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Vol 11 Issue 02 December 2015
Rs. 100/-
11th
Volume
Indian Dairy Industry White Revolution: blooming with entry of new and big players
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Time to think over
Curbing Food wastage
need of hour in India
Changing consumer preference driving growth of
Snack Food products
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CONTENTS
Amul to serve better is expanding processing capacity, distribution reach Britannia to expand Dairy business Government plans to allow two local Dairy companies to export to Russia for six months Kwality starts product sale of including milk and curd under brand name 'Kwality' Dairy on Demand: Amul Goes Full Mode on Expansion Plans AMUL 'is truly the pride of India': President Nestle claims Maggi Pazzta is 100% safe lashing out at Food regulator President Pranab Mukherjee expresses concern over Food security Not broken any FSSAI norms, yet to receive FSSAI notice on noodles: Baba Ramdev Maggi pasta has lead beyond permissible limit according to UP lab Domino's Pizza partners Hyderabad-based start-up Zippr for coding method for delivering Burger King into trademark fights with Food joints of similar names Instant rasam developed by Ready-to-eat pioneer P Sadananda Maiya After Rs 800 crore funding round led by SoftBank, Grofers now valued at Rs 2,664 crore After Maggi, booze chocolates on Food watchdog radar Cargill and Mondelez partner on cocoa sustainability programme in Indonesia UAE-based luxury chocolate brand Al Nassma introduced a first-of-its-kind camel milk chocolate in India Consumers prefer Bakery products to sweets this Diwali DS Group takes its Pulse candy as trump card and expects Rs 100 crore in sales Cargill develops new starch enabling 50% reduction fat in yoghurt New research shows that sugar seen as “friend AND foe� by European consumers
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Growth of Global Food Processing Industry
has increased the demand for WHITE REVOLUTION Indian Dairy Industry blooming with entry of new and big players
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Food machinery 33
Bakery chains
log on to e-commerce sites
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Time to think over
Curbing Food wastage need of
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hour in India
The future is now The Food Industry trends heading into 2016
DuPont Nutrition & Health Brings Substantiated Science to Customers at CPhI India
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Changing consumer preference driving growth of ready-to-eat Snack Food products
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Vol 11 Issue 02 December 2015
The views expressed in this issue are those of the contibutors are not necessarilly those of the magzine. though every care has been taken to ensure the accuaracy and authenticty in infomation, "Oil & Food Journal" is however not responsible fordamages caused by ministerpretation of infomation expressed and implied with in the pages of this issue. All disputes are not to be referred to Mumbai Jurisdiction
EDITORIAL
don't make jokes. I just watch the government and report the facts’’ India is going through a political roller coaster, while we shined in COP 21 in France we were very much disappointed with David Hedley being pardoned as he is turned as an approver – did we and the government actually forgot the pain for all the people who lost their lives and loved one on in 26/11. I will not spend my much treasured time over this as I need to more diligently focus on my world of food processing industry. Chief Economic Advisor Arvind Subramanian has proposed a 40 percent increase in thegoods and services tax. Well I think this will dent the food and beverage industry, and that is the reason why the carbonated drink makers have raised a pitch against this tax as it would hurt the Rs 15,000-crore industry. It will lead to a sharp decline in consumer purchase, and for a demand-driven industry, it will mean a significant rationalization of manufacturing capacity. In fact Coca-Cola says that in these circumstances, they will have no option but to consider shutting down certain factories. PepsiCo and Coca-Cola are the two main aerated drink makers in India. PepsiCo's Chairperson and Chief Executive Officer Indra Nooyi met Prime Minister Narendra Modi but it was not clear whether she brought up this issue. The demerit of 40 per cent is not in line with the 'Make in India' programme launched by the government, which recognizes food processing as an important sector. Carbonated beverage makers are upset at being clubbed with makers of pan masala, tobacco and tobacco products, which, according to the Arvind Subramanian panel on the GST, should be taxed at 40 per cent. Well food processing industry is developing and growing very fast. A survey by industry body Assocham says that India’s packaged food market is set to witness a quantum jump to $50 billion by 2017 from $32 billion at present due to increasing popularity of ready-to-eat items. There has been a major shift in food habits in the metropolitan cities. Most households prefer to have instant food due to steep rise in dual income level, standard of living and convenience. The consumption of packaged food is much higher in the urban areas, especially metros, where life is fast-paced; attracting lot more companies to launch new types of products and variants. There is a large divide between urban, semi-urban and rural consumers. Urban areas account for 80 per cent of the demand for all packaged food. Food manufacturers have also started concentrating on manufacturing new innovative food products and ready-to-eat processed food to keep up with the ever changing tastes of consumers. Food processing industry has always been an industry with values, ethics and principle; and it was this industry that was up and front to help Chennai in its quandary. Even being at loggerheads with the government over ban on Maggi noodles, Nestle India had been among the top suppliers of food and beverage products for people affected by heavy rains in Chennai. Among other products, Nestle has also supplied the 'two-minute' Maggi noodles to the Tamil Nadu government towards the relief operations. The Ministry of Food Processing Industries had coordinated with all food processing companies for supply of packaged milk. ITC supplied biscuits. MTRsent ready-to-eat food packets;Britannia provided boxes of biscuits, food items and quantity of milk produce and some bread. Coca Cola India had supplied ready with 50000 one liter water bottles, while PepsiCo supplied 12000 one liter water bottles. Parle sent Parle biscuits. Minister for Food Processing Industries, Harsimrat Kaur Badal asserted that this was the time to stand up and make exemplary contribution for the flood affected people of Chennai who have been patronizing food brands and products manufactured by the industry. The food processing industry stood with Chennai in its time of need and ensured that there is no shortage of milk, packaged food articles and bottled water for the people of Chennai. Ending up with the usual noodles fixation, While Patanjali Noodle has entered the zone of controversy with bugs and worms in its packets and of course notices from Fssai for not registering with them while displaying a licence number from the regulatory body. Whereas the Supreme Court refused to stay a class action suit filed by the central government against Nestle, India over the company's popular Maggi noodles. The government had filed the suit in the National Consumer Disputes Redressal Commission (NCDRC) after the Food Safety and Standards Authority of India raised the safety concerns. The consumer court has since ordered fresh tests on Maggi samples.
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DAIRY SURGE
WHITE REVOLUTION Indian Dairy Industry blooming
with entry of new and big players
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roundreality Dairy activities have traditionally been integral to India's rural economy. The country is the world's largest producer of dairy products and also their largest consumer. Almost its entire produce is consumed in the domestic market and the country is neither an importer nor an exporter, except in a marginal sense. Despite being the world's largest producer, the dairy sector is by and large in the primitive stage of development and
modernization. Though India may boast of a 200 million cattle population, the average output of an Indian cow is only one seventh of its American counterpart. Indian breeds of cows are considered inferior in terms of productivity. Moreover, the sector is plagued with various other impediments like shortage of fodder, its poor quality, dismal transportation facilities and a poorly developed cold chain infrastructure. As a result, the supply side lacks in elasticity that is expected of it. On the demand side, the situation is
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buoyant. With the sustained growth of the Indian economy and a consequent rise in the purchasing power during the last two decades, more and more people today are able to afford milk and various other dairy products. This trend is expected to continue with the sector experiencing a robust growth in demand in the short and medium run. If the impediments in the way of growth and development are left unaddressed, India is likely to face a serious supply - demand mismatch and it may gradually turn into a substantial importer of milk and milk products.
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DAIRY SURGE
with private players raising money at an unprecedented rate. Indian dairy dominated by State cooperatives Mother Dairy, a 100 per cent subsidiary of the National Dairy Development Board (NDDB), was conceived as part of the Operation Flood project of the NDDB in December 1974. Mother Dairy - the New Delhi-based milk and dairy products company - had a turnover of Rs 7,000 crore in 2015. This was an 11 per cent growth over the previous year. In 2013-14, it had garnered a turnover of over Rs 6,300 crore.
Fortunately, the government and other stakeholders seem to be alive to the situation and efforts to increase milk production have been intensified. Transformations in the sector are being induced by factors like newfound interest on the part of the organized sector, new markets, easy credit facilities, dairy friendly policies by the government, etc. Dairy farming is now evolving from just an agrarian way of life to a professionally managed industry - the Indian dairy industry. With these positive signals, there is hope that the sector may eventually march towards another white revolution. Time for evolution India’s dairy sector has for long been unorganised. Dairy cooperatives and local milk-sellers have always dominated the market.
company owned by a single promoter has made a dent in the sector. Even though India is one of the biggest milk producers in the world, dairy cooperative Amul— operated by the Gujarat Cooperative Milk Marketing Federation—is the only Indian company among the top 20 dairy organisation globally. India’s chaotic dairy sector has a huge untapped potential. Only 25% of the milk produced by more than 70 million rural households in the country is sold in the organized market.This might change soon
Now, private and foreign firms want a bigger share of this $70 billion (Rs4.34 lakh crore) pie. And they have a good reason to eye this sector. India’s dairy industry is expected to double by 2020. As India’s middle class rises, it is not just the milk consumption that is expected to grow, but also the demand for products such as cheese, butter, and yogurt and whey protein. But despite this forecast, hardly any dairy
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Mother Dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy Development Board (NDDB). It was an initiative under Operation Flood, the world's biggest dairy development program launched to make India a milk sufficient nation. Over the years, Mother Dairy has contributed significantly in achieving this objective through a series of innovations and programs. Today, Mother Dairy manufactures markets & sells milk and milk products including cultured products, ice creams, paneer and ghee under the Mother Dairy brand.
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DAIRY SURGE terms of procurement as well as sales. Its brand Nandini is the household name for pure and fresh milk and milk products. The federation has 14 milk unions throughout the state, which procure milk from primary dairy cooperative societies (DCSs) and distribute milk to the consumers in across rural and urban markets in Karnataka. Chamarajanagar Milk Union has started functioning as 14th Milk Union on KMF after bifurcation from Mysore-Chamarajanagar Milk Union.
The country's largest dairy cooperative, and for that matter the largest player in India's food business, Gujarat Cooperative Milk Marketing Federation (GCMMF) that owns the Amul brand, has crossed the Rs 20,000 crore mark in turnover in 2015. The Anand-headquartered food major that announced its results today, reported a turnover of Rs 20,733 crore during 2014-15, up 14 per cent over its last year's turnover of Rs 18,150. Amulwas architected in almost every way was the late Dr Varghese Kurien. Arriving in Anand in 1949 as a government employee to manage a dairy, he went from helping farmers repair their machinery to revolutionizing the Indian dairy industry by scripting Operation Flood, a cooperative movement that turned India from a net importer of milk into one of the world’s two largest producers today.
In fact, the group turnover of GCMMF and its constituent member unions, representing unduplicated turnover of all products sold under Amul brand was Rs 29000 crores or $ 4.6 billion. Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the apex body in Karnataka representing dairy farmers' co-operatives. It is the secondlargest dairy co-operative amongst the dairy cooperatives in the country with 1.5 lakh liter per day liquid milk processing facility. In South India, it stands first in
Not for nothing was VargheseKurien called the Milkman of India, though his vision was a simple one of offering thousands of small dairy farmers’centralized marketing and quality control facilities, the missing links in the dairy economy at the time. During the last five years, turnover of GCMMF grew from Rs 8,005 crore to Rs 20,733 crores, a remarkable growth of 159 per cent. The cumulative average growth rate (CAGR) has been that of 21 per cent.
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The first-ever World Bank-funded Dairy Development Programme in the country started in Karnataka with the organisation of village level dairy cooperatives in 1974. The Amul pattern of dairy co-operatives started functioning in Karnataka from 1974-75. In March this year, Prabhat Dairy set up new lines of production for value-added milk-based products such as cheese, paneer and shrikhand at its Shrirampur facility in Ahmednagar district of Maharashtra. The cheese versions are Mozzarella, Cheddar and Processed. The plant is expected to commence commercial production of these products in fiscal 2016. It has automated production facilities with advanced equipment
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Even Indian consumer companies have said they will enter the industry. Mahindra Agribusiness, a unit of the Mahindra & Mahindra conglomerate, said in February that it is looking for a brand acquisition in the dairy sector.
at Shrirampur in Ahmednagar and at Navi Mumbai, with an aggregate milk processing capacity of 1.5 million litres per day as on March 15, 2015. Funding, expansion and new entrants Private equity players are clearly optimistic about the industry. They have invested $138.85 million (Rs862 crore) in the sector with 15 deals since 2010. India’s consumption story and diversification by dairy players into value-added dairy products are drawing interests of investors which have led to surge in the PE deals,” a report by CARE Ratings said in 2014. These funds are being used by local private companies to expand and modernize the supply chain and distribution network.
to increase its presence in north India, a traditionally high dairy-consuming market. Maharashtra-based Prabhat Dairy has filed for an IPO to raise about Rs300 crore ($48 million). Right now, only a handful of dairy companies in India are listed. In the last few years, even international firms have shown interest in the sector. In January 2014, the world’s largest dairy firm Groupe Lactalis SA acquired Hyderabad-based Tirumala Milk Products for Rs1, 750 crore ($275 million). Japanese firm Meiji is actively looking to enter India.
