Beverages & Food Processing Times by Advance Info Media

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Vol.4, Issue 16, May (II) 2012, Rs. 20/-

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Mega food park project to take off soon in UP

ttar Pradesh government will soon clear the decks for setting up the state's first mega food park project. Pending since 2010, when the Union ministry of food processing

industries gave an in-principle approval to a proposal submitted by Aditya Birla Nuvo Limited (ABNL), the food park project will come up at Jagdishpur in Sultanpur district.

The project was, till now, caught in a web of technical complications. With the new Samajwadi Party government appearing eager to boost the industry presence in UP, the project is likely to take off soon. Speaking to media, UP's Infrastructure and Industrial Development Commissioner AK Gupta, said: ''The project was delayed because of some technical concerns regarding the land lease. Uttar Pradesh State Industrial Development Corporation, which is the owner of the land will take a decision in this regard soon.'' Currently, UPSIDC bylaws permit only two land leases to be issued. Holding the first lease itself, the second sub-lease for the MFP land is with ABNL. However, according to the Central government rules for setting up a food park, the land holdings must

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be in the names of the individual processing units. Since ABNL cannot further lease this land to individual units, the government is now trying to iron out the concerns, either by amending the UPSIDC by-laws, or by selling additional land, adjacent to the existing MFP, to ABNL. In such a case, Aditya Birla Nuvo Limited (ABNL) will hold the first lease and can issue the sub-lease to individual processing units,'' Gupta said. With UPSIDC is deliberating over the matter at present and a decision is likely soon. Setting up a mega food park in UP is expected to leverage the state's position as a leading supplier of raw materials - UP leads in producing wheat, sugar, potato, milk and livestock - in agriculture. continued on page no. 2

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Indian Ice-cream Congress 2012, South will take place at Hyderabad later this year

ndian Ice-cream Congress 2012, South will take place at Hyderabad later this year. Aim Events informed your newspaper that the event will take place at Hyderabad in December 2012. Event Management Company of this event also informed they are expecting huge participation from the Ice-Cream companies based in South India. Ever since the success of 1st Indian Ice-Cream Congress at New Delhi in the March this year all the members of IICMA, suppliers and participants have been asking to do this event in South of India. Hyderabad is not only one of the largest Ice-cream consumers in the South but also in the entire country. Indian Ice-Cream Congress 2012, South would provide a great opportunity to the suppliers of machinery, raw materials and other services, spokes person said.

Beverages & Food Processing Times-May-II-2012

Food Processing News

Badal seeks Pawar's nod for more mega food parks in Punjab

unjab Chief Minister Parkash Singh Badal urged the Union Minister of Agriculture and Food Processing Industries Sharad Pawar to allot more mega food parks in the state being the granary of India. In a letter to Pawar, the Chief Minister said that Punjab being the agrarian state has been so far allotted one such food park being set up by International Mega Food Park Limited at village Dabwala Kalan in Ferozepur district. Seeking Pawar's personal intervention to direct the Ministry of Foof Processing Industries (MoFPI) to grant more such parks, Badal said that it would not only propel agro industries in the state but also richly benefit our farmers. The Chief Minister also pointed out that the state government in consultation stakeholders representing food procession industry has already prepared a blue print inviting suggestions from them to be incorporated in the upcoming schemes of MoFPI for boosting investment in this sector. These suggestions, if implemented, would go a long way in attracting investors to invest in Mega Food Park projects. He requested the Union Minister to direct MoFPI to take note of these suggestions and incorporate them in their scheme. Badal also mentioned that the state government had already provided certain major concessions of such kinds of projects including: exemption from basic stamp duty and registration fee on first sale and transfer of built up space of units or land in project area. In addition exemption from electricity duty up to five per cent for five years, permission of direct purchase of food grains, maize, barley, fruits and vegetables required for primary processing by the units in the Mega Food Park project. Also exemption is given from payment of Mandi Fee, Rural Development Fee and Infrastructure cess to the extent of one per cent each, subject to a maximum of 50 per cent of fixed capital investment. The exemption and concession is given for a period of 10 years whichever happens earlier, permission of sub-lease of land by Special Purpose Vehicle (SPV) to the food procession units and exemption from ceiling limit on land being purchased from the industrial purpose including Mega Food Parks as per latest amendment in Punjab Land Reforms Act, 1972. The Chief Minister also informed Pawar that state's Industrial Policy provides for an empowered committee, which can consider tailormade concessions on case-to-case basis as well.

Mega food park........ continued from page no 1. The scheme is expected to raise India's processing of perishables from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by 2015. In this light, the current project was expected to tap into UP's potential by developing the value chain from the farm to the market. Since the scheme will be developed on a cluster-based approach, it will be driven by demand, pre-marketed and would facilitate food processing units to meet environmental, safety and social standards. The expected outcome is increased realization for farmers, creation of high quality rural processing infrastructure, reduction in wastage, capacity building of the producers and processors and creation of an efficient supply chain along with significant direct and indirect employment generation. According to ABNL's existing proposal, the Central Processing Centre (CPC) will be set up at Jagdishpur, with primary processing centres at Sultanpur city, Faizabad, Rae Bareli, Barabanki, Lucknow, Pratapgarh, Ambedkar Nagar and Jaunpur. The company has also proposed to acquire 70 acres of land from UPSIDC in Jagdishpur industrial area or seek UPSIDC's permission to have the requisite land transferred from Indo Gulf Fertilisers to the Special Purpose Vehicle (SPV) floated for setting up the MFP. Though the company had, in its initial proposal, proposed to hold 94% equity in the SPV to be floated for the MFP, it has, subsequently, agreed to keep its equity at a maximum of 74%, as desired by the government. Significantly, the UP government had earlier, launched a food park scheme, but it failed to create waves in the state. Currently though five food parks exist in UP, only one at Sahjanwa, Gorakhpur - has been able to remain profitable since its inception in 2005. Attempting to bridge the gaps through the new 3-tier MFP scheme, the government also made provisions for an efficient supply chain and backward linkages. The scheme will also provide processing, packaging, environmental protection systems, quality control laboratories and trade facilitation centres.

Beverages & Food Processing Times-May-II-2012

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Beverages & Food Processing Times-May-II-2012

Bakery News

Parle G re-enters the premium glucose segment 10 things about Dunkin'

he Chauhan family-owned Parle Products is re-entering the premium glucose category after nearly a decade launching the Parle Gold brand. It had launched Parle G-Magix with variants such as chocolate and cashew in 2002 to compete with Britannia's mass Tiger brand. But consumers were unwilling to accept the idea of a 'flavoured' glucose brand at that point of time. Subsequently in 2005 Parle G spun off the Magix suffix as a separate brand in the 'affordable cookie' segment. This time it is enhancing its existing Parle G brand with a variant called Parle Gold which is bigger in size and has a richer formulation and is priced at a premium (Rs 10 for 100 gms). According to Mr. Mayank Shah,

Group Product Manager, Parle Products, “Glucose biscuits is a staple and functional category today. At the same time there are consumers who do not want a plain vanilla product and would like to move to better taste and formulation within the category.” To hold on to such consumers, Mr Shah says, the company has created a premium variant – and claims it is the only company to have such a variant in the glucose category. Parle G has continued to be the single mass brand in Parle's portfolio all these years with an 80 per cent share in the glucose category. Today the 83-year-old largest biscuit manufacturer in the country believes in plugging the gaps in its biscuit portfolio. While it has extended itself in the Rs 4,500-crore

glucose category from mass to premium offerings, it has moved in the reverse order in the Rs 2,500 crore cookie segment. With its new cookie offering 'Happy Happy', it has launched an affordable variant in this category. “Since we already had premium cookie brands such as Hide & Seek and Milano, we decided to plug the gaps in the cookie segment with a mass brand such as Happy Happy with a chocolate chip cookie,” says Mr. Shah. In fact, the cookie segment (biscuits fortified with nuts and chocolates) is growing faster today at nearly 20 per cent while the glucose segment has slowed down with just 15 per cent growth rate. Today Happy Happy is also the only brand Parle is advertising during the IPL as it has the onus of establishing the new brand.

India's biscuit industry heading towards premiumisation (Feature)

ndia's Rs.150-billion ($3 billion) biscuit industry, the third largest in the world, is witnessing a major shift towards 'premiumisation' as consumer preferences change, fuelled by soaring disposable incomes in smaller towns and health awareness. People with lower incomes are also upgrading from the 'affordable' glucose biscuits to mass cream biscuits and mass cookies. The biscuit industry, which consists of economy, middle, premium and super-premium segments, is likely to grow at 20 percent annually in the next few years. But the premium and superpremium segments, according to industry experts, are believed to be growing at a much faster rate, probably more than 30 percent on a year-on-year basis. "Currently, economy and middle segments (mass segment) comprise about 70 percent of the total biscuit market in India. I think in the next five years, the share of the mass segment would come down to 60 percent and the rest would be premium and superpremium segments," Parle Products group product manager B. Krishna Rao told over phone from Mumbai. Parle, which is India's largest biscuit maker with a 45 percent market share, said biscuit companies in the country are coming up with more products in the rapidly growing premium segments to tap the market. "Competition in the economy segment is extremely difficult as it would put pressure on the bottom line (profit)," Rao said. Explaining the reasons for the consumers' growing preferences towards the premium biscuits than the mass products, he said smaller towns were now having modern trade centres with consumers possessing more disposable incomes, which resulted in spreading of mall culture. "Currently, there are about 40 mini metros across the country.

The scenario was different a few years ago. Smaller towns like Durgapur, Asansol, Surat and Rajkot now have modern trade centres like malls. Retail chains like Big Bazaar are coming up also in tier II and tier III cities," he observed. He said while the economy segment was likely to grow at a range of 15 percent to 18 percent annually, the premium segment was expected to clock 30 percent growth. As a result, Rao said, a lot of companies would introduce products in the premium and

wellness, Britannia Industries. "And this is best borne out by the reducing contribution of the glucose segment. The glucose segment used to contribute 33 percent by value a couple of years ago and this has dropped to 24 percent," Narasimhan stated. According to her, people belonging to the lower income group are upgrading to mass cream biscuits and mass cookies. She said the current trend would not just continue but grow in magnitude and people would prefer not just 'affordable delight' but seek specific benefits in food

super-premium biscuit segments in the days ahead. Parle, which owns brands like Parle-G glucose biscuits and 2020 in the mass segment, also possesses brands like Hide & Seek and Hide & Seek Milano in the premium segment. While biscuits priced at Rs.100150 per kg are categorised as middle segment, biscuits with an MRP of Rs.125-150 per kg fall in the premium category. Priced at below Rs.100 a kg are in the economy segment and above Rs.150 a kg in the super-premium segment. Another biscuit major Britannia seconded Parle's observation on the consumers' preference shifts towards premium products. "Over the last few years, the biggest shift that has been happening (in the country's biscuit industry) is the premiumisation shift," said Anuradha Narasimhan, category director, health and

products, including health needs. "We see the benefits of health as well as indulgence being played out - these benefits will democratise and not just be the purview of top-end audiences. Health and convenience are primary drivers of food consumption - with the health need being very key," she pointed out. Narasimhan said the health wave in India was being fuelled by the high prevalence of diseases such as diabetes and hypertension as well as awareness driven by the media. "We believe the biscuit market will continue to grow in the range of 20 plus percent - with premium segments growing much faster," she added. Britannia, which operates in both the mass and premium segments, has popular brands like Marie Gold, Little Hearts and Time Pass.

Donuts launch in India

oodies, rejoice! Dunkin' Donuts, a leading US food chain, has opened its first flagship store in Connaught Place in New Delhi. The Indian unit of the US food chain is a joint venture between Dunkin' Brands Group and India's

Indian spices and fillings, fruit milkshakes and smoothies with flavours such as Alphonso mango and litchi. Hungry, kya? 6) A big focus for Dunkin' in India will be coffee, which has become increasingly popular in India, a traditionally tea-loving nation.

