costs (maida, sugar and vegetable oil) in the course of the most recent decade, the bread makers have been notable increment their acknowledged pro rata. Meanwhile, the biscuit industry has its own issue, but definitely at the verge of risk and losing some of the earning for the sake of compact taxation economy structure.

According to Biscuit Manufacturers’ Welfare Association, LPHN biscuits are the only hygienically produced and affordable snack sold in small packs retailing at Rs 2-5. Consumed mainly by the low-income group, any increase in the price of LPHN biscuits causes a direct reduction in demand. The government may tax premium biscuits as they deem fit. But normal category is a highly compliant industry with last annual contribution to the exchequer at Rs. 3,075 crores.

Conclusion India is the third largest producers of biscuits following United States and China. The biscuit market of India is driven by factors such as increasing income of consumers, shift to premium biscuits, more manufacturing facilities set up, growing health awareness, innovation in biscuits, attractive packaging, etc.

The organized biscuit market accounts for more than 70% of value share in the overall Indian biscuit market. The sector is expected to surpass the revenue figure of INR 400 billion by 2023. Organized market comprises of all the major players of biscuits which serves both in rural and urban area.

The distribution network of players like Parle and Britannia are widely spread in the rural areas. It is very easy to find a 5 Rs. Parle biscuit in any traditional general shop in those areas. Organized market consists of different product categories of biscuits such as cream, cookies, glucose, Marie, cracker, milk, etc. Organized players like Parle, Britannia, Mrs. Bector’s, Surya Food and Agro Limited manufacture all types of biscuits mentioned above. Rural consumption of biscuits have shown a better growth in past few years.

Along with the major biscuit players of India, many regional players are also into the production of biscuits. These players have similar production facilities like the renowned one. Their biscuits are well- labelled and packaged yet healthy to eat and available at a low price which makes it affordable for the low income consumers. To increase its sales and product value, companies have started to launch premium biscuits in small packets so as to increase the demand of their products in both rural and urban places. Urban localities include distribution channels such as hypermarket, supermarket, general stores and growing one “e-retailing”.

E-retailing is in trend nowadays. E-retailing allows consumers to select their kind of products and also offers discount at times like in festive seasons. It is convenient to shop from here as one can easily purchase anything by sitting at home. Amazon, Flipkart, Snapdeal are some of the e-retailers in India which keep biscuits from both national and international brands.

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TEA & COFFEE NEWS

Tea exports marginally up in Jan-Sept 2018 from 9.13 million kilos exported in the corresponding months of 2017.

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ndia’s tea exports rose marginally to 173.80 million kilos during the January-September period this year from 173.52 million kilos exported during the same period last year, according to data from the Tea Board India. Provisional data from the Board also suggested that tea export, in value terms, during the nine-month period was up by about 2.3 per cent to Rs. 3,496.90 crore as against Rs. 3,417.49 crore in the year-ago period.

Exports to Pakistan and China went up while the shipments to Germany and CIS countries were down. Tea exports to Pakistan stood at 11.69 million kilos in the period, up by over 28 per cent

The crop exports to China during the period were up at 6.67 million kilos as against 5.59 million kilos in the same period last year .

The board data also said tea shipments to CIS countries including Russia, Ukraine, Kazakhstan and others were at 43.91 million kilos in the January-September period of 2018, down from 47.41 million kilos.

Exports to the UK at 10.33 million kilos were up marginally in the period under review, as against 9.66 million kilos shipped out in the year-ago period while exports at 6.69 million kilos to Germany during the period were down marginally from 7.47 million kilos exported in the corresponding months of 2017.

Ri Bhoi Co-Op Society Starts Operations At Umsning Tea Factory

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he ARSLA Organic Tea Growers’ and Producers’ Cooperative Society has started full-scale production in its newly setup tea factory at Umsning, Assam.

“We started production in our new factory at Nongjri last month. So far, we have processed about 550 kg tea, which will be sold in the local markets. However since the yield of green leaves is going down with the tea season coming to a close, we are thinking about closing production for now in a day or two,” KW Chyne, the co-promoter of the cooperative society said.

that a decision in this regard has not been taken.

“There was a proposal from the state government to organize the first ever tea festival in the state this month, which however has been deferred in all probability. So, we have not taken any decision on our plans for the launch and promotion of the brand. Prior to that, we have to sort out the issue of packaging the teas,” Chyne said.

The premium organic tea brand, once launched, is poised to cater niche markets across the country and world. The society had overcome funds constraint to set up its own factory having a capacity of producing 40,000 kg tea per annum.

The co-operative society, comprising 37 organic tea farmers in Ri Bhoi district, had earlier planned to start production by June and thereafter in September after two trial runs but had to defer fullscale operations in the factory owing to delay in power supply from the Meghalaya Energy Corporation Ltd (MeECL).

The plantations of ARSLA were certified organic in 2013. However, since there was no plant to process organic tea in Ri Bhoi district, the society decided to set up its own factory. An investment of Rs 80 lakh has been made on the plant, equipment and power transformer alone.

Asked about the society’s plan to launch and promote its ARSLA brand of green, black and Oolong orthodox teas in the market, Chyne said

Organic tea farmers in Ri Bhoi district had since 2013 been selling their premium tea leaves at a loss to factories making conventional teas.

Naturally low-caffeine tea plant discovered in China

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esearchers have discovered a wild tea plant in China that contains little or no caffeine and, unlike many industrially decaffeinated products, could potentially provide many of the health benefits of regular brewed teas.

Hongyacha (HYC) is found in the mountains of southern China. In the study, a team including Liang Chen from the Chinese Academy of Agricultural Sciences, used high-performance liquid chromatography to analyse HYC buds and leaves collected during the growing season.

In addition to finding several potentially health-promoting compounds not found in regular tea, they determined that HYC contains virtually no caffeine. This was because of a mutation in the gene encoding the enzyme tea caffeine synthase, which promotes caffeine production in most tea plants, Chen said, in a paper appearing in the Journal of Agricultural and Food Chemistry.

To decaffeinate tea, manufacturers often use supercritical carbon dioxide or hot water treatments.

However, these methods can affect the brew’s flavour and destroy compounds in the tea associated with lowered cholesterol, reduced risk of heart attack or stroke, and other health benefits.

Naturally low-caffeine HYC could possibly become a popular drink because of its distinct composition and unique health benefits, Chen noted.

The tea plant was also found to cure colds, soothe stomach pain and relieve a host of other ailments, the researchers said.

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Kerala plantations may take 5 years to recover from losses due to rains he unprecedented monsoon and subsequent flood have caused widespread damages to the plantation sector and it may take the state more than five years to recoup the loss, reported Association of Planters of Kerala (APK), the apex body of planters.

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differently from that of annual crops. This is mainly because of the specific characteristics of these crops, wherein once planted, their output is a flow for several years in future whereas in case of annual or seasonal crops, planting and output is confined to a season or a year.

“The total loss for the plantation sector estimated on scientific bases is above Rs. 3,070.85 crore.

This is compounded by the factor that most of the agro-commodities are passing through a low price realisation phase”, said APK chairman Thomas Jacob.

The study initiated by APK has classified economic loss in the sector based on the damages suffered and the time taken to recover and has come up on six categories which include transitory loss, shortterm crop loss, medium term crop loss, loss of production infrastructure and permanent loss, where the land has become unsuitable for cultivation.

He expressed concern on the health of the sector and said that nine plantations in Kerala are shut partially or completely due to unviable operations.

Kerala is home to several plantations that produce spices, tea, coffee, rubber and coconut. It also contributes 46% of India’s plantation produce, valued around Rs. 20,000 crore. Plantation crops like pepper, cardamom, rubber, tea and coffee are highly monsoon-sensitive with production directly dependent on the timing and quantum of rain. While too much of rain damages most of the cash crops, too short a monsoon also leads to lower crop production.

APK reports that the loss to the economy on account of the damage inflicted through the natural calamities on the plantation crops needs to be seen

Based on the classification, APK has arrived at a total loss of Rs. 1,080.32 crore in cardamom, Rs. 1,604.3 crore in natural rubber, Rs. 209.62 crore in tea and Rs. 176.6 crore in coffee.

APK officials add that the high cost of production and the low productivity coupled with price realisation below the cost of production have been plaguing this industry since 2012-13.