Parag Milk Foods, which sells brands like Gowardhan and Go, is looking to increase its revenue by around 40% in the next two years. It will be targeting a revenue of Rs2, 100 crore in the next two years, from the current Rs1, 500 crore. Parag Milk Foods Pvt. Ltd is looking to raise up to Rs.600 crore through an IPO and says the expansion into the value added products is driving growth and the need for capital. At present, liquid milk contributes 20% of the company’s topline, which is supplied to cities in Maharashtra and southern India. Now, the company wants
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Cigarette-maker ITC said in 2014 that it will set up its first dairy processing plant in Bihar. It has also planned an investment of Rs500 crore in 2015. Vaishnodevi Dairy Products Pvt. Ltd, a Pune based dairy company, plans to raise Rs.125-150 crore from PE firms over the next six months to fund the development of new products, expansion of infrastructure, and debt repayment. Large Indian companies too are keen on tapping this growing industry. Last year, ITC Ltd announced during its annual general meeting that it would enter the dairy space. ITC will enter the dairy segment sometime this year with the launch of some value added products. ITC’s first state-of-theart dairy plant in Munger in Bihar will be commissioned in a couple of months. Mahindra Agribusiness is keen to enter the over Rs.3 trillion Indian dairy sector through Rs.150-750 crore acquisition of a brand that has good supply chain and
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DAIRY SURGE consumer’s price has declined from 52 per cent in 1996 to 38 per cent in 2009, while in the UK it has declined from 56 per cent in 1996 to 38 per cent in 2009. This decline clearly demonstrates that the milk producers suffer when the share of organized retail increases.
branding in place. However, can these private firms match Amul, one of the world’s largest cooperatives? Experts say the answer is still unknown, but privatization is required. The dairy industry is a largely informal sector, so there is a huge scope for private players, even bigger than what the cooperatives have and there is a very large scope for further growth of valueadded milk products in small towns. In fact, health products such as whey protein might be game changers in the next few years. Amul is the pioneer player in the market and the one that brought the white revolution in India. However, with the changing consumer preferences and the evolving palate, there is a growing demand for a wide range of dairy products and niche offering.
The milk producers in the US get only 38 per cent share of the consumer’s dollar spent on milk, while the rest is earned by the processor and retailer. In the United Kingdom, the milk producers get only 36 per cent. However, in India, the milk producer gets more than 70 per cent of the consumer’s rupee on an average. Moreover, the milk producer affiliated to co-operatives get more than 80 per cent share of organized retail increases. In the US, the farmer’s share in the
FDI in dairy industry While the government claimed farmers support on FDI in retail, the country’s largest dairy co-operative and food brand Amul felt such a move will hurt the interest of both producers and retailers. Farmers get the least returns from the modern trade and the “so called efficiency” benefits only the large retailers as they constantly drive down the prices.
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For the government, the share of taxes would remain the same irrespective of the format of retail, while on the contrary; foreign retailers will demand more and more concessions and liberal policies to earn better. Further, the labour prices of large retailers were not employee-friendly and that the government may have to deal with huge labour issues if liberal FDI policies are implemented in retail. If largest and most reputed Indian corporate houses like Reliance, Tata and Birla have invested in retailing in India, we do not need to look to foreign investors to invest in Indian retail. The small retailers in India over the past decade have improved their outlets, presentation, service levels and consumer orientation significantly. The modern retail and their deep pockets due to foreign investment will destabilize the retail trade, which gainfully employees a very large section of our society. The promised employment generation in modern retail will be at the cost of unemployed shopkeepers who form the
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backbone of our commerce and economy.
products."
How can exporters crack the market? For international dairy exporters, India remains an attractive destination, but they face serious challenges related to supply chain and distribution networks.
The attitude of local dairy co-operatives towards foreign investment can be mixed. Some regard milk imports as harming farmer interests. Seventy per cent of members of co-operative have only one or two animals and they can't compete with big farmers of developed countries who get subsidies. However, the Indian diary will welcome local manufacturing by foreign companies using Indian milk.
According to Rabobank, India's "informal fragmented supply chain, raw milk quality concerns, small base for valueadded dairy products and ever-changing trade regulations, proved a challenge and a strong disincentive" for foreign companies. International companies exporting dairy products to India have to restrict themselves to modern retail stores, as they lack the distribution capacity to serve the mass market. And, if they are niche players anyway, they are effectively looking for sales among only "10,000 families in Mumbai and 5,000 families in Delhi". Moreover, foreign companies need to probe the Indian market with ingredient-based valueadded products, "driving and pushing internationally acclaimed functional foods". One potentially successful method is to part-manufacture in India, using imported ingredients, rather than tangling with India's milk supply market, like the Japan-based probiotic group Yakult. The company entered the Indian market in 2007 and now has healthy sales, with a manufacturing facility in Sonipat in the state of Haryana. It does not require any local raw material and is based on highquality imported milk powder. Even then, sales and distribution networks remain a challenge, especially for fresh, cold products. Companies have to establish their own value chain and they even have to supply their own small coolers to the shops to store their
Away from direct investment into India, the EU is not at present a major exporter of dairy products to India. In 2013, it exported only US$19m of dairy products
(largely skimmed milk powder) and $27m of lactose. However, according to a background report written jointly by European indusrty bodies Eucolait and the European Dairy Association (EDA), there is "enormous potential" for the bloc's exporters in India. The report says India is already the world's largest dairy consumer and demand is growing at double the rate of production growth so the country "could become a consistent dairy product importer". However, there are at present ongoing and intermittent barriers to trade with India, including "restrictive rules" on food labelling and labelling of animal rennet in cheeses. For example, changes brought in
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DAIRY SURGE by India's food safety and standards regulations in provide a new definition for cheeses that would prohibit the use of animal-derived rennet. Given that most EU cheeses are made with animal rennet, the new definition of cheese would seriously hamper the access of EU cheese in the Indian market," O'Donovan says. Referring to ongoing talks between the EU and India on forging a free trade agreement, the report notes how important it is "to include chapters on technical barriers to trade as well as on sanitary and phytosanitary measures in the EU-India FTA. EU exporters do face competition. Australia and New Zealand, other key global dairy exporters, also have designs on India. Statistics from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) – the research bureau of Australian department of agriculture - notes how consumption of whole milk in India has grown by 26% since 1995 to 72.2 kilograms per person annually. Austrade, the Australian government agency promoting international business, estimates India's demand for milk will reach 200m tonnes by 2020. Production in India would have to grow at 6-7% a year would be needed to meet the forecasted demand but current growth is just 4%. Industry group Dairy Australia said its country exported $1.3m worth of dairy products to India in 2013.There is room for growth in imported dairy products such as cheese and yoghurt, especially in the varieties that are common in the western world. New Zealand is looking to tap this opportunity, exporting $12.1m worth of dairy products, mainly lactose and protein concentrates, according to the Global Trade Atlas. Cheese imports from New
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Zealand for example have risen from 18 tonnes in 2012 to 200 tonnes in 2013. The biggest obstacles, though, are tariffs. According to the World Trade Organization, the standard tariff for imported fresh milk and cream, butter, yoghurt, cheese and sweetened milk powders was 30% in 2012. For dairy spreads and anhydrous milk fat, tariffs were 40% and 33.3% respectively. Free trade agreements would be valuable, but the Indian government is cautious. Foreign player in Indian dairy – changing scenario Danone – Joined the White revolution of India and expressing its need of Indian women as an employee. Danone which has been operating for a considerable number of years had launched its co-branded pouched milk packs under the Dynamix brand in Pune.
The company has reviewed some assets in India but hasn’t finalized a deal. Though Meiji considers mergers and acquisitions will be one of the effective strategies to boost their business, Meiji is currently present in India through two of its biscuit brands Hello Panda and Yan Yan.
which offer higher margins than liquid milk. According to a June 2014 report by CARE Ratings, the share of value added products in the milk and milk derivatives segment in India is growing at around 25% every year and is expected to grow at the same rate until 2019-20.
Meiji joins a growing rank of strategic and financial investors looking for opportunities in India’s rapidly expanding dairy industry. Since 2010, private equity (PE) funds have invested $138.85 million across 15 deals in the sector, according to data compiled by VCCEdge, the financial research unit of VCCircle.com. Some of the notable PE deals include IDFC Alternative’s $28.8 million investment
“Almost 75-80% of the Indian dairy market is still unorganized and even in the organized sector; large part of the market is occupied by liquid milk. However, there is a clear shift from unorganized to organized industry and also a shift from liquid milk to products.
By collaborating with the Schreiber Dynamix, Danone has been procuring and packaging the milk, hence making the sale of its toned milk in Pune. Although India’s milk production was expected to have exceeded 139 million tons in 2015, organized players held only one fourth of that milk market. So the Multinationals like the Nestle and the Danone on the way of focusing on a large scale, sold value added dairy products and Ultra High Temperature (UHT) treated milk in special packs. They kept aside from the low margin and high volume business of liquid milk business, influenced previously by the private players like the Amul brand and Cooperatives led by the Gujarat Milk Marketing Federation (GCMMF). Japan’s Meiji Co. Ltd is the latest to join the rush for a piece of India’s white gold, or dairy business. Meiji is scouting for dairy assets in the country. Meiji’s main business includes manufacturing and sale of confectionery, milk and dairy products.
DAIRY SURGE
in Parag Milk Foods Pvt. Ltd in 2012 and The Carlyle Group’s $22.3 million investment in Tirumala Milk Products Pvt. Ltd in 2010. According to the National Dairy Development Board, demand for milk is expected to increase at a compound annual growth rate or CAGR of 5% from 138 million tonnes in 2014 to 200 million tonnes in 2022. Additionally, data from National Sample Survey Organization shows that between 2001-02 and 201112, the per capita monthly expenditure on milk and milk products has more than doubled from Rs.41.9 to Rs.115 in rural India and from Rs.75.8 to Rs.184 in urban India. Analysts say one major attraction is the move towards value added dairy products,
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Companies in the business are looking to expand, for which they are raising money. Beverage maker CocaCola has plans to enter the dairy segment in India and introduce its milkbased beverage brand Vio in the country. Vio brand will compete with Amul, Britannia and Nestle, which have a strong hold in India. The milk-based beverage will be without any carbonation. As per reports, Coca Cola's Vio will enter the Indian market next year in January.Experts point out that Coca-Cola Vio's entry in the Indian market can be somewhat challenging and once inside consumer's mind, it will do wonders. Vio is positioned as preservative free and is a mix of skimmed milk and flavours such as citrus, peach and berry.Apart from Vio also, Coca-Cola has earlier launched milk products. Last year, it had launched Fairlife in the US. Product categories such as ghee, butter, ice cream, yogurt, milk drinks etc. have earnings before interest tax depreciation and amortization (Ebidta) margins in the range of 8-15%. This is the category which is attracting private equity and strategic investors into the dairy industry. People would like to invest only in companies where there is a strong brand and product play.
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FOOD WASTE
The world’s largest economy wastes as much as $165 billion (Rs10.49 lakh crore) worth of food every year. The quantity of food wasted is enough to fill up 730 football stadiums. On top of that, almost 50 million people—or about one-sixth of its population—lives in food-insecure households. Probably because the story isn’t any different in India: Asia’s third largest economy also wastes an insane amount of food, even though some of the hungriest people in the world live here. India’s annual wastage of food is worth Rs58, 000 crore ($9 billion). Each year, 21 million metric tonnes of wheat— almost equal to Australia’s production— rots in India due to improper storage. One-quarter of the world’s undernourished live in India. Almost 44% of Indian children are underweight, while 48% under the age of three, are stunted according to UNICEF. India ranks 55 out of 76 countries on the Global Hunger Index Although India has improved from its last year’s ranking (63), it still trails behind its much poorer neighbors, Nepal (44) and Sri Lanka (39). The Global Hunger Index measures and tracks hunger globally, by country and region. India is worse than China. According to the United Nations, India is estimated to use more than 230 cubic kilometers of fresh water annually— enough to provide drinking water to 100 million people a year—for producing food items that are ultimately wasted. China is second with 140 cubic km.
Time to think over Curbing Food wastage need of hour in India Vol.11 Issue 02 December 2015
Government initiative The Minister of Food Processing Harsimrat Kaur Badal seems to have chalked out a roadmap. Yes, a map literally, which shows exactly what fruits and vegetables are grown and where. The food processing ministry works as a catalyst. It has the potential for doing a couple of thingswhich are the need of the hour. Firstly, bring down food wastage.
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FOOD WASTE
trucks and other modern logistics. As a result, much of India’s agricultural output rots – or seriously degrades – before reaching consumers, even as hunger and malnutrition remain.
Food is being wasted at the harvest point and during transportation. If the same food which is wasted can be processed, it would mean it could either be available in raw form or in bottled form at a price which is affordable to the aamaadmi. Food wastage cripples a country’s economy to an extent that most of us are unaware. If food is wasted, there is so much waste of water used in agriculture, manpower and electricity lost in food processing industries and even contributes to deforestation. Taking all of into consideration, the actual worth of money per year in India from food wastage is estimated at a whopping Rs. 58,000 crore. Some measures that the government needs to take include containing wastage in transportation, improve storage facilities (the cold storage chain is 50% less than required and that too needs to be brought up to world standards), food processing also needs to be sped up so food is saved and wasted less to feed more. While you may not be able to reduce food lost during production, you can certainly reduce food at your personal level of food waste. Every step taken in the right direction counts. India tackles supply chain to cut food waste With India’s farm-to-fork networks still dominated by politically influential traditional traders and small shops, the country has struggled to modernize its food supply chain and attract large-scale investment into cold-storage, refrigerated
The issues we have with food security are traceable to issues we have around supply chain bottlenecks, transport and storage. According to estimates by the UN’s Food and Agriculture Organization (FAO), about 40 per cent of India’s fresh fruit and vegetables – worth an annual $8.3bn or so – perish before reaching consumers. Each year, some 21m metric tonnes of wheat, especially grain – an amount almost equal to Australia’s total annual production – rot in India because of improper storage in the custody of the government-controlled Food Corporation of India. India is not unique in the level of its losses. According to the FAO, 42 per cent of fruit and vegetables grown in the AsiaPacific region, and up to 20 per cent of the grain, never reach consumers because of poor post-harvest handling. But the magnitude of food losses in India dwarfs those in other countries, given the country’s size and the scale of its farm output, while the context in which this food goes to waste is also far more serious. According to official figures, about half of Indian children under the age of five are chronically malnourished, resulting in stunted growth, while 20 per cent suffer from acute malnutrition, with visible wasting. In recent years, Indian
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food prices have risen at double-digit levels, pinching the budgets of many working-class urban families in a country where food still accounts for an average of 31 per cent of monthly household expenditure. Governments remain alert to the threat of food price volatility as unpredictable weather patterns have led to an increase in droughts, floods and hurricanes Currently, just 3 per cent of India’s food and groceries are purchased through modern retail stores – including Indian owned – inhibiting investment in backend logistics. India has developed some modern supply chains linked to food processing companies, such as Nestlé, Unilever, Pepsi and Del Monte. But these still handle a fraction of the country’s perishable food. According to a recent study by the Indian Institute of Management in Kolkata, cold storage facilities are available for just 10 per cent of India’s perishable produce – and are mostly used for potatoes – to meet India’s robust demand for chips. The study estimates that India needs storage facilities for other 370m metric tons of perishable produce. But with so many obstacles confronting private groups – including a fragmented, tightly controlled market, and various government restrictions – such investments are unlikely to materialize rapidly.