Jubilant Foodworks, which also owns the franchise for Domino's Pizza. Here are 10 things about the brand's launch: 1) In India, it will be branded as “Dunkin' Donuts and More”, because a doughnut-eating culture is not yet widespread in India. So, outlets here are expected to serve hot beverages and sandwiches as well. In India, it will be branded as "Dunkin' Donuts and More” 2) The company plans to open 10 stores in this current financial year. All of them will be in New Delhi. About 80-100 outlets will be opened across the country over the next five years, which will be a mix of flagship stores, stores in malls and kiosks. 3) “Dunkin' Donuts and More” will debut in Mumbai only in 20132014, according to The Wall Street Journal. Tough luck, Mumbaikars. 4) The Indian debut will cost about $1.8 million (about Rs 9.5 crore) and there are plans to invest about $2.3 million (about Rs 12 crore) more on stores and manufacturing facilities this year, according to Ajay Kaul, chief executive officer of Jubilant FoodWorks. 5) To cater to the Indian palate, Dunkin's India menu will include vegetarian options, sandwiches with

Indeed, the coffee/cafe market is facing increasing competition by the day. Globally, Dunkin Donuts' derives more than half its business from coffee sales, which is why it will be more in competition with chains like Starbucks, which will also debut in India by opening an outlet in India in August. 7) Dunkin's India launch is part of the company's broader strategy to expand in the Asia-Pacific region. The company, which is present in 52 countries, in March announced plans to open over 300 shops in Asia over the next few years. No surprises there, every top brand is targeting India and China. 8 ) In India, Dunkin is pricing its doughnuts at Rs 45 and coffee at Rs 70, according to media reports. A Jubilant Foodworks group official was quoted as saying the aim was to launch an “affordable” brand in India. The food chain aims to price its products 10-15 percent lower than competitors to acquire scale in its Indian operations. 9) Dunkin' Donuts is being targeted at urban consumers below 35 years old. The rest of us, of course, have to watch our calories. 10) Internationally, Dunkin' Donuts offers more than 1,000 varieties of doughnuts, along with fritters, crullers, bagels, muffins, danish pastries, muffins and biscuits.

Beverages & Food Processing Times-May-II-2012

Food Processing News

UNIDO to survey Punjab to set up food processing clusters

ith "Aman ki Asha" brightening up between India and Pakistan, the United Nation's Industrial Development Organisation (UNIDO) is getting a survey done in all districts of the border state of Punjab to find out two suitable districts for setting up clusters of food processing industry. The survey is being conducted by Assocham on behalf of the UN body which has already initiated a process for similar clusters of other industries in Madhya Pradesh, Bihar, West Bengal and Kerala. Expenditure for the project will be born by UNIDO, which will also arrange expertise of global scale for giving a push to the food processing industry in the state, which is a success story in agriculture development, Assocham's secretary general D S Rawat revealed, after meeting Punjab chief minister Parkash Singh Badal and industries minister Anil Joshi. The state government may have to arrange only the basic infrastructure. Though need for developing the food processing industry was long felt in Punjab, the industry could not really take off in a big way despite multi-national companies like Pepsi setting up food processing units in the country almost a decade ago. A memorandum of understanding has been signed among UNIDO, Assocham and the government of India for setting up such clusters in India. This apart, a process has been set in motion to establish 15 new industrial clusters in Punjab with the help of the Central government. Industrial clusters supported by the Central government can reduce cost of production by 15% to 20% due to concessions and common facilities created by the government and the industry, Rawat said. Initially, the industrial body, however, will work for the success of the existing ones that are being run by the industry, with help from the state government. Rawat revealed that the Planning Commission of India has already included these 15 clusters among 562 planned in the country in the 12th plan appraisal paper. The ministry of micro, small and medium enterprises (MSME) has to given approval to these 15 industrial clusters. Chairman of SAARC committee of Assocham, Ravi Gupta, who also met Punjab chief minister Parkash Singh Badal to drive home an agenda for improving the investment climate, said, "Punjab cannot overlook this aspect as industries that need to cater to the huge markets of Pakistan, Gulf region and Central Asia may now re-locate to Punjab."

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Food processors demand tax holiday for grwoth

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he CEOs of the several food processing and FMCG firms have demanded a 100 per cent tax holiday for food processing units. They pointed out that the sector is poised to be the growth driver of the country's economy. At a CEO round-table organised by Confederation of Indian Industry (CII) here, the industry representatives also urged the Union Government to concedre the long pending demands such as uniform implementation of Agricultural Produce Marketing Committee Act, promotion of cold chain industry on prive public partnership basis, fast implementation of GST for a harmonised tax structure, exemption of import duties on machinery and raw materials, and establishment of quality food laboratories. Lack of proper infrastructure in the sector is resulting in a wastage of Rs 30,000-crore food every year.

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However, the Government is looking at resolving certain problem areas of the sector such as land, he said. He said that cold chains have been doing quite well with eight already being set up. Another 10-15 will come up by the end of this fiscal and the Government had approved another 30 new projects last month.

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Mr Rakesh Kacker, Secretary, Ministry of Food Processing Industries, said: “The sector grew by an average of 8 per cent between 2006 and 2010. This is higher than the growth of the manufacturing sector. Agriculture has also been growing 2-3 per cent which means we are adding more value to agriculture.”

Beverages & Food Processing Times-May-II-2012

Corporate News

Cognex Sets A New Standard For Industrial Ocr Assocham's plans strategy for Punjab

ognex Corporation, world's leading supplier of machine vision systems, has introduced OCRMax™, a new tool for optical character recognition (OCR) and verification (OCV) applications that gives Cognex vision systems and vision software the power to achieve the highest read rates while keeping misreads to a minimum. OCRMax is fast, easy to set up and simple to use across all In-Sight® vision system and VisionPro® vision software platforms.

addition, OCRMax lets users control key parameters to further improve segmentation performance, resulting in even higher read rates and fewer misreads. Easier font training and management OCRMax has an intuitive user interface that makes font training a very simple process. This makes reads more consistent and repeatable in virtually any environment. OCRMax users can also export and import fonts from

Read any code, anywhere “Industries are putting a major focus on traceability in the supply chain,” said Bhaskar Banerjee, Business Unit Manager, Vision Systems. “Consumers and other stakeholders are requiring it. OCRMax gives manufacturers the power to ensure that labels match products, to verify print legibility of codes and to match text to barcodes or 2-D Data Matrix codes. The ease of use and set up, powerful segmentation functionality and

Maximum flexibility OCRMax overcomes the limitations of other OCR technologies. It is an all-in-one tool that can handle character variations, text skew, proportional fonts and variable string lengths, making it the most robust character recognition tool in the industry. OCRMax is easy to set up and use, with minimal training being required. Best character segmentation The key to achieving the highest read rates with OCRMax is its superior character segmentation capability. The segmenting functionality takes each character line and splits it into individual regions that each contains one character. This robust functionality ensures that OCRMax can handle distorted, touching and variably spaced characters. It can also accommodate uneven surfaces and lighting variations to the background of the characters. In

external storage, making training easier and increasing the tool's flexibility. In addition, users can share the same fonts across multiple Cognex systems, further streamlining and simplifying font management.

simple, flexible font training that OCRMax offers, make it a powerful solution for any manufacturer.” To learn more and try OCRMax for In-Sight or VisionPro, go to www.cognex.com/OCR.

DuPont™ Danisco® Cultures Make Eyes Wide Open CHOOZIT™ EYES Addresses Optimal Eye Formation in Continental Cheese

ARIS, 9 May 2012 – Research by DuPont Nutrition & Health has created an opportunity for continental cheese makers to achieve optimal eyes development easily and efficiently.

The CHOOZIT™ Eyes range of propionic acid bacteria cultures makes great looking cheese with the requisite sensory properties, meaning it is a true improvement to standard cultures available to date. The range is now enriched with a new culture - CHOOZIT™ Eyes 2 LYO. CHOOZIT™ Eyes 2 LYO Benefiting from CHOOZIT™ Eyes 1 experience and technology, the new culture has been designed to address the needs of semi-hard and hard cheese manufacturers in the best possible way. CHOOZIT™ Eyes 2 is available in freeze-dried format for easy logistics, and in small packs to enable use in all size cheese manufacturing facilities. It has been formulated to help semi-hard and hard cheese makers differentiate their product with intense and rich cheese flavour, and to gain and maintain consumer loyalty by giving consistent cheese quality. The product also helps to improve industrial efficacy and flexibility,

thanks to fast eyes formation, short ripening time and suitability for various continental cheese styles and flavours (in combination with CHOOZIT™ Flavour adjuncts). Manufacturing Pressure Relief

The range is the fruitful outcome of a DuPont research project aimed at relieving the pressures on large eyed cheese manufacturers. Emmental or Maasdam-style cheeses are possibly the most difficult cheeses to manufacture consistently. In addition to their sensory, functional and costs requirements, these cheeses need to look good with nicely-shaped, evenly spread eyes. For consumers, perfect cheese eyes relate directly to quality and taste. For cheese makers, they mean a complex mastering of their processes, including excellent curd handling, thorough bacteriological control and a precise heating process. “Our industrial trials have demonstrated excellent results with CHOOZIT™ EYES. These demonstrate that this really is an improvement to many other cultures available today,” said Caroline de Lamarlière, global product manager, Ripening & Protective Cultures, DuPont Nutrition & Health. CHOOZIT™ EYES is part of the

extensive Cheese Cultures portfolio in the DuPont™ Danisco® ingredient range. 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 scientists and technologists in DuPont, the Danisco® range is supported by a uniquely broad spectrum of knowhow across applications and processing. www.danisco.com DuPont Nutrition & Health addresses the world's challenges in food by offering a wide range of sustainable, bio-based ingredients and advanced microbial diagnostic solutions to provide safer, healthier and more nutritious food. Through close collaboration with customers, DuPont combines knowledge and experience with a passion for innovation to deliver unparalleled customer value to the marketplace. 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 http://www.dupont.com.

eading industry body ASSOCHAM has proposed 30-point growth strategy to the new Government of Punjab with a view to give thrust to the small scale enterprises and food processing sector and achieve double digit growth in the decade. In reply to a question, Rawat said that gradually subsidies should be phased out in Punjab and every state. The ASSOCHAM delegation comprising Ravi Wig, Chairman, ASSOCHAM Punjab Development Council, Ashok Khanna, Chairman, ASSOCHAM National Council on Environment and Safety and TQM and D.S. Rawat, Secretary General, ASSOCHAM met Prakash Singh Badal and suggested setting up of industiral clusters in Punjab for small and medium enterprises involved in food processing, handicrafts, renewable energy and information technology to generate three lakh direct and indirect jobs over the next three years and help inclusive growth. The strategy paper on all-round Punjab development is a readyreckoner for investors, the Centre and state governments to make it as one of the most attractive investment destinations in India with double digit SGDP growth, said Mr. Wig. The chamber has also set up a dedicated Foundation for Development of Micro Industries and clusterisation to promote micro,

small and medium enterprises. They said Punjab should rejuvenate agriculture, create manufacturing hubs and accelerate growth in services sector to emerge as land of opportunities. The agenda of new state government should be to prioritise building social and physical infrastructure and define role of all stakeholders and cover short-term and long-term goals to ensure speedy development. The state may not have enough finances to develop infrastructure on its own which builds a good case for public private partnership (PPP) type of initiatives involving multilateral institutions like the World Bank and the Asian Development Bank. “The challenge before state government is to address the issue from a holistic perspective keeping in balance between agriculture and industry,” said Rawat. “We would also like the state government to promote irrigation, rural connectivity, health, education and non-farm rural activities. With rich natural resources and traditional industries, however, the state holds enormous unrealised growth potential,” said Khanna. At the same time, industries clusters can be created for micro, small and medium enterprises to ensure common facilities, thus reducing operating costs and increasing competitiveness and skill development around that sector.

Subway to have 1,000 outlets in India in next 5 years

ubway, the US-based restaurant chain has stepped up efforts to increase its footprint across India as it plans to have around 1,000 outlets over the next five years. The company currently operates 263 restaurants across 50 cities of India. “A large part of our expansion will be focussed on smaller cities such as Shillong, Darjeeling and Ambala among several others,” said Fred DeLuca, CEO and founder, Subway. He added that the small store format, which allows for Subway restaurants to come up in around 600 to 800 sq ft, makes it easier for the company

to target far-flung areas and smaller towns. “The smaller format makes it much easier for our franchisees to break even and make good profits,” said DeLuca. The total investment is estimated at around $58 million (Rs 300 crore). Globally, Subway does not own or operate its own stores rather has stores that are operated and managed by its franchisees. A franchisee contributes $90,000 (Rs 45 lakh) as fees to open a Subway restaurant. DeLuca added the company aims to open 4,000 new stores across the world over the next two years. At present there are around 36,000 Subway restaurants across the world.

