Beverages & Food Processing Times June'13 (I)

India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

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Vol. 6, Issue 1, June (I) 2013, Rs. 20/-

Odisha Food Processing Policy- 2013 will promote food processing industries says Minister Dr. Damodar Rout grading, storing etc.

Brackwish Water Training Centre and Fishery Training Institute shall be encouraged to provide training on marine processing.

4. The concession for identified potentia I food cIusters or entreprises set up in KBK region on land in the form of reimbursement of additional 25% of land rate to the extent available in Industrial Policy Resolution 2007. The reimbursement is subject to the commencement of production in the enterprise.

5. Capital Investment subsidy @ 25% of the project cost subject to a limit of RS.2 crores and units promoted by women entrepreneurs and SC & ST entrepreneurs and units promoted in KBK areas, the subsidy shall be 33% of the project cost subject to a limit of Rs.3 crores.

6. 5% per annum back ended interest subsidy on working capital loan for first 5 years from 3.

T

he Government of Odisha has taken an initiative to bring out a Food Processing Policy aiming at value addition and waste reduction of the farm produce thereby increasing the income of farmers, maximize direct and indirect employment generation opportunities in food processing sector, increase the flow of investment across the supply chain from farm to market.

More importantly this policy also aims at establishment of units in food parks and mega food parks. This policy is in conjuction with IPR 2007 and MSME Development Policy, 2009 and emphasizes development of supply chain and infrastructure opportunities in rural areas, development of food parks providing various fiscal and nonfiscal incentives to promote the food processing industries, Dr Damodar

Rout, Minister MSME said today.

Speaking to journalists in a press conference, he expressed that this policy will also have ample opportunities to local entrepreneurial talent and strengthen the institutional support in keeping pace with the present requirement of the food processing sector.

Panchanana Rout, Secretary, MSME spoke about the salient features of the policy.

1. Establishment of sea food parks and identification of Agri export zone.

2. Agriculture Education Research Institute including skilled development agencies shall be encouraged to design specific programmes for food processing sector with focus on plucking,

commencement of operations of the units subject to a limit of Rs. 5 lakh per year for 5 years.

7. Agro processing and food processing units shall be encouraged to adopt latest quality certification standards like Hazard Analysis and Critical Control points (HACCP), Good Manufacturing Practices (GMP), ISO 9000, Agmark, FPO, Good Laboratory practices (GLP), Total Quality Management (TQM). The Government shall reimburse upto 50% of cost of such certification subject to ceiling of Rs.2 lakh.

8. Capital subsidy upto 20% of the project cost subject to limit of Rs.15 crore to speciai purpose vehicle (SPV) to develop Mega Food Park and Sea Food Park.

The subsidy can also be in the form of equity participation from GoO through a special purpose vehicle (SPV).

9. Provision for reimbursement of 5

lakh on the cost of preparation of DPR for setting up of Mega Food Parks besides Government of India grants. If the project report is prepared for carbon credit then the unit will get 50% of the consultancy charges with a cap of 20 lakh.

10. The Industrial units in the Mega Food Park and Sea Food Park shall be eligible for reimbursement of 100% VAT paid for a period of 10 years Iimited to 200% of fixed capital investment.

11. Industrial units set up in the Mega Food Park and Sea Food Park shall be provided capital investment subsidy of 25% of the project cost (Excluding cost of land) subject to a limit of Rs. 2 Crores. In case of units promoted by women entrepreneurs or entrepreneurs belonging to SC/ ST and units promoted in KBK districts, the subsidy shall be 33% of the project cost subject to a limit of Rs. 3 crores.

Beverages & Food Processing Times-June-I-2013

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Bakery News

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Cornerstone bakeries get international flavour D

oughnuts, bagels, muffins, toys, 3D photo and cupcakes. While these may be descriptions of tea time items in children's books and rhymes, these baked delights now compete alongside traditional Indian snacks and savories as home grown bakery brands ride a growth trajectory.

While big chains are looking to expand their presence in the hinterland, smaller momand-pop bakeries are now expanding into multiple franchise networks, specialising in particular varieties such as doughnuts and cupcakes. Earlier restricted to a single-city footprint, these smaller bakeries are now expanding rapidly — riding on the taste for freshly baked products — in an effort to carve out a piece of this Rs 1,000 crore pie that is growing at a 20% clip annually.

For instance, the Cupcake Company that has outlets in Chennai and Bangalore has positioned itself as a 'couture' cake company. Offerings include 'Angry Bird' themed cakes and champagnetheme cakes to name a few. Similarly, Donut House was started with the objective of introducing new food concepts to the south Indian palette. The company offers a whole host of glazed and assorted doughnuts and other combination offers.

Observers state that customers are increasingly demanding quality confectionary and baked products at reasonable rates. Result: the emergence of a 'cusp category' which straddles the gap between the high street baker and the corporate baker (primarily FMCG companies who sell bread, buns and cakes).

To meet the growing demand, bigger players like Oriental Cuisines is looking to double the presence of its bakery brand, French Loaf to 100 outlets by 2015.

The brand, which is present in Chennai, Bangalore and Kolkata, is now looking to expand its presence to Tier II locations such as Madurai and Coimbatore. "Cakes are becoming popular gifting options replacing mithai. Also, many Indian consumers now want quick eats and single serve desserts," Narendra Malhotra, chief executive officer, Oriental Cuisines, said.

Cities like Bangalore and Chennai always had a predominant baking culture. But

this is in the throes of change with cupcakes and doughnut outlets competing alongside kara bun, masala bread and potato buns dished out by the ubiquitous Iyengar bakeries and other home grown brands.

"These new bakery chains are looking to create a cusp territory between the corporate baker and the corner baker. While the corporate baker is unable to provide freshness, the corner baker lacks reliability in terms of ingredients used. Hence the emergence of a new class that is looking to dish out potato buns as well as bruschettas," independent brand consultant Harish Bijoor said.

What has helped fire the boom is the success story of brands like the Mumbai-based Monginis which now has over 250 outlets in the city

and 650 stores across India and is looking to expand its presence in smaller cities like Raipur, Udaipur and Patna. "Besides, our cake shop network, we have our presence in 15 states selling longer shelf life cakes through the stockist channel," Qusai Khorakiwala, director, Monginis Foods said.

Of course, scaling up to cater to a wider network isn't a cakewalk.

Pondicherry-based Choco-La, a boutique chocolateur known for its cakes and other confectionaries, for instance, has resolutely resisted the temptation of expanding its footprint much beyond the city.

"Scaling up can lead to a relaxation of the tight quality control that we now maintain over our kitchen and that's my biggest worry so we now cater to bulk corporate and other orders and through five-star hotel route," said Srinath Balachandran, founder-owner Choco-La.

Beverages & Food Processing Times-June-I-2013

Cavin's dairy goes north T

he maker of Chik shampoo satchet, Fairever fairness cream, Spinz deo and Nyle herbal shampoo has a new brand ambassador on board. The Chennai-based FMCG company, CavinKare, has signed on the Indian cricketer, Ravichandran Ashwin. However, it is not for any of its personal care FMCG brands, which had seen innovations in the past that had given FMCG bigwigs a run for their money. Instead, Ashwin will endorse the dairy business of CavinKare.

Having launched the brand Cavin's, three years back, CavinKare wants to go pan-India with it in the next 18 months. The markets in south India were its testing grounds. To expand, it will venture into the national capital region (NCR) at first. Cavin's already contributes 20 per cent to the FMCG company's overall revenue, clocking Rs 250 crore in 2012-13.

The dairy market in the south is more brand-focused than other regions which are commoditised.

"Private players have been the prime movers in south India with a strong retail presence in packed milk and curd," says Shiva

Mudgil, assistant vice president, food & agribusiness research and advisory, Rabo India Finance.

C K Ranganathan, chairman and managing director at CavinKare and the one who launched shampoo satchets in India, among other FMCG innovations, says, "It (the dairy business) is an evergreen segment since it is a fundamental requirement. I am bullish about this business." According to Rabo India Finance, the market size of organised dairy is around $14 billion (Rs 78,700 crore), with various sub-categories growing at 15-30 per cent. According to other market estimates, the milk market in volumes in Tamil Nadu and Kerala is around 90 lakh litres a day, growing at 4 per cent, while the curd market in Tamil Nadu is estimated to be 1.6 lakh litres a day, growing at 33 per cent.

Ranganathan says, "We are not a pure-play dairy company, but an FMCG company with a good distribution network, combined with back-end strength in people, procurement, plants, and R&D, that allows us to innovate. Cavin's Milkshake in special packs and Cavin's milk in UHT packs have

After white revolution, dairy cooperatives aim for green cover

After being the vanguard of India's white revolution, dairy cooperatives of Gujarat have been engaged in the green revolution.

Both the major dairies of north Gujarat - Banas Dairy of Palanpur and Dudhsagar Dairy of Mehsana have shown the way in greening a desolate landscape.

"We have over 2,000 trees on a land that was barren a few years back," says Sanjay Karamchandani, the managing director of Banas Dairy, the biggest dairy in Asia. "Of the 5,370 trees we planted, 2,000 have come up over the past few years.

Banas Dairy has grown 992 neem trees on its open land."

Deputy manager (civil) Dudhsagar Dairy, Mehsana, Nagajibhai Chaudhary, said: "We have 3,000 trees on our premises including neem trees that have come up over the past couple of years."

The dairy cooperatives are

concerned about environmental imbalances, Chaudhary said. "The cooperatives observe the Environment Day on June 5 every year and plant trees," he said.

"Yet hardly 15 per cent survive in the long run."

Both dairies have been growing trees for the past 30 years and now the trees have turned into massive shade-giving structures, says Karmchandani.

"Once you enter the dairy's compound, you feel a tinge of a hill station with a difference of 5 degrees celsius from the outside temperature."

Banaskantha falls in the desert zone and tree planting needs special care, said Satish Pansuriya in charge of training centre at Banas Dairy. "We have to work in a hostile climate," he said. One can hear the chirping sounds of the different birds within the thick groves of trees."

Besides neem, Asoka, Borsali Chiku and Jamun are common at both dairies.

long shelf-life which can last in areas with power-cuts".

Anand Halve, co-founder of Chlorophyll, the brand and communications consultancy, however, says, "The question is whether CavinKare can build a sustainable brand in a commoditised category. Not only do we have national players like Amul and Nestle, new entrants like Danone, but a host of local brands. Despite its personal care products with a difference, dairy will not an easy category to differentiate in. Indians are still wary about 6-months preserved dairy products."

Ranganathan will bank on value-added dairy products.

The company started with milk and dahi, and diversified into ambience-stable products such as yogurt, paneer, UHT (ultra-high temperature-processed) milk and milk-based beverages like milk shakes from 2010.

These value-added products will first get marketed in the NCR. Balaji Prakash, general manager sales and marketing (dairy & beverage), CavinKare, says that the ambience-stable products

would not require cold-chain infrastructure, and hence be more suited for an immediate launch.

While value-added dairy products hold the scope for high margins, they account for 10-15 per cent of the market, with pouch milk bringing in 60-65 per cent. Where basic dairy products allow only low single digits by way of margins, value-added dairy products can offer double digit margins on a large scale (could be three times more).

These bring in about 40 per cent of CavinKare's dairy revenue, and Ranganathan wants no less than 60 per cent from these when the business reaches the ambitious Rs 1,000-crore mark.

Having bought a Kanchipuram dairy farm to kickstart its diversification in 2009, CavinKare is nearly doubling its capacity at its Kanchipuram and Erode plants from 3.8 lakh litres per day to 6 lakh litres per day to produce more value-added products.

However, a national footprint will not be easy with a limited cold chain support. Afterall, dairy companies cannot ignore selling milk and curd since they account

Dairy News

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for a lion's share of the market.

"We will invest around Rs 250300 crore to set up a cold chain, R&D and our brand across the country," says Ranganathan, who is planning to fund it through debt and internal accruals. So far, 6 per cent of the segment's earnings have been ploughed back in brand-building. CavinKare is also looking at raising around Rs 350 crore from PEs, by diluting around 10 per cent, for its entire FMCG business.

Cavin's will tap groceries, general and departmental stores, modern trade (MT) and eating outlets.

Mudgil says, "Modern trade provides an ideal platform to showcase value-added products like cheese, UHT milk, yogurts to targeted audience. However, general trade will still remain a major contributor to sales since MT penetration is low at around 8 per cent."

Milkshakes will be the first to get endorsed by Ashwin who fit in with associations of health, activity and energy - traits Cavin's wants to embody. While Ashwin will be the national ambassador for all its dairy products, the company will rope in regional celebrities to connect locally in different markets.

Beverages & Food Processing Times-June-I-2013

Food Processing News

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At Naturex, fruits and vegetables take the plunge into food & beverage products

Vaishno Devi Dairy aims Rs 250 crore of revenue next year A

W

ith plans to expand both the production capacity and the product range Vaishno Devi Dairy is aiming to get revenue of Rs 250 crore by next year from current Rs 150 crore.

Gujarat may be known for initiating the milk revolution in the country, but today Maharashtra has become one of the major milk producing state due to several fervent entrepreneurial dairies like Vaishno Devi Dairy, Chitale Dairy, Parag Milk Foods etc.

The late Verghese Kurien, the man responsible for Operation Flood, the world's biggest agricultural development program transformed India from milk deficient nation to the largest milk producer in the world. His vision has spawned many entrepreneurs who hope to focus on India's agrarian economy.

Spotting this opportunity 37 year old Nandkishore Attal founded Pune-based proprietorship firm Vaishno Devi Dairy Products in 2007 with an initial capital of Rs 50 lakh. Serving under the brand Shubhi, the venture produces 3 lakh litres of milk every single day. The company is also operating a 20 tonne/day milk powder plant supplying to clients like Mother Dairy, Hatsun Agro Products and many more.

With plans to expand both the production capacity and the product range Vaishno Devi Dairy is aiming to get revenue of Rs 250 crore by next year from current Rs 150 crore.

Entrepreneurs Nandkishore Attal's first chapter of his dairy diaries began in 2003 when he ventured into the milk business with his childhood friend and co-founded Vaishno Devi Milk Product. It was not until 2007 that Attal decided to fly solo.

He set up his second venture in the agriculture space, Vaishno Devi Dairy Products. What started with the acquisition of a dairy unit with a capacity of 70,000 litres is today processing 300,000 litres of milk everyday and has skimmed its way into procuring, pasteurising, chilling and packaging milk.

Attal has also expanded operations to two plants in Pune where he manufactured condensed milk, skimmed milk powder, butter, cottage cheese and curd under the Shubi label.

But venturing into a Greenfield project was not easy. ”In dairy industry the challenges are in terms of procurement and in terms of sales and marketing.

Both the ends we are setting up our network wherein we will be having 15 chilling centres in next one-one and half year. Each chilling centre will be able to procure around 15,000-20,000 litres of milk directly from farmers,” Attal said.

Dairy being a highly capital intensive business some of the hurdles Nandkishore faced were raising funds from banks in the early stages. Starting up with a personal saving of Rs 5,000,000 it was only in 2010 that the venture raised project finance of Rs 10 crore from State Bank of India (SBI).