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The mass of people are dependent on traditional food systems for subsistence and livelihood. Policies have to be working on both systems in parallel. What governments, farmers, food businesses – and you – can do about food waste? Reduce and prevent One major front for action in the effort to reduce food wastage is developing better food harvest, storage, processing, and transport and retailing processes. Harvest losses have several causes, including bad timing and poor conditions during the harvest as well as inadequate techniques and equipment. Similarly, the lack of good infrastructure for transportation, storage, cooling and marketing cause food to spoil, especially in hot climates. Both the private and public sectors need to increase investments to address such shortcomings; doing so will also have additional benefits for food security and mitigating climate change, land degradation and biodiversity erosion. In addition to these core investments, new technologies can help too. Improved rice-storage bags in the Philippines have helped cut losses of that staple grain by 15 percent. In West Africa, use of solar dryers to extend the shelf life of fruit and tubers is showing promise in reducing post-harvest losses. Often, food losses can be significantly reduced simply through training farmers in best practices - this too merits investing
in. Joining farmers together in cooperatives or professional associations can help to greatly reduce food losses by increasing their understanding of the market, enabling more efficient planning, enabling economies of scale and improving their ability to market what they produce. On the retail and consumer side, raising awareness of the problem - and how to prevent it - is just as important. And businesses and households alike need to implement better monitoring to improve data on the scale of wastage and where it occurs. Business - both those operating within the food chain and others with a large "food footprint" (large cafeterias, for instance) - can conduct food waste audits to determine how and why they waste food and identify opportunities to improve their performance.Households can conduct relatively simple food waste audits as well. Better communication among all participants in food supply chainswill be crucial. In particular, there is vast room for improving communication between suppliers and retailers to match demand and supply. Discrepancies between demand and supply are a major cause of food wastage. They can involve farmers not finding a market for products and leaving them to rot in the field; mothers cooking for five family members while only three actually make it to dinner; supermarkets downsizing product orders at the last minute, leaving producers
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FOOD WASTE
with unsalable products; or restaurants overestimating demand and overstocking food supplies that go bad. Reduced, or better, food packaging has a role to play as well - excessive or unsustainably sourced packing forms part of the environmental cost of food. Rejection of food products on the basis of aesthetic or safety concerns is often another a major cause of food losses and waste. In some cases, farmers discard between 20-40 percent of their fresh produce because it doesn't meet retailer's cosmetic specifications. Regulations and standards on aesthetic requirements for fruit and vegetables could stand to be revised. Some supermarkets have already begun relaxing their standards on fruit appearance, selling "misshaped" items for a reduced price and helping raise consumers' awareness that odd-shaped does not mean bad. Better consumption habits are also badly needed. In developed countries, a significant part of total food wastage occurs at the consumer level; in some places this is a trend that continues to rise. Consumers can take many steps to reverse these trends, such as: making weekly menu plans, buying so-called "ugly fruits and vegetables," ensuring that refrigerators are working properly, using wilting produce in soups, and making better use of leftovers. Smaller servings, rotating older food items towards the front of shelves and refrigerators, freezing surplus items, and composting waste can
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FOOD WASTE
and afford protections to food donors should products given away in good faith cause illness. Recycle In order for cities and local governments to efficiently and effectively recycle food waste; actions taken at the household level to separate it out are essential-recycling schemes only work when waste is properly sorted at the source. Judiciously used, regulations can spur businesses and households to reduce food waste and better manage it when it is time to recycle.
also help. One factor that often contributes to food waste by consumers is confusion over sell-by and best-before dates. In some cases "overzealous" legislation has been adopted and should be revisited and revised; lawmakers and other authorities should also issue clearer and more flexible guidelines for businesses and consumers alike. Governments must do more to implement legislation aimed at lowering food wastage. Legislators will have to adopt a range of measures which may vary from broad policy frameworks to statements of intent, from soft law measures like recommendations and guidelines to more decisive legislation, such as directives, regulations and statutory acts.
Redistributing safe surplus food to those in needs represents "the best option" for dealing with food waste. At present, the amount of food redistributed to charities that feed people remains a tiny fraction of the edible surplus food available, due to the fact that such food redistribution faces a number of barriers. Retailers are largely influenced by the idea that it is cheaper and easier to send wastage to the landfill, although higher landfill taxes are now working as a deterrent and the factor that has most deterred businesses from donating food surpluses is the risk of being held legally liable in case of intoxication, illness or other injury. Increasingly, governments are looking at ways to smooth the process
Re-use Markets for products that wouldn't normally stay in the food chain must be developed. Gleaning, for example, is the practice of gathering groups that would, for one reason or the other, be left in the fields to rot and be plowed under. In some places, entrepreneurs have spotted opportunities in acquiring such produce at reduced rates and marketing it, developing new food value chains. Similarly, markets can be developed for products rejected by retailers but still good for consumption - farmers' markets are already playing a role here.
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Rather than merely disposing of such waste in landfills, the use of anaerobic digestion to break it down into digestate -- which can be used as fertilizer -- and biogas, which can be used as an energy source or injected into the gas grid -is environmentally preferable to both composting and landfill disposal. Where digestion is not possible, composting represents the best fall-back option. At the individual level, home composting can potentially divert up to 150 kg of food waste per household per year from local collection authorities. Finally, incineration of food waste with the energy released being recovered presents the option of last resort for preventing food waste from ending up in landfills. Methane emissions from landfills represent one of the largest sources of GHG emissions from the waste sector.
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MODERN FOOD
"Global Food & Drink Trends 2016," W
ith 2015 coming to a close, it’s time to look ahead at trends affecting the food and beverage industries in 2016, many of which emerged or became more established throughout the world this year. In its report "Global Food & Drink Trends 2016," Mintel outlined 12 key trends in the food and beverage industries for 2016 and how established they are in different regions of the world. Here are the most
relevant trends for the industry. Artificial: Public Enemy No. 1 Artificial ingredients have become more taboo than ever among the surging demographic of health-conscious consumers today. In response, more major food companies have announced plans to remove artificial ingredients, from General Mills, Kellogg, and Campbell to Hershey and Nestle. In fact it has really become more of an
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expectation that a product is going to be natural versus something that’s just nice to have. Companies have already followed through, with Hershey releasing its Kisses and milk chocolate bars without artificial flavors in time for the holiday push. Others have self-imposed deadlines over the next few years. These changes are likely to take time, particularly when reformulating products can impact the
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MODERN FOOD levels, TFAs not only raise total cholesterol levels, but also reduce the good cholesterol. Commonly available foods with high TFA content includeFrench, cake, pastry, cookies and pizza. The primary sources are vanaspati, margarine, desi ghee and butter. On the request of FSSAI, the National Institute of Nutrition (NIN), Hyderabad carried out a risk analysis of trans-fat in Indian diet and recommended only one per cent total energy should come from the saturated fat and TFA.
flavors consumers have come to expect. Being proactive is the key as it really does go a long way with consumers. The announcement in itself is really good to showcase to consumers that the manufacturers are responding to the things thatconsumers want and understand their sentiments. While this trend is mainstreaming in North America, it is already well established in Europe and Australia, while Latin America, Africa, and Southeast Asia are still seeing this trend emerge. Environment is the New Reality Drought, food waste, and other natural phenomena that have affected crops from chocolate to pumpkins have given rise to consumers’ concerns about how their food and beverage products impact the environment. Manufacturers are embracing sustainability efforts throughout their supply chain, from the sustainable sourcing of cocoa and palm oil to reducing the use of water during processing. Renewable packaging, including recyclable and plant-based, has also become more popular in the industry. Earlier this year, PepsiCo announced more than $375 million in savings since the company established its sustainability goals in 2010.
General Mills recently announced a 10year timeline for its goal to source only cage-free eggs, and Kellogg made a similar announcement last month. Throwing out Trans-fat (TFA) Regulation of TFA – found in large quantities in industrially-produced food as well as in baked and fried food – is important because of its adverse public health consequences. There is a significant and growing body of medical evidence linking trans-fats to coronary heart disease, suggesting trans-fats may do even more harm than saturated fats. “TFAs pose a higher risk of heart disease than posed by saturated fats. While saturated fats raise total cholesterol
These moves also include those dealing with the treatment of animals for food.
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Though the current food regulation allows TFA content up to 10 per cent, following the NIN study the FSSAI in 2014 came out with a draft notification on the five per cent TFA limit. The five per cent limit is a step in the right direction. Although slowly, companies have progressed from having a 10 per cent limit first set a couple of years ago. But the aim should be to reduce it further to near-zero levels. The new standard would be applicable to three categories of food: fats, oils and fat emulsion; margarine and fat spreads; and hydrogenated vegetable oil. From the Inside-Out In addition to functional sports nutritionrelated foods and beverages, consumers are looking more toward how you eat
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plant-based products like RTD beverages and bars, earlier this year — an acquisition that contributed to a 17% jump in revenue for the company last quarter.
and how that connects with the way you look and feel—thinking of food also as a medicine. These types of products include foods and beverages supplemented with ingredients like collagen, probiotics, or other vitamins and minerals that promote health, wellness, and beauty. Probiotics, including products like kefir and kombucha, are trending for healthconscious consumers in particular, and the global probiotics market is expected to reach $52.34 billion by 2020. Lifeway Foods, Inc., the U.S. leader in kefir cultured dairy products, announced in August that it would begin production in its new Wisconsin plant, which the company acquired in 2013 to more than quintuple its kefir manufacturing capacity. Alternatives Everywhere No longer relegated to substitutes for vegan and vegetarian diets, products like non-dairy milks and plant-based foods have become alternatives as they increase in popularity among a broader base of consumers. Nut-based dairy products and plant-based proteins are particularly noteworthy to food and beverage manufacturers looking to appeal to health-conscious consumers. WhiteWave Foods has embraced the plant-based alternatives craze, having announced $3 billion of additional plantbased product potential in creamers, ice cream, yogurts, and other future innovations, moving the company well into plant-based foods beyond the category staple, almond milk. The company acquired Vega Foods, maker of
For Every Body Sports nutrition foods and beverages are an already established trend in North America, particularly the U.S., while most other parts of the world are still catching up. Products specifically geared toward hydration, energy, protein, and other supplements that consumers need when being more active are becoming increasingly common, according to Mintel’s findings. These products are also diversifying in terms of tiers of activity levels, so that manufacturers offer products not just for the dedicated athlete but also for consumers looking for sustenance when doing a light workout or otherwise being active. These products are not just foods that satiate and taste good, but they are functional as well. More major manufacturers are seeing the potential in sports nutrition. Last year, Post beefed up its sports nutrition business by acquiring PowerBar and Musashi from Nestle. Also in 2014, Hormel purchased protein nutrition shake maker Muscle Milk for $450 million. Earlier this month, Gatorade wrapped up its 50th anniversary marketing campaign with a spot packed with star-power athletes and sports personalities and that referred to the brand as a "sports fuel company." Gatorade is expanding beyond hydration drinks and into energy and recovery products like their chews and protein bars. Based on a True Story Consumers are more interested than ever in the backstory behind a product, whether that means transparency about ingredients or the story behind how a product is made. Smaller companies, particularly those that make craft products like craft beer, soda, spirits, or artisanal cheeses and chocolate, have readily embraced this trend, but major food and beverage manufacturers may not be far behind.
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MODERN FOOD This is particularly true with the Grocery Manufacturers Association’s introduction of the SmartLabel, created with the assistance of Hershey, the first company to adopt the label on its new Kisses and milk chocolate bars. The SmartLabel is a scannable QR code that goes beyond the ingredients list and nutrition facts already printed on the label to offer consumers access to more information about a product. About 90 companies have already signed on for the SmartLabel, and more products will be rolled out with the QR code on their packaging in the coming months. Eat With Your Eyes and Good Enough to Tweet These two trends go hand in hand as more companies are creating foods that are more visually appealing rather than just in terms of flavor. From bright colors to novel shapes and eye-grabbing packaging, manufacturers are starting to embrace the fact that many consumers, particularly foodies, share photos of their foods on social media. So many consumers are excited to take pictures of their food and share them, and that should also be an element of packaged food—that [consumers] are just as excited about what they bought or how they put it together. The world has and will see other trends emerge over the next year, but these are the most visible and potentially most impactful as 2016 approaches. If companies are looking to keep their market share, following these trends and seeing where they can adapt within their own product portfolios in the coming year could be one way to do it.
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MACHINE RISE
Growth of
Global Food Processing Industry
has increased the demand for Food machinery
G
lobal sales of food processing machinery are expected to climb 7.3% per year to $53.3bn in 2016, according to a new study by The Freedonia Group called 'World Food Processing Machinery'. The main impetus for gains will come from increased demand for processed foods in developing nations as personal incomes rise. On top of this, a dietary shift in countries such as India China and Brazil towards higher value-added foods such as meat and chocolate will
prompt food manufacturers to broaden their operations and invest in additional manufacturing capacity in these areas. Industrial bakery equipment (including pasta machinery) represents the largest product type, accounting for approximately a fifth of all food processing machinery sales in 2011. Bakery equipment will also post the largest value gains
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through 2016, reflecting the basic and essential nature of the food made by these units.
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MACHINE RISE dietary preferences and consistently high personal incomes, the food manufacturing industries in these countries are very mature, and as a result there will be fewer growth opportunities for food processing machinery manufacturers.