Beverages & Food Processing Times-May-II-2012

Event Report

Food Processing Can Do To Rural India What IT Has Done To Urban India: FOOD & BEV Tech 2012 concurrent with Food & Bev 2012

he 4th edition of Food & Bev Tech 2012 was held concurrent with Food & Bev 2012, an International Exhibition and Summit on Food and Beverage sector between 25 to 27 April 2012 at Mumbai. The event was inaugurated by Mr. Rakesh Kacker, Secretary, Ministry of Food Processing, Government of India in the presence of Dr Sudhir Kumar Goel, IAS, Principal Secretary - Agriculture & Marketing, (Additional Charge) Marketing Cooperation, Government of Maharashtra, Mr. Piruz Khambatta, Chairman, Food & Bev 2012, Rasna India and Mr. Pradeep Banarjee, Cochairmanship, Hindustan Unilever. It was supported by the Ministry of Food Processing Industries, Government of India, Government of Maharashtra as Host State and Government of Gujarat as Partner State. State participation from Maharashtra, Gujarat, Kerala and Punjab also showcased their strength in the food sector. True to CII's commitment for the year to support SC/ST entrepreneurs throughout the year, Food & Bev has a special showcasing of them in the area of Food & Bev under the aegis of DICCI – Dalit Indian Chamber of Commerce and Industry. Major highlights of the show included Retail, Wine & DICCI Pavilions. The event hosted an International participation from Foodtech Holland showcasing their latest technology and trends to the Indian market. Over 150 companies showcased their latest technologies and Food products spread across 8000 sqm of exhibition space. The new initiative at 4th Food & Bev Tech 2012 was launch of “The Food Show - Food & Bev 2012” which provided platform for companies to market and promote their products and services to food and beverage industry professionals, distributors and importers, supermarket chains, hotels, restaurants, airlines, railways, food service providers and also interact with buyers and delegates on the innovations that could benefit all. The Retail Pavilion of the exhibition was a platform for the retail chains and institutional buyers to have a face to face interaction exclusively with the exhibitors at Food & Bev 2012. The buyers part of the Retail B2B meeting were Aditya Birla Retail Ltd., Future Group, Godrej Nature's Basket, DMart, Reliance Fresh and The Oberoi Group. New Product launches during Food & Bev Tech 2012 Innovative processing solution for diced products, HRS Process Systems Spray Dynamics range of coating and seasoning applicator, Heat and Control Refrigerated transportation solution, Ingersoll Rand Sanitary Centrifugal Pumps by Pharmalab India in technical collaboration with KPA Pumps, Germany The vertical Body maker, Schuler

India One tonner capacity refrigerated truck, Sanden Vikas checkweigher with capacity ranging from 600 gms to 6 kgs Checkweigher, Bizerba India. Fully Automatic Modular Cip Systems, Automation Valve Cluster, E Doodh Solutions. Paper Bags with foil lining inside, Swiss Pack. S.S Powder Blender & S.S Centrifugal pumps & Pump Stand, Zeutech Engineering. EZ-Fluo™ Rapid Detection System. A Fast, non-destructive, fluorescent staining-based system for microbial detection, Merck Millipore. Servo Auger, Powder Packing Machine, Interpack Machines Tum E Yummies Kids Drink Launched by V & V Beverages Pvt. Ltd An exclusive CEO's Interaction with Mr Rakesh Kacker, Secretary, MOFPI, GoI was organized parallel to the event. Mr Kacker, during the discussion reiterated the need for greater quality consciousness in food processing industry. Industry members raised issues such as uniform implementation of AMPC Act, promotion of cold chain industry on PPP basis and fast implementation of GST for a harmonized tax structure. In addition, industry opined establishment of more education centers and quality food labs. In view of the large scale employment food processing sector generates and in order for benefiting farmers, industry representatives also opined exemption of import duties on machinery and raw materials and 100% tax holiday for the new food processing units. Food, a fundamental need for survival, will only see a rise in the future. India, with a large agricultural base, is rightly poised to meet the food needs of the world. If this has to happen, India has a lot to do. An exclusive summit organised by the Confederation of Indian Industry (CII), the 5th International “Food & Bev Summit 2012” discussed on the ways that India can become the food factory of the world Mr. Rakesh Kacker, Secretary – Ministry of Food Processing Industries, GoI said, “Government of India is committed to the growth of the food processing sector. A lot of things are happening in the sector

which grew by an average of 8% between 2006 and 2010. This is higher than the growth of the manufacturing sector. Agriculture has also been growing 2-3% which means we are adding more value to agriculture.” He informed that his Ministry is trying to involve the state governments more and more in their schemes. While highlighting the problem areas, he said that many of them have been resolved or are in the process of resolving with large budgetary allocations. “The main problems have been related to land. In many projects we have worked closely with State government and removed problems. Cold chains have been doing quite well with 8 already being completed and 10-15 more to be completed by the end of the financial year. We have got a very good response from the private sector and just last month we have got approval for 30 new projects. The Government's major area of focus is skill development. Industry needs skilled manpower and we are dedicated to developing that for the food processing industry.” He said that the major thrust for the ministry is to move out of project implementation and leave it to the State government. Dr. Sudhir Kumar Goel, IAS, Principal Secretary – Agriculture & Marketing, (Additional Charge) Marketing Cooperation, Government of Maharashtra said, “I am here on behalf of state government to make a few offers. Firstly we are willing to work with industry in the back end. We will provide all inputs to farmers from where you source all material from them. Anyone willing to have an end to end solution can come up and we can start having discussions immediately. Backend will be entirely our responsibility and it will not eat upon your profit margins. We have enough projects and money allocated into it to take care of that.” Piruz Khambatta, Chairman, Food & Bev 2012 and Chairman & Managing Director, Rasna said, “Food processing can do to rural India what IT has done to urban India – bring prosperity and growth. Food processing sector can act as a vehicle for 21st century India.” Elaborating about this Mr. Khambatta said, “GoI have so many

schemes that industrialists have to educate themselves to take advantage of them. 31% of spending done by Indians is on food. You cannot thus get wrong with food processing. We are an agricultural nation and we can expand food processing. There's a huge scientific and management talent and well developed finance market. This sector is a boon for SMEs as you can start a business

processing companies by government etc. Mr. Pradeep Banerjee, Executive Director – Supply Chain, Hindustan Unilever Ltd said, “The call for inclusive growth is loud and clear. As an industry when we develop our plans to make India the food factory of the world, we cannot forget that inclusive growth has to be at the core. Secondly, we have talked a lot and for a long time. There is now an urgent need for action. And thirdly we need to take Private Public partnership to new heights.” The second session saw an interesting debate where advertising pioneer Mr. Prahlad Kakar in his imitable humour and style, while chairing a session, taught the Food and Bev industry branding and marketing. He said that though we have great Food & Bev tradition, we have not known how to build brands from it and take advantage from the same. In view of the recently mandated Food Regulations, exclusive session on the new Food Safety Regulations was organized by CII- Jubilant Bhartia Food and Agriculture Centre of Excellence (FACE) explaining the shift from policing to self regulation, end-product testing to system standards, multiplicity of

with very less money. India can rightly be food factory of the world and this can also lead to food

orders to a single act & focus on Risk assessment rather than control of adulteration in the new Food

security. We need food security more than defence. We need to feed our people. Besides that food processing can control inflation.” He unveiled a 12 point agenda for exponential growth that includes definition of agriculture to include processed food products, regulations to be made conducive for contract farming, corporate farming and cooperative farming, zero goods and service tax GST on food processing, improvement of R&D, market development assistance extended to food

Safety Act in India. The 3-day's CII Food & Bev International exhibition, positioned technology and food under one roof. The exhibition was a platform to explore the ways of making India the food factory of the world. The event was successful in garnering a large number of enquires which will culminate into actual business going forward. The increased interest by the delegates continued to grow indicating the growth story ahead in this sunrise sector.

Beverages & Food Processing Times-May-II-2012

Dairy News

AP Dairy facing 25% supply deficit Parag Milk Foods to flood country with dairy parlours

ndhra Pradesh Dairy Development Cooperative Federation (APDDCF), a

statewide enterprise of cooperatives for dairy development and the second-largest milk procurement agency in India, is currently facing a 25 per cent deficit in milk supplies. “The consumption of milk and dairy-based products has increased tremendously over the years in the state. The demand is so huge that even after we have doubled our milk procurement this year to 400,000 litre per day, we are facing a shortage,” APDDCF managing director and vice-chairman Mohd. Ali Rafath, told. Milk procurement is growing in the state over the years. For APDDCF alone, the milk procurement has increased to 113.6 million litre in 2011-12, a growth of 4.16 per cent from 109.1 million litre in 2010-11. “The milk procurement is expected

to see a 20 per cent rise in the coming year with the proposed National Dairy Plan (NDP) and the

State Milk Mission,” he said. NDP, a World Bank-funded scheme, with a total budget Rs 2,246 crore, will provide around Rs 140 crore to each state in the next five years to facilitate milk productivity. It will support animal nutrition, breeding, cold storage creation and overall increase in milk procurement. “The State Milk Mission, a proposed Rs 6,000-crore plan to boost milk procurement at the state level, is expected to increase milk productivity by two litre per day per farmer,” Rafath added. Also, Nabard's Dairy Development Fund, which was launched this year, is facilitating the dairy business in the state. This year itself, farmers have shifted to dairy from farming, as dairy business does not involve any risks. It also gives good returns, APDDCF project manager

Prabhakar said. “Farmers' earnings from APDDCF have grown to Rs 258 crore in 2011-12, from Rs 45 crore in 2004-05,” he added. APDDCF, started in 1981 to develop milk procurement, processing, packaging and marketing in the state, currently has a network of 5,000 villages, 4,673 milk collection centres, 85 milk routes, covering 11 districts in the state. Its turnover has grown tremendously over the years – from Rs 177 crore in 2003-04 to Rs 450 crore in 2011-12. “We expect the same growth to continue in the coming years,” Prabhakar said. APDDCF, which retails its products under the 'Vijaya' brand, now enjoys a 70 per cent market share in Hyderabad and 30 per cent across the state in milk-based products, competing with players like Masqati, Jersey and Heritage. Other initiatives APDDCF is planning to expand its ice-cream division in partnership with two private companies Continental Food and Meghna Foods. “We are in talks with the South Central Railway (SCR) to provide ice-creams and other milkbased products. We will be covering Andhra Pradesh and Tamil Nadu in Phase-I,” Rafath said. For the year 2012-13, APDDCF targets to achieve Rs 3-crore revenues from its Vijaya packaged drinking water, which it had launched in October 2010. This year, Vijaya packaged water recorded a turnover of Rs 1.68 crore, Prabhakar said.

Alaska Milk to expand in Southeast Asia

laska Milk Manufacturing Corp. is gearing up to expand in Southeast Asia to capitalize on rising demand for nutritional products, backed by rising

incomes and awareness of the benefits of dairy in the emerging world. On the sidelines of the company's annual stockholders meeting, Alaska president Wilfred Steven Uytengsu said they are considering widening the firm's geographic base by penetrating the overseas market either through acquisitions, joint ventures or exports. “If you look at growth prospects in Southeast Asia, the emergence of the middle class coupled with population growth really bodes well. This is the time that you want to be in Southeast Asia and our prospects look good. The

fundamentals of the Philippines is perhaps the strongest we have ever been,” Uytengsu said. Earlier reports indicate that the global dairy market will offer strong growth prospects in the

next five years with emerging markets like China, India and Southeast Asia, filling the ranks of the fastest-growing consumption regions with an expected share of 82 percent. Uytengsu said Alaska's partnership with Dutch dairy giant Royal Friesland Campina, will boost the prospects of an overseas presence for Alaska. Royal Friesland has taken over Alaska with the purchase of the Uytengsu family's 60.8-percent stake in the local milk manufacurer for P12.86 billion. The transaction has brought Royal Friesland's total shareholdings in Alaska to 68.9

percent from only 8.1 percent. Royal Friesland has presence in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore. It also produces and sells dairy products in the Middle East and Africa. Royal Friesland also brings to the deal a portfolio of dairy products ranging from raw material ingredients to higher value-added products such as infant formula, cheese, butter and yoghurts. Uytengsu said Alaska will become a private company upon completion of the tender offer for shares held by minority shareholders, which is expected in August or September this year. Royal Friesland is seen to increase its shareholdings in Alaska to around 90 percent should minority investors decide to tender their shares. Alaska has emerged as the leading player in the Philippine milk industry for more than 30 years. It has also recently expanded into higher valueadded milk products, particularly in the ready-todrink milk category. The Uytengsu family has relinquished control of the Philippines' leading milk maker to prepare it for the next stage of growth.

arag Milk Foods, the owner of dairy brands such as Gowardhan and Go, is all set to create a white flood with dairy parlours across the country. By January next, it

hopes to open 150 milk, cheese and yoghurt outlets, through the franchise route. Mr Devendra Shah, Parag's Managing Director and Founder, said, “The idea of opening these cheese and yoghurt parlours is to promote the brand and its visibility in the Indian market.” The outlets will store all our cheese products along with lassi, ghee and flavoured milk. “These are franchise outlets, so our

investment would be insignificant,” he said. The dairy parlous will also educate people on the origin, making and varieties of cheese. He added that the company will be launching more natural and seasonal fruit flavoured yoghurt and lassi (sweetened buttermilk). Parag has already launched chocolate flavoured cheese in tubes for kids. The company, located in Manchar near Pune, was founded in 1992 and houses Asia's largest cheese plant with an output capacity of 40 tonnes a day. It has over 3,500 Holstein and Jersey cows. Known as the Milkman from Manchar, Mr Shah has been able to carve a niche for himself in the growing cheese market in India. Players in this market include Britannia and Amul. The company has grown from Rs 80crore to Rs 1,000-crore in just two decades.