Today Vaishno Devi Dairy Projects is associated with over 10,000 dairy farmers in Maharashtra and procures milk from them at a standard price of Rs 70/litre determined by the Maharashtra government.

Claiming to be profitable since inception apart from the in-house brand Shubhi the venture today is milching revenues by co-packing for organisations like Mother Dairy and Britannia and is now exploring other institutional consumers. Betting big on the dairy market Nandkishore expects to touch revenues of Rs 250 crore by next year.

“As it is India is the highest producer of milk and by 2020 the milk per capita consumption would be around 300-250 ml per person. So I think there is a huge scope for new entrants like us in this industry,” Attal said.

Having already achieved his mission of growing 100 percent Year-on-Year, Nandkishore is now on his next mission to give back to the community he works with. Vaisho Devi Dairy Products provides medical facilities, veterinary services, cattle feed at no profit, no loss rates to almost 2,000 farmers who directly work for the venture. Going forward he plans on installing plants with additional capacity of 30 tonnes/ day as compared to the current capacity of 20 tonnes.

Also in the pipeline are plans to set up dairy products manufacturing plants in Andhra Pradesh and Madhya Pradesh. Nandkishore is hopeful of making Vaishno Devi Dairy Products one of the top five private dairies in Maharashtra by 2015.

vignon, 8th April 2013 – The nutritional benefits of fruits and vegetables are well known, but these foods are largely absent from the average consumer’s daily diet. Naturex offers a simple and original way to incorporate more fruits and vegetables into products.

Thanks to unique technology, Naturex is able to meet the expectations of the savory, sweet, and baby food industries by offering convenient and tasty fruit and vegetable powders. The group operates a 75 meter high structure known as the BIRS tower. This gigantic spray drying facility can create powders that offer clean label and maintain the organoleptic properties of original, freshly harvested fruits and vegetables.

Exceptional properties in solution The powder is instantly soluble when poured into hot or cold water. Thanks to the size and shape of its particles, the powder shows complete texture recovery without sedimentation. In a comparative study, the hot spray dried tomato powder settled to the bottom of the container after 4 minutes, while the cold spray dried powder processed in the BIRS tower continued to

show an excellent homogenous suspension in the solution.

Outstanding organoleptic properties The organoleptic properties of the raw material are preserved and ready to delight gourmet palates. “Drying puree instead of juice makes the difference in terms of texture and mouthfeel.

For example, the original fiber content of the apple is maintained throughout the process. When pouring into cold water, our apple powder can recreate unique and home-made style applesauce without the use of thickener,” explains Frédéric Randet, business manager. The powder also has a

Tea Board moots mapping of tea factories

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n a bid to ensure good quality tea production in the country, theTea Board of India (TBI) has proposed to map all the tea factories in the category ranging from A to D, with A being the top quality category.

"We propose to map all the tea factories on some of the key parameters.

An independent agency will take samples of tea from these factories and certify them with respective categories like A, B, C and D. This will give the factories an identity and ensure the quality production of tea," said Tea Board of India chairman M G V K Bhanu.

"We would request Federation of All India Tea Traders Association(FAITTA) to take up the initiative and form a committee, which will decide the parameters on which the mapping will be made. A part of the cost of this project will be shared by Tea Board," said Bhanu during his address at the inaugural session of the 24th annual general meeting of FAITTA at Anand on Saturday.

Bhanu stressed on the need to spread awareness about the importance of good quality tea among the small tea growers. He also raised concerns about the branding of tea produced at bought leaf factory (BLF) as poor in quality. This causes BLF tea fetch

lesser price by about Rs 20 per kg from the average tea price.

"There is a need to make good quality tea in India, otherwise tea consumers will start moving to other beverages like coffee. Not always bought leaf tea is inferior in quality. At least 70 per cent of the bought leaf tea should be brought to auction centers," said Bhanu.

Bhanu raised concern that the number of bought leaf tea growers is rising rapidly. But their production quality remains a big concern.

Speaking on the India's tea consumption, Piyush Desai, chairman, Wagh Bakri Tea and member of FAITTA said, "Tea

deeper color when compared to those created using hot drying methods. The taste is fresh, intense, and maintains the authentic taste of the fruit or vegetable.

Clean label: a key advantage The technology of the BIRS tower, with its unique dimensions and gentle process (< 50°C), guarantees a slow and cold drying of the puree that is poured into the top of the structure. As a result, Naturex offers pure 100% fruit or vegetable powders, free from any carriers or additives.

To display these powders, Naturex is launching several informative videos and a dedicated page on its website consumption is nearing at 1000 million kg, while production has crossed 1100 million kg. But we are facing stiff competition with branded coffee like Barista, Cafe Coffee Day and now Starbucks. India's tea consumption has to increase to take on the competition."

Adding further he said, there was a need to relax 100 per cent import duty on tea as tea producers are losing premium category customers. However, Tea Board chairman denied any possibility to consider relaxation in import duty.

"We will not encourage imports," he said.

India, which is the largest black tea consumer nation in the world has per capita tea consumption of around 600 grams per annum.

Tea production has touched 1126 million kg in 2012, which is likely to increase by 1 per cent in 2013.

Beverages & Food Processing Times-June-I-2013

Events

Intralogistics at drinktec 2013 Increasing demand for modular and scalable concepts

World’s Leading Trade Fair for the Beverage and Liquid Food Industry

Product and packaging diversity is impacting on warehouse technology

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ntralogistics, according Germany´s engineering federation, the VDMA, is defined as the organization, control and implementation of in-company processes for handling materials, information and products. In this area, in particular, there is still significant optimization potential, just waiting to be tapped, in the production of beverages, dairy products and liquid foods. Just what tools and services are best for exploiting that extra potential will be highlighted at drinktec 2013, the World´s Leading Trade Fair for the Beverage and Liquid Food Industry, which takes place from September 16 to 20, 2013, in Munich.

Along the intralogistics chain there are many different stages. But a core component is the warehouse. This is the place where raw materials and operational and auxiliary supplies are held in stock, and where finished products are stored and prepared for dispatch. In warehouse technology a distinction is made between storage in blocks, or on racks, i.e. between block-type and high-bay warehouses. A second criterion is the way in which the material is handled. Stackers are used in manual warehouses, while in automated warehouses rack-operation equipment or driverless transport systems (DTS) in combination with computercontrolled conveyors are used. In addition to this there are semi-automatic versions in which pallets are transported by stackers and then put on the shelves by a shelfstacking machine.

Product and packaging diversity is having a clear impact on warehouse technology In the beverage and food industry, the increasing diversity of products and product packaging has made a big impact on warehouse technology in recent years.

Pallets with foil-wrapped PET containers cannot be stacked as high as bottles in rigid crates, for 2 example.

And if the container is fitted with a trendy "sports cap" closure then the pallet can no longer be stacked at all. In this way a blocktype warehouse loses storage capacity significantly and takes up more space – and in urban areas this can be a very serious factor.

On the other hand, because of the limited maximum capacity of a shelf-stacking machine, the investment required in transport technology is high if the capacity of a block-type warehouse with 6-pallet handlers is to be achieved. The pros and cons have to be weighed up in each individual case. Other important factors to be taken into account in this optimization include ever more rapidly changing product ranges, ever shorter ordering cycles, inventory ranges and the declining order and delivery quantities per article. Also, in dairies, the refrigeration chain has to be maintained.

New conditions, new solutions drinktec exhibitors have long since geared up to the changing warehouse environment and produced corresponding solutions, as illustrated by Andreas Oy, Sales Director at SSI Schäfer Noell GmbH: "At present there is increasing demand in the beverages sector for modular and scalable concepts which the manufacturers can use for optimum space utilization, for significantly

Processing + Filling + Packaging + Marketing

increasing availability, deliverability and service quality, and for higher throughput. One current example is a fully automated compact channel warehouse with a Lift&Run system, orbiter shuttles and intelligent materials handling control from the warehouse management system for Gerolsteiner beverages manufacturer."

Robots and sustainability – major trends In terms of current trends in the logistics chain, there is an increasing number of applications for industrial robots. Thanks to major improvements in gripping and sensor technology, it is now possible to automate intralogistics processes that until recently had to be carried out manually. A second example are driverless transport systems which handle internal movements of goods in storage completely autonomously, at least for some stretches. Also, of course, sustainability is now an integrated part of intralogistics operations.

The latest stacker control systems, for example, optimize route planning and thereby further reduce energy consumption. Then there are both stackers and warehouse and conveyor systems with energy-efficient, i.e. "greener" drive solutions. All of these trends will be illustrated in full in the products and services showcased at the booths of the exhibitors in the halls at Messe München, as Petra Westphal, Exhibition Group Director explains: "As the world´s leading trade fair for the sector, drinktec is putting on a display, covering at least 132,000 m², of raw materials, installations, systems and products for manufacturing, filling, packaging and marketing, and this includes of course hardware and software innovations for intralogistics."

Further information: www.drinktec.com About drinktec drinktec is the "World’s Leading Trade Fair for the Beverage and Liquid Food Industry". It is the most important trade fair for the sector.

Manufacturers and suppliers from all over the world – global companies and SMEs alike – meet up here with all sizes of producers and retailers of beverages and liquid food products. Within the sector drinktec is regarded as the number one platform for launching new products on the world market. At this event manufacturers present the latest technology for processing, filling, packaging and marketing all kinds of beverages and liquid food – raw materials and logistics solutions included. The themes of beverages marketing and packaging design round off the portfolio. drinktec 2013, which takes place at the Messe München exhibition center in Munich, from September 16 to 20, 2013, is expected to attract around 1,500 exhibitors from over 70 countries and approximately 60,000 visitors from more than 170 countries.

drinktec is the pacemaker for the beverages and liquid food industry.

The whole industry comes together at drinktec— companies large and small, regional and global.

This is the place to find solutions. Be inspired by innovations, world premieres and new thinking. drinktec—Go with the flow.

September 16 –20, 2013 Messe München, Germany

drinktec on Facebook, Twitter and YouTube Contact Messe München GmbH drinktec Press Office Johannes Manger and Benjamin Büttner Tel. (+49 89) 949-21482, Fax (+49 89) 949-9721482 Johannes.Manger@messe-uenchen.de/ Benjamin.

Buettner@messe-muenchen.de

D

IND

Messe München GmbH | info@drinktec.com Tel. +49 89 949-11318 | Fax +49 89 949-11319

MMI India Pvt. Ltd. | millie.contractor@mmi-india.in Tel. +91 22 4255 4700 | Fax +91 22 4255 4719

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Beverages & Food Processing Times-June-I-2013

Food Processing News

GMO Wheat Found in Oregon Was Isolated Incident, Says USDA

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hile the reaction from trading partners was immediate with a significant impact on markets and Monsanto opponents did not miss an opportunity to crow, USDA says genetically modified wheat plants found in Oregon was an isolated event.

“As of today, USDA has neither found nor been informed of anything that would indicate that this incident amounts to more than a single isolated incident in a single field on a single farm,” the agency said in a statement issued Friday. “All information collected so far shows no indication of the presence of GE wheat in commerce.

Investigators are conducting a thorough review.”

“On May 29, USDA announced that a small number of volunteer wheat plants in an Oregon field had tested positive for genetically engineered (GE) glyphosateresistant wheat. Extensive testing confirmed the wheat as a variety – MON71800 – developed by Monsanto,” USDA said.

“The detection of this wheat variety does not pose a public health or food safety concern.

Monsanto worked with the Food and Drug Administration (FDA) in 2004 to complete a voluntary food and feed safety consultation,” It added. “ Completion of the FDA consultation process means this variety is as safe as non-GE wheat currently on the market.”

In the statement, USDA acknowledged its investigation began on May 3, many days before the incident was made public.

That was the day when an Oregon State University scientist notified USDA officials that plant samples they had tested positive for a protein that made them resistant to glyphosate.

USDA’s investigators have interviewed the person that harvested the wheat from this field as well as the seed supplier who sold the producer wheat seed; obtained samples of the wheat seed sold to the producer and other growers; and obtained samples of the producer’s wheat harvests,

including a sample of the producer’s 2012 harvest.

It says all of these samples of seed and grain tested negative for the presence of GE material. Investigators are continuing to conduct interviews with approximately 200 area growers.

USDA’s statement on the incident concluded with information on steps it has taken to reassure the wheat market.

“On June 13, 2013, USDA validated an event-specific PCR (DNA-based) method for detecting MON71800 (provided

by Monsanto to USDA on May 23, 2013),” it said. “ The USDA validation process included a specificity study and a sensitivity study. USDA determined that the method can reliably detect MON71800 when it is present at a frequency of 1 in 200 kernels.

Additionally, USDA has provided this validated DNA test method to detect this specific GE variety to our trading partners that have requested it.”

“Major markets, such as Japan, Korea and Taiwan, have postponed imports of U.S. white wheat as they continue to study information from U.S. officials to determine what, if any, future action may be required.

USDA officials will continue to provide information as quickly as possible as the investigation continues – with a top priority on giving our trading partners the tools they need to ensure sciencebased trade decisions.”

Achieving food waste efficiencies through innovation and global cooperation

An EU-funded cooperation project between India and several EU countries could transform the sustainability and competitiveness of the food industry, while having a positive impact on the environment. Using new methods and technologies the project is turning fruit and cereal waste into valuable by-products.

Around 90 million tonnes of food is wasted in Europe annually.

This works out to about 180 kg per capita per year. Much of this wastage could be avoided, which is why the European Commission has set a target of reducing food waste in Europe by half by 2020.

The fruit and cereal processing sector is a prime example of where potentially valuable ingredients are not being fully exploited.

This waste is often used in animal feed and for composting, but inherent biological instability and inadequate waste collection strategies means that this waste stream is still not as sustainable as it could be. As a result, a large amount of organic material is disposed of in landfill.

The NAMASTE project believes that this 'waste' is a wasted opportunity. Food processing byproducts are sources of valuable food ingredients that could be exploited in the production of new food products and feeds.

This is why the project has been examining ways of collecting and treating waste streams, which benefit the environment and the

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economy. NAMASTE, which includes partners from both the EU and India, is one of the first joint projects under a coordinated call between the Union and the Indian government. A wide variety of food chain stakeholders have been involved in order to maximise the potential for innovation.

The ultimate objective of the project has been to create new market opportunities for the food sector on both continents. It also aims to satisfy the ever-growing consumer demand for 'simple and ready-to-eat' foods with improved nutritive value, novel shapes and flavours, colour and texture.

NAMASTE, which runs until the summer of 2013, has succeeded in developing a number of approaches - biochemical, chemical and physical for selectively extracting and modifying cell-wall and intracellular components of fruits and cereals. This has enabled viable functional ingredients to be extracted. These have to be properly collected to avoid contamination by environmental agents. Potentially high-value ingredients include nutritionallyand pharmacologically-functional biopolymers, which can be used in fields as diverse as medicine and packaging.

The project has also examined how best to exploit the biodegradation of non-food-grade co-products, with special reference to the composting process and the interactions between microorganisms and plant structure.