The Asia/Pacific region has the fastest demand gains from 2011 through 2016, averaging 9.5% per year. The strong Chinese market will be the primary driver of regional sales, as demand in the country will continue to advance at a rapid pace despite moderating from the 2006-2011 rates. Healthy growth in India, Indonesia and Thailand will complement sales gains in China. Rising personal incomes will spur increased demand for processed foods and a dietary shift towards more costly, non-staple items, while advancing industrialization in these nations will make it more efficient to process basic foods such as grains, fruits, vegetables and nuts by machine rather than manually. Sales of food processing machinery in other developing areas of the world will, generally speaking, climb at a healthy pace. Growth in food processing machinery demand in the world’s developed economies – which include Australia, Canada, Japan, the US and the countries of Western Europe – was much slower than in industrializing nations between 2006 and 2011, and sales gains in most developed nations will continue to trail the world average through 2016. As these nations have relatively stable
A handful of influential factors have caused an increased demand for processed and packaged food, encouraging food producers to up production and invest heavily in food processing equipment and machinery Packaging Line Automation — Robotics or Product Distribution Conveyors? It should come as little surprise that the market for food processing equipment is closely linked to the health of the food and beverage industry. A burgeoning food and beverage industry means producers need to meet extra demand by investing in capital, thusly increasing demand for machinery and equipment. Accordingly, the growing demand for processed and packaged food is providing food processing equipment manufacturers a strong incentive to step up production capacities. The increased consumption of processed foods is driven by rising income levels, less time for preparing home cooked meals, a rise in the number of working women, increased discretionary
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spending, and the growth in the number of nuclear families. Additionally, there is a growing emphasis on nutrition, causing a shift in preference toward convenience foods, animal protein, and dairy products. Adapting High Pressure to Your Operation As food and beverage producers ramp up production, the food processing machinery and equipment market is postured to benefit. In addition to increased production capacity, many equipment manufacturers are planning capital investment for plant infrastructure and machinery. Currently, developed countries account for a dominant share of the global demand for food processing equipment, but a sizable portion of future market growth is projected to come from Asia-Pacific, Latin America, and other developing regions. The growth in these regions will be the result of the rising importance of agro-processing brought about by developments and improvements in the global processed food trade. As the market share of processed food products grows in countries such as China and India that are agricultural exporters, there is an increased rate of investment in establishing new food processing units. Furthermore, an increased rate of foreign direct investments (FDI) coupled with rising pressure to meet strict food quality and safety standards is encouraging plant upgrades and creating equipment replacement demand.
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E-COM
Bakery chains
log on to e-commerce sites
A
fter pizzas and biryanis, it's now cakes and bakery products. From the local bakery to the country's largest bakery chain, everyone is logging in, giving online food retailing in India a second shot. Several e-commerce platforms that retail food have gone bust over the last few
years, but the sudden spurt in bakery chains and the sheer size of the bakery industry gives companies the confidence that selling cakes online and on mobile will click. Of late, home bakeries and startups have been mushrooming with several professionals and graduates turning
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bakers. The overall bakery market, valued at around Rs 8,500 crore and growing 12-15%, is estimated to reach Rs 15,000 crore in 2014-15, data with Technopak Advisors said. Major product categories include biscuits, snacks, cakes, pastries, rusk and savories such as puffs. Startups are, however, adding categories like cupcakes, strudels, waffles and
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E-COM seeing demand for bakeware. Belgium bakery, confectionery and chocolate products manufacturer Puratos has even opened a school to help those who want to learn a thing or two about baking. Consumer tastes in India are becoming ever more sophisticated and this is reflected in a strong demand for bakery, patisserie and chocolate products. We see a huge gap in availability of skilled craftspeople in the bakery and patisserie industry.
doughnuts.
incorporate the entire bakery range.
These home-bakeries and bakery chains are giving the large but unorganized market some shape, and going online is step one. Close to 90% of the market is now unorganized.
Kalaari Capital-backed Ovenfresh, which is expanding into Bangalore from Chennai, too plans to start with its own website and also have options to place orders on the mobile phoneand the next stage is to roll out a mobile and online platform.
There are a lot of people asking for online orders. For companies like Dominos Pizza, 20% of their revenues are from online orders and the number in this segment will be similar. Today, you can order a cake and flowers online, but you don't know where the cake is from and what kind of cake it will be. That will change when people like us come online. So you can see it, you have perhaps had it in the store. Most bakeries today still prefer to sell on their own websites but will soon move to online marketplaces once things stabilize and economics work out. Bangalore-based Just Bake, for instance, sells its cakes on its website and also has partnerships with sites like justeat.in or foodpanda.my where the bakery's items are displayed on the portal and orders are routed through the portal to the bakery. About 15% of the online orders come from such sites. The company allows for orders to be placed from across the world and gets about 10% of deliver orders from outside India. The French loaf will also start with its website but is open to other revenue streams and will start with products on our website which is being revamped to
Mumbai-based Monginis have their own website, where you can place orders for delivery of cakes, chocolates, flowers and gift hampers in many cities across the country. Bangalore-based Daily Bread offers cake delivery to places near their stores. In New Delhi, there is a startup called Bake Box, which works exclusively online on a subscription model. Every month, they will have a different baker. You can place orders on the website, which will be forwarded to the particular baker. Bake Box organizes the delivery. If you are a subscribed member of the website, you get a box of baked goodies from that particular baker every month. FMCG brands, e-commerce companies and educational institutions are catching on to a new fad among households and wannabe chefs – baking and bakery products. While companies such as Del Monte are launching new products used for baking, e-commerce sites such as Snapdeal are
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For Del Monte, India is becoming a huge bakery market with both QSR chains and home baking driving up the demand. The company recently launched its dessert sauces, primarily aimed at such consumers. The size of the bakery ingredients market is approximately Rs 3,000 crore in India and growing at 12-15 per cent. As the demand for bakery products grows there is also a need for chefs who can create that perfect pastry. India really deserves an International Pastry school as 60 per cent of the executive pastry chefs and pastry instructors go to Malaysia for enhancing their skills and knowledge. According to industry estimates, the cake segment occupies nearly 20 per cent market following the bread category, which is approximately 78 per cent of the baked products market. Besides bakery institutes, Puratos has also set up experience centres to reach out to small and medium bakers.
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O
verview From the moment of conception, women’s bodies develop in preparation for their uniquely female roles in life. Making up half of the population, their dietary needs change as they move from adolescence through their child-bearing years to menopause and old age. In 2010, there were an estimated 3.4 billion females
living in the world, and this number is expected to increase by 20% to four billion during the next 20 years. At last count, 66% of them (2.2 billion) were over the age of 20. Moreover, the ageing of populations in many countries will result in a marked increase in older women (>65 years old) from an estimated 294 million elderly women in 2010 to 532 million by
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LIFESTYLE
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LIFESTYLE
of fortified foods will likely increase in popularity in the coming years.
2030 – an astounding 81% increase. In comparison, worldwide, females from the age of 15 to 64 will increase by only 18% during this time period. Comparison of regional population estimates between the current year and 2030 indicate variable rates of growth among the different regions of the globe. For example, some regions, such as Eastern Europe and the Baltics, are expected to lose population, while Western Europe’s population will stay relatively the same. In contrast, Asia, Central America and the Caribbean, North America, South America, and Oceania will experience moderate population growth of 16% to 21% over the next 20 years, while much more vigorous growth (36% to 50%) is expected in the Middle East and North Africa, and Sub-Saharan Africa.
different from men’s, indicating that market drivers for new and innovative fortified food products may vary by a variety of factors that reflect geographic region, ethnicity, age category and individual interests of women. Some facts to be aware of that could impact the design of new products is that in certain countries, such as the United States, there is an upward trend in the proportion of women that are of Hispanic and Asian origins, such that by 2025, according to the US Census Bureau, they will constitute 25% of the female population. Another important fact is that women are living in smaller households. 1 Slightly more than half of the women in the United States are living either alone or in households with a spouse and no children. This trend suggests that single-serve portions
In 2010, there were an estimated 3.4 billion females living in the world, and this number is expected to increase by 20% in the next 20 years In the United States, there are an estimated 158 million females. The age distribution of women in the U.S. is shown in the Figure. Reproductive age women, aged 18-44 years, represented 36% of the female population in the U.S., while about 42% were peri- or postmenopausal.1 Key Market Drivers Women’s purchasing choices are vastly
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Women lifestyle trends suggests that single-serve portions of fortified foods will likely increase in popularity In addition, since many of these women are in the workforce, there needs to be increased development effort on new snacks and hand-held foods that can cater to the on-the-go woman. A significant amount of snacking occurs while people, men or women, are in the car or at work. Portable, hand-held snacks, such as breakfast/cereal bars and various fortified snack bars, will likely increase in popularity, in part due to the growing need for convenience in this hectic lifestyle. Health concerns are another important driver for women targeted food products. As the boomer generation ages, there is more and more concern about chronic disease and the role of diet in combating sickness and disability. Older women are particularly concerned about ways to prevent or delay the onset of chronic conditions, such as heart disease and osteoporosis, which can dramatically impact their quality of life. Leading causes of death and disability in U.S. women are shown in the Table 1 below. Essential Nutrients for Women With the exception of iron during the reproductive years, the essential nutrient needs of women are commensurate with that of men after adjustments are made for differences in body mass. Due to menstruation, iron needs in women are at least twice as high as in men, and giving birth entails even greater stress on a
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LIFESTYLE
on strategic nutrition for women’s health, we will highlight some important dietary factors and nutrients that appear to play a role in maintaining wellness and helping to prevent or delay chronic disease risk in women.
women’s iron economy. It is not surprising that women are at a significantly increased risk of developing iron deficiency, particularly in less developed countries where the bioavailability of dietary iron may be low. Another area of increasing concern is low blood vitamin B6, which can be affected by oral contraceptives taken by many women during the reproductive years. Women are at a significantly increased risk of developing iron deficiency and have low intakes of omega-3 Additional areas of general concern in women are calcium and vitamin D intake because of their increased propensity to develop significant bone loss and osteoporosis as they age. Like men, many women also have low intakes of omega-3 fatty acids that may contribute to chronic inflammatory conditions that may underlie many diseases, including heart disease, type 2 diabetes and cancer. Another area of concern is that of antioxidant nutrients, such as vitamin C, vitamin E and beta carotene. More recently, the importance of bioactive non-essential phytochemicals in many fruits and vegetables has been recognized for their antioxidant effects. A list of important nutrients and substances associated with women’s health are shown in Table 2. In the following section of this report
Heart Disease Heart disease is the number one fatal disease in women (and men). Worldwide, almost nine million women die each year from heart disease - representing one third of all deaths in women. In the United States, 435,000 women have heart attacks each year and 42% of these die within the first year of the attack, compared to 24% of men. Coronary heart disease is a disease with a complex pathology. Recent evidence suggests that chronic inflammation may play an important role in disease risk. Likewise, other important modifiable risk factors for heart disease include: smoking, hypertension, type 2 diabetes and elevated blood cholesterol. Diet can influence the risk of developing heart disease in several ways. High calcium intakes, in addition to being important in combating osteoporosis, may have a modest, but beneficial, effect on maintaining Diets rich in antioxidants, including β-carotene and other phytochemical antioxidant compounds, is likely to have positive health effects a healthy blood pressure, as does a reduction in salt (sodium) intake. Diets containing significant levels of anti-inflammatory components, such as omega-3 fatty acids, derived mainly from dietary marine sources may also affect the risks of developing heart
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disease. An additional component in the development of coronary heart disease is oxidized LDL cholesterol. Diets high in fruits and vegetables are associated with less cardiovascular disease and this may be due to the higher level of antioxidants found in these diets, such as vitamin C and vitamin E. Although clinical trials of vitamin E and vitamin C in heart disease have been disappointing, longterm ingestion of a diet that is rich in antioxidants, including β- carotene and other phytochemical antioxidant compounds, is likely to have positive health effects. Finally, it is important to control the intake of saturated fats and total dietary fat to prevent dietinduced lipid disorders and maintain lower total blood cholesterol and LDL cholesterol. In this regard, various dietary cholesterol inhibitors, such as plant sterols and stanols, including betasitosterol, campesterol and stigmasterol, are recommended to help lower bad LDL cholesterol without decreasing the beneficial HDL cholesterol. 2 Obesity and Type 2 Diabetes Another important consideration in combating heart disease is the need to
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control body weight. The prevalence of obesity is rising worldwide and will have an increasingly important future impact on rates of diabetes and heart disease plus associated medical complications. More than one-third (34.9% or 78.6 million) of U.S. adults are obese. The estimated annual medical cost of obesity in the U.S. was $147 billion in 2008 U.S. dollars. Obesity is an important risk factor for type 2 diabetes, and diabetes is an important risk factor for heart disease. Thus, in any consideration of prevention of heart disease or diabetes it is important to emphasize how critical it is to prevent and treat obesity to achieve a positive health outcome. Anti-obesity campaigns emphasize increased physical exercise and reduced caloric intake. Diets that are enriched in essential micronutrients are very important in calorie-restricted diets. The consumption of low-calorie fortified food products and/or dietary micronutrient supplements will need to become part of any successful antiobesity strategy. Individuals already living with diabetes may also increase an increased need for certain micronutrients, such as magnesium and chromium. Breast Cancer
LIFESTYLE
After lung cancer, breast cancer is the most common cause of cancer deaths in women. Breast cancer is the most common cancer in women with the exception of non-melanoma skin cancer. Worldwide, 1.3 million women are diagnosed annually with breast cancer and 465,000 will die from this cancer, according to the American Cancer Society. About 77% of breast cancer cases occur in women over 50 years old. However, although breast cancer is more commonly seen in older women, when it develops in younger adult women it is usually more aggressive and is associated with lower survival rates.
breast cancer mortality. 3 Also, women with a lower omega-6 and omega-3 fatty acid intake have a lower risk of breast cancer, supporting higher omega-3 fatty acid intake. 4 Soy contains a number of isoflavone compounds that could influence breast cancer risk.5 A metaanalysis of breast cancer risk and soy consumption found that among Asian populations with relatively high soy intake, there was a reduced breast cancer risk in those consuming high amounts of soy isoflavones (> 20 mg isoflavones per day). However, there was no relationship observed in an analysis of soy isoflavone intakes and breast cancer risk in Western populations. A likely explanation for this discordant observation is that the soy intake in these Western populations was still quite low, arguing for the need for a much increased level of soy isoflavone consumption to achieve positive breast health benefits.