Surplus milk in drought affected regions

trange but true. Milk production in droughtaffected regions of the state have increased so much that there are no buyers for a

farms because there is nothing to do there, they buy fodder from special government depots and use tanker water to feed their cattle. So, they expect to earn

daily surplus of 28 lakh litres. Distressed yet enterprising farmers have made this possible against odds such as inadequate fodder and water. Vinayakrao D Patil, chairman of National Cooperative Dairy Federation of India and head of state action committee of milk producers, explained to HT why milk production had increased manifold in western Maharashtra and Marathwada. He said the state gets a surplus stock of 28 lakh litres – half the daily requirement of Mumbai – because farmers have focused more on supplementary business when their farms are rendered useless. “When farmers don't go to their

money in bad times,” Patil said. But with a stockpile of milk powder of 24,000 metric tonnes lying unused in warehouses, dairies are not buying surplus milk. Also, the current international rate of Rs. 135 a kilo of milk powder has added to the farmers' woes. The state collects 113 lakh litres of milk every day of which 75 lakh litres are sold and the rest is processed into byproducts. The action committee of milk producers approached chief minister Prithviraj Chavan, who assured that exports of milk powder would be facilitated so that the produce could be bought and then utilised further.

Nutraceutical Report

Beverages & Food Processing Times-May-II-2012

Food and Nutraceut The regulatory framework governing foods in major jurisdictions is evolving. Food research, product and process innovation and change in consumer behaviour facilitate adaptation of food regulations.

he regulatory framework governing foods in major jurisdictions is evolving. Food research, product and process innovation and change in consumer behaviour facilitate adaptation of food regulations. Increasingly, the awareness is manifested through consumption of particular foods and dietary supplements believed to contribute to good health and in some cases, to hold therapeutic value in the treatment or prevention of specific diseases. Many of these food products are becoming commonly known as nutraceuticals or "functional foods." Nutraceuticals are products that have the characteristics of both a nutrient and a pharmaceutical. Taken as dietary supplements, they can modulate the symptoms of various disease conditions by providing the additional nutrients our bodies may need to maintain well-being. Food laws in every country is the basis of regulations of all kinds of food including health food, dietary supplement, functional food and nutraceuticals as specific guidelines / regulations are framed to regulate health food. Nutraceutical is defined asa food or part of food that provides medical or health benefits including the prevention and treatment of disease. OVERVIEW –INDIA, CHINA, US, EU, JAPAN AND CANADA– REGULATIONS INDIA India is an ideal location for manufacturing Nutraceuticals products because of availability of natural products, good quality fruits and vegetables. India has advantages like qualified human resources, world-class R&D facilities and varied raw material aspects that give our country a leading edge. There were multiple laws and regulations covering the foods in India, but there was no single law that could have significantly regulated the functional foods or dietary supplement or nutraceuticals. In 2006, the Indian government passed Food Safety and Standard Act, 2006, to integrate and streamline the many regulations covering nutraceuticals, foods and dietary supplements. The Act calls for the creation of the Food Safety and Standards Authority (FSSA). The FSSA is responsible for drafting rules and regulations for companies in the food sector to be licensed by local authorities, a system of checks and balances, including product-recall procedures enforcements and penalties, and to develop sciencebased standards for food and to regulate and monitor the manufacture, processing, and storage. All food imports will therefore be subject to the provisions of the Act and any rules and regulations made under the

Act. Further, it incorporates the salient provisions of the Prevention of Food Adulteration Act, 1954, and is based on international legislations, Instrumentalities and Codex Alimentarius Commission. Unlike the US, where the DSHEA is in

important in India – 'immunity build up in children and growing adults' and 'boosting physical and mental strength of children.' Rising health care costs, a greying population, huge levels of disposable incomes all these are driving the market for Nutraceuticals. The Nutraceuticals market in India was Rs18.75 billion and this is growing at the CAGR of 21.23%. The Indian nutrition market is estimated to be US$1 billion; while the global market is growing at a CAGR of 7%, the Indian market is growing much faster at a CAGR of 18%. The latent market in India is two to four times the current market size with 148 million potential customers. The domestic market for Nutraceuticals is around Rs 4,400 crore. India's nutritional supplement market is expected to more than double to Rs 9,500 crore by 2013. Growth in Nutraceuticals products business will be fuelled mainly because of the changing lifestyle and increasing awareness about nutritional supplements. Indian consumers have a penchant for anything that is “natural” or carries the “herbal” tag. Gullible consumers even get cheated in the process. But the manufacturers of Nutraceuticals products are trying hard to produce products that suit the Indian palate. The rural population in India is 72% and until this market is penetrated, real success may elude the Nutraceuticals industry. The market will reap benefits for those products that can clearly provide health benefits to the consumers. Growth in herbal extracts segments is likely with green tea, herbal bread, garlic capsules, soya milk gaining popularity in the market. Probiotics, protein supplements, Omega 3 fatty acids, and antioxidants are products that can play a major role in the future growth of Nutraceuticals industry. As far as the Indian market is concerned, Nutraceuticals need to be targeted at the bottom of the pyramid population to achieve volume growth. Direct marketing efforts may take longer to reach the consumer but are a viable means of reaching out to the consumer. The Indian Nutraceuticals market is dominated by pharmaceuticals and FMCG companies but it seems to be going the American way. Multi-level marketing companies are promoting Nutraceuticals products in a big way. However, there is an increased need to penetrate the market - especially the rural one.

A wide variety of botanicals and other substances have been sold as dietary supplement ingredients, including many that are considered to be medicinal substances under most regulatory regimes in EU countries. place to regulate health-related products, in India, the government is in the process of drafting a law to regulate manufacturing, importing and marketing of health foods, dietary supplements and other nutraceuticals. The concept of "nutraceuticals" is still developing in India. It has been defined in the FSSA but it is yet to be implemented as the rules are not completely framed. However, FSSA lays down the suggestive structure of the regulation for Foods for Special Purpose and Nutritional Uses FSSA Act based on the learning from international best practices; the Food Safety and Standards (Packaging and Labelling) Regulation, 2011, deals with nutrition and health claims. Nutraceuticals remain an untapped opportunity in India thanks to the lack of standards and regulation. In this regard, the Food Safety & Standards Act is expected to be amended.The regulatory framework of Nutraceuticals in India needs attention from the relevant authorities. In India, the archaic laws are still governing the use of Nutraceuticals. There is lack of clarity in classifying functional foods and Nutraceuticals. Classifying them as drugs can pose a problem for genuine manufacturers. The FSSA amendment is the way out. The manufacture of Nutraceuticals has to be as per cGMP (current Good Manufacturing Practices) guidelines. Like in the US, the Indian regulator has to ensure that approval of therapeutic products that can benefit patients and other citizens is faster but they should also provide assurance that those products are safe and effective. Japan is regularly making amendments in regulation so that the health claims on nutraceutical products are validated. Two areas of health are very

Beverages & Food Processing Times-May-II-2012

Nutraceutical Report

ical Regulations - Global Snapshot CHINA The State Food and Drug Administration (SFDA) was founded on the basis of its former counterpart, SDA, and got its current name on April 16, 2003. SFDA is responsible for protecting the public health by assuring the safety, efficacy, and security of drugs, biological products, medical devices, food supply and cosmetics. As a direct part of the State Council, SFDA has regulatory and legal enforcement functions. The National Institute of Nutrition and Food Safety (NINFS) is a research agency for nutrition and food hygiene. The institute facilitates improvement of nutritional status, preventing foodborne diseases, and strengthening the physical fitness of the people. The institute was formerly known as the Nutrition Division of the National Institute of Health of the Public Health Administration, which was established in 1941. After the founding of the People's Republic of China, the institute was affiliated with the following leading bodies under the title of the Department of Nutrition or the Department of Nutrition and Food Hygiene: The first such national law, the Food Hygiene Law of the People's Republic of China, was adopted on October 30, 1995, and it defined food as "any finished product or raw material intended for people to eat or drink, as well as any product that has traditionally served as both food and medication, with the exception of products used solely for medical purposes. In June 2003, SFDA took over the responsibility of health food registration approval from the Ministry of Health (MoH). The SFDA's Department of Drug Registration is completely responsible for the approval of health food, including nutrition supplements. In accordance with the Food Hygiene Law of the People's Republic of China and the Administrative Licensing Law of the People's Republic of China, the Interim Administrative Measures for Health Food Registration were promulgated by the SFDA and went into effect on July 1, 2005. With these provisions, the responsibility for the assessment and review of food safety, effectiveness, quality control, and labelling content was assigned formally to SFDA and its subsidiaries. In contrast to the well-substantiated scientific evidence collected according to strict scientific procedures employed by many countries, Chinese regulations rely more on long established and accepted practice and experience developed in Traditional Chinese Medicine. Health claims are allowed on health foods provided requirements for public health are met and the claim in question does not employ medical jargon or terms likely to be confused with pharmaceuticals. Since August 1, 2005, no health food advertisements have been allowed to be released in the media prior to examination and approval by food and drug administration departments at the provincial level. China is fast becoming a global powerhouse, and

its impact has certainly been felt in the nutraceuticals industry, especially in ingredient segments. So while the evolution for China was being a net supplier to the global nutraceuticals industry, now China is entering the next phase of its evolution where it eventually becomes a net consumer of nutraceuticals. UNITED STATES The United States of America introduced the Dietary Supplement