This will also help to reduce the volume of by-products disposed of unnecessarily, with positive effects on the sustainability and economic competitiveness of both the European and Indian food industries.

In the EU, the project focused in particular on citrus by-products and wheat bran processing. It developed and assessed laboratoryscale experimental protocols to convert by-products into food ingredients and new foods with improved nutritional properties, along with a new citrus/mangobased feed for aquaculture.

In India, meanwhile, the project focused specifically on mango and pomegranate by-products along with rice bran. Technologies and processes for turning such byproducts into new foods and feeds have also been developed. Finally, a proactive EU-India cooperation plan has been adopted to ensure mutual benefit, both in terms of knowledge generation and market expansion for the global food and drink industries.

Beverages & Food Processing Times-June-I-2013

Trans Fats

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Beverages & Food Processing Times-June-I-2013

Food Processing News

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Ruchi Soya to spin Indian Grape Processing off soya processing Board calls on European delegation for tech unit in new JV

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ndore-headquartered Ruchi Soya Industries Ltd, one of India's largest edible oil companies, is forming a joint venture with two Japanese firms J-Oil Mills, Inc. and Toyota Tsusho Corporation (TTC). Ruchi Soya will also sell its soya processing business, being run at its plant located at Shujalpur in Madhya Pradesh, to the proposed JV. The financial terms of the transaction are not disclosed.

Ruchi Soya will hold 51 per cent stake in the JV with J-Oil picking up 26 per cent while the remaining 23 per cent will be owned by TTC. The JV plans to enter into the business of production and marketing of edible oils. It will also start supplying products to institutional customers by the end of 2013 and further plans to launch consumer products for the Indian market in the second half of 2014.

"Ruchi Soya will provide raw materials and necessary marketing & distribution assistance to the JV. J-Oil will provide technical assistance and TTC, with its rich global experience, will provide management assistance for internal control and access to international markets through its network," said Dinesh Shahra, founder and MD of Ruchi Soya.

"The main purpose of this investment is to start our first-ever business activity overseas in a promising country like India," said Sumikazu Umeda, president and

CEO of J-Oil Mills.

Public-listed Ruchi Soya is a flagship company of Ruchi Group, which has a turnover of more than Rs 13,000 crore. Besides being a leading manufacturer of edible oils, vanaspati, bakery fats and soya foods, Ruchi is also one of the biggest exporters of soya meal, lecithin and other food ingredients.

It has brands like Nutrela, Nutrela Soyumm, Ruchi Gold, Mahakosh, Sunrich and Mandap, among others.

Only recently, it has formed Ruchi Kagome, a joint venture with two Japanese firms, Kagome Co Ltd and Mitsui & Co Ltd, for processed tomato products.

Japan's edible oil firm J-Oil Mills is engaged in manufacturing, processing and sale of oils and fats, oil seed meals, starch, various types of foods, feed stuff & fertilisers and food-producing machinery. It also has businesses in warehousing, harbour, land transport and real estate, among others.

One of the largest Japanese trading companies, Toyota Tsusho Corp, a wholly owned subsidiary of Toyota Group, is engaged in the trading of steel, aluminum, machinery, electronics, energy, chemicals and other consumer products.

In the edible oil space, Cargill, Inc. acquired the flagship brand Sunflower Vanaspati of Azim Premji-led Wipro Ltd in October 2012.

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fficials of the Indian Grape Processing Board (IGPB) on Friday called on the European delegation, which came to the city on Thursday, in a bid to acquire the technology that would help the domestic wine industry to match up to international standards in its produce.

The European Business & Technology (EBTC) delegation winded up its two-day visit to the city on Friday after holding business talks with industries in Nashik from the agriculture, food processing and wine sectors. The delegates had visited Delhi and Chandigarh before they came to Nashik.

The objective of the delegation's India tour was to explore opportunities for industries from both the countries to collaborate either technologically or in the form of joint ventures.

IGPB Chairman Jagdish Holkar told TOI, "We want to promote joint ventures between Indian and Europe companies in wine manufacturing, marketing and export. We also want technological collaboration to happen as this would help the local wineries to improve the quality of their produce."

Holkar said the EBTC aims to form business clusters in the agriculture, winery, food processing and

Affordable European food processing tech coming to UP

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ndustry body Assocham today announced to introduce European food processing technology in Uttar Pradesh, one of India’s largest farm producers.

This affordable technology will be from Belgium, France and Germany, farm tested in the Northeast by Assocham (Associated Chambers of Commerce and Industry of India).

The industry chamber would organise 50 entrepreneurship development programmes (EDPs) to unveil these technologies to budding entrepreneurs.

This is part of a greater blueprint

by Assocham to groom 1,000 fresh entrepreneurs in food processing industry in UP over the next three-four years.

According to a study by Assocham, UP farmers incur losses of almost Rs 10,000 crore annually due to the lack of proper post-harvest farm technologies.

“Besides, most of profit margins

are squared away by middlemen operating in the farming sector,” Assocham Secretary-General D S Rawat said here releasing the study.

He informed there was already a central subsidy scheme in food processing, while some of these technologies could be adopted for as cheap as Rs one lakh.

Meanwhile, UP is fast emerging as a hub for fruit and vegetables by registering a compounded annual growth rate (CAGR) of over 15 per cent. The fresh arrival of vegetables to the wholesale markets rose from about 2.8 million tonnes (MT) in 2008-09 to over 4.3 MT in 201112; and expected to be 4.6 MT by the end of current fiscal.

Investors wary The industry body raised concerns about the law and order situation in Uttar Pradesh, which it said had shaken the confidence of investors.

Assocham said ever since the Akhilesh Yadav government came

to power last year, the perception about the law and order situation in UP had been negative.

Earlier, Confederation of Indian Industry (CII) had last month flagged law and order issue saying the state should take urgent corrective measures. CII Northern Region Chairman Jayant Davar had said UP needed to strengthen its law and order machinery and deploy additional force to maintain vigil, if required.

“For attracting investment in any state, the law and order consideration is most vital.

Unfortunately, there have been incidents taking place in UP, which have shaken the confidence of investors,” Assocham secretary general D S Rawat replied to a Business Standard query here.

He claimed UP had been able to attract fresh investment, primarily in the real estate sector, but other states have also achieved the same due to high demand for realty.

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renewable energy sectors and is funded and monitored by the countries in Europe. "They are focusing on the wine sector in Nashik; we gave them a presentation on the country's wine industry."

Holkar further said, "We will also need advanced technology for our proposed cluster project at Vinchur Wine Park, near Nashik.

The project is to be set up under

the central government's Industrial Infrastructure Upgradation Scheme (IIUS). Our main aim behind setting up a wine cluster project is to provide all advanced facilities for the wineries right from grape crushing to wine tasting and exhibition. The estimated cost of the project is around Rs 100 crore and we are trying to take help from both the state as well as central government."

Beverages & Food Processing Times-June-I-2013

Cold Chain

The best Refrigerated Trucks are the ones with Cold Plate Refrigeration system

and more environmentallyfriendly, alternative to expensive diesel-driven systems.

By - Divya. A Director

Marketing & Strategy Transfreez, Mobile Refrigerations Unit

A

s a 60 year old technology empowering thousands of refrigerated trucks across the globe, Cold-plate refrigeration system remains one of the most PROVEN and RELIABLE means of refrigeration for transport applications. What is primarily different from the blower type, engine-drive or diesel engine driven refrigeration system is that no compressor is required to operate during distribution.

Traditional refrigeration systems draw power from a running engine to generate and maintain temperatures. But Cold Plate refrigeration system is electricallydriven, making it a cost-effective,

How do Cold Plates work?

Cold plate refrigeration works in a similar manner to the blue gel packs we keep in a freezer.

These packs freeze overnight and can serve as a portable freezer for your trip the next day. Cold plates aren’t much different. When the truck is off the road, the owner plugs the refrigeration unit into locally available power, allowing refrigeration to pass through the plates. This refreezes the solution inside the plates over an 8 to 10 hour period. When this time is over, you’re free to take the truck back on the road.Thereafter, the system requires absolutely no power whilst in operation (and so makes no noise), and the frozen solution provides refrigeration power as it very slowly changes state. The temperature will be set for the day’s run and be maintained for

around 10 to 12hours depending on the door openings. Nonetheless, Cold-plate technology is one of the most sophisticated refrigeration technologies with utmost userfriendliness.

Advantages of Cold Plate Refrigeration There are numerous advantages to cold plate refrigeration. Firstly, you don’t have to worry about your refrigeration breaking down halfway down your transportation.

This can be an expensive waste of time under the best of circumstances. Under the worst of circumstances, it could result in your perishable shipment being ruined. Low operating costs, elimination of maintenance, and a long lifespan are also among the benefits.Other advantages include longer Vehicle engine life, quiet operation, and reliability.

Are there any disadvantages?

While cold plate refrigeration

offers a number of advantages over blower type systems, there are some weaknesses. One of the most distinct of these is a short radius. You’ll have to return to your plug-in point at night, which means hauling on a national scale is not going to be practical. The required down time can also be a disadvantage, as it is going to take your truck out of commission for at least 8 hours a night.

Then how can this Cold Plate Reefer be of BEST use? This technology is best suited for Short-haulage and multi-point city distribution.

WHY CHOOSE COLD PLATE OVER CONVENTIONAL REFRIGERATION SYSTEMS? COLD PLATE PERFORMS EFFICIENTLY Cold Plate uses an electricallydriven, easy-to-access front mounted compressor to cool the system. No moving parts translate to low maintenance requirements.

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COLD PLATE PERFORMS COSTEFFECTIVELY Cold Plate System is electrically driven and operates at a fraction of the cost of conventional enginedriven systems that require a running engine,and consume costly diesel fuel just to maintain required temperatures.

COLD PLATE PERFORMS DEPENDABLY Even under disastrous conditions, such as total electrical system failure, Cold Plate holds enough reserve to maintain even the coldest temperatures for as long as 24 hours in an unopened compartment.

COLD PLATE PERFORMS ENVIRONMENTALLY Electrical operation means Cold Plate results in lower CO2 emissions, fewer particulate pollutants and less noise pollution than engine-driven systems.

COLD PLATE PERFORMSSTABLY. Energy reserve in Cold Plates helps maintain a more consistent cargo temperature during frequent door openings unlike the high fluctuation temperature of blower system.

In other words Cold Plate systems WORK! In the most effective and efficient manner enabling huge cost savings translating to more profits and better customer satisfaction through best temperature control.

Beverages & Food Processing Times-June-I-2013

Confectionery News

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Health : the new black Arway Confections acquires in the confectionery Long Grove Confectionery industry

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ealthy food is the new black, according to Stephen Kulmar. Speaking at ConTech 2013, the Australian Industry Group’s confectionery conference, Kulmar said that black is enduring in fashion and health products will be enduring in food.

He challenged the confectionery industry to recognise and advance the health market.

“There is an increased awareness of wellness and functional products within the confectionery sector,” Kulmar said. “It’s not necessarily about nutrition.

“Dark chocolate sales continue

to increase as there is an understanding that it can contribute positively. Premium chocolate is becoming much more popular as people consume less, but want better quality. It’s a natural progression.”

International confectionery companies in overseas markets are offering new functional foods such as fortified gums and even confectionery that fights acne, Kulmar told conference attendees.

Huge opportunities exist for confectionery to spread into new areas and really connect with consumers, Kulmar said.

ne Chicagland candy company is acquiring another. The Baldi Candy Co., which is doing business as Arway Confections, Inc. of Chicago, has reached an agreement to purchase Long Grove Confectionery Co.of Buffalo Grove, Ill, a Chicago suburb.

Craig Leva, Arway’s president and owner who has been with the company since 1991, will continue as president of Arway following completion of the sale.

“We are very excited about this acquisition, the tremendous opportunities and the natural synergies there are by combining the operations of these two great storied Chicago-area companies,” says Leva.

Arway Confections, a 63-yearold, family- owned business located on Chicago’s north side, plans to retain the Long Grove Confectionery name and employees. That includes David Mangel, v.p. of LGC’s, who will play an active role in sales and product development, as well as Dwayne Hallan, director of operations.

“Arway will be hiring back most of Long Grove’s employees, and we

will begin the transition process immediately,” Leva says. “We will be relying on all of the staff of Arway as well as Long Grove to make this transition as smooth as possible.”

LCG’s one retail store and one factory store will also remain open.

“Both the customer base and the product line is different from Arway, and I believe that the combination of Arway and Long Grove will offer some great synergies,” Leva says.

He’s especially excited about the acquisition of LGC’s manufacturing facility, an 85,000-sq.-ft. plant in Buffalo Grove, Ill..

“It is a remarkable plant and offers Arway a tremendous number of options,” he explains. “Some of the capacities include enrobing, panning, chocolate moulding, crèmes, barks, chocolate peanut butter cups, nonpareils, and more...

The plan is to run two plants and incorporate two sets of product lines. The additional facility will obviously give Arway some much needed breathing room to operate.”

Arway Confections opened its doors in 1950 and is a supplier to hundreds of distributors, retailers,

Cadbury under its new parent Mondelez gets bitter taste of slowdown C

adbury India, whose revenue growth has consistently outperformed the economy over the past few years, experienced the first hints of a slowdown in 2012, incidentally its first year under new parent Mondelez International.

Its revenues increased 20.8% to Rs 4,065 crore, the lowest growth rate since 2006 and a sharp deceleration from the 34.4% growth recorded in 2011. Profit after tax increased by 2.1% to Rs 303.4 crore. This slowdown will be seen as a small setback to Mondelez International's plans to rev up growth in emerging markets.

Last week, CEO Irene Rosenfeld announced a plan to invest $600 million over three years in emerging markets, including China and India. She was speaking at the Citi 2013 Global Consumer Conference in New York last Wednesday. "The race is on for us to secure and expand our positions in these fast-growing markets. Our competitors also find emerging

markets attractive... That's why stepping up our investments now is critical to deliver long-term shareholder value," she had said.

Mondelez came into existence in October 2012, when grocery and snacks giant Kraft was split into two companies. Its international business, including Oreo cookies and Cadbury, was spun off and named Mondelez while most of the US assets remained in Kraft.

Kraft had acquired Cadbury in January 2010.

Cadbury India experienced a slowdown in sales and profit in 2012, despite launching legendary Swiss triangular chocolate brand Toblerone, as consumers cut back on discretionary products, many even trading pricier chocolates with lower priced candies and confectionery.

The slowdown comes after two years of aggressive growth enabled

by Kraft launching its global brands here through Cadbury India. Since 2010, the company has brought in three Kraft brands — biscuits with Oreo, fruit juices and beverages

with Tang and premium chocolate Toblerone — helping post high sales growth of 30% and 35% in the initial two years.

Oreo cookie clocked more than Rs 200 crore in sales, stealing share from market leader Britannia in the cream segment. Toblerone already has over 2% share in modern trade within a year of its launch.