Worldwide, 1.3 million women are diagnosed annually with breast cancer Our understanding of the role of various foods and dietary components in the prevention of breast cancer is limited. In general, most studies support the conclusion that weight management, healthy diet, moderate alcohol consumption, and high fruit and vegetable intakes reduce breast cancer risk. The role of specific nutrients or bioactive food components on breast cancer risk remains more obscure at the present moment. Nevertheless, based on in vitro studies in cell culture, in vivo animal model studies, and observations in certain human populations, increased research attention has focused on several dietary compounds that may have chemopreventive effects on breast cancer. For example, vitamin D has been gaining in attention as serum vitamin D concentrations may influence
Learn more about nutrients, supporting women’s health by viewing our monographs, which are available through the research section of Fortitechpremixes.com Another interesting line of research on food components and breast cancer risk involves dietary lignans, which are composed of a large family of fiberassociated phenolic compounds that are widely distributed in edible plants. Some of the lignans are converted in the large intestine to biologically active compounds by intestinal microbes. One of these compounds is enterolactone, which is believed to be the major biologically active lignan, which may
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LIFESTYLE
50 will experience an osteoporotic fracture. Eighty-five percent of people with osteoporosis are women and one in three women over the age of 50 will experience an osteoporotic fracture.
be associated with breast cancer risk by potentially modifying estrogen signaling in the breast. However, a recently published study from Europe (NorfolkEPIC) found no association of estimated microbial enterolactone Worldwide, 1.3 million women are diagnosed annually with breast cancer Learn more about nutrients, supporting women’s health by viewing our monographs, which are available through the research section of Fortitechpremixes.com Strategic Nutrition for Women’s Health, September 2015 production and breast cancer risk, although they did observe a significant decrease in colon cancer risk in women. 6 Osteoporosis Osteoporosis is an important bone disease that occurs frequently in older women. In this condition, there is a diminution of bone density that results in a less strong bone that is more susceptible to bone fracture under normal skeletal forces, particularly in the bones of the spine, wrist and hip. Osteoporosis in the United States alone is a health threat for 44 million people. Eighty-five percent of people with osteoporosis are women and one in three women over the age of
Important nutrients to help combat osteoporosis are calcium, vitamin D, magnesium and vitamin K. The three important minerals in bones are calcium, phosphorus and magnesium. In most diets, phosphorus is plentiful. However, calcium and magnesium intakes are typically low in most women. Many clinical trials have demonstrated the important effect of calcium supplementation on bone loss in elderly women with inadequate calcium intakes. Important vitamins for bone health are vitamins D and K. Vitamin D has been well studied and is important to maintain optimal calcium absorption, renal calcium vitamin K on skeletal health is less certain, 7 but many studies have shown that higher vitamin K intakes and status are associated with higher bone mineral density and lower fracture risk. Depression The role of nutrition in depression is an active area of research. Women are more likely than men to experience an anxiety or mood disorder.1 A major depressive episode is defined as a period of 2 weeks or longer
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during which an individual experiences either depressed mood or loss of interest or pleasure in daily activities and at least 4 other symptoms that reflect a change in functioning, such as problems with sleep or eating. It is estimated that approximately 10 million women per year, aged 18 or older report experiencing a major depressive episode.1 Moreover, the rates of major depressive episodes is 3 to 4 times higher in women under 65 years old compared to older women. Diets that are rich in fruits and vegetables, such as the Mediterranean diet and the DASH diet, are associated with reduced risk of depression.8,9 In a cross sectional study of 3317 young adults, higher intake of fish, eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) were associated with a reduced risk of depressive symptoms.10 These findings are consistent with the observation in 1390 older French adults that found higher plasma EPA concentration was inversely associated with depressive symptomology.11 Kava-Kava (Piper methysticum) supplementation was effective in lowering anxiety in perimenopausal women Supplementation of middle-aged women with psychological distress with ~ 1 gram/day ethyl-EPA for 8 weeks resulted in lower depression scores.12 In elderly, depressed Italian women living in a nursing home, treatment with 2.5 grams omega-3 fatty acids for 8 weeks improve depression symptoms.13 However, the benefits of fish oil on postpartum depression is questionable.14,15 Elderly women given essential amino acids
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(4 grams twice per day for 8 weeks) improved depression symptoms.16 Findings from a small intervention study indicated that Kava-Kava (Piper methysticum) supplementation at a dose of 200 mg/day for 3 months was effective in lowering anxiety in perimenopausal women.17 In another small clinical trial, investigators found that administration of pine bark extract (Pycnogenol®) at 100 mg/day for 8 weeks) tended to improve depressive symptoms in older women.18 A study of 44 premenopausal women with premenstrual syndrome (PMS) found an acute effect of 200 mg magnesium oxide and 50 mg vitamin B6 in lowering PMS anxietyrelated symptoms.19 Equol, a metabolite of the isoflavones daidzein, supplementation for 12 weeks at 30 mg/ day in 127 middle aged Japanese women resulted in lower depression scores than in a control group.20 However, this effect may be modulated by the extent of individual endogenous equol status also is associated with depressive symptoms based on a study in healthy young women living in the Pacific Northwest.22 A Norwegian study conducted in overweight and obese adults found that lower vitamin D status was associated with worse depression scores and that treatment with 20,000 to 40,000 IU vitamin D per week for one year led to improvement.23 Selenium supplementation (100 μg/day from the first trimester until delivery) has a favorable effect on postpartum depression.24 In younger women with PMS, calcium supplementation (500 mg calcium twice per day for 3 months) improved depressive symptoms.25 Anemia Anemia is characterized as low blood hemoglobin and is common in both young and older women with the prevalence varying considerable between countries. Young women are more likely to suffer from iron-deficiency anemia, while elderly women are more likely to suffer the anemia of chronic disease. Anemia is a well-known cause of fatigue. Interestingly, low iron stores without anemia may also play a role in fatigue. For example, 144 Swiss women, aged 18 to 55 years old, without anemia complaining of fatigue were studied before and after 4 weeks of iron supplementation (80 mg/day) or
placebo. Iron supplementation improved fatigue symptoms, but the effect appeared to be limited to those non-anemic women who had low iron stores.26 More recently, French investigators tested the efficacy of iron supplementation (80 mg/day for 12 weeks) compared to placebo treatment in 198 women who complained of fatigue and had normal hemoglobin, but low iron stores, and found a significant reduction in fatigue.27 These findings suggest that women suffering from fatigue may benefit from increased iron intake. Application Prototypes Many applications can be used to address women’s health concerns, ranging from supplements to snack bars, just to name a few. What follows are just a few examples of product formulations that can be used to support cardiovascular health, cognitive function and bone health: Strategic Nutrition for Women Generally speaking, women are early adopters and their increased desire to incorporate condition-specific nutrients into their diet, as well as an interest in health and wellness has helped to pique their interest in products designed specifically for them. Increased media interest in overall health and wellness has also helped bring this developing
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LIFESTYLE
category to light and. Hence, food and beverage manufacturers are seeing a new market for their products. Continuing study of the overall effects of functional ingredients and nutrients on various areas of women’s health will foster greater perspective on their implementation throughout the various life stages and will help to drive product development. Good manufacturing practice calls for the use of high quality nutritional blends that address these issues, which in turn will gain consumer confidence in the product and repeat purchase. There are a host of considerations for food developers looking to incorporate specific ingredients into products that address women’s health. These include responsible examination of potential interactions as well as synergies between various ingredients. Certain ingredients, such as choline and folic acid, share the same critical pathways in the body and when used together may support healthy cognitive performance more than would be expected when used individually. Another important consideration is the delivery channel for these nutrients, as different demographics vary in food and beverage preferences. Nutrients and functional ingredients may perform and interact differently depending on how they are integrated and in what type of food use application. Various market forms may need to be explored, depending upon the desired end use. Good manufacturing practice calls for the use of high quality nutritional blends that address these issues, which in turn will gain consumer confidence in the product and repeat purchase. Regulatory Considerations Regulatory bodies around the world may have differing parameters regarding nutritional claims. In developing label claims for a food, beverage or supplement product, manufacturers should seek legal guidance to affirm compliance with the appropriate regulatory body. The intent of the information provided within this paper is to help focus manufacturer’s thoughts and ideas surrounding product development in general and for women in particular.
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MARKET REPORT
Changing consumer preference driving growth of ready-to-eat Snack Food products
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ackaged food industry comprises bakery products, biscuits, readyto-eat snacks, chips, namkeens (salted snacks and savories), etc. Packaged food industry in India has witnessed an exponential growth over past few years. The market size of confectioneries is estimated at Rs.5,146 crore and that of biscuits is estimated at Rs.24,000 crore. Furthermore, the market size of readyto-eat snacks and namkeens is estimated at more than Rs.50,000 crore; having grown at a compounded annual growth rate (CAGR) of around 13% since 1998
till 2014 and expected to grow at a CAGR of 22% during 2014-2019. Major growth drivers for the segment are attributed to changing lifestyle, growing urbanization, increase in nuclear families and rise in disposable income. Other factors which have contributed to its growth include product innovations, strong marketing initiatives and low cost pricing strategies making products more affordable for consumers (starting from Rs.5 per packet). The sale of snack food category (readyto-eat packed foods like chips, extracted food, etc.) alone have grown more than
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six-fold from Rs.8,000 crore in 2004 to more than Rs.50,000 crore in 2014. The Key Demand cccelerators The primary factors that have provided an impetus to the packaged food industry in India are elaborated as under: Demographic factors Demographic factors like change in the consumer lifestyle has been one of the primary reasons for the growth of packaged food (snack) industry. Profile of
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an urban consumer in India is changing with increase in working population, predominance of married couples with double income, singles/ professionals staying away from home, nuclear families, etc, which coupled with increase in per capita disposable income, has opened opportunities for the ready-to-eat snack food segment. Furthermore, a need for convenience due to fast-paced lifestyle and a cultural tradition of eating snacks between meals has led to an increased demand for these products. The next 20 years are likely to see India add approximately 245 million youth to its workforce. At the same time, there will also be a rise in the middleclass population, as well as increase in disposable income across the socioeconomic spectrum which could aid sustainable growth of the packaged food (snack) industry. Increasing urbanization One of the increasing phenomena observed in India is the formation of urban agglomerations, which is the geographic concentration of urban population and economic activities. Over the years, India has been experiencing a steady increase in the share of urban population, emergence of new cities/ towns underpinned by growth in population, rural to urban migration and reclassification of rural areas in to urban. Continued migration from villages to cities means that by 2020, one-third of all Indians will live in urban areas, which bodes well for packaged food (snack) industry, as the urban areas comprise nearly 66% of their market. Furthermore, the emergence of organized modern trade and new retail formats create more choice for consumers and will facilitate changes in shopping habits. Innovative product and marketing
initiatives Product innovation, branding and attractive packaging have also provided impetus to the packaged food (snack) industry. The players in the packaged food (snack) industry have primarily tweaked their product offerings to suit the taste of Indian consumers and have launched new variants of the products to cater to regionspecific demand which have widened their consumer base. The industry players also consider factors like freshness, crispiness and flavor of the product, which the consumers consider important, before launching new products. Adoption of low cost pricing strategies to make the product affordable for consumers has also enhanced the consumer base for the industry. Newer preservation techniques have led to advent of products which are suitable to consumers during fasting season. Extruded products and those with different shapes and tastes have been some of the innovations that have widened the consumer base for the packaged food (snack) industry players. Innovations in the packaging industry like sophisticated packaging products made of biaxially-oriented polyethylene terephthalate (BOPET), biaxiallyoriented polypropylene (BOPP) and cast polypropylene (CPP) films have enabled packaged food (snack) industry players to offer products in colorful packs to attract consumers. Policy initiatives and Government support Food processing segment has been a key focus area of the Government considering the fact that around 70% of India’s population depends on agricultural activity. Government has formulated and implemented several schemes covering financial assistance for creating infrastructure, support for research and development and human resource
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MARKET REPORT
development to encourage growth of processed food sector. The government is facilitating expansion and technology up-gradation through schemes like Mega Food Park and cold chain, value addition and preservation infrastructure scheme. Imaginative and targeted policies such as ‘Food Parks’ are designed to address weaknesses throughout the value chain. By 2017, 50 Food Parks are expected to be built across the country, providing accessible transport and processing facilities to even small farmers. Furthermore, tax incentives, direct as well as indirect tax, are given to the players in form of income tax deductions, excise duty wave off, 100% foreign direct investments through automatic route, full repatriation of profits & capital and duty exemptions for export-oriented units. Profile of major players Challenges and Way Ahead Indian packaged food (snacks) industry still has untapped segments and an underpenetrated rural market. Furthermore, export opportunities are rising with India’s growing integration with the global economy, its proximity to key export destinations like Middle East and expected spike in global demand as emerging markets grow at a fast pace. Despite huge potential, Indian packaged food (snacks) industry faces challenge in terms of basic infrastructure, such as lack of adequate number of cold storage ware houses, efficient supply chain management for movement of perishable items etc. The industry is also prone to the vagaries of price fluctuations in the commodity that they utilize and is highly
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In order to achieve long-term sustainable growth, the industry players would be required to upgrade their supply chain management practices, secure and widen raw material procurement sources, adhere to global quality standards and periodically introduce new/ fresh products in the market. The players should focus on improvement of basic infrastructure by adopting technically advanced storage processes and efficient supply chain management practices for minimizing wastage and transit losses. Developing strong ties for raw material procurement is another key success factor for any agricultural commodity based business. Adopting best practices in contract manufacturing for key inputs or sharing greater economic benefits with farmers may help in creating long-standing relationship so as to minimize supply-related uncertainties. Periodic product innovation could be helpful in expanding target audience through addition of new customer segment or entering newer geographies so as to cater to region specific tastes & preferences. Furthermore, players should develop strong Internal Quality Control policies at each stage of the production process starting from raw material to packaging of finished goods so as to eliminate any deviation from quality benchmarks. Furthermore, the implemented practices should be largely inclusive and be beneficial to all intermediaries across the value chain, i.e. from farmers to manufacturers as well as from stockiest to retailers. Efficient procurement and management of raw materials complemented by control over quality, product innovation and efficient supply chain management would be essential to create a strong brand with a national presence. Rating Dispersion As presented above, of the sample of 11 rated companies from the packaged food (snacks) industry, 9 companies have been rated in investment grade. Rating of players in the investment grade derive strength from their established brand and strong regional presence, effective distribution model which has resulted in steady growth in income along with moderate profitability and comfortable debt coverage indicators. Furthermore, these players have better control over working capital requirement through their policy of working either on advance payment basis or offering very low credit period to distributors. Source: Care Ratings
Vol.11 Issue 02 December 2015
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fragmented with presence of several regional players apart from few national level players. Recently, many small regional players have mushroomed across the country which has added to competitive intensity of the industry. Hence, the biggest challenge for the industry players would be scaling up their regional presence to a national level while maintaining highest quality standards.