In Canada, the Food and Drugs Act and Regulations is the primary statute which governs the sale of foods, drugs, cosmetics and medical devices. and Health Education Act (DSHEA) in 1994, which allowed considerable flexibility between foods and medicines found in other parts of the world. Under DSHEA a dietary supplement may contain 'a herb or other botanical' or 'a concentrate, metabolite, constituent, extract or combination of any ingredient from the other categories. The American food safety regulatory system is far more centralised than the European system. The issue of adulteration became a national issue in 1848 when Congress passed the Drug Importation Act, requiring inspection by the US Customs Service to prevent the entry of adulterated drugs from abroad. In 1862, in order to address the issue of adulterated food, the chemical division of the United States Department of Agriculture (USDA) was established and then renamed the Bureau of Chemistry (now FDA). The genesis of US food legislation goes back to 1906 when a major piece of legislation was passed. The Food and Drugs Act was enacted in June 1906 and prohibited interstate commerce of misbranded and adulterated foods, drinks, and drugs. In 1938, the Food and Drugs Act was pre-empted by the Federal Food, Drug, and Cosmetic Act (FDCA). This Act focusses on food misbranding and adulteration and serves as the basic framework for food regulation by the FDA and the USDA. This legislation created food standards, mandated inspections of factories, and provided for the issuance of court injunctions in addition to the already existing seizure and prosecution remedies. Since 1938, the FDCA has been amended a number of times and additional supporting laws have been enacted relating to food safety, security threats, and nutrition. Additionally, this federal framework is supplemented by state laws. The USDA and the FDA are the main authorities in food regulation in the United States. These two federal agencies encompass all phases of the food regulatory system: They evaluate, investigate, regulate, inspect, and sanction. However, even in a centralised system like the United States, some argue that the USDA and the FDA should consolidate into one single food agency. FDA regulates both finished dietary supplement

products and dietary ingredients under a different set of regulations than those covering "conventional" foods and drug products. Under the DSHEA, the dietary supplement or dietary ingredient manufacturer is responsible for ensuring that a dietary supplement or ingredient is safe before it is marketed. FDA is responsible for taking action against any unsafe dietary supplement product after it reaches the market. All domestic and foreign companies that manufacture, package, label or hold dietary supplement, including those involved with testing, quality control, and dietary supplement distribution in the US, must comply with the Dietary Supplement Current Good Manufacturing Practices (cGMPS) for quality control. In addition, the manufacturer, packer, or distributor whose name appears on the label of a dietary supplement marketed in the United States is required to submit to FDA all serious adverse event reports. Further, FDA's other responsibilities include product information, such as labelling, claims, package inserts, and accompanying literature. EUROPEAN REGULATION A wide variety of botanicals and other substances have been sold as dietary supplement ingredients, including many that are considered to be medicinal substances under most regulatory regimes in EU countries. The report published by the European Association of SelfMedication Industry, titled 'Herbal Medicinal Products in the European Union' has found that there was no consistency between the member states in the interpretation of the medicines Directive with respect to herbs. The criteria used to differentiate between medicinal and food herbs varied widely. The EU food safety regulatory system needed a centralised regulatory power that would bring a more homogeneous type of regulation where member states would let European institutions oversee both risk assessment and risk management. Recognising the need to harmonise laws, the EC issued compositional directives in the 1970s. These directives created standards of composition for certain foodstuffs. The standards allowed some ingredients and prohibited others that did not meet the requirements set by the commission. Pertinently, the goal of those directives at that time was to guarantee the free movement of food within the European Common Market, rather than to advance consumer health. The directives applied only to particular ingredients, including sugars, jams, chocolate products, and preserved milks. Ultimately, however, this formula failed because the differing culinary cultures of the member states prevented them from agreeing on the adoption of those ingredients' requirements. In 1985, the EU came up with a new approach. Instead of trying to harmonise all of the food regulations, it decided to use labelling to indicate the differences in composition and production methods, allowing consumers to make an informed decision. It adopted the principle of mutual recognition, requiring a member state to allow the free circulation of

goods produced in conformity to equivalent standards of other member states. In 2002, the Council of the EU and the European Parliament adopted regulation and created the principles of food law and creating the European Food Safety Authority (EFSA). Each member state had regulated its own foodstuffs. In contrast, the EFSA is an independent agency that provides scientific advice to member states and EU institutions. It gathers data to help anticipate risks and issues opinions on matters and provides scientific assessments but does not handle any of the risk management. Instead, the EU institutions and the member states themselves are responsible for risk management, a division of authority that poses an obstacle to greater centralisation. Under the European system the authority is not only divided among various countries, but those countries also have flexibility both in the way they control their food safety regulations and in the way they implement EU regulations and directives. Traceability and labelling are probably the biggest part of the harmonisation of standards and principles that the EU has undertaken in the realm of food safety regulation. JAPAN The Japanese government enacted a regulatory system called 'Foods with health claims' in April 2001, which consists of Foods for Specified Health Use (FOSHU) and Foods with Nutrient Function Claims (FNFC). The FOSHU was set up by the ministry of health and welfare in 1991 to approve descriptions on a label regarding an effect of food on the human body. It was enacted as a part of 'food for specified dietary use' under the Nutrition Improvement Law. There are three important requirements for FOSHU approval. The first is scientific evidence of the efficacy, including clinical testing. The second is safety for consumption. The third is analytical determination of the effective component. Most of the descriptions of foods under the FOSHU system are similar to the category of enhanced function claims of Codex. Under FNFC, 12 vitamins and two minerals (calcium and iron) are standardised. These claims are similar to the nutrient function claims approved by Codex in 1997. The FOSHU certification is not easily obtained. There is a 3stage approval process and in the case of domestic manufacturers (applicant) there is a process which amounts to a self-regulatory peer review by the Japan Health Food Association (JHFA). FOSHU can be applied to foods only and not isolated nutrients or manufactured nutritional supplements and only those foods which have identifiable health benefits based on sound scientific research. This marks the opportunity for the marketing and promotion of a wide range of foodstuffs which already have a significant degree of consumer acceptance. CANADA In Canada, the Food and Drugs Act and Regulations is the primary statute which governs the sale of foods, drugs, cosmetics and medical

devices. This statute which is remarkably simple in concept, can trace its origins to an 1860 British law entitled A Bill for Preventing the Adulteration of Articles of Food and Drink. The Canadian law evolved from an 1874 statute to the current Act which was passed in 1953.In Canada there are no specific regulations dealing with functional foods and such foods are governed by the existing legislative and regulatory framework; The Food and Drugs Act and Regulations. Under Canadian food and drug law, ingestible products must be either sold as a "food" or "drug." The term "Health Food," though widely used by industry and the consumer, is problematic for the Health Protection Branch (HPB). The definition of "food" in the Food and Drugs Act makes no differentiation about types of food and states in another section that food must be free from poisonous or harmful substances. Thus, in legal terms, any food in compliance with the Food and Drugs Act and Regulations should assist in sustaining good health and should not present any appreciable hazard to the consumer. "Health Foods" should not be confused with "organically produced" foods which represent, by international consensus, foods derived from organic agriculture and are part of the broad spectrum of methodologies supportive of the environment. FINAL COMMENTS Every system of regulation has its pros and cons. The labelling of health-related foods should be based on scientific evidence, always bearing in mind harmonisation with global international standards. There should be a harmonisation of food regulations around the world. Economic growth and urbanisation are not enough evidence of the future growth of nutraceuticals, health demographic trends also support these growth forecasts. Consumers are deeply concerned about how their health care is managed, administered and priced. As health care cost has become high the consumers are frustrated with the expensive disease-treatment approach predominant in modern medicine; the consumer is now seeking alternative beneficial products like dietary supplement, functional food and nutraceuticals. With innovative delivery mechanism to facilitate the use of nutraceuticals amongst its target groups, the world market is expected to witness a gradual shift toward natural ingredients. Further, EU focussing on the food safety regulation system by centralising of food regulatory powers, which would protect the public health as well as the future of the EU in a more general sense Globally, the US and Japan are the most developed markets for nutraceuticals, due to the consumer acceptability achieved in these regions. India, China and Brazil are developing nations which show huge potential for the nutraceuticals market, India and China have emerged as a key sourcing destination for natural ingredients.

Beverages & Food Processing Times-May-II-2012

Corborate News

Tierra Food launched banana, tapioca chips in Kerala Country Chicken comes calling

ochi-based Tierra Food India Private Limited has launched its snack food brands – Kappo and Banano. The cassava and banana chips, packed in small packs and priced at Rs 5 and Rs 10, will be available in over 15,000 outlets across Kerala. The company is gearing up to introduce the products in other southern states soon. “We are procuring the raw material directly from select farmers so as to ensure the quality of the products,” said Alex Thomas, managing director of Tierra Food. Tierra has worked closely with farmers and research organisations

like the Central Tuber Crops Research Institute (CTCRI) and the Kerala Agricultural University to develop the new products, which are being manufactured at a fully-automated plant in the Kinfa Food Park at Adoor near Kottayam. The plant has an installed processing capacity of 6 tonne per day in two shifts, which requires around 20 tonne of raw material. Tierra procures at least 5,000 tonne of banana and cassava a year from the identified farmers. “Banana and tapioca are the two major crops cultivated in Kerala by small and medium farmers. A fair share of the produce used to

be processed into chips earlier, but that share is dwindling or under threat. A majority of the produce is currently consumed as fresh fruit and the prices are always volatile. In the processed food industry, the raw material prices are stable and the farmers are assured of a fair and consistent price,” Thomas said. The company proposes to associate with government initiatives like the State Horticulture Mission (SHM) and Vegetable and Fruit Promotion Council, Kerala (VFPCK) for cultivating and procuring the right cultivars for manufacturing chips.

McCain Foods will launch more items in India

Foods India Managing Director Vikas Mittal told reporters here. The company, which is a subsidiary

Mittal said the company is also also looking to ramp up production capacity of its manufacturing plant

enhance manufacturing capacity accordingly as it looks to double business every year. The firm that claims to have 25 per cent market share in the estimated Rs 1,000 crore Indian frozen foods segment, said it will consider launching other items based on paneer and soya platforms besides the frozen idli-sambar combo introduced for the Delhi and NCR region. "Our ambition is to double our business every year. If we want to double out business in the country we need to launch new products every four to six months," McCain

of McCain Foods Canada, currently sells frozen products, including french fries and potato specialties in the country. "The frozen food market in India is estimated to be around Rs 1,000 crore, in which McCain currently has a market share of 25 per cent," he said. In the vegetarian segment that is estimated to be around Rs 500 crore, the company has 60 per cent share, Mittal claimed. On product portfolio expansion, he said the company plans to launch various products, including paneer and soya based items.

in Gujarat that was set up in 2008 with an investment of Rs 140 crore. He, however, did not share by how much the capacity will be increased. The plant currently has an annual capacity to process 40,000 tonnes of potato. The company is also looking to double its retail presence in the country from the current 5,500 outlets -- a mixture of both modern retail outlets and traditional stores, he said. McCain Foods Canada employs over 19,000 people globally and has turnover in excess of 6 billion Canadian dollars.

milk from outside Gujarat – from Rajasthan, Haryana, Punjab, Uttar Pradesh, West Bengal, Bihar and Maharashtra – to broaden the reach of its brand,” he said. Demand for milk and milk-based products is growing by the day on account of the increasing per capita income and consumption, which at present is at 280 millilitre per day in India. Milk production in the country is expected to touch 130 million tonne this year as against 90 million tonne in the US, according to him. GCMMF is charting an expansion plan involving an outlay of Rs 3,000 crore, which would see the number of its milk processing units increase to 49 from the present 40, and the capacity touching 18 million litre, from the present 14.5 million litre per day in the next four years. Announcing the launch of Amul Pro, a new whey protein brown beverage in Hyderabad today, taking its product portfolio to 41, Sodhi said the product had a price advantage over competitor brands. The milk food drinks market in

India, currently pegged at Rs 3,000 crore or 80,000 tonne a year in volume terms, is dominated by global brands – Horlicks and Complain (white beverage), and Bournvita and Boost (brown beverage). While Horlicks is the market leader, enjoying a 50 per cent share, Bournvita is currently the largest brown beverage brand with a 19 per cent share. “Amul loves fighting MNCs. Amul Pro is the most value for money offering in the category and is priced at Rs 150 per 500 gram jar, as against Rs 175 (Bournvita) and Rs 165 (Horlicks),” he said, adding that the federation was aiming at a 10 per cent of the pie of the segment in the next two years. Replying to a query on Cafe Amul, the federation's quick service restaurant business, Sodhi said they were running six cafes in Gujarat and West Bengal. “We are still in the learning stage,” he said while declining to comment further.

cCain Foods India said it will increase it product offerings in India and

ustralian food chain, Country Chicken today has over 400 outlets across the world, in places like Australia, New Zealand, Russia, Dubai. The success of the chain can be attributed to Peter Austin, founder and chairman of the Australian Food Brand. Peter, who was in Coimbatore recently to launch the very first branch of Country Chicken in India, opens up about his path to success and what his true love really is. Peter was considered to be the world's best salesman for Codex before he retired. Retirement he claims, didn't go down well with him and in 1994, he set up Country Chicken. “Food is never a liability, and being a salesman I realized that this was the need of the hour. So after I retired I spent two whole years, concocting a recipe that could entice any palate, and I did just that. I set up my first outlet in Australia, and before I knew it, it had spread out to New Zealand, Russia and to other parts of the world,” he said. And if your wondering why he chose Russia it's simply because his wife is Russian. So, what brings the man and Country Chicken to Coimbatore? “It was always my plan to move into India, but I didn't expect it to happen so soon. Suresh, who runs the franchise here was the first to enquire about it and so we decided to schedule our plans a little earlier than we expected. However, we

haven't compromised on anything. Coimbatore will be able to avail the entire range that country chicken has to offer.” When asked about the secret of his success and the growth of his enterprise, he said, " “When I opted to get into the fast food business, I did my own bit of research and found that there weren't really many eateries that focused on healthy food. From the chicken to bread, everything is cooked in healthy oil and we have a secret cooking technique. That is what sets us apart.” However it was through word of mouth and the Internet, social networking sites like Facebook, and Twitter, that Country Chicken grew so fast.” On his 'Indian' experience, Peter shared “I have been to India many times. In fact, back in the 80s, when I made my first trip here, I visited Kerala and a few other states. What really caught my eye was the variety of food the country has to offer, like paneer tikka masala and daal makhini. I have seen the industry and the country grow and I have big plans for India. Time will be the proof of that.” Expansion plans aside; Peter Austin loves boating during his spare time. “I love to go boating. In fact I live in Gold Coast in Australia, where I have a home by the sea. So, when the Aussie in me kicks in, I take out my boat and have some fun,” he said.