“Planters are unable to find credit to invest in the sector and replanting is being delayed for years.

The average age of trees or plants in most plantations in Kerala is above the national average and productivity very poor,” he added.

Saffron sold in India adulterated as govt has no policy to check quality Quality of saffron in India has come under the scanner with a recent study pointing out that the commodity sold in India failed to meet any quality parameters of Grades-I and II, and about half the samples drawn for testing were adulterated.

The study, conducted by a team led by Gulab Khedkar,

professor, molecular biology; director, Paul Hebert Centre for DNA Bar coding and Biodiversity Studies, Dr Babasaheb Ambedkar Marathwada University, Aurangabad, questioned as to how a commodity that is premium and scarce in production, is widely used in the country.

He drew attention to the fact, “India has no policy to check the quality. Surprisingly, all the products are marked under the standard laid down by the Food Safety and Standards Authority of India (FSSAI), which states that the product is safe to consume.”

Meanwhile another study, which was conducted by the Ministry of Food Processing Industries (MoFPI), Government of India, presented contrasting viewpoints. This second study proved that none of its 36 saffron samples collected for testing from 17 locations were sub-standard or adulterated. However, the ministry declined to comment on the same. Interestingly, apart from its aroma, flavour and health benefits, the spice is also known for its distinct colour, a key indicator that helps evaluate the commodity.

Explaining the first study’s findings, Khedkar stated, “Samples of saffron were collected from retail shops in Delhi, Hyderabad, Jodhpur, Mangalore, Kozhikode, Mumbai, Pampore and Tirupati, which were among the 17 sites, to track down the distributors, suppliers and stakeholders.”

According to him, it identified 24 samples (or 66.66 per cent) as true saffron, consis tent with the species specified by the sellers or as a label claim originating from the root, 10 samples were found to be carrying d i f - ferent adulterants in saffron, which had not been reported previously. The microscopic examination and spectroscopic studies for chemical analysis were undertaken at Paul Hebert Centre for DNA Barcoding and Biodiversity Studies.

Delving deeper, Khedkar stated that out of the 36 samples collected, only 20 samples examined were found to be true saffron, as they contained stigma from the saffron flower. Four samples were found to contain other parts of the saffron plant, such as the leaves or the stem. This made it difficult to distinguish them from the stigma via standard genetic tests.

Khedkar revealed, “It has been a century since the 1918 treatise, in which food chemists in the United States pointed out that saffron fibres may be soaked in honey, vegetable oil or glycerin to increase mass. Concerns about adulterated saffron have existed since then.”

Recently, two saffron sellers from Pampore, the town in Jammu and Kashmir to which the spice is native, were sentenced to a two-year term in jail for adulteration under Section 16 of the Prevention of Food Adulteration Act, 1954 (the predecessor of the Food Safety and Standards Regulations, 2011)

NEWS

Producer maintains quality of olive leaf extract subsidiary of Australia’s largest olive oil producer, Boundary Bend Wellness, , is planning on making a display with its vertically integrated leaf extract ingredients at an upcoming trade show in US.

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“Our founders met in agricultural school in Australia, and they realized the climate was ideal for olives,” Kreider said. “We have scientific method to make our trees super healthy. We propagate all of our own trees from our own cuttings.”

The company is going to highlight its vertical line of olive leaf extracts in the North American market for the first time by participating in the upcoming Supply Side West trade show in Las Vegas, NV. The company is underlining a narration of supply chain transparency with a farm to bottle message on its extracts. The company is of the notion that its vertical integration means it can offer higher quality extracts than the other players already on the scene.

As of today, Boundary Bend Wellness has more than 2.5 million producing trees in Australia which has a coverage over 6,500 hectares.

“We make most of the olive oil produced in Australia,” said Rachel Kreider, Boundary Bend’s new manager of business development.

Adding value to left-over materials “We had all this stuff left over from the output of the oil. We had pits that could be milled down to use as an exfoliant in cosmetics. And we had all the leaves on the trees, with all of the bioactive in them,” she said.

Boundary Bend has an olive tree agricultural estate in the province of South Australia as well as a smaller cultivated area in California. Boundary Bend Wellness has developed a reaping system that brings fresh leaves to its extraction facility in a matter of few hours, rather than shipping dehydrated products to long distances where it might lie in a warehouse for weeks together.

“By bring fresh leaves for extraction, important volatile compounds are preserved in the process.

The company has pioneered a proprietary extraction technique,” Kreider said.

Production system designed from ground zero to up Some olive oil producers from Southern Europe like to hype the ancient nature of their age old groves. Some trees are hundreds of years old and still producing.

Kreider said, “that’s an attractive message. But what Boundary Bend can bring to the table as a younger producer is a ground up, scientifically laid out strategy for producing a consistent botanical product”.

“We grow a number of different olive varietals, each with slightly different characteristics. We can tell you the row of trees where an oil or where the leaves came from,” she said.

“The market is lacking in that kind of supply chain transparency in the botanical space in many cases.

We can provide a wealth of data on exactly where a material came from and under what conditions it was grown,” Kreider said.

Effect of Polyphenol “A recent research has confirmed the health promoting properties and benefits of polyphenol rich olive leaf extracts, very beneficial especially for cardiovascular and immune health. The company can offer extracts which is standardized not only for oleuropein but for hydroxytyrosol. Boundary Bend’s extract contains 70 mg oleuropein and 4.5 mg hydroxytyrosol in a 15 ml dose”, Kreider said.

“Adequate consumption of antioxidants is absolutely crucial to a properly functioning immune system. The most prominent biophenols found in olive leaf extracts – oleuropein and hydroxytyrosol – have tremendous potential to support immune health because science has demonstrated they are absorbed into the blood system,” Kreider said.

“Olive ingredients for immunity as well as for cardiovascular health are something that has definitely been under leveraged,” she said.

The main authority, Mark Blumenthal, founder and executive director of the American Botanical Council, confirmed the bright future for the ingredient.

“Human clinical research on polyphenol-rich olive leaf extracts (OLE) shows that OLE is a botanical dietary ingredient with a promising future due to its beneficial cardiovascular properties, particularly its blood pressure-lowering and metabolic effects,” he said.

China sways green light to Argentine blueberry imports

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rgentina will now try to negotiate a reduction in the 30 per cent import tariff that exports are subject to. Argentina will be able to ship fresh blueberries to China for the first time this season after a long-awaited decision by the Chinese plant health agency to approve imports.

The announcement follows a successful visit by the Chinese authorities to the South American nation in September to monitor production and packing processes.

A number of farms in the provinces of Buenos Aires, Tucumán, Entre Ríos, Salta and Catamarca have already registered to export to China.

“Argentina will export fresh blueberries for the first time to the People’s Republic of China, as a result of the efforts being made by the Government to achieve the opening of new markets abroad,” the Argentine government said in a press release.

Although its vast size and hungry middle class

makes China an attractive prospect for Argentine shippers, they face a major obstacle in form of the 30 per cent tariff currently levied on Argentine blueberries.

“The government knows that this is an important barrier and has agreed to try to negotiate a reduction,” said Federico Bayá of the Argentine Blueberry Committee.

“We hope there will be good news soon, otherwise for this season the volume of fruit going to this market will be very low.”

Argentina exports around 95 per cent of its blueberry output, which this season is expected to reach 18,500 tonnes, an increase of around 15 per cent on 2017.

The increase is due mainly to the introduction of more productive varieties, as planted area remains unchanged. Organic blueberry volume is set to reach 3,000 tonnes, making up 16 per cent of the total crop.

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Vol. 11, Issue 06 -November - 2018

NEWS

Buddha Teas CEO: Natural flavor labeling laws should tighten

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atural flavors are cheap to use and appeal to taste palates but consumers are going to start asking more questions about source materials and incidental additives, says the CEO of Bud-

dha Teas.

After years of litigation around ‘all-natural’, given the lack of legal definition, some plaintiff’s attorneys have started to turn their attention to the components of natural flavors – ingredients that, unlike the term ‘all-natural’, are clearly defined by law (21CFR501.22).

According to the Food and Drug Administration (FDA), natural flavors are: “the essential oil, oleo-

resin, essence or extractive, protein hydrolysate, distillate or any product of roasting, heating or enzymolysis, which contains the flavoring constituents derived from a spice, fruit or fruit juice, vegetable or vegetable juice, edible yeast, herb, bark, bud, root, leaf or similar plant material, meat, seafood, poultry, eggs, dairy products, or fermentation products thereof, whose significant function in food is flavoring rather than nutritional.”