Rosenfeld remained bullish on India during her presentation in New York arguing that Cadbury will be covering only a million of the seven million outlets that sell confectionary products even after increasing its reach by 1.5 lakh outlets this year.

She also said the company plans to increase advertising in brands such as Cadbury Dairy Milk in India and step up distribution for Oreo in southern India. But ground realities will be tough. "2012 was a challenging year internally with demand outstripping supply and externally driven by economic conditions such as the rupee devaluation and rising commodity prices," Cadbury India Chairman

CY Pal said in the company's 65th annual report.

"Our growth in 2012 is actually in line with our average growth from 2006 onwards — with 2010 and 2011 witnessing special growth because of our integration with Kraft and our foray into two new categories," a company spokesperson added.

But in chocolates, its core segment, it seems to be struggling to find its sweet spot. "Cadbury India had launched products such as Silk and Bournville, and entered the biscuits segment in the past two years, which drove the growth," said Alpana Parida, president of brand consultancy DY Works.

fund-raisers, baggers, catalogs, nut companies, and marketing companies nationwide with a wide array of bulk chocolates, confections, coated pretzels, roasted nuts, and trail mixes.

The company operates out of a 75,000 sq.-ft. facility with about 50 full-time employees plus a seasonal crew. Arway also manages a retail outlet and a direct-to-consumer business division called Chicago Candy & Nut. Meanwhile, Long Grove Confectionery Co. was founded by John and Heidi Mangel in 1974, and manufactures a line of high quality, gourmet confections.

The company offers more than 300 choice products including their signature Myrtles, chocolate peanut butter cups, butter creams, caramels, meltaways and nonpareils.

Long Grove’s products can be found throughout the United States in department stores, gift shops, specialty stores, and mailorder catalogs. The company also operates a retail store in Long Grove and factory store in Buffalo Grove.

"But it seems not all consumers are going for repeat purchases for some of these products. Also, the availability of foreign brands such as Ferrero Rocher and Lindt in the premium segment could be hampering growth in that category."

Rivals have been getting aggressive in the Rs 5,562-crore chocolates segment, which is still synonymous with Cadbury in India. Sales of its peers, including Ferrero India and Nestle India's in chocolates segment, have grown 30% and 6% respectively in 2012, over a much smaller base. Cadbury controls over 67% share in the chocolates segment, followed

by Nestle at 21% and Ferrero at 6%, according to market research agency Nielsen.

"We see companies accepting the fact that the growth rate might not be as high as earlier. However, shares of most consumer companies are trading at very high valuations and the market expects a higher growth rate from them," said Nitin Mathur, consumer research analyst at Espirito Santo Securities.

Beverages & Food Processing Times-June-I-2013

Introducing KAMANI FOODLITE Premium Culinary Oil O ver the years KAMANI OIL INDUSTRIES PVT LTD has developed into a leading processor of high quality specialty oils and fats for the food industry. We have been partnering with our customers and working closely with them at every stage of product development. Our commitment and working closely with our valued customers, helps us to customize our products to meet their distinct requirements. Our aim is to create value by producing technically superior products. We take pride in associating with our customers as solution providers and are involved with our customers to help them enhance the nutritional and taste profile of their end products.

Indian Food Industry The Indian Packaged Food Industry is expected to touch US$ 30 bn by 2015 and as per the report by ASSOCHAM, the industry would grow at the rate of 15-20% annually. The industry includes ready to eat foods, snack foods, and functional foods. This growth is fuelled mainly due to emerging markets, rise in Quick service restaurants (QSRs), changing lifestyles, and arrival of multinationals, modern retail formats. The market is clearly and equally divided into the organised and unorganised sector. The

organised sector of the snack food market is growing at 15% - 20% a year while the growth rate of the unorganised sector is 7% - 8%.

The segment is largely dominated by potato chips and potato-based products with over 85% share of the salty snack market.

Maintaining nutritional balance is very challenging in any snack food as some are cooked or fried with a lot of oil and butter. Even the quality of oils and fats used for frying needs to be taken into consideration. Deep frying is one of the most commonly used procedures for the preparation and manufacture of snack foods in the world since it is a simple and fast method of food preparation and hence selection of good frying or cooking oil plays a significant role. The selection of deepfrying oils should be based on the optimization of the process with regards to nutritional and culinary aspects. Cost should not be the only decisive factor.

Requirements of frying oil • Must contribute pleasant flavour to the food & extend its shelf life.

• Should have low PUFA (polyunsaturated fatty acid) content ( Linolenic acid < 2% ) • It should be easily pourable at room temperature (no or min preheating required)

• For extended shelf life of fried foods, it should have high oxidative stability (AOM stability > 20 hrs) • Should have high smoke point ( min. 230 deg. C) • It should not foam.

Keeping in mind the above attributes, Kamani Oil Industries after a lot of experimentation and research has developed specialty culinary oil – FOODLITE which is a chef’s delight and has been designed keeping in mind the needs of the customer. It offers health, taste and user-friendliness.

FOODLITE is a premium refined vegetable oil – a special fraction of palm oil. It is manufactured and packed under good hygienic conditions. It is double deodorized and hence absolutely bland in flavour and taste. Foodlite has a low melting point (Cloud point less than 5 deg C) hence remains as clear oil at ambient temperature.

It has better fluidity at t r o p i c a l temperatures. It is 100% trans free.

What makes FOODLITE different from other oils Taste F o o d l i t e being bland and odourless enhances the taste and flavor of the product cooked or fried in it. It does not leave any kind of after taste.

Visual appeal Foodlite being light colour oil delivers a light product and a crispier texture.

It also imparts a shine to the product.

Reusability Foodlite does not darken on multiple frying

Edible Oil since it is very light coloured. The oil does not get deteriorated or degraded compared to other soft oils available in the market which darken on 3-4 fryings. These soft oils thicken on multiple frying or they get polymerized which leads to more oil uptake, hence need to be discarded faster. This is not the case with Foodlite which can be reused for a longer time, thus there is a cost saving on oil utilization.

Foodlite has a high smoke point (> 235 deg C) with very low FFA content (free fatty acid) i.e. 0.05%, and hence is an ideal industrial frying medium.

Health Foodlite offers health as it is high in MUFA (Monounsaturated fats) very close to Groundnut oil. Other general purpose frying oils used are high in PUFA (Polyunsaturated fats). MUFA oils are good for cholesterol management, it tends to lower the bad cholesterol (LDL) and maintains the good cholesterol (HDL)*. Given below in Fig 1 is the comparative chart of vegetable oils and their MUFA content.

Foodlite has MUFA content very similar to Groundnut oil followed

by Rice bran oil.

Shelf life Foodlite being low in PUFA gives a better oxidative stability and improves the shelf-life of the product cooked or fried in it. PUFA oils like Sunflower oil, Soyabean oil, Cottonseed oil, etc get deteriorated faster that MUFA oils due to the high content of Linoleic acid (omega 6 fatty acid) which is more prone to rancidity than oleic

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acid (omega 9 fatty acid). The measurement of oxidative stability of any vegetable oil or fat is determined by an instrument called the RANCIMAT. The Rancimat method has been developed as an automated variant to the extremely complex AOM (active oxygen method) for determining the induction time of fats and oils. This method has become established over the course of time and has been incorporated in various national and international standards, e.g. AOCS Cd 12b-92 and ISO 6886. Fig 2 below gives the rancimat values in hours of different oils which itself indicates that Foodlite has the maximum induction time hence is more stable than other soft oils available in the market.

Safety and Hygiene – Keeps the kitchen safe and clean Foodlite with a high smoke point (> 235 deg C) and very low FFA content hence does not smoke at frying temperatures which is generally between 160-180 deg C. Some virgin and filtered oils have a very low smoke point (160 deg C appx) and these oils start smoking at frying temperatures, hence not suitable for frying applications.

Foodlite being low in PUFA does not impart any greasiness to the frying or cooking vessel and helps keep the kitchen clean.

Taking into account all the above mentioned attributes, FOODLITE thus becomes a natural choice for any food manufacturer. * American Heart Association Circulation. 1999; 100:1253-1258

Beverages & Food Processing Times-June-I-2013

Health

Balanced 21st cen

India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

www.timesinfomedia.com

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Vol. 6, Issue 1, June (I) 2013, Rs. 20/-

he food processing industry of India is a sizzling and enduring sector today. Development, enhancement and progression are the nucleus of this diligence. But as they say every paradise has its serpent – the same applies here – the food industry though going great is still not at the helm, and to be there it has to follow the laws and regulation prepared to ensure its safety. However the poignant part is that many food companies still fail to follow the norms thus hindering the success of the food processing industry.

Regulated by several laws the legislation that dealt with food safety in Indian food processing industry was the Prevention of Food Adulteration Act, 1954 (PFA). This act has been there for over five decades and hence necessitated the need for change to advance our food industry. So the act Food Safety and Standards Act, 2006 (FSSA) was brought into force in place of the PFA. FSSA initiated harmonization of India's food regulations as per international standards. It instituted a new national regulatory body, the Food Safety and Standards Authority of India (FSSAI), to develop science based standards for food and to regulate and monitor the manufacture, processing, storage, distribution, sale and import of food so as to ensure the availability of safe and wholesome food for human consumption.

All food imports were also subjected to the provisions of the FSSA and rules and regulations which were notified by the Government.

The entrance of FSSA also provided for separate packaging and labeling regulations known as Food Safety and Standards (Packaging and Labeling) Regulations, 2011 which laid down the statutory and regulatory requirements for packaging and labeling of products. A plain reading of the Packaging and Labeling Regulations showed that there are different kinds of products: Pre-packaged, Proprietary and other specific products as mentioned in the regulations.

In addition to these general requirements every package of food shall also carry the following information on the label: (i) name of the food; (ii) list of ingredients; (iii) nutritional information; (iv) declaration regarding veg. and non-veg; (v) declaration regarding food additives; (vi) name and complete address of the manufacturer; (vii) net quantity; (viii) lot/code/batch identification; (ix) date of manufacturing or packing; (x) best before and use by date; (xi) country of origin for imported food; and (xii) instructions for use.

Since a large variety of food products are being imported into India, under the Packaging and Labeling Regulations, it becomes necessary to mention the country of origin of the food on the label of food imported into India, and when a food undergoes processing in a second country which changes its nature, the country in which the processing is performed shall be considered to be the country of origin for the purposes of labeling.

Having briefly dealt with the statutory and regulatory requirements with respect to labeling of products, it is necessary to understand the statutory and regulatory requirements with respect to signage and customer notices more from the point of view of a food outlet. It is important to note that though the provisions of FSSA do not specifically provide for any statutory and regulatory requirements either for signage or customer notices, but it has certain provisions with regard to advertisement of products by food business operators.

FSSA regulation provides that no advertisement shall be made of any food which is misleading or deceiving or contravenes the provisions, rules and regulations made there under. No person shall engage himself in any unfair trade practice for purpose of promoting the sale, supply, use and consumption of articles of food or adopt any unfair or deceptive practice including the practice of making any statement, whether orally or in writing or by visible representation.

It is also important to note that FSSA, being the only legislation applicable to the food industry throughout the country, will also apply as far as the national health and sanitary permits are concerned. Under the License and Registration Regulations, all food business operators in the country are required to be registered or licensed in accordance with the License and Registration Regulations, hence no person shall commence any food business unless a valid license is possessed by the food business operator, and the conditions with regard to safety, sanitary and hygienic requirements have to be complied with at all times by them.

One of the prime purposes of these conditions is to ensure that the food business operator maintains sanitary and hygienic standards as specified in each food category. It is hereby recognized and declared as a matter of legislative determination that in the field of human nutrition, safe, clean, wholesome food is indispensable to the health and welfare of the consumer of the country.

The FSSA provides for penalties in case of any non compliance. Generally, non-compliance with various provisions of the FSSA may attract penalty of up to Two Lakh Rupees and if any person sells, stores or distributes or imports any article of food without license, shall be punishable with imprisonment for a term which may extend to six months and also with a fine which may extend to Five Lakh .

The introduction of PFA laid emphasis only on provisions for prevention of food adulteration. FSSA lays emphasis on consolidating the laws related to food and to establish FSSAI for laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import, to ensure availability of safe and wholesome food for human consumption and for matters connected with them. The new objectives clearly go far beyond the objectives of PFA. The strict penalties imposed in FSSA may lead to increase in corruption, as enterprises may resort to unfair practices to avoid these penalties.

The PFA dealt with countless Government ministries handling different food sectors as per separate orders, like the fruit products order, and other orders related to vegetable oil products, edible oils packaging, milk and milk products and meat food products, which were issued at different points of time and were sometimes overlapping and inconsistent. On the other hand, a unified act like FSSA enables unidirectional compliance. The administrative control of the FSSA has been assigned to the Ministry of Health and Family Welfare thereby establishing a single reference point for all matters and eradicating any possibility of multiplicity of orders or the chance that any coordination problems are caused.

FSSA aims at regulating food hygiene and safety laws in the country in order to systematically and scientifically develop the food industry. Thus, the food processing industry may see FSSA as a mixed blessing but the practical application of this legislation, being at its nascent stage, will require some time to come into full force.

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he 21st century has been called the Asian century.

But with rapid economic growth comes more hectic lifestyles for many Asians, who with longer working hours leaving less time to prepare balanced meals, are increasingly experiencing classic symptoms of energy-drain and exhaustion.

In addition to physical energy, maintaining sufficient cognitive energy is important as well. From body aches and a ‘lack of get-upand-go’, to poor concentration and rising frustration, the symptoms of energy-drain are tangible.

Being all too familiar with these tell-tale signs of energy-drain, and with their increasing dependence on ‘short-fix’ stimulants, such as coffee and caffeinated energy shot-

style beverages, Asian consumers should take heart. Forwardlooking food manufacturers can respond by offering convenient products with a range of alternative carbohydrate ingredients that aim to boost energy in a balanced and longer lasting way, as well as to improve metabolic balance.

The role of carbohydrates From a nutritional point of view, carbohydrates are quantitatively the most important nutrients in the human diet. According to the World Health Organization (WHO) dietary recommendations, 50 to 60 percent of our total energy intake should come from them.

After decades of growing public education about good nutrition and the role it plays in overall health,

Beverages & Food Processing Times-June-I-2013

Health

d energy for balanced ntury Asian lifestyles consumers are increasingly aware of the different carbohydrates, such as a preference for wholegrain bread over white bread. However, there are other factors, such as glucose release, for consideration concerning carbohydrates and the modern requirement of a balanced, longer lasting energy supply.

Glucose from carbohydrates is the essential energy source that the brain and body need to function. Following a meal containing carbohydrates, released monosaccharide constituents are absorbed into the blood and in the case of glucose, it is then distributed throughout the body.

The result is an increase in blood glucose concentrations after a meal –with the highest level at about 30 minutes after intake.

This extends over a one to two hour duration until – with the help of the hormone, insulin – the blood glucose level returns to baseline.

Carbohydrates can differ largely in their supply of glucose to the body, with consequences for insulin release and energy management.

