Snapshots of Food Industry News
Britannia signs joint venture with Greek Chipita for India
Britannia has signed a non-binding Memorandum of Understanding (MoU) with Greek baker Chipita to make rolls, croissants and other dough products. Britannia has taken this step so as to take advantage of the growing urban domestic market that has developed a taste for such foods. Britannia is likely to hold the majority stake in the joint venture. They will also invest about $11 million for initial manufacturing. The facilities for these food products will be set up close to Britannia’s existing facilities so as to leverage its existing supply chain and distribution network.
According to a Euromonitor survey, the savoury snacks category in India is poised for tremendous growth. Britannia is aiming to have pie of the Rs.445 billion market that it is expected to grow into by 2020. Even though Britannia is not into partnerships in food they think that the category is highly scalable and bridges products between biscuits and fresh bakery. Chipita on the other hand operates as joint ventures only outside of Europe. They are optimistic that the young population of the Indian market will push growth. The company is not new to India as they have been selling confectionery brand Feniti here.
Parag Milk Foods forays into Whey Protein segment
Parag Milk Foods has forayed into the whey protein dairy category with Avvatar Absolute. This market is worth Rs.2500 crore with Rs.1000 crore coming from the organised sector and the rest from the unorganised sector. Presently Parag Milk has 10 percent of the market share in this segment which they aim to double in the next five years. Parag Milk Foods has invested Rs.110 crores in a cheese and whey plant in Manchar in Maharashtra for this. Avvatar Absolute is 100 percent vegetarian whey protein and is made during cheese making process from fresh grass fed cow milk.
Initially Avvatar Absolute will be launched in eight metros in the north and west and will eventually be marketed in 30 cities across India. The whey protein will be available online across India from e-commerce sites. The company is also looking to export Avvatar Absolute to neighbouring countries. The company foresee a huge demand for the product from health conscious and sport loving youngsters looking for nutritious food. As part of their marketing strategy Parag Milk Foods will reach out to nutrition supplement stores, pharmacies, modern retail stores and e-commerce portals.
Dabur to expand its Réal Wellnezz Brand
Dabur India Ltd has announced the expansion of its Réal Wellnezz range with the introduction of new Réal Wellnezz Amla Plus Juice. The new juice will primarily contain Amla pulp mixed with apple juice. The juice is aimed at consumers who are looking for healthy and nutritious beverage options. The demand for healthy and natural juices is on the rise and Dabur’s new juice is a perfect ready-to-drink juice for consumers who seek active and healthy lifestyles. Amla is considered to possess various health benefits and is a rich source of Vitamin C. This helps to boost immunity and metabolism and has a positive effect on cold and cough and the consumer can reap benefits of Amla from a tetra pack. With the launch of Réal Wellnezz Amla Plus Juice the company aims to provide the consumer an enjoyable as well as nutritious experience.
Gulabs launches Tiny Khakhras In three delicious flavours
The Chennai- based company Gulabs is well known for selling Indian snack and are all set to launch ‘Tiny Khakhras.’ Khakhra is a Gujarati food eaten for breakfast and Gulabs will now offer the crunchy khakhra in a small version measuring only 2.5 inches in diameter. Gulabs’ Khakhras will be available in three flavours Plain, Ajwain and Methi and will be offered as quick breakfast or snack aimed at the travel segment. This is why they have made their Tiny Khakhras highly portable to be eaten on the go. The khakhras are a perfect any time snack also and can be eaten with dips or as toppings on salad. Tiny Khakhras, and their other Gulabs products, are available at all leading food retail outlets in the country as well as online. Each box of Tiny Khakhras has 10 pieces and is priced at Rs.50.
Araku Valley Coffee to debut in Paris Market
Araku Valley in Andhra Pradesh is undergoing a unique Agri Enterprise. Tribals from this beautiful but protected region are growing quality top-notch coffee with the backing of four business leaders. Anand Mahindra, Chairman Mahindra & Mahindra, Kris Gopalakrishnan, Co-founder Infosys, Satish Reddy, Chairman Reddy Laboratories and Rajendra Prasad Maganti, Chairman Soma Enterprises have come together to launch Araku Coffee in Paris which will be their first overseas store. The four partners wish to make the Araku coffee a gourmet brand which is acceptable globally.