MARKET REPORT
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NEWS
Amul to serve better is expanding processing capacity, distribution reach
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94th birth anniversary of Dr Varghese Kurien. Launch of innovative, value-added new dairy products, expansion of fresh milk and milk products marketing operations to several new markets, besides expansion of distribution footprint through the vast network of stockists has led to quantum growth in Amul's business, he said.
CMMF, which markets the popular Amul brand of milk and dairy products, is expanding its processing capacity and distribution reach to serve the market better. R S Sodhi, Managing Director Gujarat Co-operative Milk Marketing Federation (GCMMF) said that the federation is investing Rs 800 crore to Rs 1,000 crore every year in Gujarat and outside the state and expects to invest about Rs 5,000 crore in the next five years. Sodhi added that the company's focus continues to be the domestic market and their focus continues to be India. There is a double digit growth in product and volume in all our products in the country. Last year, there was a 12 per cent growth in volume and this year it is expected to touch 13 per cent," he said. Amul, which is exporting its consumer products, including cheese and ghee, to countries where there is high concentration
of NRIs like the US and Middle East, will continue to focus on the domestic market where the demand is growing, he added. With a turnover of Rs 8,000 crore in 2009-10, Amul touched Rs 20,700 crore turnover mark in 2014-15 fiscal. It is now eyeing a turnover of Rs 50,000 crore in 2020-21, said Sodhi, who was here to participate in the 'National Milk Day' celebrations to commemorate the
Amul expects its two new milk powder plants with 150 tonne per day capacity to be ready in another 18 months. When completed, these will be the biggest milk powder manufacturing plants in the country, he said. A cooperative institution like Amul has to ensure the best price to farmers and provide the highest quality products at fair price so that average Indian can buy it. "Because of this business philosophy, for the last seven decades, Amul is there and growing and we have won the trust of millions of milk producers," said Sodhi.
Britannia to expand Dairy business
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ritannia Industries plans to expand its dairy products business into a full-fledged unit, targeting a fivefold increase in sales, and relaunch the portfolio of Tiger biscuits to improve market share. The company intends to set up a standalone
division for its fledgling milk product business to compete with newcomer ITC and established rival Amul. The new division will be in addition to the existing dairy unit, which accounts for less than 5 per cent of the Bengaluru-based company's turnover. That business is growing 10 per cent every year and will continue to run the way it's running with the current team. The new model could involve milk procurement, processing and selling. Nusli Wadia-promoted Britannia's joint venture with New Zealand's Fonterra
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Dairy to sell milk and milk products, inked in 2002, was called off after seven years. The company also wants to fix its other weak link — the value biscuit segment, where it has a share of 8-9 per cent. Britannia is launching the Tiger brand portfolio, including glucose, cookies and creams.
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NEWS
Government plans to allow two local Dairy
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companies to export to Russia for six months
ussia may soon get a taste of Indian milk and milk products with the Indian government working on a formula to allow two local dairy companies to export there for six months. India, the world's largest milk producer, exports dairy products mainly to the Middle East, Pakistan and other neighbouring countries. It is now keen on tapping the market in Russia, which has become dairy deficient following Western sanctions after its military intervention in Ukraine last year. Russia had sent an inspection team to India last year to examine the country's dairy industry. The inspectors set a condition that dairy product manufacturers meeting Russian standards must have at least 1,000 milch animals to be able to export to the country. Only two dairy units—belonging to Parag Milk Foods and Schreiber Dynamix Dairies-—got Russian approval, according to a commerce department official.
While the commerce department plans to give clearance to these two companies, it is also negotiating with the Russian government for relaxation in this norm. "Although we are negotiating with Russia to remove this condition, we have not been able to convince them. We are trying to find a mutually acceptable clause. If nothing works out, then we might settle for allowing these two companies to export and review this agreement after six months," the official said. In 2014-15, India exported 66.424 billion tonne of dairy products worth Rs 1,205.38 crore. The major export destinations were Bangladesh, the UAE, Pakistan, Nepal and Bhutan. "We have maintained that India follows cooperative farming in dairy products and there is not mass farming, but we haven't been able to convince them for this," the official said. The six-month arrangement is being
considered to prevent monopolisation by the two firms, besides finding a long-term solution to the problem and not losing the new market to others. Meanwhile, Indian dairy product exporters want the government to charge a premium from Russia in lieu of meeting its norms. "With the sanctions, Russia looks vulnerable now, and if they are not willing to come to the negotiating table at this point, they may not do in the future," said Ajay Sahai, directorgeneral of the Federation of Indian Export Organisations.
Kwality starts product sale of including milk and curd under brand
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airy firm Kwality Ltd has started selling its products, including milk and curd among others, under the brand name Kwality. Till now, the company, which supplies dairy products to institutional customers such as MNCs and Indian firms, had been selling its products under the brand name Dairy Best. The company would start distribution of their products -- milk, curd and chaach under the brand, Kwality. The three categories of milk i.e. full cream, toned will be available in pouches in Delhi
NCR from November 30, 2015. In October this year, the company has secured rights from its founding father, P L Lamba, to use the Kwality artwork for its dairy products and beverages. In 1994-95, Kwality had joined hands with the erstwhile Hindustan Unilever for ice cream business. Later, HULBSE -0.98 %, which was earlier known as HLL, gained control of the brand. The current promoter Sanjay Dhingra acquired Kwality in 2002-03. The company had reported a 4 per
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cent increase in its net profit at Rs 37.89 crore for the September quarter. Total income from operations also grew over 10 per cent to Rs 1,432.96 crore in the same quarter.
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Vol.11 Issue 02 December 2015
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NEWS
Dairy on Demand: Amul Goes Full Mode on Expansion Plans
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CMMF, which markets the popular Amul brand of milk and dairy products, is expanding its processing capacity and distribution reach to serve the market better, a top official said. "We are expanding our processing within and outside Gujarat, and expanding distribution reach. We hope to increase the organised market share," said R S Sodhi, Managing Director Gujarat Co-operative Milk Marketing Federation (GCMMF). The federation is investing Rs 800 crore to Rs 1,000 crore every year in Gujarat and outside the state and expects to invest about Rs 5,000 crore in the next five years, he said. Sodhi added that the company's focus continues to be the domestic market. "Our focus continues to be India. There is a double digit growth in product and
participate in the 'National Milk Day' celebrations to commemorate the 94th birth anniversary of Dr Varghese Kurien.
Amul, which is exporting its consumer products, including cheese and ghee, to countries where there is high concentration of NRIs like the US and Middle East, will continue to focus on the domestic market where the demand is growing, he said.
Launch of innovative, value-added new dairy products, expansion of fresh milk and milk products marketing operations to several new markets, besides expansion of distribution footprint through the vast network of stockists has led to quantum growth in Amul’s business, he said. Amul expects its two new milk powder plants with 150 tonne per day capacity to be ready in another 18 months. When completed, these will be the biggest milk powder manufacturing plants in the country, he said.
With a turnover of Rs 8,000 crore in 2009-10, Amul touched Rs 20,700 crore turnover mark in 2014-15 fiscal. It is now eyeing a turnover of Rs 50,000 crore in 2020-21, said Sodhi, who was here to
Already, the federation has a capacity of 750 tonnes per day for milk powder manufacturing and when the two new plants get ready, the capacity would touch around 1,000 tonnes per day, he added.
volume in all our products in the country. Last year, there was a 12 per cent growth in volume and this year it is expected to touch 13 per cent," he said.
AMUL 'is truly the pride of India': President
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resident Pranab Mukherjee said AMUL enterprise is truly the pride of India, adding it personifies the spirit of selfless dedication and far-sighted leadership. President Mukherjee, who inaugurated a state-of-the-art cattle feed manufacturing plant of AMUL here, said the onus is on the current generation of farmer-leaders, professionals and other stakeholders to expand the AMUL movement in a way that benefits farmers across the board. He urged all to ensure that this world-class institution continues to progress with the same passion and commitment and with the same values of integrity, efficiency and honesty which the founding fathers had instilled in AMUL. President Mukherjee said the journey of AMUL since 1946 from a 'drop' to a 'flood' of milk was challenging. "It was made possible because of AMUL's ability to be sensitive and proactive to
the needs of farmers and dynamic to the changing circumstances. The institutional structure called 'AMUL Model' or 'Anand Pattern' that emerged from the dairy cooperative movement has created a billion rupee worth brand while embracing the poorest of poor farmers," said President Mukherjee. "Through logistics innovation, AMUL has ensured easy availability of high-quality packaged milk and dairy products across the country," he added Asserting that AMUL is today the largest liquid milk brand in Asia and the largest food brand in India, President Mukherjee said it is also India's largest exporter of dairy products. The President acknowledged the tremendous contribution of the 3.6 million farmers of AMUL family and saluted the 150 million Indian milk producers for their efforts towards nation-building. He said their dedication, ingenuity, sacrifice
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and hard work have ensured food security for our country in the critical area of milk and dairy products. President Mukherjee said the sharp decline in global dairy commodity prices in the last one year has reduced milk prices for dairy farmers by 20 to 50 percent worldwide. "In pleasant contrast, farmers associated with AMUL Dairy have received higher prices for the milk they have poured into their cooperative. The spirit of cooperation espoused by the pioneering farmers of AMUL has triggered a socio-economic revolution in rural India transforming an entire nation," said President Mukherjee. "The winning combination of the AMUL experiment has been the convergence of farmers' wisdom, democratic set-up, professional management and adoption of right technology. It is a model worth emulating and following the same could help address problems in other areas faced by our farming community," he added.
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NEWS
Nestle claims Maggi Pazzta is 100% safe lashing out at Food regulator
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estle lashed out at food regulators after a government food-testing laboratory in Lucknow allegedly found lead beyond permissible limits in its pasta products. Nestle said in a statement that the laboratory is not NABL accredited nor is notified by FSSAI. The results of the laboratories which are not accredited cannot be relied upon. Maggi Pazzta is 100% safe. We will work with the authorities to resolve the situation as quickly as possible. Nestle is no stranger to controversies on food safety. It brought back its
Maggi noodles earlier this month after a country-wide ban on nine varieties of the product. In June, the country's apex food regulator FSSAI banned the noodles after it allegedly found lead in Maggi samples. The Bombay high court later lifted the ban and allowed Nestle to bring back the product only after it met certain conditions.
in UP or from the FSSAI about such test results. The media reports also mention that the tests have been conducted at National Foods Analysis Laboratory, Lucknow."
On the current pasta issue, Nestle India said: "We have seen media reports claiming that lead has been found in the product and we are investigating these claims. We have not received any formal notification from the authorities
President Pranab Mukherjee expresses concern over Food security
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resident Pranab Mukherjee showed concern on the decreasing land availability coupled with a rising population, and hence stressed upon ways to preserve natural resources to ensure continuous supply of food and fresh water in the country.
He said the dimensions of food security are many. The level of nutrition in food produce is an important determinant of food sufficiency in the population. In the Global Hunger Index 2015, which combines the three indicators of undernourishment, child under-weight and child mortality, India is ranked 80th out of 104 countries.
Citing about 120 million hectares of land at various stages of degradation, he also emphasized upon adoption of more sustainable land use systems and soil management practices.
"This is totally unacceptable. We have to improve the nutritional status of our population in a time-bound manner," the President said.
"We surmounted the challenge to food security then. But what about now, when we are confronted with decreasing land availability for agriculture coupled with a rising population? When deterioration in soil health and water quality is reducing agriculture productivity and input use efficiency?," Mukherjee said.
He said people must work hard to preserve our natural resources to continuously receive provisioning service such as food and fresh
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water; regulating service like climate and pest regulation; cultural service such as educational and eco-tourism; and supporting service like soil formation and nutrient cycling. "Agriculture has always received top priority in our policy formulation because early in our planning process, we recognized that we ourselves have to feed our growing population which today stands at 1.28 billion," he said.
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NEWS
Not broken any FSSAI norms, yet to receive FSSAI notice on noodles: Baba Ramdev
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he newly-launched Patanjali noodles may have been at the centre of a raging controversy, but yoga guru Baba Ramdev put up a brave face, saying it has not flouted any FSSAI norms and he is yet to receive any notice from the regulator.
Ramdev said "We are yet to receive any notice. Once we receive the notice, we will reply to it at the earliest. We want to say we have not flouted any norms, rules or regulations of FSSAI. We have followed all the rules and regulations of FSSAI. We have not done anything illegal." Recently, the Food Safety and Standards Authority of India (FSSAI) Chairperson Ashish Bahuguna had said no approval or licence was granted to Patanjali for its instant noodles.
'atta noodles' earlier this week in 70-gram packs priced at Rs 15, claiming it to be cheaper than those from its competitors, with an aim to take on the market leader, Nestle.
The Ramdev-promoted Patanjali came out with
Maggi pasta has lead beyond
permissible limit according to UP lab laboratory in Lucknow, Arvind Yadav, designated officer at Food and Drug Administration, Mau, was quoted as saying in various media reports. Yadav said, “After Maggi, the sample of macaroni pasta was taken from Mau and sent to National Food Analysis Laboratory, Lucknow, in which lead was found to be much more that the permissible limit."