Last month, LaCroix maker National Beverage Corp found itself fighting a lawsuit alleging it falsely marketed its flavored sparkling water (made from carbonated water and natural flavor) as ‘all natural’. The complaint alleged the drink was “manufactured using non-natural flavorings and synthetic compounds” - suggestions the beverage maker strongly refuted, stating the drinks contained natural essential oils from the named fruit used in each of its flavors.

it’s very deceiving – the whole legalities around being able to use the wording ‘natural flavoring’. ...The FDA statement just means it needs to be derived from something natural and ‘derived from something natural’ is very ambiguous - that’s the loophole,” Boyd said.

Last year, Hint Inc was accused of falsely advertising its wares as ‘all-natural’ when they contained natural flavors featuring propylene glycol (PG), while Spindrift phased out its use of natural flavors claiming that they were something of a black box (“By around 2013, 2014, the #1 question we were getting from consumers was:

Natural flavoring in vanilla ice cream can be made with castoreum, a substance derived from beaver anal glands, for example, said Boyd, but consumers would have no way of knowing this from the label.

‘What is in your ‘natural flavors’? The problem is that when you buy natural flavors, they are not required to disclose exactly what is in there. You can ask hard questions, but we really never got to the point where we could definitively say what was going in our product and I just wasn’t comfortable with that.”)

Another example was ginger ale, Boyd said.

“What companies do with their labeling is if you’ve got a ginger ale made with real ginger it says ‘made with real ginger’. Now, that’s great and if you’re in the know and educated, you know that’s actually made with real ginger. But if you’re not in the know, you may think ‘made with natural ginger flavor’ also contains ginger, but often there’s zero ginger inside it – it’s a big cover-up.”

Derived from something natural is ‘very ambiguous’ John Boyd, CEO and co-founder of Buddha Teas, said that while ‘natural flavors’ are defined in law, consumers don’t know what’s in them. “I mean,

“I think the answer is that the legislation and the FDA rules around it have to change to be about clearer labeling,” Boyd said. The law had to be tightened to ensure consumers knew exactly what they were getting and avoid any confusion, he argued. Manufacturers also had to act, he said, “Simply put: be real with the public. Reveal the truth to consumers and let them make an informed decision about what they choose to buy, or not.”

Boyd said not every company or brand had to switch away from natural flavorings, just be clearer, although as more consumers became aware of natural flavor origins, there could be a shift in purchasing behavior which many companies would then want to follow. The big reason behind the widespread use and existence of natural flavors was simple, he claimed: PRICE. “I think a lot of it is cost reasons but also because the US palate has been trained to believe that these are real flavors. We’re stimulating our taste buds so heavily that when you have something that’s real, it’s bland.”

Since its launch in 2009, Boyd said Buddha Teas had never used natural flavorings, always opting for real fruits and herbs. Its turmeric and ginger

tea, for example, was made using dissolvable plant extracts and its fruit teas, freeze-dried berries. Certified organic, Buddha Teas sourced its ingredients globally from California Certified Organic Farmers Foundation (CCOF)-approved farms. Retailing at US$8 per 18-teabag box, the brand stood at the premium end of the market.

“The reason wanted to create Buddha Teas in the first place was due to the very fact there were no American-based tea companies offering a huge variety of teas without additives, and that includes so-called ‘natural flavorings’.

“It is vital to me that truth and transparency is an integral part of our business model. If you look on labels of other well-known, so-called medicinal tea companies, you’ll regularly find ingredients listed that do not actually tell the consumer anything. ‘Natural flavoring’ – this does not tell the truth. And that, to me, is unethical,” Boyd said.

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Vol. 11, Issue 06 -November - 2018

AGRO NEWS

Indian Scientists Create Natural & Nutritious Food Dye From Wild Blood Fruit Due to its limited distribution, researchers collected fruits from the Middle Andaman Islands and Tripura to conducted seed germination studies. They found that seeds had dormancy issues and had to be treated for obtaining healthy seedlings in large numbers.

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LOOD FRUIT is a woody climber and it is very popular among tribes in the Northeastern states, Andaman and Nicobar Islands and Bangladesh. The fruit is not only tasty and rich in anti-oxidant but is also a good source of dye for the local handicraft industry. Now researchers have developed a standard nursery protocol for its propagation.

The plant grows wild in forests and over the years, due to growing demand for its fruit, it has been indiscriminately harvested from natural forests.

This has affected natural regeneration and it is now considered a critically endangered species. The new research will help in blood fruit to be grown in agricultural fields or home gardens, so that it is conserved even while being continued to be used as a source of nutrition and dye.

The nursery protocol has been developed by researchers from Central Island Agricultural Research Institute, Port Blair; ICAR Research Complex for North Eastern Hill Region, Barapani and College of Agriculture in Tripura.

The scientists also extracted and studied pigmentation in blood fruit. Among the different solvents tried for extraction, they found that dimethylsulphoxide was the best solvent to extract chlorophylls and total carotenoids. More studies are underway to characterize the red colour property of the fruit, said Dr. Pooja Bohra, a member of the research team, while speaking to India Science Wire.

The group is also working on methods to improve seed longevity and post-harvest storability of fruits. “We are already distributing seedling to farmers in Andaman and Nicobar Islands to promote commercial scale cultivation”, she added.

The plant, which goes by the biological name of Haematocarpusvalidus, flowers once in a year. The main fruiting season is from April to June. Initially, the fruits are green in colour and they turn blood red on ripening giving the name ‘Blood Fruit’.

Generally, the fruits from the Andaman Islands are much darker in colour compared to other sources.

The genepool in the Andaman Islands can be lost due to natural calamities and promoting its cultivation can ensure the conservation of this species.

Courtesy: India Science Wire

Early snowfall affects Kashmir’s fruit industry It may take one week to get the complete details,” he added. Meanwhile, the KCCI issued a statement, questioning why the Pradhan Mantri Fasal Bima Yojana (PMFBY) – the Central government crop insurance scheme – hasn’t been implemented in the Valley so far.

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now in Kashmir has hit the fruit and horticulture industry, with the Valley’s top trade body pegging the damage at Rs 500 crore.

The snowfall, which began on Saturday, has damaged fruit crop in several parts of the Valley, with fruit associations saying that around 20 percent of the crops was unharvested.

“After receiving the preliminary inputs from the districts, we believe that loss to the industry is over Rs 500 crores the exact details will be known after a proper assessment,” Sheikh Aashiq Ahmad, president of the Kashmir Chamber of Commerce and Industry (KCCI) said.

Authorities have said they are in the process of assessing the damage to apples orchards. Horticulture Kashmir director Manzoor Ahmad Quadri said that the process is on. “This is true that snowfall has caused damage to the orchards. But how much…we are collecting reports from the ground.

“The KCCI is happy to learn that the Crop Insurance Scheme is operational in Jammu province since Kharif 2017, but at the same time anguished that being more prone to the vagaries of nature, Kashmir stands ignored in this regard,” the statement said.

The Kashmir Valley Fruit Growers cum Dealers Union (KVFG), an apex body of fruit associations, said the recent snowfall has destroyed “entire fruits crop and uprooted fruit plant in all fruit orchards in the Valley”.

This body too has demanded administration should consider grant of compensation of the losses of thousands of crores of rupees due to heavy snowfall.

“The snowfall has damaged the apple trees badly. For a fruit grower, it is not the loss this year only, but for coming years as well because trees are badly damaged,” emphasized Basheer Ahmad Basheer, chairman of KVFG.

India witnesses a decline in apple imports 9 % - pear 4 %

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AS New Delhi forecasts marketing year (MY) 2018/19 decline in fresh apple import of approximately 9 percent year-on-year, reaching 0.23 million metric tons (MMT). FAS New Delhi also estimates declines in pear imports of 4 percent year-on-year to 14,000 metric tons (MT) overall.

is limited by seasonality, geographical separation and insufficient infrastructure. It cannot meet increased consumption from the growing middle class. FAS New Delhi revises down the MY 2017/18 consumption numbers to 1.9 MMT. The revision reflects a depreciated Indian rupee. It also reflects decreased Indian consumer’s purchasing power, India’s trade concerns about global trade outlooks and noticeably lower domestic production.