Non-digestible carbohydrates are fermented in the large intestine and virtually have no blood glucose response (e.g. dietary fibre). Lowdigestible and partially available carbohydrates have a very low blood glucose response (e.g. polyols). Carbohydrates being fully digestible have mostly a fast and high blood glucose response.

These include glucose, sucrose, maltodextrins, or processed starch as in white bread or boiled potatoes. However, there is a

unique carbohydrate that is fully, yet slowly digestible: Palatinose™ (generic: isomaltulose). It is a unique disaccharide. The mode of action of Palatinose™ digestion and absorption makes the difference.

In order to track and assess the levels of blood glucose response, many refer to the Glycaemic Index (GI). The index provides a means of comparing and classifying available carbohydrates according to their blood glucose response.

The GI of a carbohydrate is deemed to be “high” if it is 70 or higher, “medium” in the range between 56 and 69, and “low” if it is 55 or lower.In terms of the GI classification of carbohydrates, Palatinose™ is a low glycaemic carbohydrate (GI of 32) . The

low blood glucose response is associated with a lower insulin release and less subsequent metabolic changes than in the case of readily available, high glycaemic carbohydrates.

The development and refinement of the GI has helped result in a greater understanding of the glycaemic impact of different foods on blood sugar levels, representing an important step in the right direction when it comes to simplifying the complex world of carbohydrates and their physiological responses.

In terms of energy management, it is ultimately better to offer products to the Asian consumer with a generally low glycaemic effect, consequently contributing to a balanced energy supply and a healthier lifestyle in the long term.

Producing slower and lower blood glucose release means that foods with a low glycemic impact can protect the blood vessels, nerves and organs from the damaging effects of high glucose and insulin levels, which can lead to metabolic and cardiovascular diseases.

Low glycaemic foods may also aid in weight loss.

Achieving longer lasting energy supply with Palatinose™ Palatinose™ is a functional nutritive carbohydrate. It is the only fully, yet slowly digestible carbohydrate which is low glycaemic and low insulinemic while providing balanced, longer lasting energy in the form of glucose. Thus, Palatinose™ gives adequate energy for increasingly hectic Asian lifestyles, whilst contributing to healthy nutrition.

The special, slow release properties of Palatinose™ in the small intestine are reflected in its blood glucose response. A number of blood glucose response studies have shown that its intake is followed by a significantly lower rise in blood

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glucose levels over a longer period of time in comparison to sucrose. Holubet al have clearly presented the metabolic benefits of Palatinose™ and the results suggest that it may even have beneficial effects on longterm carbohydrate metabolism .

Following the study, Palatinose™ has been shown to be a completely available carbohydrate and very well-tolerated, irrespective of its consumption with food or beverages. The slow, yet complete intestinal release of the functional carbohydrate leads to a prolonged delivery of energy (i.e. blood glucose). The positive physiological properties are relevant for the general population, including overweight people and those with metabolic syndrome.

The results of a recent study by Königet al also shows that the low glycaemic characteristics of Palatinose™ have a beneficial effect on fat utilisation in overweight and obese people .

Palatinose™ also offers other physiological properties which differ largely from those of sucrose and other common sugars.

It is more resistant to use by oral bacteria, so it is kind to teeth, unlike traditional sugars.

Eat your way to balanced energy With its unique, slow, energyrelease properties, its low effect on the blood glucose level and its tooth-friendly nature, Palatinose™ is a natural carbohydrate which promises health - conscious consumers the potential for sustained energy and improved metabolic balance, while providing new formulating options for manufacturers.

-EndsBENEO is a world leader in supplying functional food and beverage ingredients that directly address all of the important and evolving demands of the consumer products markets of today and tomorrow.

If you have any questions or would like more information on BENEO, its food ingredients or would like to speak with Koen Van Praet, Managing Director, BENEO Asia Pacific, please contact Michelle Robinson at +6597282365, or email mrobinson@emgasia.com Regards, The BENEO Team in Asia Pacific

Beverages & Food Processing Times-June-I-2013

Ice Cream News

The new cold wars F

M channels this summer were full of ads eulogising the virtues of ‘real’ milk ice creams over frozen desserts, which are made primarily from vegetable oil. The message from India’s largest ice cream player was loud and clear: Go for Amul and not frozen desserts, offered by the likes of Hindustan Unilever (Kwality Walls) and Vadilal.

It is for the first time since Amul entered the ice cream business 17 years ago that the dairy giant is going all out to defend its milk-based ice creams from the onslaught of frozen desserts over a mass medium. And it is not without reason: Frozen desserts have grabbed nearly 50 per cent share of the Rs 1,500-crore organised ice cream-plus-frozen desserts market in India. In fact, Amul and HUL sparred over the category last year and it was upon Amul’s complaint to the Advertising Standards Council of India that Hindustan Unilever was forced to begin referring to its wares as frozen dessert and not ice cream.

Even in terms of value (revenue) market share, frozen desserts are giving milk-based ice cream makers such as Amul and Mother Dairy a tough fight. While Gujarat Co-operative Milk Marketing Federation (GCMMF, which owns the Amul brand) is expected to lead value sales in ice cream with a share of 31 per cent in 2012,

Kwality Walls has strengthened its position with a 20 per cent share in 2012, according to research firm Euromonitor International.

Other major players are Mother Dairy and Gujarat-based Vadilal Industries.

THE COST ADVANTAGE The reasons behind frozen desserts marching ahead are not tough to fathom. The economics of the business is tilted in their favour. While a litre of vegetable oil costs Rs 60, milk fat costs Rs 300. This means costs are lower for frozen desserts and the benefits can be passed on to consumers, at marginally lower selling prices.

Players in the frozen desserts segment are also able to divert the savings in costs to advertising, sales promotion and increased channel commissions, says an industry veteran on condition of anonymity. While Amul is offering margins of 15 per cent to its retailers, those offered by Vadilal are in the range of 18 per cent and 20 per cent. Vadilal offers both frozen desserts and milk-based ice creams.

Kwality Walls, with the backing of its parent, fast moving consumer goods (FMCG) giant Hindustan Unilever (HUL), is able to spend aggressively on advertising. It is also providing, free of cost, the freezers used in grocery shops and restaurants. In contrast, Amul

charges Rs 15,000 to Rs 25,000 depending on the size of the freezer. HUL’s revenues from the frozen desserts business grew 30 per cent to Rs 355 crore during FY12. This is higher than the industry growth rate of 15 per cent.

Mother Dairy Managing Director S. Nagarajan said while milkbased ice creams are more popular at the upper end of the consumer segment, frozen desserts are gaining rapid share in the catering segment and quick service restaurants. “The concern (for milk-based ice cream makers) is from the volume segment of caterers and restaurant chains, as prices play a big role here and frozen desserts are priced marginally lower than milk-based ones,” he told Business Line.

Rajesh Gandhi, managing director of Vadilal Industries, added that in terms of taste and nutrition value, frozen desserts are close to ice creams, making them a hit with consumers. That also explains why their market share is growing rapidly.

KNOW THE DIFFERENCE? However, R. S. Sodhi, managing director of GCMMF, said consumers are buying frozen dessert thinking it's ice cream.

“Frozen desserts are masquerading as ice creams. With the low cost of ingredients, they must be priced at 30 per cent less, but that is not

the case. We are trying to make consumers aware of the difference,” he said, referring to Amul’s anti-frozen dessert campaign.

As per The Prevention of Food Adulteration (PFA) Act & Rules, ice cream is defined as a “product obtained by freezing a pasteurised mix prepared from milk and/or other products derived from milk.”

Frozen desserts are “products obtained by freezing a pasteurised mix prepared with milk fat and/ or edible vegetable oils and fats in combination with milk protein and/or vegetable protein products.” They typically use palm oil or coconut oil.

Amul’s campaign is similar to the one by Canadian dairy farmers where a barrage of advertisements and a special logo are being used to distinguish products made with milk from oil-based desserts.

Sodhi draws a parallel with margarine and butter, saying that while the former looks like butter, it actually is not, and is not even priced at the same level. Margarine comes at almost a third of butter’s price and the same should be the case with frozen desserts, he adds.

While milk-based ice cream makers are going all out to establish their products as the real

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thing, consumers are not likely to give up on frozen desserts anytime soon.

With the backing of big brands, the growth of frozen desserts is unlikely to slow down. And as Mother Dairy’s Nagarajan said, “The only way for ice cream makers to stay ahead is through product innovation and introduction of newer flavours.”

Ice Cream fast facts: 1) Total Market size (organised+unorganised) – Rs 3,000 crore 2) Annual per capita consumption in India: 350 ml 3) Annual per capita consumption in the US: 23 litres 4) Vanilla, strawberry, butterscotch and chocolate flavours constitute around 80 per cent of the total market 5) Average fat content in ice creams: Premium – 16%, Regular – 12%, Medium – 9%, Low – 6% Source: Ernst & Young

Beverages & Food Processing Times-June-I-2013

Confectionery News

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Varun Berry to head Britannia India HERSHEY OPENS biz, Vinita Bali to look abroad CHINESE INNOVATION

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erry, who has 27 years of experience and was last associated with Pepsico as the CEO of Pepsico Foods India, joined Britannia in January replacing Neeraj Chauhan, then COO. Confectionery major Britannia industries has restructured its top management, once again.

Vinita Bali, who is the managing director, will now only be focusing on the international business. On the other, hand Varun Berry, who is the chief operating officer (COO) will now head the India business.

Currently, international business contributes about 12-13% of the total business. With the focus on geographies, Britannia aims to become a Food company from

a bakery and dairy company.

Experts believe Bali is the right choice to lead the international business considering her previous roles at Kraft and Coca-Cola, where she took care of businesses in Africa and Latin America, respectively.

Berry, who has 27 years of experience and was last associated with Pepsico as the CEO of Pepsico Foods India, joined Britannia in January replacing Neeraj Chauhan, then COO. Chauhan moved on to become the vice-president of strategy and new business development. And in that round of reshuffling, Vinod Menon, vice-president, head of strategy and new business development at Britannia, had taken charge as the new chief financial officer.

In a statement, Nusli Wadia, chairman, Britannia Industries, said, “With these changes we are preparing Britannia for high growth in Britannia’s India operations by catering to the changing food habits of the evolving Indian consumer and pursuing opportunities for growth

UK SUPERMARKETS HAVE LONGEST CONFECTIONERY AISLES

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ross-country differences in dietary behaviours and obesity rates have been previously reported.

Consumption of energy-dense snack foods and soft drinks are implicated as contributing to weight gain, however little is known about how the availability of these items within supermarkets varies internationally. A study published in the International Journal of Behavioral Nutrition and Physical Activity by Thornton et al assessed variations in the display of snack foods and soft drinks within a sample of supermarkets across eight countries.

Within-store audits were used to evaluate and compare the availability of crisps, chocolate, confectionery and soft drinks.

Displays measured included shelf length and the proportion of checkouts and end-of-aisle displays containing these products. Audits were conducted in a convenience sample of 170 supermarkets across eight developed nations (Australia, Canada, Denmark, Netherlands,

New Zealand, Sweden, UK and US).

The mean total aisle length of snack foods (adjusted for store size) was greatest in supermarkets from the UK (56.4m) and lowest in New Zealand (21.7m). When assessed by individual item, the greatest aisle length devoted to crisps, chocolate and confectionery was found in UK supermarkets while the greatest aisle length dedicated to soft drinks was in Australian supermarkets. Only stores from the Netherlands (41%) had less than 70% of checkouts featuring displays of snack foods or soft drinks.

Whilst between-country variations were observed, overall results indicate high levels of snack food and soft drinks displays within supermarkets across the eight countries. Exposure to snack foods is largely unavoidable within supermarkets, increasing the likelihood of purchases and particularly those made impulsively.

in the overall food domain, here and abroad.”

Analysts believe that two restructuring in five months is a clear signal that the company is getting increasingly serious about the business.

“The company’s volumes have been under pressure for sixeight quarters. ITC is firming its foothold in the premium category and on the other hand Parle is strengthening its position in the mass category. These management changes suggest that the promoter is serious about the business and is making the necessary realignments where necessary,” says Abneesh Roy of Edelweiss Securities.

It is unclear, whether Berry will be reporting to Bali or to the promoters directly. In the scenario where Berry reports direct to the Wadias, it will be a clear signal that Bali is no longer in the driver’s seat.

Roy adds that Bali must be given credit for aggressive innovation and margin expansion. “She kept the costs under control and this has helped the company by expanding gross margin. On the innovation front, Britannia has entered into new categories such as snacks and breakfast under her. Even though these innovations haven’t been very successful, she has helped the company to diversify,” he added.

CENTRE

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ershey has opened an innovation centre in Shanghai, China. The centre will enable Hershey to quickly develop, test and launch new products customised to the tastes of consumers in China and across the Asia region. The facility provides a strategic gateway to the larger Asia market while enabling close collaboration with local and regional China sales, marketing and operations personnel. China is currently Hershey’s fastest growth market, moving from number seven to number three in chocolate share in just five years

with overall chocolate share more than quadrupling by 2012.

The two-floor, 22,000 square-foot facility is a significant investment in the Chinese market and will house R&D laboratories, a pilot plant for the chocolate and sweets & refreshment categories and a development centre for emerging product offerings. It will also feature a sensory area, creativity centre, packaging development section and research laboratory.

The centre will initially employ 12 scientists and product developers and includes office space for up to 32 engineers and innovation staff.

Dabur sips on growth in functional beverage market

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omegrown FMCG major Dabur has forayed into the dairy segment by extending theReal brand of juices into yogurt drinks as it bets on the growth in the functional beverage space in India. Danone, PepsiCo, Britannia along with Amul are the big players in this nascent category which is expected to see the arrival of international brands piggybacking on a 20% growth every year.

The functional beverage market estimated at Rs 700 crore in India includes energy drinks, sports drinks, functional waters; readyto-drink tea and coffee; yogurt drinks and smoothies. Dabur has been operating in the packaged 100% fruit juice market with Real Activ but in recent years, the maker of Vatika shampoo and Hajmola candies has extended its portfolio to offer fruit-vegetable juices.

"With more people becoming health conscious, consumers are increasingly opting for more functional and value-added products. This is being seen more among urban consumers who are extremely time pressed and busy," said Praveen Jaipuriar, Dabur India's marketing head of Foods.

French food & beverage giant Danone has been investing heavily in this category. Besides marketing Qua in a joint venture with Narang

Group, it has now taken B'lue, a water based restorative drink, national seeing its potential to grow. " B'lue will be our flagship brand going forward as consumers want functional on-the-go products. We are looking to build this category so there will be more innovations around B'lue going forward," said Tarun Arora, country head, Danone-Narang Beverages. In the dairy space, Danone last year launched Lassi, taking on the dairy biggie Amul, adding to its portfolio of Dahi, flavoured yogurt, creamy yogurt Cremix and Danette smoothies in India.

Modern retail has played a big part in pushing new categories such as functional beverages however pricing will be key to get these products to the masses. Some products from the NourishCo beverages portfolio, a joint venture between PepsiCo and Tata Global Beverages are looking to address this consumer group.