Vini to invest Rs 40 crore in food supplements

ormer Paras Pharma cofounder Darshan Patel will launch nutraceuticals in the Indian market by 2012-end. Patel forayed into personal care category with Vini Cosmetics. Now the company will invest Rs 40 crore to launch food supplements, Patel told. The man who is credited with nurturing Paras personal care brands like Moov, Dermicool, Set Wet, Krack, parted ways from his elder

brother in 2006 and started Vini Group of Companies in 2010. Mr Patel sold his one-third stake in Paras to PE Actis for $43 million, or less than Rs 200 crore. Paras finally was acquired by Dettol and Durexmaker Reckitt Benckiser for Rs 3,260 crore, 30 times Paras' earnings before interest, tax, depreciation and amortisation (Ebitda) for 2009-10.

ITC plans Rs 1000cr state Amul will be Rs 30k-cr brand by 2018 food foray with 5 units

sia's largest dairy Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), which markets the Amul brand, is planning to achieve a turnover of Rs 30,000 crore by 2018, two years ahead of its target date “considering the consistent growth that it has been recording over the last five years.” “We ended 2011-12 with a turnover of Rs 11,670 crore, recording a growth of 20 per cent for the fifth consecutive year. The way we are growing, I think, we will achieve our target two years before 2020,” RS Sodhi, managing director of GCMMF), told reporters. To take the Amul label to the next level of growth, Sodhi said, the federation was going all out to make dairy farming a contemporary and trendy business by encouraging youth to take up farming, besides increasing payments to them. “Over the last three years, payments to farmers have increased at least 50 per cent. Also, Amul has started procuring

After almost a decade, ITC, the biggest corporate house in the east and one of the top business conglomerates in India, is betting big on Bengal. The over 22,000crore tobacco-to-hospitality giant plans to set up five manufacturing facilities for its foods business in the state. The combined investment for these facilities would be around 1,000 crore, the biggest by the corporate giant in the state in recent times. If it materializes, say industry experts, this could set the pace for industrialization in Bengal once again after the Singur setback. Kurush Grant, the executive director of ITC, told that the new FMCG division of the company had started the process of setting up two food units of its own. Besides, it is in talks with a few partners for three contract manufacturing facilities for different food items. "We shall have most of the units within 50-60 sqkm of Kolkata. Bengal is an ideal place for investment in the foods business. It has most of the raw materials as well as goods market. This is the entry point to the northeast," he added. According to Grant, ITC already has

two contract facilities in Bengal and is planning half-a-dozen more in view of growing demand. He indicated that the company, which has the highest weightage in the sensex along with Reliance Industries, may form joint ventures for the contract manufacturing facilities here. "This (joint venture) is a possibility we are exploring for the contract manufacturing units. This can solve the land problem. We can tie up with those who have land with them," he added. ITC had in fact expressed interest in setting up a food facility in Bengal way back in 2006 near National Highway No 6, but the plan was deferred because of unavailability of land. The West Bengal Industrial Infrastructure Development Corporation (WBIIDC) had earmarked 40 acres for the project, which was found to be disputed. Later, WBIIDC allotted 18 acres at Uluberia industrial estate. The Mamata Banerjee government has also offered land to the FMCG giant near Santiniketan. "We shall start work at Uluberia. Regarding Santiniketan, we are yet to take a call, but the industry department is really cooperating with us," Grant said.

Beverages & Food Processing Times-May-II-2012

Packaging News

Tetra Pak Identifies 2. 7 Billion Consumers As Dairy Industry's Next Big Opportunity

ew research from Tetra Pak, the world's leading food processing and packaging company, has identified 2.7 billion low-income consumers in developing countries as the dairy industry's next big growth opportunity due to an expected rise in prosperity, purchasing power and desire for packaged liquid dairy products (LDP).Consumption by low-income consumers in developing markets is forecast to increase from about 70 billion litres in 2011 to almost 80 billion litres in 2014, according to the Dairy Index, which tracks worldwide facts, figures and trends in the global dairy industry. Many of these consumers are expected to switch in coming years from drinking loose milk to packaged milk. "Low-income consumers represent one of the biggest growth opportunities for the dairy industry. The key to tomorrow's success is reaching these consumers today," said Tetra Pak President and CEO Dennis Jรถnsson. "They make up almost 40% of the world's population and live in economies driving our industry's growth and they are growing more affluent." These low-income consumers live on $2-$8 a day and are virtually untapped by today's dairy processors. Called Deeper in the Pyramid (DiP) consumers by Tetra Pak, they make up about 50% of developing countries' population and consume 38% of LDP in developing countries. Half of these DiP consumers live in India and China. The Tetra Pak research focused on six countries which account for more than 76% of LDP consumption by DiP consumers in developing countries: India, China, Indonesia, Brazil, Pakistan and Kenya. "India offers a tremendous growth opportunity with over 220 million DiP consumer households," said Tetra Pak South Asia Markets Managing Director Kandarp Singh. "Contrary to what we have known for some time, this consumer segment is not only looking for affordability but has also become increasingly demanding on quality. We have been developing packaging solutions to address this segment and are very pleased to note that during the past years, our customers have launched several products across geographies in the dairy category at single coin-price points. The market response has been very positive and we continue to see double-digit growth rates in this segment," he added. Many DiP consumers are expected to grow in affluence, shifting from low to middle incomes by the end of the decade, boosting their purchasing power and the range of products they buy. The increase in spending power along with greater awareness of food safety and a need for convenient, ready-todrink solutions is expected to increase the demand for packaged products. The global DiP population is forecast to fall by a compound annual growth rate (CAGR) of 3% a year from 2009-2020. The population living on more than $8 a

day is set to rise by 4% (CAGR) annually, according to Boston Consulting Group, which helped Tetra Pak to develop the DiP classification. "Today's low-income consumers are tomorrow's middle class," said Jรถnsson, noting "this is a golden opportunity for dairy processors to cultivate consumer loyalty among a new generation of dairy consumers in developing countries." Tapping into this market is not without its challenges, according to the report. Tetra Pak has identified three key challenges for dairy processors seeking to reach consumers in this growth market. They need to make products which are affordable, available and attractive to consumers on limited incomes. That means dairy processors must produce healthy, safe and nutritious packaged dairy products without adding unsustainable costs. They must also make them available in small traditional stores in remote rural areas or congested cities where DiP consumers shop. Innovation and efficiency will be vital in helping the industry to develop products, packaging and processing to meet the needs of these lowincome consumers, according to the report. "We must develop products differently, distribute them differently and sell them differently to extend the availability of good nutrition in developing countries," said Jรถnsson. Tetra Pak has identified a number of ways to make products more affordable. Among them is changing the way both milk products and packages are developed with the price of the product driving development. By using alternatives to whole milk such as whey or lactic acid - it is also possible to

produce nutritious and healthy dairy products at lower cost. Another way is to reduce package sizes or opt for more basic packaging. Figuring out ways to make packaged dairy products widely available to DiP consumers is another challenge. Around 70% of DiP purchases are in the so-called traditional trade, small-family run shops rather than modern supermarkets or convenience stores. Companies are coming up with innovative ways to reach these consumers. They are producing locally where demand for packaged liquid dairy is growing. They are teaming-up with distributors who have a track-record of working closely with traditional stores and they are using appropriate transport, like bicycles, to distribute products. Making products attractive to DiP consumers, who focus on providing the best for their children and often

reduce other expenses before compromising on basic nutritional food such as milk, is the final challenge. Companies need to generate significant sales to achieve the economies of scale required to provide value for money and quality nutrition to DiP consumers, according to Tetra Pak. They also need to create brand awareness and excitement around products for kids who buy dairy drinks and snacks with pocket money. LDP growth to speed up in 20112014 Separately, Tetra Pak announced that LDP demand is set to accelerate in 2011-2014, led by Asia, Africa and Latin America. Global LDP consumption is forecast to rise by a CAGR of 2.9% in 2011-2014, accelerating from 2.5% in 20082011, led by buoyant demand in emerging markets, according to the Tetra Pak research.

Lactic acid drinks (LAD) , baby and toddler milk, and flavoured milk are forecast to record the fastest growth rates in 2011-2014, Tetra Pak analysis shows. LAD, which tend to be affordable beverages and a favourite among Asia's DiP consumers, are expected to notch up the fastest growth rate with a CAGR of 11.9%, followed by baby and toddler milk with a CAGR of 9.0%. Flavoured milk, another affordable favourite among DiP consumers, is in third place and is expected to record a CAGR of 4.8%. "Providing affordable, healthy and nutritious packaged LDP to DiP consumers is not just a business opportunity. It is an opportunity to transform lives by making safe and nutritious food available to a new generation of emerging consumers," said Tetra Pak President and CEO Dennis Jรถnsson.

Beverages & Food Processing Times-May-II-2012

Packaging Mews

'Nichrome'the pioneer and leader in VFFS packagingsince 1977

Nichrome'the pioneer and leader in VFFS packaging since 1977, has been the packaging partner of the food and non-food manufacturing companies, by supplying packaging machines designed to meet their exact needs for over three decades, With over 5000 installations in 40 countries worldwide, Nichrome is considered as the reliable partner in Packaging by its customers. Along with VFFS range for solids, liquids and powders, Nichrome also offers VFFS Multilane technology with technical collaboration with ProdoPak, USA and HFFS packaging machines with technical collaboration with TOTPACK, Spain for Dairy, Food, Cosmetics, Pharma and chemicals. Nichrome is presenting the packaging solutions for various applications in food and non-food at the Southpack Exhibition being held during 7th â&#x20AC;&#x201C; 9th June at Chennai trade Centre, Chennai. HFFS for Pharma and Personal Care products Nichrome present highly automated

and quantities simultaneously on each head. The Filpack Servo 10K can Double the capacity of Milk packing in existing setup.

packaging solutions Horizontal Form Fill Seal Machinesthat offer a variety of pouch formats like Stand up pack (Doypack), Zipper pack, Spout (cap) packIncreasing the efficiency and ease of operationand VFFS Multilane with Contour Seal for pharmaceutical applications like Pharma powders, tablets, pastes and liquids. Nichrome's Filpack SMD for Oil

the market with an output of 70-80 packs/min, saves the manpower as only a single operator is required for double output. This machine is PLC Controlled, Servo driven and is equipped with operator friendly touch screen. It has Motorized Web Tracking, Jumbo film roll Trolley and is capable to run on 320 mm web width as compared to existing 325mm web width.

The only Double head machine in

Nichrome Introduces Highest

Speed Milk Packing Machine Pioneer in flexible packing in India, Nichrome introduces yet another winner in Milk Packaging. The Filpack Servo 10K machine. It is a highest speed packaging machine for Milk and other liquids in Pouches offering speeds upto 10,000 packs per hour. Filpack Servo 10K is a fully mechanical double head machine equipped with touchscreen HMI and PLC. It has motorized mechanical filling for best & consistent fill accuracy , In addition offers independent head operation for the flexibility of packing different liquids

Perfect Solution for Spice powders Nichrome has introduced a new versatile and fast,Sprint Plus 250 for packing of Spice powders. This intermittent motion machine can run upto the speed of 120 bags per minute and can pack pouches upto 250 mm width for 200 g to 2 kg quantity. Equipped with PLC controller andTouch screen HMI, Servo motor driven film pulling and jaws, this machine is specially designed for quick & tool less change-over of size parts. HighspeedSnack Packing solution Nichrome's latest offering is SnackPackSprintPlus Continuous machine which is perfectly suitable for snack food, potato chips, extruded products, confectionary items, pastas &macaronis, dry fruits and light weight products. The technology being based on continuous web movement and vertical sealing, product stripping action and vacuum film pulling, this machine can pack up to 120 packs per minute in combination with suitable multiheadweigher. This machine requires less space and is userfriendly. This is a value for money solution available for highspeed packing of the snack food products in India. For more details, Contact

marketing@nichrome.com

18 per cent of fruits & veggies production goes waste in India, now

bout 18 per cent of the fruit and vegetables production worth Rs 44,000 crore is going waste annually in the country due to lack of proper cold chain storage infrastructure, Parliament was informed today. "These were the findings of a study conducted by the

Central Institute for Post Harvest Engineering & Technology, Ludhiana (published in 2010)," Minister of State for Food Processing Industries Charan Das Mahant said in a written reply to the Rajya Sabha. He said India is the second largest producer of fruits and vegetables in the world. In 2010-11, fruit production stood at 74.877 million tonnes and vegetables production at 146.554 million tonnes. Replying to another query on the corrective measures taken by the government, Mahant said the Ministry provides financial assistance in the form of grant-inaid at the rate of 50 per cent of the total cost of plant and machinery and civil works in general areas. Besides, 75 percent of the cost of plant and machinery and technical civil works in difficult areas are provided subject to a maximum of Rs 10 crore for strengthening and value addition to cold chain infrastructure. Creation and management of cold chain infrastructure for agriculture has been identified as a thrust area by the Prime Minister, he said.