N
estle landed in more trouble after a Uttar Pradesh laboratory alleged that samples of its pasta were found to have lead beyond permissible limits. Pasta samples collected from Nestle distributor Sriji Traders in UP on June 10 were sent to a government
"According to report received on September 2, they failed the tests," he added. According to him, the report has been sent to the FDA commissioner in Lucknow on October 12 for sanction to lodge a case and in case it is received, it will be filed in the court A Nestle spokesperson said that its pasta was 100 per cent safe. He added,
Vol.11 Issue 02 December 2015
the finished product and raw materials used to make it undergo rigorous testing during every stage of the manufacturing process. We have not received any formal notification from the authorities in UP or from the FSSAI about such test results.’’ Nestle will work with the authorities to resolve the situation as quickly as possible.
50 www.agronfoodprocessing.com
NEWS
Domino's Pizza partners Hyderabad-based start-up Zippr for coding method for delivering
J
ubilant Food Works, which operates Domino's Pizza chain, has partnered with Hyderabadbased start-up Zippr to use latter's coding method for delivering the orders instead of using consumers' address. With this partnership, Domino's consumers will be able to share their address during checkout on its online ordering platform, Jubilant Food Works said in a statement. The location management platform has developed an 8-character code called a 'Zippr' which replaces the four line address. Now, Domino's online customer
will simply use a Zippr code while checking out after placing the order online, instead of entering a fourline address. Domino's would start Zippr services initially for Delhi NCR users and the same would be rolled out in other cities in the next 15 days. "Realizing that smart devices and laptop screens have become major touch points for our customers to reach us, we are investing heavily in technology and exploring all possibilities that enable us to offer better services".
This is really exciting for us at Zippr, this partnership will enable our customers to use Zippr on Domino's checkout, solving the last mile logistics problems and saving costs," Zippr founder & CEO Aditya Vuchi said.
Burger King into trademark fights
with Food joints of similar names
B
urger King has been locked in trademark cases in India - from a small pushcart called Mr Singh Burger King to joints in malls with deceptively similar names or logos. The legal effort is paying off in some cases. Ludhiana-based street vendor Ravinder Pal Singh Babbar, who operated Mr Singh Burger King, changed the brand to Mr Singh Food King, saying he do he doesn't have the money to travel to New Delhi to fight court cases. According to court documents, Babbar "acknowledged that the plaintiff’s trademark is a wellknown mark" and filed an affidavit saying he would change the brand name. The court disposed of the case in September. A Varanasi-based restaurant called Burger King, too, changed its name to Taste King after a Delhi High Court injunction. It is still fighting the case, according to Virender Gupta, one of the brothers who own the outlet. Miami-based Burger King Corp., which
was acquired by investment firm 3G Capitals in 2010, is known for its signature Whopper burgers and opened its first store in India last year in a joint venture with Everstone Capital. The alliance has opened 33 outlets in the country so far. Burger King International filed at least six trademark cases against Indian operators in the Delhi High Court in the past two years and three of them are still pending, according to the court website. One of them involves Burger King Restaurant Pvt. Ltd., a chain of vegetarian outlets based in Gujarat. "Burger King has not been able to get any order against us," said Vishamber Shewakramani, proprietor of Burger King Restaurant. It filed a counter case in response to the US company's trademark lawsuit against it. Shewakramani said the case will come up for hearing on January 20.
Vol.11 Issue 02 December 2015
"We cannot comment on the ongoing cases but Burger King Corporation will take such action as is necessary within the confines of the law to protect against unlawful use or infringement of its trademarks," a company spokesperson said in an email. The US giant is also "closely watching" another local player - Gurgaon-based Burger Singh. Started by entrepreneur Kabirjeet Singh, Burger Singh, recently mopped up angel investment funding of Rs 2.2 crore.
51 www.agronfoodprocessing.com
NEWS
Instant rasam developed by Ready-toeat pioneer P Sadananda Maiya
A
fter a research of about 10 years, ready-to-eat pioneer P Sadananda Maiya has come up with two new types of masala cubes which dissolve into hot water to produce the aromatic South Indian soup, rasam. Maiya, heads the private equity-backed Maiyas Beverages and Foods said, "I can claim to be the first to have done this without using any chemicals or preservatives. I have used nanotechnology to create a product with a shelf life of one year," said. The firm used machines from Germany and Taiwan to make its rasam cubes. Maiya started working on the product in 2004 when he was still with MTR Foods.
"I worked for four years, but failed. I again resumed my work in 2010, and could see signs of success only last year," he said. Rasam, according to him, is a daily necessity, and many people cannot make it. The cube is made using dal, rasam powder, jaggery, tamarind, asafoetida, coriander, curry leaves etc, Maiya said, adding that nanotechnology has helped retain the the natural flavour of rasam. The Maiyas will launch two products — regular rasam and pepper rasam cakes — on December 6. The firm plans to launch the product in Chennai in January and add tomato rasam to its product line. Maiya plans to sell them between Rs 10 and Rs 15 a pack. The rasam cubes, Maiya said, will be sold only through the firm's online portal, and introduced in other retail stores later. Maiyas is targeting officer-goers, working couples, senior citizens etc. for
its innovative product. Rasam's taste differs according to the region or the community that makes it. Each region or community has perfected its own way of making it. A research by brand expert Harish Bijoor revealed that there are 211 types of rasams in South India alone. "Maiyas rasam cubes might convert rasam into a beverage in addition to being an additive to rice. It will be drunk as a hot beverage in winter.
After Rs 800 crore funding round led by SoftBank, Grofers now valued at Rs 2,664 crore along with existing backers Tiger Global Management and Sequoia Capital India, Grofers CEO Albinder Dhindsa confirmed. ET was the first to report on October 7 that Grofers was in talks to raise more than $100 million (Rs 665 crore) from SoftBank and other investors.
G
rofers, a quick-delivery service for groceries and electronics, has closed a $120-million (Rs 800 crore) funding round led by Japan's SoftBank. The company is now valued at about $400 million (Rs 2,664 crore), according to people aware of the deal terms. Apoletto Asia, the personal investment vehicle of DST Global's partners including Russian billionaire Yuri Milner, also invested in the company,
Grofers' latest fundraise, it’s third this year, marks an over three-fold increase in the company's valuation in about four months. The company was valued at $115 million in July and $33 million in February. Gurgaon-based Grofers will use the money to expand the business, with a focus on strengthening its supply chain. "We have to make investments in the supply chain, which we will now do with a longer-term view," Dhindsa said,
Vol.11 Issue 02 December 2015
adding that Grofers will step up focus on delivery as well. Grofers currently handles around 30,000 orders a day, and targets 50,000 in a few months. Grofers, which delivers mainly groceries sourced from neighbourhood stores, has so far signed up about 10,000 merchants in more than two dozen cities across India. The company for now wants to focus on strengthening operations in cities it is already present in, and slow expansion into new geographies. "We plan to expand categories and merchant base going forward," said Dhindsa. While vegetables and groceries are its biggest category, Grofers also offers electronics, bakery, home and office supplies, flowers, sports and fitness and pet care items.
52 www.agronfoodprocessing.com
NEWS
After Maggi, booze chocolates on Food watchdog radar Liquor chocolates, popular as Diwali gifts and otherwise, may soon be withdrawn from shop shelves as the government is planning a crackdown on sale of these chocolates. mandatory to have an alcohol permit to buy these chocolates, violation of which can lead to penalty or arrest under the Bombay Prohibition Act.
M
aggi may have returned to the market but Delhiites are in for another disappointment soon. Liquor chocolates, popular as Diwali gifts and otherwise, may soon be withdrawn from shop shelves as the government is planning a crackdown on sale of these chocolates. According to the Food Safety and Standards Authority of India (FSSAI), liquor chocolates are strictly prohibited in India and its sale is illegal. The FSSAI said it would pick up samples to conduct quality check and if alcohol content is found in these chocolates, action would be initiated against the manufacturer and the seller. During festive season, markets in several Indian cities, particularly the metro cities, get flooded with liquor chocolates. The sale goes up by almost two to three times during Christmas and New Year. The sale of liquor chocolates is also in violation of the Delhi Excise Rule. An excise department official said it is mandatory to procure license to sell any commodity containing alcohol in Delhi. In addition to this, consumption of liquor is prohibited for those below 25 years of age in the Capital. In a crackdown, the Mumbai Police had arrested a woman for making liquor chocolates without obtaining license from the excise department. In Mumbai, it is also
In response to an RTI query, the FSSAI said even imported chocolates containing alcohol is not permitted in Indian markets. "The FSSAI does not permit alcohol in chocolates. Hence, liquor chocolates imported from other countries are not allowed to be sold in Delhi's markets," said the RTI reply. The food safety regulator admitted that it has never conducted any quality check of these chocolates and hence there has been no penalty against violators. "It is a serious matter. Consumption of liquor chocolates could be injurious. We will take strict action against the manufacturers and sellers if the samples are found to have alcohol content," said a senior FSSAI official. "If ingredient lists of imported chocolates contain alcohol, the entire consignment is immediately rejected," said the official. The RTI applicant had also sought information on the countries from where liquor chocolates are imported in India and penalty imposed on these sellers. However, the department had no information in this regard. Sources said liquor chocolates are also available in duty-free shops at various airports in India. In Delhi, not only are imported chocolates mostly from Belgium sold,
Vol.11 Issue 02 December 2015
but a large number of local chocolate manufacturers openly operate. Liquor chocolates are also sold through online portals like amazon.com, craftsvilla. com, candywarehouse. com, germandeli. com and many more. The popular liquor chocolate brands being sold in Indian markets include VooDoo and Anthon Berg. Local manufacturers told that these chocolates are preferred by youths in the age group of 20 to 30 years. "Liquor chocolates are manufactured on a large scale in Delhi. Orders are generally placed online. The price varies between Rs 20-25 per piece or Rs 1,000-1,500 per kg," said a Delhi-based seller of liquor chocolates. Another seller in Gurgaon said local chocolates are in demand due to easy availability. These chocolates come in the shape of tiny edible bottles made of chocolate and filled with liquor. Doctors and experts have also warned against consumption of liquor chocolates. Doctors said liquor chocolates contain hydrogenated fats or the trans fats that can lead to a host of lifestyle illnesses like coronary heart disease, stroke, obesity, diabetes, and cancer. Hydrogenated fats are fatty acids created while making these chocolates.
53 www.agronfoodprocessing.com
NEWS
Cargill and Mondelez partner on cocoa sustainability programme in Indonesia
C
argill's cocoa and chocolate unit and Mondelez International have introduced a two-and-a-half-year programme to bolster the livelihood of cocoa farmers with smallholdings, as well as to encourage sustainable agricultural practices in Indonesia. The companies expect that the programme will benefit 6,000 farmers and their families in the Kolaka and Kolaka Timur
districts of southeast Sulawesi. Part of the Green Prosperity Sustainable Cocoa Production Partnership (GPSCPP) national initiative, which is led by Swisscontact in Indonesia, the programme is supported by a grant from the Millennium Challenge Account, which has provided funds to match with that of Mondelez and Cargill. Cargill Southeast Asia Cocoa Life manager Andi Sitti Asmayanti said, "After a successful first collaboration with Cargill in Indonesia in 2014, we are very excited to be working in partnership again on a large scale project in Indonesia. "Mondelez International plans to reach
40,000 farmers in Indonesia, and we believe this project will be a major step forward in reaching this commitment." The programme is expected to provide training in sustainable farming practices in order to boost productivity and reduce carbon footprint. As part of this programme, Mondelez Cocoa Life will tie up with an NGO to empower cocoa communities. This programme is aimed at securing farmers' livelihoods and ensuring the supply of cocoa in the long term. Since 2014, Mondelez and Cargill have been working together to help farmers in Sulawesi in order to push Indonesia as a leading producer of sustainable cocoa. Earlier this year, the two firms inked a formal partnership agreement to support the Cocoa Life programme of Mondelez International.
UAE-based luxury chocolate brand Al Nassma introduced a first-of-itskind camel milk chocolate in India
U
AE-based luxury chocolate brand Al Nassma introduced a first-ofits-kind camel milk chocolate in India. This will be retailed by Nuance, a travel retail brand that is part of the Dufry Group, at the duty-free section in the Kempegowda International Airport, Bengaluru (KIAB). Al Nassma's luxurious offerings are sold across the Gulf Cooperation Council (GCC) and Europe. Talking about their first point of sale in India, Patrick Dorais, director of sales at Al Nassma, said that the partnership with Nuance will strengthen their presence in India. "It (the collaboration) opens doors to some of the most important airports in
the world....we are excited to continue our company's journey with Nuance in Bengaluru." KIAB is the third busiest airport in India, which is introducing more luxury and F&B brands in its fold to enhance customer experience. Some of the existing fashion brands in the airport are Dior, Fabindia, Hidesign and Haute Curry, while F&B outlets include Glenfiddich, Moet & Chandon, Laurent-Perrier and Cafe Coffee Day. The airport also has a day-hotel and pay-in lounges by Plaza Premium Lounge. Speaking about the new addition, Hari Marar, president, airport operations at
Vol.11 Issue 02 December 2015
Bangalore International Airport Limited (BIAL), said, "Al Nassma is renowned for its exquisite range of camel milk chocolates globally. We are delighted they chose our airport to introduce their premium chocolate range in India."