The MY 2017/18 average unit price for U.S. fresh apples imported into India was USD 1,099 per ton; Italy at USD 1,125 per ton; and, New Zealand at USD 1,246 per ton.

These import declines are largely due to significant rupee depreciation, Indian trade concerns about the global trade outlook, and a temporary ban on Chinese apples and pears from entry into Indian market. India will remain a major exporter of fresh table grapes. FAS New Delhi projects MY 2018/19 table grape exports to increase by 6 percent year-over-year to 0.18 MMT from 0.17 MMT in MY 2017/18.

Apples consumption: FAS New Delhi forecasts a rebound in MY 2018/19 Indian apple consumption to 2.2 MMT. The increase is due to availability, accessibility, food choice, changing demographics, urbanization, culture, and consumer attitude in India. Most importantly, Indian consumers’ continued and growing health awareness and the apple availability drive consumption year-round. As a result, apples are the most heavily consumed imported fruit in India. The uninterrupted supply of apples has led to increased consumption in smaller markets of the country too. Indians primarily consume the fruit fresh; out of the entire production, two percent is processed and according to the Ministry of Food Processing and Industries 10.39 percent of apples are spoiled or wasted. Domestic production

Pears consumption: FAS New Delhi projects MY 2018/19 consumption to increase by 20 percent from the previous year to reach 313,200 MT based on domestic production forecasts. The rise in disposable incomes, growing dual income households, and improved awareness of fresh fruit’s role in healthier diets drive increased consumption.

With restrained availability of domestic pears, fresh pear imports satisfy remaining consumer demand. India produces a limited volume of pears domestically throughout Punjab, Himachal Pradesh and Jammu and Kashmir, which are available from late summer to early winter. Indian consumers primarily consume pears in fresh form.

Processing remains small at about two percent of domestic production because imported fruits’ high unit costs make them a less preferred option for processing. Waste or spoilage is approximately 10 percent of annual production.

Price: The MY 2017/18 average unit price for fresh pears from South Africa was USD 1,147 per ton; U.S. imported pears into India priced at USD 1,140 per ton; and, Australian pear imports cost USD 1,011 per ton.

Indian food and agro buyer seller meet in Jeddah

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wenty-five Indian companies from food and agricultural products sector, exporting rice, tea, spices and dry fruits, met the Saudi importers at the BSM which was inaugurated by Md. Noor Rahman Sheikh, Consul General of India in Jeddah and Hassan Ibraheem Dahlan, Secretary General of Jeddah Chamber on November 11, 2018.

The four commodities being focused on have great prospects for furthering Indian exports to Saudi Arabia. The Kingdom of Saudi Arabia has been a major food and beverages (F&B) market for India. The BSM will be an ideal platform for Indian participants to explore the business opportunities for trade, acquaint with new consumer trends and initiate marketing tie-ups and joint ventures.

Basmati rice export continuously dominates India’s rice export basket.

India accounts for around 72 per cent of the total Basmati rice pro- duced and it offers India not just the leading producer tag but also very high product visibility in the world market. Indian tea, is among the finest in the world

owing to strong geographical indicators, heavy investments in tea processing units, continuous innovation, augmented product mix and strategic market expansion. India is the 2nd largest producer and 4th largest exporter of tea in the world with a 23 per cent share in global production and a 7.5 per cent share in world tea exports. India exports tea to more than 60 countries globally with Iran, Russia, UK, USA and the Gulf countries being major markets.

Indian spices too are much in demand in the GCC countries, given their exquisite aroma, texture and taste. Saudi Arabia primarily imports pepper, chilli, turmeric, ginger and cardamom from India.

Saudi Arabia is India’s one of the most important trade partners and is a major FDI partner of India after the UAE in Gulf region.

India’s export to Saudi Arabia was worth USD 5 billion in 2017. The major products exported by India to Saudi Arabia were rice, chemicals, refined petroleum oil and motor vehicles and its parts.

22

NEWS

Vol. 11, Issue 06 -November - 2018

drink technology India 2018 underscores its position as the key event for the beverage and liquid food industry in India • More exhibitors and more space • High impact of the trade fair as a driving force for the Indian market • Expanded supporting program a great success The success of the most important event for India’s beverage industry remains unchecked: The trade fair alliance consisting of drink technology India (dti), organized by Messe München, and indiapack pacprocess and food pex India, organized by Messe Düsseldorf, recorded higher numbers of ex-

hibitors and occupied more exhibition space. The number of visitors remained at a very high level as well. The fair’s further growth reflects the dynamic development of the Indian beverage and liquid food market, in which high growth rates are again forecast to climb. “The figures speak for themselves: 201 exhibitors from 17 countries presented their products and solutions at dti. They occupied around 23 percent more net exhibition area than at the last event in Mumbai,” Georg Moller, head of

ONE INDUSTRY, ONE SHOW!

13-14-15

7

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DECEMBER 2018

WESTERN INDIA’S ONLY EXHIBITION ON REFRIGERATION & COLD CHAIN INDUSTRY Meet 200+ exhibiting companies from India & abroad 45+ Product launches during the exhibition 82+ First time exhibitors to showcase their latest solutions

Boosting the nutritional profile of baked goods

International Pavilions Holland & China Industry related Workshops on Startup & Subsidy for cold chain Dec 14-15, 2018

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Packaging Zone providing cold chain packaging & labeling solutions Food & Pharma Cold Chain Conference from Dec 13-14, 2018

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the business division at Messe München, said in describing the fair’s success. Bhupinder Singh, the CEO of Messe Muenchen India, was also pleased by the continued growth: “It underscores the huge meaning of dti for the Indian market.”

Together with indiapack pacprocess and food pex India, 343 exhibitors presented themselves on an area of around 16,500 square meters from October 24 through 26. Moller pointed in particular to the very professional cooperation with the partner Messe Düsseldorf: “Joint staging of the fairs is not only a big gain for us. As a result, visitors obtain a comprehensive overview of all areas of the beverage and packaging industry.”

This offer was widely used by visitors, as for example Partho Ghosh, Executive Vice President bei KHS Filling & Packaging Worldwide says: “We had many talks with visitors and have received new leads this year. The Indian beverage industry is looking for innovations which will bring the development of the industry a big step forward.”

Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association, also described dti as an important driving force for the industry: “For companies that produce machines to make, process and package beverages and liquid-food products, India is one of the major sales markets in Asia.” The outlook for the market is consistently positive. In the process, the important role played by dti will continue to

grow. Two new additions to the supporting program of dti in Mumbai were the seminar of the Oil Technologists’ Association of India (OTAI) and the seminar of the Food Safety and Standards Authority of India (FSSAI). The OTAI Seminar addressed the growing importance of oils and fats in the Indian market and in particular challenges in packaging edible oils. The FSSAI Seminar provided insights into the regulations on and regulatory framework for beverages in India.

All items on the supporting program went down very well with visitors. The seats at the forum were always full. With the supporting program, dti once again proves that it gives key boosts and stimuli to the beverage and liquid food industry in India. dti, indiapack pacprocess and food pex India drink technology India is staged in conjunction with indiapack pacprocess and food pex India of Messe Düsseldorf. This combination of four trade fairs covers the topics of drink technology, dairy and liquid food together with those of the related packaging industry (drink technology India), packaging and related processes (pacprocess India), packaging materials and aids as well as machines and technology for the production of packaging materials and aids (indiapack) and also food and confectionery processing and packaging (food pex India) all under one roof and is unrivaled in the region.

The next dti in Mumbai will be held from December 9 to 11, 2020. In 2019, dti will be held in Bengaluru for the first time. It is scheduled for February 28 to March 2. As part of the trade fair alliance, the event will also be held next year once again - from December 5 to 7 in New Delhi.

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he demand for healthier baked goods continues to grow. Through our dedicated partnership with UK based leavening agent supplier Kudos Blends, Brenntag India can help bakeries and premix manufacturers to satisfy consumer demand, and comply with global and national health targets. Kudos Blends developed its extensive range of innovative leavening agents especially for bakery manufacturers, helping them to reduce sodium and increase potassium in their products, without affecting quality.

The need to reduce sodium Sodium reduction is often associated with reducing a product’s salt content, however it is vital to consider other sodium contributing ingredients.