Beverages & Food Processing Times-May-II-2012

Food Grains News

Focus on sustainability in Indian rice exports

t is unlikely that the Chinese will take to biryani easily with chopsticks but the government's decision to finally allow the import of Basmati rice from India will add to the increasing trade between the two countries. After nearly six years of waiting and careful scrutiny of a 100-page dossier about the rice, the go- ahead from the Chinese government finally came on April 13. The first consignment of Indian Basmati is expected to land in China – the biggest market for rice in the world – later this year. Discussions on the issue began in 2006. “As per requirement, we submitted details about Basmati like assessments about its quality and pests. The General Administration of Quarantine, Supervision and Inspection went through the details,” K Nagaraj Naidu, Counsellor (Trade & Commerce) In 2009, Chinese scientists and officials visited Basmati growing sites in north Indian states. They checked whether standard operating procedures were followed to ensure that processing and storage houses were free from pests. But the final decision got delayed. The issue was raised during a bilateral meeting January 2010 and again in February 2012 before the nod came earlier this month. Now, the ministry of agriculture in India has to issue a quality certificate. Subsequently, a meeting between Indian

exporters and Chinese importers is likely to be held in China to thrash out the modalities of trade. India will face competition from Pakistan, which already exports Basmati to China.”Pakistani Basmati is cheaper but India has

diplomat said. National Dairy Plan to Meet the Projected Demand of 150 Million Tonnes by the End of 12th Plan: Pawar Sharad Pawar, Minister of Agriculture and Food Processing

years to meet the growing demand of milk in the country, Pawar further said. Higher GDP growth and growing incomes on account of various schemes of the government has led to rapid growth in demand for

a lead in South Asia in Basmati trade,” Naidu added. China will not be an easy market to break into because the type of rice popular here is the sticky variety easy to maneuver with chop sticks. “The good thing is that people here are experimenting more with food now. Indian food is also becoming popular. Also, 500000 Indians come to China; initially, five star hotels, the expat community and Indian students will targetted,'' the Indian

Industries has expressed hope that the recently launched National Dairy Plan will be able to meet the growing demand of milk products. Addressing the Parliamentary Consultative Committee attached to his Ministry, he said that the demand for milk is projected at 150 million tonnes and 180 million tonnes by 2016-17 and 2021-22 respectively. Milk production with an annual incremental growth rate of 6 million tonnes per annum is needed over next 15

milk. Unless production increases at the required pace, there is a possibility of widening gap in supply of milk in future which can lead to increase in dependence on milk imports, said Pawar. At present, with a production of 121.8 million tonnes, and an average incremental growth rate of 4.1 million tonnes per annum, India is world leader, the Minister added. The members discussed National Dairy Plan (phase -1) and issues

related to nutritional level in fodder, enrichment of straw, availability of loans for dairy farmers, welfare schemes for them, support to women cooperative dairy plants, automation, need for awareness creation for better implementation of existing schemes. The National Dairy Plan (phase1) was launched at Anand (Gujarat) recently. It involves total investment of Rs. 2242 crore and aims at increasing milk production by increasing productivity of milch animals and providing rural milk producers with greater access to the organized milk processing sector. The scheme is to be implemented in 14 major milk producing states – Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, West Bengal, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and Kerala. These states collectively account for over 90% of country's milk production. The scheme will be implemented by National Dairy Development Board through end implementing agencies comprising State Governments, State Livestock Boards, Cooperative Dairy Federations, ICAR Institutes and Veterinary/Dairy Institutes/Universities. Pattern of funding under the scheme will be 100% grant-in-aid for nutrients and breeding activities. Harish Rawat, Minister of State for Agriculture was also present in the meeting.

China to import basmati from India I

Now, the ministry of agriculture in India has to issue a quality certificate. Subsequently, a meeting between Indian exporters and Chinese importers is likely to be

are experimenting more with food now. Indian food is also becoming popular. Also, 500000 Indians come to China; initially, five star hotels, the expat community and Indian

held in China to thrash out the modalities of trade. India will face competition from Pakistan, which already exports Basmati to China.”Pakistani Basmati is cheaper but India has a lead in South Asia in Basmati trade,” Naidu added. China will not be an easy market to break into because the type of rice popular here is the sticky variety easy to maneuver with chop sticks. “The good thing is that people here

students will targetted,'' the Indian diplomat said. National Dairy Plan to Meet the Projected Demand of 150 Million Tonnes by the End of 12th Plan: Pawar Sharad Pawar, Minister of Agriculture and Food Processing Industries has expressed hope that the recently launched National Dairy Plan will be able to meet the growing demand of milk products. Addressing the Parliamentary

Consultative Committee attached to his Ministry, he said that the demand for milk is projected at 150 million tonnes and 180 million tonnes by 2016-17 and 2021-22 respectively. Milk production with an annual incremental growth rate of 6 million tonnes per annum is needed over next 15 years to meet the growing demand of milk in the country, Pawar further said. Higher GDP growth and growing incomes on account of various schemes of the government has led to rapid growth in demand for milk. Unless production increases at the required pace, there is a possibility of widening gap in supply of milk in future which can lead to increase in dependence on milk imports, said Pawar. At present, with a production of 121.8 million tonnes, and an average incremental growth rate of 4.1 million tonnes per annum, India is world leader, the Minister added. The members discussed National Dairy Plan (phase -1) and issues related to nutritional level in fodder, enrichment of straw, availability of loans for dairy farmers, welfare

schemes for them, support to women co-operative dairy plants, automation, need for awareness creation for better implementation of existing schemes. The National Dairy Plan (phase-1) was launched at Anand (Gujarat) recently. It involves total investment of Rs. 2242 crore and aims at increasing milk production by increasing productivity of milch animals and providing rural milk producers with greater access to the organized milk processing sector. The scheme is to be implemented in 14 major milk producing states – Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, West Bengal, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and Kerala. These states collectively account for over 90% of country's milk production. The scheme will be implemented by National Dairy Development Board through end implementing agencies comprising State Governments, State Livestock Boards, Cooperative Dairy Federations, ICAR Institutes and Veterinary/Dairy Institutes/Universities. Pattern of funding under the scheme will be 100% grant-in-aid for nutrients and breeding activities. Harish Rawat, Minister of State for Agriculture was also present in the meeting.

Beverages & Food Processing Times-May-II-2012 Organised By:

Indian Ice Cream Manufacturers' Association

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Ishida India-Reliable Partners for Industry In Association with:

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company that provides products and solutions for weighing, packaging, inspection and detection, Ishida India caters to the needs of all types of industry, from food to manufacturing and retail to chemical. Ishida India, which is a 100% subsidiary of Ishida Japan, commenced its Indian operations in April 2007 covering markets in India, Bangladesh, Nepal and Sri Lanka. A pioneer in Weighing and Packaging systems with an installation base spanning over 3,500 systems, over the past 5 years, Ishida India has added products like Platform scales, Laboratory Balances, Moisture Balances, Weigh Bridges, and Tank weighing systems to its portfolio. Mr. Takayasu Yamada who has been in India handling Indian operations since the inception of Ishida India says that with the addition of these products, “we can cater to the entire weighing needs of the customer beginning from incoming material, processing, packaging and shipping.” With this exhaustive product range the customers are bound to benefit, as the entire weighing systems will be from one source leading to better purchasing power and dependence on one single entity for after sales service. As a company, Ishida India is also known for its reliability as the systems run 24 x 7, 365 days. Shut downs are only for a few hours. With its facility in Gurgaon, Ishida India began its assembly operations of Multi-head weighers, Check weighers and Platform scales. Quality happens to be one of the important focuses of Ishida India. Engineers from Ishida Japan visit their vendors frequently to train and upgrade the manufacturing processes. Our R&D continues to work on improvement and innovation of technology to meet customers' demands. All of Ishida India's systems are custom built with customer needs varying from one to another. Ishida India has been recommended for ISO Certification 9001:2008 & 14001:2004 by TUV nord. Ishida India boats of a team comprising dedicated sales, marketing, manufacturing, Software and projects personnel who understand the customer's requirements and go all out to fulfill their weighing needs. The markets catered to by Ishida are namely Industry, Supermarkets, R&D Labs and Educational Institutions, apart from the Jewellery market. With present sales to market figure of over 100 crores, Ishida India aims at becoming the largest player in the weighing segment over the next 5 years. Ishida India's Corporate Philosophy is based on the harmonious integration of a three way belief system, namely, doing good for customers, good for society and finally good for the company. It is something every team member of Ishida India strives to follow.

Beverages & Food Processing Times-May-II-2012

alk through the aisles of any grocery superstore, and as you explore the massive range of packaged food that surrounds you from every corner, you might think you've stepped into a hub for all that is healthy. Colourful labels on boxes of cream cookies scream "sugar-free", chocolate cereal bars are "made with wholegrains", there are "fatfree" gummy bears and licorice sticks, and "all natural" fruit juices. It seems almost too hard to go wrong. But behind each claim, no matter how boldly displayed on package labels, is the fine print that questions its legitimacy, and begs to ask - just how healthy is what you're eating everyday? "Most claims on labels are incorrect, not scientifically proven, or highly exaggerated," says Dr Anoop Misra, director, Fortis-C-DOC Centre of Excellence for Diabetes, Metabolic Diseases and Endocrinology. "Unrelated claims also tend to be misleading. Candy is obviously fat-free, but advertising that makes consumers overlook the fact that it is pure sugar," adds fitness expert Raghav Pande. He also gives the example of simple breakfast cereal. Sure, it says it's made with whole grains, rich in fibre and other nutrients, and will help battle the bulge, but a look at the list of ingredients, printed in small letters at the back of the box, suggests otherwise. "Most cereal is packed with sugar, highfructose corn syrup, and additives, which are not part of any healthy diet," says Pande, adding that all processed foods are made for higher shelf life, and in the process, real nutrition is destroyed. But what makes packaged food unhealthy also makes it more in demand. "People have little time to prepare healthy meals, and end up consuming a lot of packed food. It's all about convenience," says Dr Misra. "They don't realize, or can't help the fact, that the food they are consuming is full of preservatives, carbohydrates and fats, and without any redeeming nutritional quality," he adds. Rphit Duggal, who runs an imports business, only recently began to read between the lines. "I would often get swayed by all the claims made on labels, but when I became serious about losing weight, I decided to educate myself. I realized that packaged food is not a healthy form of eating," says Duggal, who has since reduced his consumption of processed foods. Even so, the industry is thriving. Accounting for 32% of the total food market in India (according to latest figures available at the Ministry of Food Processing Industries' website), the processed food market is only

Food Labels

What food labels don't say ?

set to grow with increased urbanisation. With 100% foreign direct investment allowed in the sector, the Confederation of Indian Industry estimates potential of attracting $33 billion investment in ten years. And in a city where studies have consistently shown high levels of obesity, misleading claims only add to a bigger problem. A recent study, jointly conducted by Diabetes Foundation (India), National Diabetes Obesity Cholesterol Foundation (NDOC), and Fortis, and published in the Scientific Journal September last year, reveals about half were obese, 51.6% had high LDL cholesterol, and 68.9% had abdominal obesity. Though the Food Safety and Standards Authority of India set labeling and packaging regulations, and food standards, there is still grey area that the industry often exploits. "The laws in our country are excellent and technically sound, but there needs to be more clarity on application of law. Clarity comes with judgments, but that doesn't happen here because there are no convictions," says Bejon Misra, former member of FSSAI, and founder of Healthy