54 www.agronfoodprocessing.com
NEWS
Consumers prefer Bakery products to sweets this Diwali
D
iwali is synonymous with sweets, but fear of spurious ingredients being used in their preparation to meet the festive demand is keeping consumers at a distance said, apex industry body Assocham. A sector specific analysis aimed at asserting prevailing market trends this Diwali conducted by Assocham. "If trends are anything to go by, there is a considerable rise of about 30 per cent in demand for assorted cookies, low-cal premium biscuits and bakery products this Diwali as consumers shift away from sweets amid fears of adulteration" . Mr D.S. Rawat, secretary general of Assocham , added that, "Growing suspicion about adulteration together
with rise in preference for healthy and low-fat products has hit the demand for traditional sweets which has fallen by over 50 per cent especially those made from milk," said while releasing the chamber's analysis. "The Rs 25,000 crore worth biscuit industry in India is making merry this festive season and its business is likely to grow by leaps and bounds this Diwali owing to multiple factors like attractive packaging in different shapes, sizes and flavours, quality control, longer shelf life and others," said Mr Rawat. "Considering there is an emotional value attached to traditional sweets, branded sweets market is doing a brisk business," he added. India's traditional sweets market which is worth over Rs 50,000 crore remains largely unorganized and constantly faces threats from rising prices of key raw materials like milk, butter, sugar and dry fruits, therefore, many resort to the use of inferior or adulterated ingredients and in some cases, they may even use chemicals to keep the costs down. Biscuit hampers are selling like hot
cakes and have even surpassed demand for chocolates and fruit juice packs owing to their growing acceptance amid varied Indian palates and are affordable, highlighted the analysis done by the ASSOCHAM Social Development Foundation. Assocham Social Development Foundation had interacted with about 100 leading sweet shops countrywide to enquire about demand for traditional sweets during the festive season in past two weeks. Majority of sweet shop owners/ representatives reported drastic dip in demand for sweets to the extent of about 25-50 per cent. Most of the sweet shop owners said they have started using more of dry fruits and less of mawa and other dairy products which has increased their costs by about 15-20 per Many of the traditional sweet shop owners said that considering the growing demand for biscuits/cookies, they have started selling the same under their own brands and are selling other popular biscuit brands to lure customers. Some of them said there is more demand for branded biscuits compared to chocolates this year.
DS Group takes its Pulse candy as trump card and expects Rs 100 crore in sales
D
S Group's confectionary division is expecting Rs.100 crore in sales during the current financial year from hard-boiled candy product Pulse. Announcing the launch of mangoflavored product in south Indian market, the Noida-based Dharampal Satyapal group's (DS Group) vice-president (new product development) Shashank Surana said Pulse, launched in in Gujarat and Rajasthan earlier this year, will have pan India presence by December. The 'kachcha aam' (unripe mango) flavoured product priced at one rupee has tremendous response in the two states and
has already clocked sales of about Rs.50 crore, he said. Surana said the response to test marketing in Telangana and Andhra Pradesh in the last few months was phenomenal. According to A.C. Nielsen, Hyderabad ranks number two as a consumer city for hard boiled candy and south India is the second biggest market after the north with a contribution of around 26 percent. The Rs.6, 500-crore group's confectionery division, which operates under the 'Pass Pass' mother brand, currently, has three products - PassPass, Chingles and Pulse. The confectionary division is expected
Vol.11 Issue 02 December 2015
to have Rs.220 crore turnovers during the current financial year. The hardboiled candy market in India is currently estimated at Rs.1, 800 crore and is the largest sub-segment of the NGNC (non gum, non-chocolate) category. It is growing at 9 percent and therefore we saw a great opportunity in this segment," said Surana. The company has outsourced manufacturing of Pulse to two manufacturers each in Hyderabad and Gujarat and one in Uttarakhand. It plans to have two more units in NCR.
55 www.agronfoodprocessing.com
NEWS
Cargill develops new starch enabling 50% reduction fat in yoghurt Hydroxypropyl (HP) starches available in the market cannot meet sensorial aptitude of yogurt with complete fat, often it is seen that the yoghurt's flavor is lost when fat is replaced with starch. "Yoghurt has become an irreplaceable component of the European diet."
C
argill has developed a new starch, which can reduce fat in yoghurt by 50%, while retaining taste and texture. Called C CreamTex 06329, the new modified starch has been created using Cargill's proprietary technology to bolster the texture and rheological feature of the final product. Cargill Texturizing Solutions EMEA starch product manager Denis Palacioglu said: "Yoghurt has become an irreplaceable component of the European diet. In particular, fat-reduced yoghurt has grown to become a top seller in the overall dairy health and wellness segment." "If we look closely at this segment, we can see that fat reduction is by far the most popular option in health and wellness yoghurt. But we also know that, while increasingly looking for healthier options with fewer calories and less sugar, consumers do not want to forsake the sensorial aspects connected with eating dairy, preferring those products that are both good for you and offer a creamy, silky-smooth texture. Certainly not an easy combination to achieve for dairy manufacturers." The
company
claimed
that
most
However, this patentpending starch is claimed to balance between technical impact and sensorial aptitude, even after enabling fat reduction of more than 50%. Cargill Texturizing Solutions senior dairy application specialist Fabien Bouron was quoted by the website as saying: "Through our dairy lab research, done via both rheological tests and sensory panels, we identified a clear gap in terms of creaminess, mouth thickness and shine when using HP starches, with a high degree of undesirable stickiness. So we developed a new technology and created C CreamTex 06329 modified starch to offer our customers the opportunity to fill that gap and achieve a greater level of fat reduction in their recipes. Additionally, being a starch-based solution, it is a reliable, cost-effective and nonanimal derived fat replacer." C CreamTex 06329 modified starches will be showcased at the Food Ingredients Europe event to be held in Paris from 1 to 3 December. Last month, Cargill developed a next-generation zero-calorie sweetener, called EverSweet,
Vol.11 Issue 02 December 2015
using a fermentation method to separate molecules found in the stevia plant. The sweetener was launched at the Supply Side West event, which was held between 7 and 8 October, and will be commercially available in the US by 2016. EverSweet was invented in conjunction with Evolva Holding, a Swiss biotech company. This development was claimed to offer a solution to soft drink companies, which have been looking for a calorie-free sweetener that not only tastes good but will also allay the concerns of consumers who are reluctant to consume products containing unnatural ingredients.
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NEWS
New research shows that sugar seen as “friend AND foe” by European consumers
N
ew quantitative consumer research commissioned by functional ingredients manufacturer BENEO shows that consumers perceive sugar as both a ‘friend and foe’ in their nutrition. The results also underline that sugar and carbohydrates play a key role in consumer behaviour when dealing with health concerns. More than 5000 consumers across five European countrieswere surveyed on their perception of sugar, carbohydrates and nutrition, with regard to blood glucose response.
like indulgence: 60 percent said that they ate sugar because they liked the taste and one out of three participants (33 percent) responded that sugar improved their overall mood. Consumers increasingly differentiate between ‘good’ and ‘bad’ carbohydrates Despite consumers seeing the benefits of less sugar intake, they also recognised
Consumers see carbohydrates as key in health issues The results show that consumer health concerns in order of importance are weight management (43 percent), fatigue or low energy (36 percent) and stress (35 percent). Consumers are aware that the amount and type of sugars, as well as carbohydrates in general, play a major role in coping with these health issues. Consumers’ main motivation for sugar reduction in their nutrition was because of its negative effects on their health. 58 percent of those respondents who wanted to eat less sugar said that their major driver was to control their weight. Also, the detrimental long-term effects of sugar consumption such as diabetes were a concern, being mentioned by nearly one out of three consumers who were trying to cut their sugar intake. Although wanting to reduce the amount of sugar consumed, respondents were not prepared to forego the feeling of sugar-
that carbohydrates are the major energy source for body and brain. 46 percent of respondents stated that the main reason they consumed carbohydrates was that they “give energy”. At the same time, consumers are starting to differentiate between different types of carbohydrate, with more than one out of two participants making a distinction between ‘good’ and ‘bad’ carbohydrates. Wholegrain, fibre, complex carbohydrates and slow-release carbohydrates were seen as ‘good’; with 51 percent of respondents regarding slow-release carbohydrates as generally better and 60 percent linking slow-release carbohydrates with sustained energy. Choosing ingredients such as the slow
Vol.11 Issue 02 December 2015
release carbohydrate Palatinose™ (isomaltulose), the chicory root fibres Orafti® Inulin and Oligofructose, or the sugar replacer ISOMALT, can help manufacturers to meet consumer demand for alternatives that support healthy weight and energy management. These functional ingredients are naturally derived from beet sugar and chicory root. Having a mild sweet taste they help meet consumer desire for sugar-like indulgence, while improving the nutritional profile by reducing high glycaemic sugars and/or calorie count. BENEO has received positive EFSA opinions for the blood glucose lowering properties of its dietary fibres oligofructose and inulin, as well as for the unique slow release carbohydrate Palatinose™ and the sugar replacer ISOMALT with corresponding health claim approvals. Gudrun Dold, Consumer Insights Manager at BENEO: "The research results show that sugar and carbohydrates play a decisive role in daily nutrition. Although consumers want to eat less sugar, they do not want to sacrifice that all important sugar-like taste and indulgence. Consumers are also beginning to distinguish between ‘good’ and ‘bad’ carbohydrates, making it even more important for producers to consider the quality of the carbohydrates used, when developing game-changing food and drink products for every lifestyle and age group.” For further details and insights on the consumer research Gudrun Dold, Consumer Insights Manager, BENEO, is available for comment.
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NEWS
DuPont Nutrition & Health Brings
Substantiated Science to Customers at CPhI India
DuPont will showcase HOWARU® premium probiotics and OsmoAid® Lactitol among other health ingredients solutions at CPhI India 2015, 1-3 December, Mumbai, India
D
uPont Nutrition & Health continues to focus on bringing industryleading science and research to its dietary supplements and pharmaceutical customers in India. Reinforcing its deep market knowledge, product insights and innovative science know-how the
leadership, DuPont Nutrition & Health will host an insightful technical presentation on probiotics on December 2 (12:00-12:45 PM IST) at the CPhI event. The topics covered will focus on both digestive and immune health of the consumer. DuPont will appear at CPhI India in collaboration with Indian distributor S.A. Pharmachem. Placed at the exhibition Hall No. 1 inside Booth E -6, DuPont will highlight finished formats in dietary supplements prototypes in three principle areas: Cardiovascular Health: solutions that promote the maintenance of healthy cholesterol levels. Sports Nutrition: health ingredients demonstrated for optimal sports performance and to support muscle health.
company will showcase a range of healthenhancing benefits at CPhI 2015 from Dec 1-3 in Mumbai, India. At the event, visitors will interact with experts on the range of DuPont™ Danisco® products that promote good health, driven by substantiated science. The platform will provide an opportunity to experience the company’s healthier profile of dietary supplements that address consumer needs in sync with emerging health trends. Visitors at the booth will have a chance to experience a selective range of DuPont™ Danisco® portfolio in finished formats with an array of bioactive ingredients that deliver clinically documented, health-enhancing effects. This will include products solutions in the range of Probiotics, OsmoAid® Lactitol, Betaine and Litesse®. With science at the center of its market
Immune Health: clinically documented, demographic-focused solutions to help consumers maintain a healthy immune system that can deal with the challenges their bodies face every day whilst supporting general well-being. DuPont™ Danisco® is the brand for a range of products that help provide enhanced bioprotection, an improved nutritional profile, and better taste and texture with greater cost efficiency and lower environmental impact, meeting the needs of manufacturers of food and beverages, dietary supplements and pet food. Through the work of the global network of food
Vol.11 Issue 02 December 2015
scientists and technologists in DuPont, the Danisco® range is supported by a uniquely broad spectrum of know-how across applications and processing. DuPont Nutrition & Health combines indepth knowledge of food and nutrition with current research and expert science to deliver unmatched value to the food, beverage and dietary supplement industries. We are innovative solvers, drawing on deep consumer insights and a broad product portfolio to help our customers turn challenges into high-value business opportunities. DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit www. dupont.com.
58 www.agronfoodprocessing.com
Event Calender-2016 Month
Events
January 2016
4th-7th Khadyakhurak-Ahamdabad 21st- 23rd Food Hospitality World-Mumbai
February 2016
18th–20th IDA Dairy Conference, Karnal Haryana 21st–25th Gulf Food, Dubai 12th–14th Dairy Trade, Kanpur 25th–27 Acrex, Mumbai
March 2016
15th–19th Aahar–Delhi 2nd–5th Packplus South 2016
April 2016
13th–14th Oil & Fats International India,
May 2016
Food Processing Industry In India
June 2016
Event Focus Snacks & Namkeen Industry In India
July 2016
24th–26th Food South, Chennai 27th–30th Packplus, Delhi
August 2016
22nd–24th Fi, & Hi,India New Delhi
September 2016
7th–9th Food Pro, Chennai 22nd–24th International Foodtech Mumbai 22nd–24th Annapoorna, Mumbai 28th–29th Indian Icecream Congress & Expo 29th-1st Food Hospitality World, Goa
October 2016
22nd–24th Dairy Feast, Lucknow
November 2016
19th–22nd Agro Tech, Chandigarh
December 2016
15th–17th Drink Technology, Mumbai
Vol.11 Issue 02 December 2015
59 www.agronfoodprocessing.com
South Asia’s
One & Only Ice Cream Industry Event
Meetings Knowledge Entertainment Discussions
Indian
Ice cream Congress & Expo 2016
28th-29th September 2016, Expo Center, Sector-62, Noida, Delhi NCR
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Food Agrprocessing Indian’s 1st News Portal for Agro, Food Processing & Allied Segments
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I n d i a ’s O n l y M o n t h l y f o r A g r o , F o o d P r o c e s s i n g & A l l i e d S e g m e n t s
India’s First E Magazine log on to www .agronfoodprocessing.com
Glimpses of Previous Event
Contactr�for�tStallsr�&rtPartners Indian Ice Cream Congress & Expo
Firoz H. Naqvi : +91-9867992299
Sameer K +91 9320017843 Seema Shaikh : +91-8689979988
121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068.Email: info@indianicecreamcongress.in Web: www.indianicecreamcongress.in INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General – IICMA) Regd. Ofce : A/801, 8th Floor, “Time Square” Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: info@iicma.in Web: www.iicma.in
Vol.11 Issue 02 December 2015
60 www.agronfoodprocessing.com
Technology. Quality. Leadership. Buhler plants for processing Pulses, Spices and Sesame seeds are designed to deliver higher yields, increased productivity, better product quality and thus improved profitability. With more than 150 years of experience in providing innovative solutions in the global grain and seed processing industry, Bühler can be a competent partner offering you superior technology,expert engineering support and best services contributing to the overall growth of your business.
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Multi-product Cleaning, Grading and Optical Sorting Complete processing system for wide variety of pulses Natural and Hulled Sesame seeds processing All seed Spices processing and grinding
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