In fact, leavening agents used in bakery products often contribute more sodium to the end product than salt. Excess sodium in the diet leads to hy-

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pertension, which affects 140 million people in India1. Hypertension is a risk factor for the number one cause of death in India, and around the world – cardiovascular disease2. As a member state of the World Health Organisation (WHO), the Indian government has committed to achieving a 30 per cent reduction in the population’s sodium intake by 20253, in an attempt to tackle this serious issue.

A low sodium solution With the need to produce healthier baked goods more pressing than ever, Kudos Blends has developed KUDOS™ Potassium Bicarbonate and PELL™ K low sodium baking powders, giving bakery manufacturers a healthier alternative to sodium bicarbonate. Allowing industrial bakers and premix manufacturers to reduce the sodium levels of their products by up to 50%, KUDOS™Potassium Bicarbonate’s fine particle size ensures full dissolution and therefore optimum taste, texture and appearance in every application. The product’spatented hydrophobic nature means it repels moisture, ensuring a long shelf life. As well as reducing sodium, users of KUDOS™ Potassium Bicarbonate and PELL™ K baking powder can also increase potassium in their baked goods. Potassium has been proven to reduce blood pressure, therefore minimising the subsequent risk of cardiovascular disease.

An alternative to aluminium With the leavening agent sodium aluminium phosphate (SALP) already banned in Europe and parts of Asia, Kudos Blends have developed an aluminium free alternative: KUDOS™ SALP Replacer.

This product uses a specific blend of zero aluminium leavening acids to match the distinct reaction profile of SALP, and has been tailored to maintain high quality product characteristics.

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Vol. 11, Issue 06 -November - 2018

I

ndia Cold Chain Show 2018 returns with its 7th edition which is scheduled to take place on the 13-14-15 of December, 2018 at Hall Number 4, Bombay Exhibition Centre, Mumbai, Maharashtra.

The show has grown over the years to be the largest and leading event showcasing entire range of solutions and services for Cold Storage Infrastructure, Material Handling, AIDC Solutions, Refrigeration, Temperature Control, Cold Transport, Cold Logistics and Supply Chain for diverse industries with cold chain intensive business operations such as Dairy, Ice Cream, Seafood, Meat, Frozen Food, Fruits and Vegetables, Retail, Export Import, Logistics, Oils, Bakery, Quick Service Restaurants, Ports and Airports, Hotel, Floriculture and many more.

The exhibition serves as a Networking and Business Development platform where trade buyers/ visitor industries are introduced to new technologies and innovations, leading brands and a wide variety of solutions to help build a better cold chain system (Cold Storage + Refrigeration + Cold Transport). The concurrent conference serves as a knowledge sharing and networking platform where we look to facilitate the learning of industry trends, challenges and opportunities associated within different industries.

Leading Associations such as Federation of Cold Storage Association of India, National Horticulture Board, Grape Grower’s Association of India, Vegetables Grower Association of India, Orange Grower Association of India,Gujarat Cold Storage Association,Madhya Pradesh Cold Storage Association,Maha Cold Storage Association,Association Of Cold Storage - Tamil Nadu, Sea Food Exporters Association of India,Director of Horticulture,All India Transporters Welfare Association (AITWA),Maharashtra Heavy Vehicle & Interstate Container Operator Association (MHVICOA), Bombay Goods Transports Association, Association of Ammonia Refrigeration, Mahagrapes

India’s food retail market is expected to touch USD 827 billion by 2023

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ccording to an Assocham-TechSci Research consulting joint study, ‘Food Value Chain: Partnerships in India’, India’sfood retail market is expected to touch USD 827 billion by 2023, up from USD 487 billion in 2017, growing at a compound annual growth rate (CAGR) of 9.23%, with recent reforms making the sector more competitive and market oriented.

In line with Narendra Modi’s vision to double farmers’ incomes by 2022, the growth in India food processing industry in value terms is expected to be more than in volume terms over the coming years, which clearly indicates the increase in prices for Indian commodities across the globe.

This highlights a great opportunity for small-scale farmers, who can associate with the leading exporters to boost their earnings by carrying out either contract farming or increasing the production by using technologically advanced equipment.

Northern (29.56%), western (25.39%) and southern (27.19%) regions account for the major share in India food retail sector whereas Eastern region (17.86%) has a relatively low market share, owing to the presence of seven sister states, Bihar and Jharkhand, where the concentration of big retail companies is only limited to 4-5 cities, according to the study conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) jointly with consulting firm TechSci Research.

NEWS

Western India’s only exhibition on Refrigeration & Cold Chain industry Growers Exporters, Confederation of Indian Horticulture, Federation Of Cold Storage Association of India, Asia Pacific Logistics Federation,SCLG have confirmed their support for the show this year.

2018 edition of the show is proudly supported by some eminent names in the industry such asGandhi Automations Pvt. Ltd. as Gold Partner, Kelley Material Handling Equipment India Pvt. Ltd. as Silver Partner, ZirkelInfraca Pvt. Ltd. as Silver Partner, Emerson Climate Technologies India Limited as Bronze Partner, Tecumseh Products India Pvt. Ltd. as Registration Partner, Pluss Advanced Technologies Pvt. Ltd. as Conference Partner, Shakti Hormann Pvt. Ltd. as Lanyard Partner, Natural Storage Solutions Pvt. Ltd. as Turnkey Solution Partner, Icon Freshtop Private Limited as Visitor Badges Partner, The Cold Box as Presenting Partner.

A glimpse of what India Cold Chain Show 2018 will offer: Over 200+ National and International exhib-

itorswill display their product and solutions covering Cold Storage Infrastructure, Refrigeration, Material Handling, AIDC, Cold Transport and Cold Logistics at the show.

• Over 82first time exhibitors will be displaying their latest solutions for building an effective cold chain management.

• 45+ new product launches from leading companies such as Gandhi Automations, Ice Make Refrigeration, Kaveri sales, Blue Cold Refrigeration, MiddlebyCelfrost, Pluss Advance Technology, Natural Storage Solutions, TESSOL, Shakti Hormann, ZirkelInfraca India, Airconditioning Spare Centre, EBM Papst and many more.

• More than 120+ live demonstration by exhibitors covering cold chain solutions including cold storage, frozen fulfilment, refrigerated transportation, temperature-controlled logistics and much more.

• Packaging Zone: Companies providing Cold Chain Packaging and Labelling solutions for Pharma, Food and allied industries have an exclusive area earmarked for showcasing their solutions at

this edition of the India Cold Chain Show.

• Two Industry specific conferences scheduled for the 13th of Dec – Food Cold Chain Conference and 14th of Dec – Pharma Cold Chain Conference at the Bombay Exhibition Centre, Goregaon (E), Mumbai. The conference serves as networking platform to meet the leaders from the Industry and understand the latest trends, opportunities and challenges via panel discussions, case studies and keynote presentations.

• Industry related Workshops will also be conducted parallel to the conference and exhibition on niche topics to help facilitate learning and application within the Cold Chain industry.

• GoConnect- A hassle-free and organised business matchmaking platform for visitors to pre-fix meetings with the exhibitors.

• Exclusive VIP Buyer programme in which leading officials and industry experts will be hosted as VIPs and offered exclusive services and access to the show.

Do not forget to pre-register and avail pre-registration benefits that includes a complimentary copy of show catalogue.

24

Vol. 11, Issue 06 -November - 2018

BEVERAGE NEWS

Kellogg launches HI! Happy Inside - new cereal to support digestive health

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ellogg has introduced a new cereal called HI! Happy Inside, featuring prebiotics, probiotics and fiber. The cereal giant said its new product makes digestive wellness support easily accessible.

HI! Happy Inside contains 1 billion live probiotics from active strains, 2.5 grams of prebiotics and 8 to 9 grams of fiber, depending on the variety. The

cereal comes in Simply Strawberry, Bold Blueberry and Coconut Crunch flavors.

The use of probiotics and prebiotics is expected to significantly grow in the coming years due to its reputation for relieving digestive issues, boosting the immune system and contributing to the maintenance of balanced gut microbiota, or “good” bacteria.

Demand for prebiotic-containing products — such as health drinks, dairy, infant food, and meat and bakery products — could reach $7.8 billion by 2022, according to a Global Industry Analysts’ report. But this isn’t the first time Kellogg has used a functional add-on to boost its brands. Last year, the company repositioned its Special K cereal — mainly marketed as a weight-loss product — by adding probiotics and calling it Special K Nourish.