You Foundation. He says that since consumers are the most vulnerable helpless, unaware, and often without the resources to take on offending companies - the government needs to be more proactive. "They need to have education programmes through radio, television, and other media, in regional languages as well to familiarize consumers with labeling terms. At present, they're overloaded with information they don't understand," he says. Following a National Conclave on Defining Healthy Food and Beverages in 2010, his foundation proposed a front-ofpack labeling system, along the lines of an international model currently accepted in about 50 countries, to make it easier for consumers to identify nutritious food. If passed, any food that qualifies as healthy, based on mandatory requirements, will carry a logo at the front of the package. But the proposal is yet to take off. The problem here doesn't end with Indian processed goods, as labeling regulations worldwide have shown ambiguity. Claims like "made with real fruit",

"made with whole grains", "lightly sweetened", and "good source of fibre", are not regulated by the Food and Drug Administration either, says a report by consumer advocacy group, Center for Science in the Public Interest. Common food label claims to be wary of Made with wholewheat/Wholegrain/Multigrain Picture yourself sitting with your morning cup of coffee, biting into a toasted slice of wholewheat bread. You might feel proud of your "healthy" choice, but a closer look at the ingredients may reveal otherwise. Since no regulation controls the amount of wholewheat flour that needs to be in baked goods for them to be labeled as, that slice of bread could easily have more refined flour than anything else. The same holds true for wholegrain claims. Multigrain also seems to tantamount to whole-wheat or wholegrain, but it just means that several grains have been used to prepare the item, whole or refined Low-fat/Fat free

You're standing in line to pay your grocery bills, and at the checkout counter is a colourful bag of candy, screaming out to you. And it says fat free! If it sems too good to be true, that's because it is. Fat in labels simply means sources of vegetable, animal, or milk fat. So while it's entirely possible the candy you're reaching out for is fat free, the vast amount of sugar in it will negate any diet Made with real fruit Candy, beverages, cereal, and snacks often claim to contain "real fruit", and though there's no denying that fruit is good for you, the kind that comes in packaged products is certainly not. The content of real fruit in the items is mostly negligible, and usually in the form of highly processed fruit juice concentrate, which may as well be sugar Trans-fat free There's enough hype around trans-fat -- they raise bad cholesterol (LDL), lower good cholesterol (HDL), and are there in almost all processed foods to extend shelf life. So anything without trans-fat must be good, right? But for a product to be labeled as trans fat free, the Food Safety and Standards (Packaging and Labeling) Regulations, 2011, states that there needs to be less than 0.2 grams of trans fat per serving. Eating more than a single serving a day over several days could easily make you consume more trans-fat than you think. And trans-fat free doesn't mean the product cannot contain saturated fats, which are equally bad Serving size This is one gimmick that even the most conscious consumer falls for. The calories, fat, or sugar content of a product may seem pretty reasonable, but they can quickly add up when the serving size suggested is unrealistic. Because, honestly, who stops at just two cookies, or half a cup of ice cream? Educate yourself Adjust all nutritional values according to the amount you actually consume Stay away from products containing hydrogenated oils. Hydrogenation converts healthy, unsaturated fats into trans-fat Check for added sugars - corn syrup, high-fructose corn syrup, rice syrup, dehydrated cane juice, fruit juice concentrate, barley malt syrup, maltodextrin, and usually anything ending in 'ose' Remember ingredients are listed in descending order by of their composition by weight or volume Consume as much whole food as possible. Otherwise stick to products with ingredients that you understand.

Beverages & Food Processing Times-May-II-2012

The heat is on this summer

ummers have always been the favourite battleground for cola majors Coke and Pepsi. This year is no exception; as the two slug it out for a bigger sip of the Indian beverage market. Coca-Cola, this year, launched new products under the Schweppes Soda and Schweppes Tonic Water brands, besides piloting a new mango flavour under its Minute Maid 100 Per Cent juice portfolio. Company officials say, with a variety of products, it is looking to provide a wider choice to consumers. PepsiCo has Mirinda's double flavours — Orange-Mango and Orange-Masala — to woo consumers. Deepika Warrier, executive director (marketing), PepsiCo Beverages, says the company is laying special emphasis on innovation to drive consumption. “With innovation in communication, engagement, packaging and, at times, the product itself, we stay relevant for our consumers,” she says. However, experts say, with consumers increasingly getting discerning in their taste, the need to innovate and provide healthy solutions is growing. This is visible in the growth rates that juice drinks have seen vis-à-vis carbonated beverages. While the

ready-to-drink juice-based market, at Rs 2,500 crore, is just about one-fourth the size of the Rs 10,000-11,000-crore carbonated beverage market, the growth in this segment is nearly double the latter, at 25-30 per cent a year. Carbonated beverages have been growing at 15-20 per cent a year.

Focus on health Beverage majors Cadbury-Kraft, Rasna and NourishCo (a 50:50 joint venture between PepsiCo and Tata Global Beverages) have already embarked on the 'health' route with “fortified products”. On the health & wellness platform, Rasna has relaunched its powdered beverage drinks, Fruit Fun and Fruit Plus. Its chairman & managing director, Piruz Khambatta, admits the need to provide both taste and strength was imperative, at a time when consumers are looking for these attributes in their beverage products. “Trends increasingly show that consumers want more than just great-tasting products,” he says. “We kept that in mind as we relaunched the product, with a focus on providing energy besides taste.” This was also the rationale behind NourishCo's new

launch, Tata Water Plus (water fortified with minerals) as well as Cadbury-Kraft's new Tang Mango. The latter is a thick mango-flavoured drink with vitamins and nutrients. Kraft officials say they were looking to provide the right balance between taste and goodness. The coming seasons will see the company shifting its attention to local flavours. “We are working on a bank of local flavours that appeal to local tastes,” Narayan Sundararaman, director (powdered beverages, gum & candy), Kraft Foods, said.

Summer is key Despite vagaries of the weather, the four-month period from March to June, contributing 30-40 per cent to sales, remains a crucial period for beverage companies. Most companies are aware that their best foot has to be put forward during this period. In 2011, for instance, most beverage companies saw their sales declining 10-15 per cent between March and June, thanks to a cool summer. While 2012 has so far been mixed, with the north seeing a rain spell last week, companies

Beverages

COOL STRATEGIES Beverage companies’ launches this summer Company

Product(s)

Rasna

Fruit Fun &Fruit Plus (powdered beverages which have been relaunched)

February

Children

Coca-Cola

Schweppes Soda & Schweppes Tonic Water

February

Adults

PepsiCo

Mirinda Orange-Mango Mirinda Orange-Masala (both limited edition products)

February

Adults

February

Adults/children

March

Children

NourishCo* Tata Water Plus CadburyKraft

Tang Mango

*JV between PepsiCo and Tata Global Beverages

remain optimistic. PepsiCo's Warrier says: “There is a massive under-served demand for packaged beverages in India. To address this, we have created a go-to-market strategy based on three filters — portfolio class, town class and outlet class. On these lines, we now have five goto-market channels – premium, core, value, modern trade and rural — independent of each other and carrying products catering to different sections of consumers.” Warrier declines to get into specifics about PepsiCo's distribution reach, but says her firm has done a combination of

Launch date

Target customers

Source: Companies

things like expanding sales force, increasing distribution of coolers, strengthening back-end operations, etc. Rival Coca-Cola has also put in place an aggressive distribution strategy, aimed at both urban and rural areas. Home-grown Parle Agro, maker of brands like Frooti and Appy has opted to raise its distribution by 20-25 per cent a year. Its joint MD and CMO, Nadia Chauhan, says: “Apart from regular retail stores, our endeavour has been to target seasonal outlets that come up specifically during the summer. Consumption at these places is high.”

Beverages & Food Processing Times-May-II-2012

Govt pushes for exports to clear food stocks

ith food silos overflowing, the government has decided to push export of foodgrains. While an in-principle decision was taken at a meeting convened by Prime Minister Manmohan Singh on Thursday evening, the details will be thrashed out by the department of food. Commerce & industry minister Anand Sharma said that public sector companies under his charge have been and has asked to step up the export of foodgrains "on commercial terms" as this will also help the government deal with excess stock of food. He, howver, said that no view had been taken on providing incentives to export foodgrains as the economic cost of carrying the

stock was already high. In April, there was a stock of around 53 million tones of grains, which is expected to be in excess of 75 million tones by next month when the Food Corporation of India's wheat procurement programme is complete. The large pile of grains has added to the government's already bloated food subsidy bill and woes have been mounted by inadequate storage space with tones lying in the open. The minister said that Indian Railways has also been asked to provide rakes to move the grains to ports for exports. Public sector companies such as STC, MMTC and Projects Export Corporation would be roped in for commercial contracts.

Food Ingredients News

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Beverages & Food Processing Times-May-II-2012

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Bumper harvest here, North Gujarat will establish its stronghold Sharad Pawar bats for exports in global food processing markets

griculture minister Sharad Pawar is pushing for more farm exports as India gathers a bumper harvest of food grains, cotton and sugar cane. While rice export has crossed a record 4 million tonne, Pawar believes that there is still scope for bigger cotton and sugar shipments. The third advance estimates of the agriculture department peg grains output at an all-time high of 252.56 million tonne. The previous estimate was at 250.42 million tonne. Rice output is likely to be at an alltime high of 103.41 million tonne while production of wheat is likely to be at 90.23 million tonne - up from the target of 84 million tonne, Pawar said. India consumes about 76 million tonne of wheat a year. The bumper stocks might spur Indian stateowned firms and private companies towards exporting wheat to Iran, which could help partially settle New Delhi's oil import bill with Western sanctions-hit Tehran. India has allowed exports of 2 million tonne of wheat, easing an early 2007 ban on overseas sales. India's April 1 wheat stocks at government warehouses were at 19.9 million tonne, nearly five times the official target for the quarter ending June 30. The production of

oilseeds and pulses is likely to be at 17.02 million tonne and 30.06 million tonne respectively. The country is also likely to have a sugar cane output of 351.19 million tonne. "We have a record production of cotton estimated at 35.2 million bales (170 kg each). Sugar production is also at a record level of 26 million tonne. We need to come out with a clear stand on farm export at the meeting on April 30," said Pawar. Pawar will be attending the meeting called by prime minister Manmohan Singh, along with commerce minister Anand Sharma, food minister K V Thomas and finance minister Pranab Mukherjee to discuss exports. He said that a meltdown in global sugar prices is a cause of worry for mills burdened with oversupply. Next year's sugar cane crop too could lead to a good production for the third consecutive year. "With Brazilian sugar arriving in the international market, sugar prices are likely to come down drastically. A delay in sugar exports may make exports non-lucrative for sugar companies," he said. The farm minister pointed out that the abundance of milk powder with private and cooperative dairies are forcing milk producers to sell milk at low rates.

he Chief Minister Narendra Modi inaugurated India's biggest food processing plant 'Himalaya Fresh' near Vadnagar

of Mahesana district. “Such agro-industries related to food products will change the face of farming in the arid land of north Gujarat

Consulting Editor Basma Hussain

and the lives of farmers”, he said.

encourage mushroom farming. “North Gujarat will establish its stronghold in the world food processing markets”, Chief Minister said.

Himachal Pradesh's world famous food processing firm Himalaya International has set up a plant in Sultanpur of Vadnagar at the cost of Rs.170 crore. The plant will process the eatables like mushroomyoghurt-milk cheese and potato chips, French Fries etc. This is the first industrial project in this unindustrialized area.

Mr.Modi called upon people to partake in coming Krishi Mahotsav which will be launched on May 6. As many as one lakh scientists, ministers, government employees, office bearers will visit the villages to acquaint farmers with the scientific methods in the field of agriculture and animal husbandry, he said.

The Chief Minister welcomed the Himalaya Industry's Chairman Mr. Manmohan Malik's announcement that around 10,000 farmers will be made partners through this agroindustry with a view to

Mr. Malik and his family said that they have set up this biggest plant with the encouragement of the Chief Minister. Gujarat is making strides in industrial development due to the state government's transparent industrial policies. The company also announced ten percent salary hike for the plant workers on this occasion.

The Chief Minister also welcomed the company's announcement of giving scholarship to village students and of building sports complex.