It has products like Tata Water Plus which contain nutrients like copper and zinc and Tata Gluco Plus, a glucose based beverage.

However, PepsiCo's Gatorade which is a sports drink caters to the young urban consumer. "In India, the opportunity for sports and fitness products is growing rapidly.

On the back of a healthy growth rate over the last few years we will constantly look for opportunities to further consolidate our leadership position in India," said a PepsiCo spokesperson.

Real Activ drinking yoghurt will be available in packs of 1litre and 200ml priced at Rs 105 and Rs 25 respectively. The range is initially being introduced in four cities Delhi, Mumbai, Pune and Bangalore and will be rolled out nationally in the next phase, according to Dabur's Jaipuriar.

"While some brands have started at top end of the pyramid in the functional beverage category the challenge is to make them more affordable to create a much larger consumer base. Local understanding of Indian consumers and their taste would be critical," said Devendra Chawla, president at Future group's Food Bazaar. This is where brands like Tzinga from Hector beverages which recently received a $8 million second round of funding from Sequoia Capital and existing investors NR Narayana Murthy's Catamaran Investment and FootPrint Ventures are finding success, Chawla said.

More launches and entry of global brands like Monster will create more awareness thus growing the market, he said.

Beverages & Food Processing Times-June-I-2013

Confectionery News

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DS Group expects COCOA GENOME confectionery TO HELP SPEED business turnover to PRODUCTION double in FY14 A

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iversified firm Dharampal Satyapal Group(DS Group) expects its revenues from the confectionery business to nearly double in the current fiscal at Rs 230 crore and plans to further expand the vertical with an investment of Rs 150 crore.

The Noida-based company, well known for its consumer goods brands like 'Catch' and 'Pass Pass', had earmarked a total investment of Rs 150 crore in the confectionery business for 2012 and 2013.

Mars launches eggless snickers for veggies

"The company's confectionery business includes Pass Pass and Chingles, of which Pass Pass has closed at Rs 97.50 crore and Chingles has posted nearly Rs 18.16 crore in the last financial year. The expected turnover for 2013-14 is Rs 200-230 crore," DS Group Vice-Chairman Rajiv Kumar told PTI. He said the company plans to add more products under the chewing gum category in the near future followed by products under the

fast-growing non-gum nonchocolate (NGNC) category.

"The group had planned to invest Rs 150 crore in two years (2012 and 2013) in the confectionery business. Nearly, Rs 85-90 crore have already been invested in 2012. The remaining amount will be invested this year," Kumar said.

However, the company has no plans to enter into chocolate segment in the near future, he added.

As part of its plans to expand the confectionery business, the company has set up a manufacturing facility for Chingles in Noida with an investment of Rs 20 crore.

"This plant has a capacity to produce 200 tonnes and will be adding another 200 tonnes capacity," Kumar said.

The company, which has presence in various verticals, including FMCG, hospitality, tobacco, packaging and infrastructure, had a turnover of around Rs 3,200 crore for the financial year ended March 31, 2013.

Mars has set-up a new assembly line to manufacture the new vegetarian snickers to cater to the increased demand for eggless chocolates.

Keeping in mind the number of vegetarians, chocolate and confectionery maker Mars International today launched chocolate brand snickers in an eggless variant.

Mars has set-up a new assembly line to manufacture the new vegetarian snickers to cater to the increased demand for eggless chocolates, the company said in a statement.

"Our endeavour is to bring quality chocolates that will satisfy the Indian palate. The launch

paper published in Genome Biology has revealed the freshly sequenced genome of the most commonly cultivated cacao plant in the world. Researchers have utilised high quality DNA sequences to demonstrate the usefulness and quality of the sequence to identify genetic markers that can lead to higher yielding cocoa plants that still produce better tasting cocoa.

There are many varieties of the cacao tree (Theobroma cacao L), but the green podded Costa Rican Matina or Amelonado variety is the most popular because of its high yield and pleasant flavour. In Ecuador, a red podded high yielding variety, CCN 51, is blended with a green podded, better tasting but lower yielding variety. But the adulteration reduces the overall quality of the chocolate, so cacao growers are keen to improve the quality of cacao beans exported from Ecuador.

Researchers from Mars sequenced the genome of the Matina cacao variety, then used genetic analyses and comparisons with other varieties, to highlight a gene involved in pod colour variation. Zooming further in on the gene sequence, they then identified a single DNA letter change that affected levels of the gene’s expression, and so the colour of the pod.

Cacao plant breeders trying to produce a delicious high-yield strain through cross breeding have met with limited success. So the genetic marker could, in theory, be used to screen young seedlings, and highlight desirable plants long before they reach maturity. This would avoid the expense and labour of growing up potential duds, ultimately improving the quality of cacao plants and the chocolate made from them.

Although the genome sequence of the Criollo cacao variety was reported two years ago, it’s genetically quite distinct and so a poor representative of the cacao types cultivated worldwide.

Since the publication of the genome sequence, researchers have been working to identify genetic markers that can produce more productive cocoa plants for farmers while still providing consumers with high quality and superior taste. The genome sequence research is a part of an overall effort to use traditional breeding techniques to develop planting materials that farmers can use to be more productive.

is in line with our business objective of growing our snickers range. With snickers green dot we wish to cater to our growing vegetarian consumers," Mars International MD for chocolate business MV Natrajan said.

Snickers vegetarian chocolate will be available in two pack sizes –- 25gms and 54gms priced at Rs 15 and Rs 30, respectively.

The non-vegetarian stock keeping units will however continue to be available in the market as well, the company added.

Beverages & Food Processing Times-June-I-2013

Dairy News

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J K Group to foray into Bisleri to venture flavoured milk business into flavored

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K Organisation promoted Umang Dairies is expanding its product portfolio and venturing into the flavoured milk segment to take on players such as Amul, Mother Dairy, Vadilal Industries and Kwality Dairy.

The company is in the process of launching flavoured milk under the ‘Doodz’ brand in five flavours in Delhi and the National Capital Region.

“We have recorded consistent growth in the dairy business over the last five years. As per our expansion plan, we have decided to foray in to the flavoured milk category under brand ‘Doodz’.

The product will be launched initially in Delhi-NCR and later introduced nationally”, informed a senior executive in the company.

Doodz will be made available at 5,000 retail outlets in Delhi-NCR in elaichi, kesar, cappuccino and butterscotch flavours.

The processing and bottling of the new product is taking place at the company’s facility in Gajraula.

The unit has the capacity to produce 20,000 bottles or 3,600 litres of flavoured milk every day.

The flavoured milk market in India is estimated at about Rs 500 crore which is expected to grow at more than 20% annually, according to a study by an independent market research agency.

Not only the home-grown dairy companies, multinationals such as Danone had, in 2010, a test launch of Choco Plus which was priced at Rs 15 for 200-ml packs. That time, it was operating in India in joint

water category venture with Britannia Industries.

Nestle had also entered the flavoured milk segment in 2007 by extending its Milkmaid brand into milkshakes, Milkmaid Funshakes which was initially launched in south Indian markets.

Britannia, however, had entered the flavoured milk segment with the launch of Actimind in 2009.

Vadilal’s Power Sip is priced at Rs 18 for 180-ml bottles and is available in different flavour like rose, elaichi and kesar. The company has plans to introduce more flavours like chocolate, badam and coffee during the year.

Mother Dairy sells flavoured milk in the brand names Nutrifit and Chillz.

The Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets brand Amul sells its flavoured milk brand Amul Kool in three different flavours elaichi, kesar, rose. The 250-ml packs are priced at Rs 30.

Besides, Kwality Dairy, Amrit Foods and Param Dairy also have presence in the flavoured milk segment.

Umang Dairies is India’s third largest seller of branded dairy creamers after Amul and Nestle.

The company on an average sells six million consumer packs (SKUs) of dairy creamers every month. The company also has tieups to supply single serve sachets of White Magik dairy creamers on Rajdhani and Shatabdi trains on Indian Railways and in Air India.

It also markets dairy creamers compatible with tea and coffee vending machines to Coca-Cola globally.

The executive informed that the company is exploring possibilities of acquiring an existing dairy company having some synergy with its product portfolio to grow inorganically.

Umang Dairies reported a growth of 16% in revenues from operations at Rs 178.30 crore for the year ended March 31, 2013 as compared to Rs 150.21 crore recorded the previous year. While operating profits increased by 16% to Rs 18.29 crore, profit before tax went up 17% to Rs 16.17 crore.

Benefits under I new dairy equipment scheme

n order to assist Goan farmers procure dairy equipment and boost the industry, the government has launched a new dairy equipment scheme.

Implemented by the department of animal husbandry and veterinary services (AVHS), the scheme also aims to reduce the practical difficulties farmers face while purchasing important equipment needed for dairy farming. This week we look at various steps involved in gaining benefits from this new scheme.

Eligibility criteria This scheme applies to Goan farmers who are members of dairy societies registered with AHVS The applicant must be a resident of Goa, domiciled for a minimum period of 15 years The applicant must own cattle shed/s along with milch animals Milk contributed to the dairy society must be produced at the applicant's dairy farm and not procured from other means Documents required Application forms for the scheme are available free of charge from AHVS

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isleri International, an India-based bottled water producer, is set to venture into flavored water category as part of plans to expand its product portfolio within bottled water category by the end of 2013.

The move is in line with the company's aim to compete with DS Group's Catch Clear Flavoured Spring Water, Danone-Narang Beverages' B'lue and Tata Global Beverages water plus and gluco plus.

Bisleri International director Jayanti Chauhan was quoted

by The Hindu Business Line as

saying that the company is looking to diversify its products portfolio through associated offerings.

"Plans are likely to be firmed up by the end of this year," Chauhan added.

According to an FMCG analyst, the company could use its standalone stores - Bisleri Shoppe - to distribute its flavored water products after the launch.

Bisleri, which currently has 100 Shoppes in Bangalore and Mumbai, plans to open 300 more such stores in different cities across India in 2013.

Residence certificate from mamlatdar or a certificate from the chairman of dairy society, verified and attested by the veterinary officer or assistant director in charge of the area, stating that the applicant is a member of the society Ownership papers of the land or NOC from owner of land in case of tenanted land Certificate of being schedule caste/schedule tribe issued by the competent authority (if applicable) Certified copy of applicant's ration card Quotations of the items to be purchased under the scheme One passport-size photograph of the applicant

onward transmission to the directorate The department officials, if satisfied with the authenticity of the submitted documents, sanction the subsidy amount

Procedure for application Farmers interested in availing the scheme need to apply in the prescribed application form through the local veterinary officer or assistant director The concerned officer scrutinizes the application and forwards it to the directorate for further scrutiny On approval of application, the applicant needs to submit the original purchase receipts from the authorized dealer/supplier within 30 days to the local veterinary officer/assistant director, for

Points to remember Subsidy under this scheme is available for new equipment/ implements for a new dairy unit provided the farmer has not claimed the subsidy for the items purchased earlier under any other scheme. The beneficiary must sign a bond with the department before the release of subsidy Subsidy on the total implements is limited to 1.5 lakh only Subsidy will be released only if the farmer has received the approval of the directorate for permission to purchase the equipment Address/Contact details Directorate of Animal Husbandry & Veterinary Services, Government of Goa, Pashusamvardhan Bhavan, Patto, Panaji Goa-403001 Phone: 2437244 Email: dir-ahvs.goa@nic.in

Beverages & Food Processing Times-June-I-2013

Ice Cream News

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Global Ice Cream Brands Home in on India’s Growing Affluent Class The formidable Indian summer is attracting a host of international ice cream brands. Magnum, Unilever’s biggest ice cream brand globally, entered India a few weeks ago. It was followed by the U.S.-based Mini Melts.

Ben & Jerry, a wholly-owned subsidiary of Unilever, is also expected to enter India soon. Other international premium brands such as Baskin-Robbins, Häagen-Dazs, London Dairy, and Movenpick are already present in the country and vying for a share of the ice cream segment.

According to New Delhi-based research and consultancy firm Technopak Advisors, India’s frozen desserts market (this includes ice cream, frozen yogurt, gelatos and sorbets) was estimated at $450 million in 2009-2010 and is expected to cross $900 million by 2014-2015.

The report “Ice Cream in India,” published by Euromonitor International in April, notes that ice cream was among the fastestgrowing product categories in packaged foods in 2012. The report indicates that the consumption of ice cream, largely an impulse buy product in India, is growing despite sharp price increases. According to the report, “Indian consumers are willing to pay extra for indulgence and [this] shows the potential for launches of premium ice cream

brands going forward.”

Take Magnum. While ice cream bars from Indian brands such as Amul and Mother Dairy are available for as little as 20 cents each, Magnum bars cost more than a dollar apiece. According to Geetu Verma, director of foods and refreshments at Hindustan Unilever, Magnum was launched in Chennai due to the city’s “affluent consumer base” and targets young adults who are “active pleasure seekers.” Sanjiv Sethi, chairperson of the Indo-U.S. Retail Forum at the Indo-American Chamber of Commerce, attributes this trend to “rapid urbanization, the increasing affluence in the burgeoning Indian middle class, and also rising awareness about international brands.”

Mini Melts has set up a manufacturing facility in Bangalore at an investment of $3 million. According to Shoeab Salim, managing director of Honeybee Amusements, the holding company for the Mini Melts India franchise, local manufacturing and sourcing will help the brand pass on the price benefit to the consumers. “We should be able to obtain a 12% share of the ice cream market in three years,” says Salim. He is looking to create an exhaustive distribution network that includes kiosks, carts and stores spread

across streets, malls and theme parks. A Mini Melts “kids café” network is also in the works.

“India’s tropical climate makes it a dream destination for frozen desserts,” Sethi notes. “Moreover, frozen desserts, including ice cream, is trending into an all-season

Even as new players are making inroads into India, London Dairy and Häagen-Dazs, which up to now were largely only available in select five-star hotels and gourmet stores, are in expansion mode. Häagen-Dazs, for instance, recently opened a flagship store

product, hence enhancing the nation’s consumption potential.”

At present, the per capita annual ice cream consumption in India is a mere 0.1 liter. In New Zealand it is 28.1 liters, and in the U.S., it is 20.8 liters.

spread over 2,200 square feet in Chandigarh in North India. Baskin Robbins’ portfolio now includes Alphonso Gold and Alphonso n’ Cream — made from the Alphonso mango, which is largely grown in western India. As the brand’s

website says, “You cannot get more Indian than this.”

Meanwhile, Indian ice cream brands are also now focusing on the premium segment. The Gujarat-based, 80-year-old Vadilal, for instance, has upgraded its production technology to keep up with the competition. “With the entry of many multinational ice cream brands in the market, it became imperative for us to reinvent our strategy,” says Devanshu Gandhi, managing director of Vadilal. “Earlier, our share in the high-end ice cream market was almost negligible.

The shift in strategy has helped us get an additional 10% in our annual revenues over a period of three years. This year we expect our premium products portfolio to generate $9 million in revenues.”

“The Indian ice cream market is growing at the rate of 35% year-on-year and hence makes for an attractive destination for international brands,” adds Gaurav Marya, president of Franchise India Holdings, a New Delhi-based organization that assists brands in international and domestic franchise expansion.