This new product designed to optimize digestive wellness could be an attractive addition to the cereal aisle for health-conscious consumers. Awareness of how probiotics can enhance gut health for

consumers has increased, thanks to yogurt advertising campaigns and other outreach. Besides yogurt, probiotics are being added to juices, confectionery items, baked goods and even beer and wine.

Despite the bright future projected for these ingredients, Kellogg might need to do some on-package and other consumer education about why prebiotics and probiotics are important to digestive health. . It remains to be seen whether enough consumers will be willing to pay that amount for a cereal despite its health benefits.

Nestlé goes organic in India

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estlé SA, being one of the bidders for GSK’s ‘Horlicks’, is pursuing strong organic growth in India. Speaking to the media person CEO Ulf Mark Schneider said, “We have been pursuing acquisitions everywhere — it’s part of our business model of seeing a growing company in gaining additional market presence.

When there are opportunities, we are interested in those.”

Schneider added, “Going forward, we are interested in strong organic growth — that, to us, is the life blood of a successful company. Organic growth tells you how much in favour you are with the consumers. It’s a sign of health and we are dedicated to that and it’s always been a lead metric for Nestlé.” Nestlé India ($90-billion Nestlé SA has a holding of about 63%) saw its net profit increasing 30% to Rs. 446 crore on a 17% growth in net sales at Rs. 2,922 crore in September 30, 2018.

India contributes only 2% to global incomes, has been a big base of learning for the company.

Nestlé, with the Maggi noodles crisis in 2015 and from which it successfully sprung back, has learnt a huge lesson on the importance of responding quickly to any unfavorable post on social media.

“The learning from the Maggi noodles case has been that staying very close to local governments and local consumers is super important. The other important learning is — as much as you want to be absolutely sure that what you say to the last degree is true, reliable and right — you also have to be very fast because these days the slightest concern, the slightest thing that gets out on social media, interest builds up to sentiments. It’s important at all times to be totally factually correct, but it is also important to react very early on, as quickly as you see sentiments building,” said Schneider. Today, 6.4 million packs of Maggi Masala noodles are served per day as Maggi stands with a market share of around 60%.

Schneider was interacting with media on Nestle’s initiatives around “Healthier Kids”. He stated, “With the company looking at nutrition as an intersection between business and society, Nestlé renovates a third of its product portfolio every year. The company is talking about totally different starting points market by market. With each country having specific dietary preferences, the progress is measured in different ways”.

Any change that Nestlé sees is the response to the changing set of consumer’s choice, preferences and tastes towards healthier life and products.

Schneider also added that cost-consciousness is equally important to stay competitive and make products that consumers are willing to pay for.

Manufacturer of brands like Nescafe, Kit Kat, Milo and Cerelac plans to help 50 million children lead healthier lives by 2030. Nestle, the 150-yearold company, which has a base in 189 countries, aims to reduce salt, sugar and saturated fats and enhancing ingredients containing fibre, vegetables and micro-nutrients in its products. The company has reduced sodium by 10% and sugar by 850 tonne in relevant product categories in recent years. By the year 2020, the Nestle products will be produced with reductions of 6% in added sugar, 10% in salt and 2.5% in fat.

www.agronfoodprocessing.com

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Vol. 11, Issue 06 -November - 2018

RETAIL NEWS

McDonald’s net profit sees six-fold in this Q2

We didn’t really have competitive advantage: Bernardo Hees of Kraft Heinz Co market and the beverage portfolio we have in the country. It could not scale to the level you wanted it to,” he said.

Kraft Heinz India had, on October 24, said it sold off its consumer business — including malt beverage Complan — to Ahmedabad-based Zydus Wellness and its parent Cadila Healthcare for Rs 4,595 crore. “An important side effect of this is the fact that with the proceeds, we’re able to strengthen our balance sheet; it gives us more firepower.

The value Kraft Heinz received from the asset sale of its consumer business in India is higher than what the company could have got doing the business here, Kraft Heinz Co global chief executive Bernardo Hees has said.

“The value we’re receiving from proceeds is really higher than what we could have done,” Hees told analysts at the Chicago-based food and beverages firm’s earnings call for the third quarter. “In the India case, it was very clear for us that we didn’t really have the competitive advantage in the new

That, I think, is a positive in this case,” Hees said late Thursday. Post divestment of brands including Complan, Glucon-D glucose powder, Nycil talcum powder and Sampriti ghee, its only brand of significance in India is Heinz ketchup. “Each brand has its role in a specific country and region,” Hees said. “But we do evaluate every business and brand on its own, see returns and what we can do with that.

O

wner of the franchisee of McDonald’s restaurants in west and south India, Westlife Development, reported a spectacular six-fold jump with a net profit of Rs. 7.9 crore for the second quarter of the financial year 2018-19. Last year Mc’D reported a profit of Rs. 1.2 which definitely gives the company a time to celebrate this year.

Mc’D as children dearly call it, reported a 32 percent rise in its revenue to Rs. 350 crore in this year review. The QSR-chain had reported revenue of Rs. 264.6 crore during the same time previous year. “I am happy to announce that the company

has reported yet another quarter of profitable performance. We made a bold move by launching the new rice platform in this quarter which worked very well for us and has got a tremendous response from our customers.

This new platform has helped us expand our addressable market while adding to our range of nutritious and wholesome meal options.

Our investments in brand extensions continue to reap excellent results as both McCafé and McDelivery have become strategic levers for the company”, said Amit Jatia, Vice-Chairman of Westlife Development.

During the quarter, the company launched the new rice platform and introduced two variants of rice meals – Cheesy and Spicy. The company aims to continue building on this platform. The company has been rapidly growing its McCafé footprint. It added 14 new McCafé’s in the quarter, taking the total count to 170.The company opened six new McDonald’s restaurants including the first restaurant at Kakinada in Andhra Pradesh taking the total count to 287 restaurants across 39 cities.

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Charcoal Eats set to foray into international shores

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SR startup Charcoal Eats is racing ahead on its plans to foray into international markets starting with Middle East and Europe.

The firm which is currently present in about 30 locations across 11 cities in India is looking to enter Middle East through Bahrain with about 8-10 outlets and then expand to other countries in the area. Beyond Middle East, the firm is also looking to launch in United Kingdom with 4-5 outlets by March next year even as it doubles down on the India market simultaneously.

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“Going forward, we will maintain a dual focus for India expansion - opening more outlets in metros (Mumbai, Delhi NCR, Pune, Bengaluru, Chennai and Kolkata); and expanding into tier II cities, which we see as the future growth engines for the food space. Charcoal Eats intends to be at 75 outlets in India and 6 overseas by March 2019,” said Anurag Mehrotra, Co-founder & CEO, Charcoal Eats.

For this international expansion, the firm which has raised Rs 12 crore in investments so far, is looking to team up with franchise partners for increasing its outlets.

Charcoal Eats works with several aggregators such as Zomato, Swiggy, Foodpanda and Dine Out and has also partnered with Sodexo for partnered with Sodexo for corporate customers.

For FY19, the firm is targeting to reach over 1 million customers consistent with its expansion plans.

Charcoal Eats is targeting an annualised run rate of Rs 34-37.5 crore by March 2019 on the back of its outlet expansion both in India and internationally.

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Charcoal Eats claims to have clocked about 30,000 orders as of September growing 120% from 13,600 orders in April. The firm said revenue growth too has been strong with a 22% MoM growth from April 2018 to September 2018. Charcoal Eats claims, it is at a revenue run rate of Rs 1 crore for September as compared to Rs 36 lakh as of April.

The firm’s pivot from a ‘meals only’ to an ‘all day dining’ menu along with an increase in the outlets across the country have driven most of the growth.

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Vol. 11, Issue 06 -November - 2018

SEA FOOD NEWS

Warming Of Indian Ocean Reportedly Threatening India’s Fisheries

W

arming of the Indian Ocean at a fast pace owing to climate change poses a threat to the multi-million dollar blue economy of India, scientists said in Kochi.

Climate change is affecting fisheries through change in stock productivity and its distribution, they said during the opening session of a ‘Winter School on Climate Change in Marine Fisheries’ being organized by the Central Marine Fisheries Research Institute in the city.