The coffee will be marketed under an exotic brand which for the 150 tribal communities is a big step forward. The Maoist infested belt has been declared as a special developmental area by the government and have also created a funding plan for the local tribes. Coffee cultivation is not new in this region which was first grown by the British here. However, it is only recently that coffee is being grown on a large scale by the tribal people as coffee production has expanded to 20,000 acres as compared to just 1000 acres a few years back.
Haldiram’s grows twice in size of Hindustan Unilever’s packaged food division
Indian sweets and snacks maker Haldiram’s crossed revenues of Rs.4000 crore in FY 2016 despite scrutiny from regulators. The desi food company is now twice the size of Hindustan Unilever’s packaged food division and has more turn-over in India than Domino’s and McDonald together. Haldiram’s is also the biggest Indian food brand after Parle. It began with restaurants and casual dining but now packaged products are responsible for 80 percent of the company’s revenue. Haldiram’s is the market leader in the traditional snacks market.
Haldiram’s has three areas of operations; in the north are Haldiram Snacks and Ethnic Foods. Haldiram Foods based in Nagpur operates in the southern and western regions. The smaller Haldiram Bhujiawala operates in the eastern market and the maximum revenues have come in from northern region in 2016. However, some feel that since consumers are experimenting, the company should adapt and come up with more options for the new generation of consumers.
Tpot Cafe to invest one million dollars in next three months
Tpot Café runs 25 outlets in Delhi/ NCR and gets revenue of about Rs.50 lakh monthly. The Delhi based chai café brand is now looking to invest one million dollars in the next three months and bring their store count to 50 outlets. They will also invest in processes and products. Tpot Café sees a lot of opportunity in the chai café market because the tea market is at least 8 times bigger than the coffee market in India. Seeing this vast market Tpot Café’s long term aim is to have at least 500 outlets by 2020. Presently, the café is concentrating on building a good team which will oversee future operations.
McDonald’s creates re-engineered straws for new McCafé beverages
McDonald’s USA has a limited-edition straw designed by a team of aerospace and robotic engineers to be used for their Chocolate Shamrock Shake. Chocolate Shamrock Shake is one of four new mint and chocolate flavoured McCafé beverages which are available at McDonald’s locations for a limited time. This is beverage has dual layers of delicious chocolate shake below Shamrock Shake.
Since McDonald’s had re-invented their beverages they wanted their customers to have an ultimate shake-drinking experience too. So they had to get the best engineers to design the unique straw. JACE and NK Labs found it quite a challenge to create a straw that would deliver proportional amounts of both chocolate and vanilla flavours with each sip. However, the re-engineered straw is a marvel of design and quite revolutionary.
People & Placements
IHG appoints new vice-president, development, South West Asia
InterContinental Hotels Group (IHG), one of the world’s leading hotel companies, has appointed Sudeep Jain as vice-president, development, South West Asia. He has the immediate task to strengthen the presence of IHG in India, Sri Lanka, Nepal and Bangladesh. Jain has over 15 years of experience in the hospitality sector the latest as vice-president, acquisitions and development, South Asia with Starwood Hotels & Resorts. Jain has been selected because of his vast experience in delivering international brands in a local market context especially as they wish to grow in India.
Samir Kuckreja joins top management team at Zomato
Former CEO of Nirula’s Corner House and Mars Hotels & Restaurant, Samir Kuckreja joins top management of online restaurant delivery platform Zomato. Kuckreja will spear head the food tech firm’s cloud-based point of sale product, Zomato Base, as its president. Kuckreja has worked earlier with the company on restaurant booking and in advisory capacity while running his hospitality consulting venture Tasanaya Hospitality. Kuckreja’s appointment comes at a time when Zomato has chalked out plans for aggressive investments in food delivery and new businesses such as cloud kitchens.