“The challenge, however, lies in right pricing and cracking the distribution code — something that Indian brands such as Mother Dairy and Amul have been able to do well.”

'Connoisseurs still prefer age old kulfi over ice cream'

S

ummers are synonymous with icecreams. And the clutter of high end brands leaves the lovers of this dessert spoilt for choice. But equally relished by the Indians is the age old kulfi, a delightful candy made with thick milk to which dry fruits and saffron have been added.

It is traditionally made and sold by the vendors who park themselves at crowded areas. Without any aid from fancy marketing tools, it is the unique taste of the kulfi home churned by these vendors which becomes their brand.

Health and hygiene concerns have nearly wiped out the kulfiwalah who would announce his arrival with the ring of a brass

bell that hangs on his push cart. "Customers prefer branded ice creams and the big brands also offer kulfis," says Dilip Bodhwani, who runs a kulfi shop in the old market area of Itwari. "Vendors like us have to maintain highest levels of hygiene and offer best quality to retain customers," says Bodhwani a third generation kulfi vendor.

"Making kulfi is a long drawn, painstaking task which requires lot of hard work. The prices too have to be competitive as icecreams cost as low as Rs 25 for a scoop," he says. "But the true connoisseurs of taste still prefer the subtle flavours of thick frozen seasoned milk over the artificially flavoured and coloured ice-creams," he adds.

Beverages & Food Processing Times-June-I-2013

Dairy News

Danone bets on ‘dahi’ to crack Indian market P

lastic tubs of yogurt are very important right now for Jochen Ebert. “Dahi is the name of the game,” he declares.

The ebullient 43-year-old German, the managing director of Danone Food and Beverages (India) Pvt. Ltd, is heading a campaign to carve out a place for his company in a market over which Amul, Mother Dairy and Nestlé have a strong grip, having themselves battled to convince Indians to buy curd rather than make it at home.

Ebert knows the key lies in getting taste and texture right. Which is why he’s recruited focus groups consisting of women, mostly homemakers, for regular tasting sessions in the National Capital Region, after which their feedback is recorded on consistency, flavour and the like.

His office in Gurgaon is located a few kilometres from the building where the tasting takes place. What emerges from his conversation is a near-obsession with the fermented milk product as being critical to the Danone’s success in India. The range extends beyond just dahi to flavoured yogurt, lassi and other spin-offs.

Danone entered India in 2008 through a joint venture with Britannia Industries Ltd, but that broke up just a year later and since then it’s been on its own in the country.

The €36.1 billion (Rs.2.67 trillion) French company operates globally in four business segments—dairy, bottled water, medical nutrition and infant food—and all of these are present in India. Danone Food runs the company’s dairy operations in the country and is still relatively small, selling products in Mumbai, Delhi, Bangalore, Pune and Hyderabad.

The business is still a work in progress and will continue to evolve as Danone looks for the right fit, Ebert says. “We want to, as a company, focus on what works first and we keep that brand. We are here to develop dahi consumption.”

For instance, a so-called “bottom

of the pyramid” business unit that started in 2011 was absorbed into the bigger company a year ago.

It had been started as an attempt to sell low-priced flavoured

The yogurt market has gained significant momentum in the past few years.

Yogurt and sour milk (lassi) are expected to grow by a compounded

smoothies and milk shakes to masses, but the numbers were “too small” to justify its existence as a stand-alone business, Ebert says. After this, he was asked to focus on the India business, giving up additional charge of the Bangladesh business.

That brings the conversation back to Ebert’s area of focus and the company’s core strategy—curd and other related products.

“We have to focus on areas that the Indian consumers want from us, and right now they are telling us we want dahi,” he says.Dahi accounts for 60% of the company’s volumes.

The current range consists of plain dahi, flavoured yogurt, drinks in the form of lassi, chaas, milk shake (the Fundooz brand), flavoured smoothies (the Danette brand) and ultra-high-temperature (UHT) milk in tetrapacks. A version of the Bengali mishti doi (sweetened curd) is expected to be launched soon.

Over the next few months, the company will seek to increase volume in existing markets by expanding distribution, Ebert said.

annual growth rate (CAGR) of 18% to Rs.78.9 billion by the end of 2017, according to a March 2013 report by research agency Euromonitor. Demand has surged in the past five years, helped by the perception that such products are wholesome and healthy, the report said.

Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which makes and sells the Amul range of products, dominates the market with the highest share of 18.3% in the yogurt and sour milk (lassi) product category. New DelhibasedMother Dairy Fruit and Vegetable Pvt. Ltd has a market share of 12.7%, and Nestlé India Ltd, whose parent competes with Danone globally, has been adding to a market share that’s estimated at 7.8%. In comparison, Danone’s numbers are negligible.

Meanwhile, the competition in dairy looks set to intensify, so Danone needs to get its act together as quickly as it can. Companies from New Zealand and the US have finalized plans to enter the Indian market, industry experts

Amul Dairy plots US production

I

ndia's largest dairy brand Amul is expanding beyond India for the first time by planning to launch its first overseas production facility in the US. In a joint venture with Summit Milk Products, a local dairy in upstate New York, Amul will produce specialised products for the sizeable Indian community living on the east coast of the US. A key target market will be New York City - which has more than

200,000 south Asian residents.

"This is very big step," Rupinder Singh Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns Amul brand, told justfood. "Gradually we are expanding our footprints of production facilities."

Sodhi said the company has been working on this project for the past two years and initially the plant will only produce paneer (cottage cheese), ghee (clarified butter)

and lassi (the curd-based Indian drink). "We plan to increase this product range gradually," he said.

The GCMMF already exports US$17m worth of milk, ghee, cheese, paneer, yoghurt, ice cream and other milk products popular with Indians in 21 countries including the US, China, Japan and Australia.

Sodhi said production in the US will start within three months and the company is still projecting initial volumes.

say.

The investments by the larger companies such as Nestlé, Amul and Mother Dairy in the market will ensure that the category will continue to grow, according to Rachna Nath, leader, retail and consumer, at consulting firm PricewaterhouseCoopers.

Lifestyle changes, according to her, are driving trends for probiotic products, including packaged flavoured yogurt.

However, per-capita consumption of the dahi category remains abysmally low in the country.

At 2.5kg a year, India stands at a significant distance from more mature markets such as France, where consumption is 30kg. Of this, that of packaged dahiis much lower at 0.3kg.

“So, our main focus right now to push the 0.3 to 2.5 (kg),” says Ebert. According to the Euromonitor report, un-packaged yogurt continues to account for significant volume sales arising from strong demand in smaller cities and rural areas.

The lack of cold-chain infrastructure in the country also severely limits the scope for dairy companies.

“Having a cold-chain supply across India can be a big challenge for companies looking at scaling up due to lack of existing infrastructure,” says Nitin Mathur, a consumer research analyst at Mumbai-based brokerage firm Espirito Santo Securities.

While companies such as Nestle and Amul outsource distribution, Danone continues to invest heavily in owning and creating its own network. “That’s the way we want to go about it,” says Ebert, adding that Danone is still in its investment phase in India.

Nath at PricewaterhouseCoopers agrees that there is a risk of high levels of saturation in urban areas, and expanding to small cities could be a challenge owing to the lack of proper cold-chain supply. Distribution needs to be accompanied by proximity to production sites due to the short

19

shelf life of the product, industry experts said.

“It is a capital-intensive business primarily due to the cold-chain infrastructure,” says the head of the dairy business at a Delhi-based firm.

The category has expanded dramatically over the past few years, says Subhashish Basu, business head, dairy products, at Mother Dairy, which started selling packaged dahi nearly a decade ago.

“As the economy progresses, the need for protein in the form of fresh fermented dairy products goes up,” he said.

Mother Dairy is available at 40,000 outlets across North and West India and has just started operations in Kolkata. It aims to scale up operations in new markets and launch new products in the coming months, Basu said.

The decentralizing of production was a critical part of expanding the market, said R.S. Sodhi, managing director, GCMMF. “To gain scale, you need to be need to be close to the source of consumption.”

The company started selling packaged dahi nearly a decade ago and currently retails a range of products through 75,000 outlets primarily in North and West India.

Sodhi also cautioned that the fresh dairy business runs on wafer-thin margins and that companies need to keep in mind that the Indian consumer is highly price sensitive and be able to cater to the masses.

The Euromonitor reports suggests that an increasing number of consumers is likely to switch to packaged products.

As for Danone, Ebert wants to make sure it gets things right in the markets that it’s currently in before venturing elsewhere.

“Well, if I look at it, we would rather expand in a market like Mumbai, which has a high percapita consumption of the category than to enter new markets,” says Ebert, who adds that India can teach Danone more than vice versa.

Ebert, who has been with Danone for more than two decades, has worked in West Asia, Germany, the UK and France. He’s been heading the India business since 2008, although he was doing so from Paris and Germany until last year, n he moved to the country.

Beverages & Food Processing Times-June-I-2013

Dairy News

20

Britannia, Danone take different paths to growth in India

T

he two erstwhile partners are a study in contrast when it comes to doing business in world's third-largest economy.

One defines speed, while the other is slower in its approach. Britannia and Danone, partners before splitting due to a bitter row in 2009, are a study in contrast with regard to India, the third-largest economy and one of the largest consumption markets in the world.

Britannia, which last week announced a management rejig putting COO Varun Berry in charge of Indian operations, has always believed in quickly identifying new trends in the food and beverage (F&B) segment. The

company's managing director, Vinita Bali, who will now manage international operations at the Rs 6,200-crore company, wasted no time in trading up consumers in biscuits upon taking charge of the company in 2005, fortifying existing bakery products with nutrients in keeping with the growing health consciousness among Indians and adding new products to the firm's portfolio such as snacks, breakfast products, milk-based health drink, flavoured yoghurt, etc.

Berry is expected to keep the momentum going as the Bangalorebased company looks to transform itself from a bakery-cum-dairy

major into a well-rounded packaged F&B company.

In a statement last week, Chairman Nusli Wadia said, "We are preparing Britannia for high growth by catering to the changing food habits of the evolving Indian consumer and pursuing opportunities for growth in the overall food domain."

The $26.91-billion (Rs 1.48 lakh crore) Danone, which derives 38 per cent of revenues from emerging markets, on the other hand, has opted to focus its attention on its areas of strength including water, dairy products, probiotics and nutrition. While joint ventures and acquisitions have been the way forward for it in water, probiotics and nutrition, in dairy - its biggest vertical globally - the firm has launched products on its own including curd, flavoured yoghurt, lassi and UHT Milk in cities such as Mumbai, Pune, Bangalore, Hyderabad and Delhi-National Capital Region (NCR).

Jochen Ebert, managing director of Danone Food & Beverages India, which pushes the French major's dairy interests in the country, had told Business Standard earlier metro cities held enough potential for the firm, which meant it would stick to the big cities for now.

However, experts argue if Danone

proposes to be a serious player in the dairy space in India, dominated by co-operatives such as Amul and Mother Dairy and players such as Nestle at the premium end, it would have to scale up operations quickly by tying up partners that can manufacture and deliver their products across the country.

Danone has partly responded to this challenge by outsourcing production in states such as Maharashtra to third-party players. It, however, continues to manufacture products on its own in the north in its drive to maintain quality. It also continues to manage distribution in the five cities it operates in - making available its lassi, flavoured- and plain-yoghurt only through its own refrigerated

trucks directly to the retailer.

The group has also stepped up its brand-building efforts in India, launching new ad campaigns for its dairy as well as flavoured water brand B'lue, launched by the Mumbai-based joint venture company Danone-Narang Beverages, which is billed as a restorative drink sold in markets such as Indonesia and China, besides India.

According to market experts, this step-up in efforts is intended to induce brand recall in a country where there is no dearth of options in F&B.

Beverages & Food Processing Times-June-I-2013

Dairy News

How Mother Dairy is planning to serve its ice creams nationally

M

other Dairy entered the Mumbai market around four years ago and is now poised to figure among the top three ice cream players this year. But with the Mumbai market captured, the subsidiary ofNational Dairy Development Board (NDDB), is now on a national expansion drive.

Dairy products business head at Mother Dairy, Subhashis Basu says the confidence to serve its ice creams to the whole country became evident during the previous year when the test marketing across the nation started showing great results.

To reach out to the national mass, after a gap of three years, the company has just started airing two television commercials.

The company is planning to cater to the top 25 cities in the country which account for 80% of the country's Rs 1800 crore ice cream market. “We are the leader in New Delhi, but it’s time that we addressed our national people. The real insight behind coming with this new commercials is to compliment our national expansion. Our ice creams are pure and no flavoured inputs are part of it. That is why our campaign also underlines the basic theme as 'real good'.

After the national expansion, Basu

is expecting his vertical to clock a top line of Rs 900 crore in the next four to five years. Ice creams now contribute around Rs 275 crore to the dairy product business and the aim is to keep growing at 25%, said Munish Soni, GM, marketing at Mother Dairy.

Mother Dairy follows a typical FMCG distribution model to reach to the consumers for its ice creams. "We would be extending our brand reach and depth to stimulate consumption using traditional retail, our own vending carts, our own exclusive booths and kiosks in high throughput locations etc. This year, we are also investing disproportionately on asset placement both in retail and vending to drive growth across all geographies and reach out to a larger chunk of consumers,” added Basu.

A key challenge for the company would be to topple the local players in different states across the country. For example, Gujarat and New Delhi together account for one third of the country's Rs 1800 crore (approx) ice cream market and in the former state Vadilal is one of the prominent players. In Mumbai, Vadilal, Amul and Kwality Walls are the players leading the race and Mother Dairy

is very near to break into that club soon, according to the company's own market research. India's ice cream market has been typically fragmented and in the regional pockets it is the local players who are ruling the market.

Mother Diary, to create visibility in the national map, is going to focus more on retail sales compared to bulk sales. “Some bulk deals may not offer me to sell it in my packaged way and chances are high that it will be used just as commodity.

So my brand is not getting to use that platform, so at this point, we are focusing more on our packaged sales which will enhance our branding,” he added.

It has though tied up with two leading flight caterers which will leverage the brand among all major national carriers in the country at the moment. “This is unique arrangement as the ice cream being served will be in the Mother Dairy branded packages,” added Basu. The ice creams are also available while traveling via Indian Railways.

"One of the challenges in

going national, was to keep the balance of heritage of our brand and yet be contemporary enough to tease the target audience, said Basu. And that is why the company got O&M Delhi team on

board to create the new commercial for them. Ravi Udayawar has directed the commercials.

"Before even we were present in Mumbai, we used to buy a lot of national media space but we figured out in the course of time that without being present in those market these media campaigns did not yield us any result,” said Basu.

According to him the marketing spend, which is about five% of its top line, is also going to see a substantial rise in the coming years.

Ice cream brands target India I

ndia's domestic ice cream manufacturers and international brands are increasing their range of products and flavours to meet growing demand for in-home consumption, which has been rising at a rate of 25-30% annually.