The change in climate change is causing floods and drought across the globe, Vice-Chancellor of Kerala University of Fisheries and Ocean Studies A. Ramachandran said while inaugurating the 21day school which would provide a platform for an academic-oriented discussion on the effect of climate change on marine species.

Increased water temperature and higher carbon dioxide concentration make the ocean more acidic, he said.

There would be a drop in productivity of marine species as there was a gradual damage being caused to the ecosystem and biodiversity, the Vice-Chancellor said.

Commitment of the stakeholders and coordinated efforts were required for the growth of the blue economy in a sustainable way, he said.

Indian Ocean is warming at 0.11C per decade faster than the Atlantic (0.07C) and the Pacific (0.05C) and the temperature of the sea surface of the Indian Ocean would increase by 0.60 C by 2050, said director of Central Marine Fisheries Research Institute A Gopalakrishnan. “However, Indian marine

fish harvesting is more eco-friendly than the global scenario. Our marine fisheries is emitting 17.5 per cent less carbon footprints than the global average when it comes to fishing material involved in fishery,” he said.

The institute has catalogued resource-wise information and the institute was in the process of predicting fish bio-mass changes in Indian oceans in future, he said.

It has also prepared adaptation strategies to climate change with action plan and research on estimating primary productivity of Indian exclusive economic zone (EEZ) for assessing the carrying capacity in Indian waters with respect to climate change was also underway, Gopalakrishnan said.

Course director of the winter school and head of the Demersal Fisheries division of the marine fisheries research institute P U Zacharia said the country experienced 24 extreme climatic events around the Indian coasts resulting in loss of life and property.

“Estimate of climate change impact is essential to devise climate change policies and suggest adaptation and mitigation measures,” he said.

The Winter School is aimed at equipping scientists, researchers and other stakeholders with the tools and requisite knowledge to assess and adapt to the changes occurring because of climatic variations, said the Central Marine Fisheries Research Institute.

As many as 25 researchers and teachers were participating in the programme.

Fisheries Ministers from South India to implement MLS to curb

F

isheries ministers of south Indian states have unanimously decided to implement the Minimum Legal Size (MLS) measure recommended by the CMFRI to curb juvenile fishing, Kerala fisheries minister J Mercykutty Amma said.

states to provide fishing right beyond the territorial waters of 12 nautical miles.

A decision was taken to exert pressure on the Centre to increase the unit cost of deep sea fishing vessels from the existing Rs 80 lakhs to Rs 1.5 crore.

“The conference also decided to seek technical and financial support from the Centre for equipping fishermen for deep sea fishing through cooperative societies,” the minister said.

The two-day conference also decided to ask the Centre to introduce financial safety plans to compensate employment loss to the fishermen during the period of trawling

Kerala has already implemented the MLS for 58 fish species to check juvenile fishing.

MLS is seen as a fisheries management tool with the ability to protect juvenile fish, maintain spawning stocks and control the sizes of fish netted.

“Now other states have also come forward to implement the measure in their territorial waters to make the regulation more effective,” she said here while briefing the details of the conference to the media.

The conference also resolved to urge the Centre to reduce the fuel price and waive road tax for the fuel for fishing. Mercykutty Amma also said the meet arrived at a consensus for demanding the central government to permit the supremacy to the

ban.

The meeting recommended the states to follow Kerala model “Clean Sea” initiative to remove plastics from the sea and implement satellite supported vessel monitoring system (VMS) on fishing vessels venturing beyond the 12 nautical miles in the sea.

Earlier, representatives of fishermen and fishing boat owners put forward their suggestions and highlighted the issues faced by them during a stakeholder meeting.

To this, the fisheries minister replied that the state government was committed to taking steps to develop the fisheries sector only through ensuring the active participation of stakeholders.

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Vol. 11, Issue 06 -November - 2018

I

n India the legal standards require the average weight of packages comprising a lot to be equal to or greater than the label weight, and that no single package weigh unreasonably less than or greater than the label weight.

It is for this reason that it is essential that the accuracy is checked to ensure it complieswith all the regulations and countless codes of practice. There are many publications available today that offer information and guidance on inline checkweigher, It isunfortunate however that the large majority of these are overcomplicated and use unknown words or abbreviations along with complexcalculations.

In the rare texts where it is understandable it is often far too open to interpretation, which again adds to the misunderstanding.

How do you check the accuracy of an inline checkweigher?

Automatic Inline Checkweighers Have Been Part Of Our Production Lines For Decades, In India Almost Every Process Industry In The Food &Pharmaceutical Segments Are Using Checkweighers For Accurate Weight Checking give different results mainly due to its difference in length and shape.

One of the first checks is to determine the Zone of Indecision (Zoi), this is not as sinister as it sounds but simply 6 times the standard deviation of a number of readings with the same product. The Zone of Indecision is globally accepted as a calculation that factors for the uncertainties attributed to dynamic weighing.

The method used is that required by the Package Goods Regulation and the same method used by the authorities responsible for governing compliance with the regulation. In short, this is the only recognised method for determining accuracy of a checkweigher.

On any weighing instrument, there are two areas for error that will determine the accuracy of the equipment. The first is the repeatability and the second is exactness to a known mass, such as calibrated weight. These two factors are the only similarity between dynamic weighing (inline checkweigher) and static weighing (scales).

In some documents, you will read of additional factors such as, environmental conditions, temperature, uncertainty of measurement, variability of product or tare, air buoyancy and so on. In this test you can forget these as we are measuring with the product and in the environment it will be used.

The most common misunderstanding is that an inline checkweigher should be calibrated the same as a static scale, meaning you stop the transport system, place weights on the weighing conveyor and if this is OK then the checkweigher is accurate. This is not true as you have to consider the additional errors introduced when you start the conveyor and the checkweigher is working with additional vibration and in motion. This is a big factor and fundamentally only a checkweigher that has a weigh cell that is designed to work in this way will in many cases meet the required accuracy.

While static calibration, as the only form of calibration is pointless, for the service engineera starting referenceshould be used to determine the dynamic weight. For example, the checkweigher can weigh a product at 500g statically but when in motion the display shows 502g, the checkweigher would need to correct the dynamic by -2g. Ideally, a checkweigher’s auto dynamic calibration will adjust for this by taking a static reference first and then measuring the difference and adjusting.

Contd on Pg no.28

NEWS

The other misunderstanding is passing a known weight across the checkweigher, such as a calibration weight. This calibration weight even if it is the same weight as your product will have a different dynamic effectthan your product as it is transferred across the weighing conveyor. This will

Doing this test will determine the repeatability of the checkweigher with the product. You should always start with the repeatability, as the other test to a known mass cannot be determined without a stable repeatable reading first.

In order to do this you should do the following;Pass the same product 10 or 20 times over the checkweigher, ensure that you pass the product in the direction it would be during production.

1. Record these individual values, on some Checkweighers there is a function to automatically record and even display the required standard deviation. If not excel has a built in formula to do this called STDEV. 2. Once you have the standard deviation multiply this by 6 and that is your Zone of Indecision 3. From the table calculate your TNE (-T1), for example if your product is 200g then your TNE

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Vol. 11, Issue 06 -November - 2018

NEWS

Contd from Pg no.27

(-T1) is 5% or9g 4. You should now calculate a quarter (0.25) of this 9g,0.25 of 9g = 2.25g.This value is your repeatability limit 5. If the Zone of indecision is greater than the 2.25g (quarter of TNE) then the checkweigher cannot be used with the set points, (reject limits) This test should be done and recorded for all prod-

checkweigher and then weigh this on the static scale, if the difference is within 1/5 (1 fifth) TNE then the checkweigher is suitable to be used. Some checkweighers have a built in weight check function and will reject a product and hold the weight of that product on the screen 3. In order to make a check on the repeatability of the checkweigher at that time it is good practice to repeat this test at least once.

uct types and weights used on that checkweigher.

It is good practice to repeat this test over a period and build up a trend analysis, this will indicate how variable it is over time, and will then determine how frequently you will need to perform this test in the future. These records along with the trend analysis form the proof of the risk assessment detailed in the retailer’s code of practice.

The second test is for the exactness to a known mass, which is also done using the product along with a static scale,calibrated to national standards.

The static scale should be capable of reading to the same resolution as the checkweigher or better.