Traditionally, the Indian market has focused on 'out of home' products, but improved cold chain distribution, increasing affluence plus greater availability of domestic cold storage is influencing behaviour.

Penetration of refrigerators in urban India rose to 41% in 2012 from 32.9% in 2009 while in-home consumption of frozen desserts has been rising 25-30% year-onyear compared with 20% for out-of-home varieties.

Devyani Food Industries, the New Delhibased manufacturer which owns the Cream Bell brand, says its in-home share has risen 16% from 10% four years ago and expects consumption of larger pack sizes to grow over the next decade.

Meanwhile, the Amul brand, made by the Gujarat Cooperative Milk Marketing Federation, has seen sales of its take-home packs increase to 50% from 30% a few years ago and has launched a dozen new products in family pack sizes.

International brands have not been slow to boost their presence in the growing market.

Magnum, Unilever's biggest ice cream

brand, entered the market a few weeks ago while Ben & Jerry – another Unilever brand – is expected to enter soon.

US-based Mini Melts recently established a facility in Bangalore in a franchising deal with Honeybee Amusements, whose managing director, Shoeab Salim, predicts will obtain 12% market share within three years.

Häagen-Dazs recently opened a flagship store in Chandigarh in northern India while other international premium brands, such as Baskin-Robbins and London Dairy, have begun to expand.

Gaurav Marya, president of Franchise India Holdings, told Knowledge at Wharton: "The Indian ice cream market is growing at the rate of 35% year-onyear and hence makes for an attractive destination for international brands. The challenge, however, lies in right pricing and cracking the distribution code."

Growing involvement by international brands is also influencing their domestic competitors, which recognise the appeal of the premium market. Devanshu Gandhi, managing director of Gujaratbased Vadilal, said: "Earlier, our share in the high-end ice cream market was almost negligible. This year we expect our premium products portfolio to generate $9m in revenues."

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Beverages & Food Processing Times-June-I-2013

Beverage maker Coca-Cola launches online store in India; is it looking at multibrand e-tailing?

C

oca-Cola has launched Coke2Home.com, an online store for home delivery of the group’s various beverage products. This is one of the rare such instances of a large consumer products maker getting into direct selling through an online channel in India.

The website is run by Hindustan Coca-Cola Beverages Pvt Ltd, the largest bottling partner of The Coca-Cola Company in India.

It is a part of The Coca-Cola Company’s Bottling Investments Group and is responsible for manufacturing, packaging, selling and distributing beverages under the trademarks of The Coca-Cola Company.

Hindustan Coca-Cola Beverages has 24 bottling plants across India, covering approximately two-thirds of bottling operations for the CocaCola group in India.Its products include key brands such as CocaCola, Thums Up, Sprite, Fanta, Limca, Kinley Soda, Schweppes Tonic Water, Maaza and Minute Maid.

The service is currently available in Ahmedabad municipality only.

Customers need to book their orders before 12 noon to get products home-delivered the same day. You can also place bulk order or monthly supplies of products.

Minimum order for delivery is Rs 300, as of now. The company accepts multiple modes of payment, including cash on delivery cash card, credit card, debit card and net banking.

What is interesting is how the firm has structured the venture to sell its products which in effect amounts to multi-brand e-tailing in which foreign investment is not allowed.

We are getting in touch with the Coca-Cola spokesperson in India for more details and will update when we have more information.

The country’s top FMCG firm Hindustan Unilever said it is looking at building capabilities for e-commerce as a stronger distribution channel. The firm had not given details whether it is looking at launching its own e-com property as a direct sales venture or wants to strengthen its existing network catering to other e-tailers who sell its products.

Beverages News

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A leap of faith for the beverage industry G

rowth in hospitality and leisure, promises an increasing opportunity for the beverages industry in India. As the industry expands and more tourists land on Indian shores, hotels will prosper and be better placed to invest in global brands. International tourists will not just lead to adoption of global standards of service excellence, but also improve beverage portfolios.

Indian consumers are still to experience a global portfolio of beverages.

A step up in hospitality, led by hotels, who are normally seen as the first purveyors of luxury goods, will lead to a higher exposure and engagement with luxury spirit brands. In the end, the Indian consumer will be the ultimate beneficiary. The beverage industry is closely associated with hospitality and any developments in the same, impact the spirits industry as well. The last few months have witnessed a setback to India’s position as a tourism destination. With inbound not being as robust, rooms occupancy has been low and traffic in bars also slowed down.

Over the years, hospitality industry has had many successes and new initiatives, though the latest

platform promised to “top it all”.

A recent initiative called FAITH, by the Indian Hospitality & Travel industry, promises a major step towards consolidating and combining the industry and working with the government in adopting higher reforms and a better position for India as a destination internationally.

Situated in the NCR, FAITH is a non-government, not-for-profit Indian tourism and hospitality led and managed society, aimed at being a catalyst for the growth and development of the travel, tourism, hospitality, aviation, transport, convention, adventure and related industries.

The launch was flagged off by a presentation on the Indian Tourism & Hospitality industry by Nakul Anand, Chairman-FAITH and President-Hotel Association of India, highlighting the potential of the industry, its challenges and the way forward. “FAITH is a consolidated effort of the industry aimed towards creating awareness, particularly at the state level, on the economic imperatives of tourism.

We aim to address and collectively brainstorm on the macro dynamics of the industry to ensure tourism its rightful place in India’s growth story”, he said.

A cross-section of representatives from the top 10 national tourism industry associations announced the formation of the country’s first Federation of Association in Indian Tourism & Hospitality; FAITH, at a ceremony held at the ITC Maurya in the presence of Parvez Dewan, Secretary Tourism, and Arun Maira, Member-Planning Commission. FAITH is intended as ‘one common voice’ for the industry, aimed at abetting tourism whilst evaluating opportunities and addressing challenges.

This sounds like a great uplift for The Great Whisky Story and whisky is bound to benefit from this growth. A happier and confident hospitality Industry is a great partner and revenue platform for the beverage partners. With the government supporting the industry, there will a surge in domestic and international tourists.

More bars, better services and a finer range will not just an international positioning for Indian bars but will also expose global brands to India. I am hoping that over the next one year, we will have better stocked bars, more folks in those bars and more folks enjoying better brands in these bars...though responsibly! Have FAITH, it will happen!

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Beverages & Food Processing Times-June-I-2013

Beverages News

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V S INTERNATIONAL

India thinks healthy, drinks healthy T

housands of bottles of cola drinks are gulped down every summer. But of late, with health issues top of mind, many consumers are picking up water, juices and non-carbonated drinks instead. With their fingers strongly on the consumer pulse, the cola majors are keeping pace and stepping up focus on noncarbonated drinks and juices to quench the thirst of their healthconscious clientele.

While carbonated drinks like Pepsi and Coca-Cola still account for the second-biggest chunk of the nonalcoholic drinks market in India, their growth rate has decelerated by 15-20 per cent over the last three years, according to trade body Assocham. Non-carbonated drinks (which include fruit drinks, nectars, juices and energy drinks), on the other hand, are likely to grow at a healthy CAGR of 35 per cent and are expected to touch `54,000 crore by 2015 from Rs 22,000 crore in 2012.

“Consumers today realize the need for nutritional interventions in their daily lives. Water provides an apt opportunity for hydration with nutrition. Hence the market for non-aerated drinks and packaged water is growing at a fast pace,” says Pratik Pota, CEO & MD, NourishCo Beverages Ltd, a 50:50 JV between Tata Global Beverages Ltd and PepsiCo India Holdings Pvt Ltd. NourishCo recently launched India’s first nutrient water Tata Water Plus—which will be rolled out pan-India shortly.

“There is a huge opportunity in the packaged beverage market being fuelled by a rise in disposable incomes, changing lifestyles and a burgeoning younger middle class. India’s per capita consumption of beverages is very low compared to other markets. This presents industry players with the opportunity to tap the huge untapped potential

that this segment offers,” says a spokesperson for Coca-Cola India, out to leverage its “Made in India and Made for India” brand portfolio consisting of Maaza (the country’s largest mango drink), Minute Maid Pulpy Orange and Minute Maid Nimbu Fresh, Burn (energy drink) and Kinley drinking water.

Rival PepsiCo’s non-carbonated beverages portfolio consists of Slice, Tropicana, Aquafina, Gatorade, Tata Water Plus and Tata Gluco in the hydration segment.

“With two Rs 1,000-crore plus brands, Slice and Aquafina, our non-carbonated offerings are a significant part of our portfolio and are growing rapidly. They complement our carbonated soft-drink brands and have been witnessing robust growth,” says a PepsiCo India spokesperson.

Market research firm Nielsen pegs the growth in juices between April 2012 and March 2013 at 22 per cent. According to Assocham, the juices market in 2012 was dominated by Dabur’s Real fruit juices with 50 per cent market share and PepsiCo’s Tropicana

with a 45 per cent market share.

“Mango drinks have emerged as the fastest-growing category over the last five years... Besides this, ready-to-serve fruit beverage range is also seeing healthy growth,” says PepsiCo. Traditional Indian beverages such as lassi, sharbat, thandai, nimbu pani, badam doodh and coconut water are also being replicated by savvy drink-makers. “We focus on delivering a wider choice to consumers and as part of our portfolio diversification, we have introduced new innovations this season including Tropicana fruit powders, Tropicana 100 per cent Orange Medley, Pepsi Atom, and 7UP Nimbooz Masala Soda,” says the

PepsiCo spokesperson.

PACKAGED WATER: Meanwhile, the action is also hotting up in the packaged drinking water segment. As per estimates, the total water hydration market in India is pegged at Rs 4,200 crore, including the bottled, bulk and pouches business. Of this, bottled water accounts for Rs 2,300 crore, followed by pouches at `1,200 crore and bulk water at `700 crore.

Still, the market for water is underpenetrated and growing at about 20 per cent CAGR per annum.

Almost every national beverage player has a water variant and organized brands like Himalaya, Bisleri, Kinley and Aquafina vie with thousands of local players for a slice of the market.

Electronics Devices Worldwide Pvt. Ltd.

“Our portfolio includes Tata Gluco Plus, a glucose-based beverage for providing instant energy in an affordable cup format, that is available in Tamil Nadu and Andhra Pradesh. The NourishCo portfolio also has Himalayan Natural Mineral Water, which is pristine source water,” says Nourish’s Pota.

Coke is equally upbeat. “The packaged water segment is growing well and we believe it has growth potential, primarily due to quality and convenience. We will continue to undertake relevant initiatives to be able to meet the growing consumer demand and category opportunity,” says the spokesman.

Beverages & Food Processing Times-June-I-2013

Back

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DSM to contribute to new 2020 global nutrition target Royal DSM, the global Life Sciences and Materials Sciences company, today announced that it plans to help provide effective nutrition interventions to 50 million beneficiaries (pregnant and lactating woman and children under two) per year by 2020. This commitment is part of DSM's endorsement of the Global Nutrition for Growth Compact, which aims to reach 500 million pregnant and lactating women and children under 2 with effective nutrition interventions by 2020. The Compact was today unveiled in London at the Nutrition for Growth summit as part of the UK G8 presidency.

Feike Sijbesma, Chief Executive Officer, DSM said: "As the world's leading producer of micronutrients including vitamins, DSM is taking its responsibility to help solve the world's greatest solvable problem: malnutrition, affecting 2 billion people across the globe. With our plans to reach 50 million beneficiaries by 2020 we fully support the Global Nutrition for Growth Compact.

We believe investing in nutrition can break the cycle of poverty and build thriving societies and markets. I am proud DSM and its 23,500 employees are able to

help tackle malnutrition using our knowledge and expertise through public-private partnerships."

Global Nutrition for Growth Compact The Global Nutrition for Growth Compact, initiated by the governments of the United Kingdom and Brazil and the Children's Investment Fund Foundation, calls for urgent action to end the scourge of malnutrition with ambitious targets and commitments.

Addressing nutrition is of critical importance for achieving the United Nations Millennium Development Goals.

As a first step, by 2020, signatories to the Compact commit to ensure that at least 500 million pregnant women and children under two are reached with effective nutrition interventions.

As part of the Compact, which was unveiled today in the presence of UK Prime Minister David Cameron, Brazil Vice-President Michel Temer, heads of state and other dignitaries as well as representatives of business, science, philanthropy and civil society, business signatories committed to putting good nutrition at the core of business practice. As a first step, they will support the productivity and health of their workforces by

introducing a nutrition policy and improving policies for maternal health, including support for breastfeeding mothers. Some businesses will also take further steps by improving the nutrition delivered by food systems so that mothers and children have access to the affordable, nutritious foods they need.

DSM also plans to assist Compact signatories in defining or enhancing a corporate nutrition policy focusing on healthy, balanced diets and the promotion of breast feeding policies, including nutrition audits to measure the quality of fortified foods and the effectiveness of interventions. DSM will also work to define a supplier and community outreach program to advocate the Nutrition for Growth agenda and explore the supply of its nutrition products through these channels.

Through its Nutrition Improvement Program, DSM already contributes technical expertise to support public-private partnerships with the World Food Programme,World Vision, Project Laser Beam, Partners in Food Solutions, GAIN, Vitamin Angels andthe Amsterdam Initiative against Malnutrition.

DSM's own humanitarian think tank Sight and Life provides nutrition science and evidencebased advocacy.

The DSM commitment DSM plans to help provide effective nutrition interventions to 50 million beneficiaries (pregnant and lactating woman and children under two) per year by 2020. DSM expects to reach these beneficiaries through its existing publicprivate partnerships, such as with the World Food Programme, Vitamin Angels and World Vision International as well as advocacy and using its sphere of influence.

Earlier this year DSM and WFP announced their intention to increase the number of people who benefit from their work together to 25-30 million per year by 2015, compared to around 15 million today.

In addition, DSM is also offering signatories to the Compact access to its leading nutritional products and solutions for staple food fortification and nutritional supplements, to help ensure the overall target is met.

The hard facts of malnutrition An estimated 2 billion people globally suffer from the effects of micronutrient deficiencies, in that they don't receive the necessary levels of vitamins and minerals that allow them to develop to their full mental and physical potential.

Across the world, 1 in 4 children

under 5 years of age are stunted.

Evidence shows that getting the right nutrients at the right time is critical, particularly during the first 1000 days from pregnancy to the child's second birthday; good nutrition is a prerequisite for physical, mental and social development.

Failure to obtain optimum nutrition not only negatively impacts the life chances of children and their mothers, it prevents them, their communities and their countries from achieving their full economic potential. Malnutrition is responsible for the loss of billions of dollars in productivity, in effect stunting not only citizens, but also economies. It is estimated that 11% of GDP in Africa and Asia is lost to malnutrition every year, with productivity losses to individuals estimated at more than 10% of lifetime earnings.

Good nutrition is an important requirement for physical and mental development, and a key factor for unlocking the human potential in every man, woman and child.

The elimination of malnutrition is a global responsibility that DSM supports wholeheartedly as part of its mission to create brighter lives for people today and generations to come. DSM's core value, contributing to a more sustainable world, supports this mission.

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EDITOR Firoz H Naqvi

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