These checks should be done before, during and after a batch. By recording the weights a trend analysis can be made which can form the data for a risk assessment as required in some of the codes of practice.

1. Using a calibrated weight traceable to national standards and as close to the product weight as possible check that the static scale is weighing correctly.

2. Note the weight of a pack as it passes over the

For example, we have a product with a nominal of 200g, when we weigh this on the checkweigher it reads 200.4g. Weighing this same product on a static scale, it shows 199.7g a difference is 0.7g. We know our TNE for a 200g product is 9g and one fifth of this is 1.8g. The 0.7g is less than 1.8g limit therefore this checkweigher is accurate enough to comply.

Under the Package Goods Regulation and Codes of Practice, it states, “Any measuring equipment used for quality checks must be suitable for the purpose to which it is used”. While this statement remains, open to interpretation the regulation references, a minimum resolution of weighing equipment that must be used and trade verified for offline static weight sampling of product.

Adjacent is a table showing the minimum resolution of scale, which is determined by the declared nominal weight of product. It is good working practice to use this same resolution of checkweigher and static scales used to check the checkweigher.

If you would like more information on the regulations, codes of practice or a copy of the checkweigher accuracy document, please email us at contact.india@ minbea-intec.com

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Vol. 11, Issue 06 -November - 2018

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Vol. 11, Issue 06 -November - 2018

A chicken war shows all that’s wrong with India-US bilateral trade

A

particular thorn in the flesh for India-US ties has been the poultry trade. From 2007, India does not allow American poultry into the country, citing concerns of avian influenza. America argued that there could be no countrywide ban based on avian influenza concerns. When India refused to budge, the US took the case to the WTO in 2012. On June 19, 2015, the organisation ruled against India. America has moved the WTO again, alleging noncompliance

by India and seeking permission to impose a penalty tariff on imports from the country.

By mid-2018, India relented and began allowing the import of chicken parts from America, though in small quantities. The last word on this has not been said yet, however. Politics in America and India are both unsupportive of trade in goods, but the poultry trade is a curious example—it could be seen as how economies around the world could complement one another through trade or how developing markets become a tool for advanced markets. Also, how avoidable disputes could damage symbiotic relationships.

A little digression into America’s global chicken presence shows us why trade cannot merely be understood in terms of surpluses or deficits, a point hyper-nationalist politics often does not appreciate. The US is the world’s largest chicken producer and its chicken consumption per capita—now at 91 pounds—has increased nearly every year since the mid-1960s, while red meat consumption has steadily declined. 19 per cent of its poultry produce is exported. It is estimated that Americans eat chicken ten times a month, but not more than twice do they eat chicken thighs or drumsticks.

They prefer chicken breasts, a culinary habit that formed when chickens were raised in farms and their legs and thighs were more muscular.

Since culinary preferences decided by culture vary across the world, the parts Americans do not want have a huge market abroad, and the expansion of global trade allowed chicken farmers to access these markets. Chicken feet are a delicacy in China, and chicken legs are considered superior in Russia as well as in India.

In 2008, America exported $854.3 million worth of chicken meat to China and Hong Kong, half of it feet and wings. The Indian poultry industry is

up in arms and they fear American dumping into the Indian market would kill the sector. However, given the vast untapped potential of the Indian market and the throwaway price at which chicken parts could be bought from America, there could be a creative solution to this issue. Trump has spoken about the restrictions in India on US-manufactured, high-end motorcycles and his officials have named several Indian companies for allegedly misusing H-1B visas, but nobody has spoken about the chicken dispute.

POULTRY NEWS

Hens should be kept in bigger cages, orders High Court

T

he Delhi High Court has suggested that hens should be kept in cages which are bigger than the existing small wired ones so that they are able to “move around comfortably”.

The court also observed that presently none of the hen cages meet the size requirements laid down under the law for animal welfare.

A Bench of petitions on the same issue moved by NGOs — Federation of Indian Animal Protection Organisations (FIAPO) and the People for Animals — were transferred from Maharashtra, Uttar Pradesh, Punjab and Andhra Pradesh to Delhi High Court by the Supreme Court.

Trade wars The issue is not under the radar and America’s formidable trade bureaucracy has detailed this, along with a litany of other issues they think amounts to India denying legitimate market access to America’s products and services, in the USTR National Trade Estimate for 2017 under “Foreign Trade Barrier.”

“The Indian poultry industry is up in arms and they fear American dumping into the Indian market would kill the sector.” Trump indeed raised these concerns with Modi when they met. “I look forward to working with you…to create a trading relationship that is fair and reciprocal. It is important that barriers be removed to the export of US goods into your markets, and that we reduce our trade deficit with your country,” he said during his Rose Garden appearance with Modi.

The Trump administration’s drive to reduce American trade deficit has brought India into sharper focus. India is the ninth biggest trading partner of the US and had a trade surplus of around $23 billion with the US, in goods and services combined.

The President’s National Trade Policy Agenda for 2017 said, “In 2016, voters in both major parties called for a fundamental change in direction of US trade policy because they did not all see clear benefits from international trade agreements. President Trump has called for a new approach, and the Trump Administration will deliver on that promise.”

It reiterated Trump’s four-point campaign agenda—”defending national sovereignty over trade policy, strict enforcement of US trade laws, using leverage to open foreign markets and negotiating new and better trade deals.” The US respects decisions by the WTO when they are in its favour and rejects the rest, the Trump administration has declared.

where they can move around comfortably. They should be able to move around freely.”

A Bench of Chief Justice Rajendra Menon and Justice V.K. Rao gave the oral observation while hearing a batch of petitions filed in public interest litigations (PILs), which claimed that keeping egg-laying hens in small wired cages amounts to “extreme cruelty”.

The High Court also directed the Secretary of Environment Ministry to set up and chair a committee to lay down guidelines on the breeding and transportation of poultry birds.

It said the committee should consider the Law Commission’s recommendations on the issue, the suggestions of other States and the views of the Animal Welfare Board of India (AWBI) as also other stakeholders including poultry farmers.

The High Court has asked the committee to submit a report before the next date of hearing on February 5, 2019. “Till a decision is taken, no further battery [small-wired] cages would be permitted to be used,” the court said, adding, “Use big cages

The court had earlier also sought suggestion from the NGOs on giving alternate means that can be employed for caging of the birds. “That apart, we direct the Union of India to ensure that henceforth no new poultry farms or organisations indulge in using the battery operated cages,” the High Court had ordered.

The NGOs have contended in their pleas that under the battery caging system, egg-laying hens are confined to space equivalent to an A-4 size paper sheet. They told the court such cages are still the common method of housing chickens, despite the AWBI suggesting states to faze them out.

They have also claimed before the bench that poultry farmers cut of portions of the female chicks’ beaks and they are kept in cramped and dirty cages.

The NGOs, as well as the AWBI, stated that egg-laying hens need much more space than the confined area provided by small cages which are stacked one on top of another.

Eggs – A Potent Protein Source

A

merican Egg Board (AEB) is the US egg producers’ communications link to food processors. AEB works to educate manufacturers and developers of new food products

about the functionality and nutritional benefits of eggs. AEB develops and distributes resource materials to assist product developers, shares timely tips, trend information and also makes available egg product experts to answer technical questions.

AEB develops science-based White Papers discussing pertinent nutritional topics such as Protein, Satiety, Functionality and the Gluten-Free aspects of using egg products. AEB believes that in helping food formulators become more aware of the benefits of egg products, they can create more healthful and appealing products for consumers.

When scientific evidence dispelled the cholesterol myth, the egg regained its role as a nutrient-rich source of vitamins and minerals, including a good source of protein. And as today’s consumers engage in more mindful eating, they’re more deliberate about food choices.

They routinely search for health benefits and actively read labels for ingredients of interest. Coincidentally, one nutrient of great interest today is protein. As its popularity soars, so do the foods and ingredients that can supply potent forms of this macronutrient, such as the egg.

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Vol. 11, Issue 06 -November - 2018

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Vol. 11, Issue 06 -November - 2018

EDITOR

CONSULTING EDITOR

Firoz H. Naqvi

Basma Husain

MARKETING EXECUTIVE Varsha Singh

PRODUCTION MANAGER Syed Shahnawaz

GENERAL MANAGER Gyanandra Trivedi

CIRCULATION MANAGER Chandni Naqvi

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-84 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