Snapshots of Food Industry News
Coca-Cola to launch new range of drinks cheaper than Coke or Sprite
By producing cheaper Ayurvedic products Patanjali gave some competition to Colgate and HUL, who were forced to launch their own Ayurvedic products. Similarly cheaper regional drinks are forcing beverage giant Coca-Cola to introduce new and cheaper category of beverages. This new range of aerated drinks, called Kinley Flavours is expected to be 35 to 40 percent cheaper than Coke, Sprite or Fanta. Coca-Cola has developed this brand for the price conscious consumers as well as the Indian pallet as these new drinks will have popular localised flavours like lemon, jeera and orange. The new beverages will be available in 250ml PET packs.
There are presently more than 200 localised B brands of aerated beverages that are sold in small geographical areas. Their prices are almost half of that charged by MNCs. According to industry estimates their share of the Rs.22, 000 crore packaged aerated drinks market amounts to about 12 percent. The Kinley Flavours have been developed to compete with these local brands and will be one of the cheapest beverages for Coca-Cola across markets. With the implementation of GST Coca-Cola aerated drink prices will increase marginally. The price increase is propelling Coca-Cola to expand their portfolio catering to consumers in all sections. The company is all set to launch its new energy drink Monster in the coming weeks.
India to become world’s largest producer of milk by 2026
According to a UN and OECD report India will not only be the most populous country in the world but by 2026 it will also be the largest producer of milk in the world. The country is also projected to have the biggest increase in wheat production globally. The other region that will see a surge in population is Sub-Saharan Africa and these two regions will also drive a large share of global demand for foods.
Milk production in India will grow by 49 per cent in 2026, with an output that will be about one-third above that of the European Union, the second largest producer. Over the outlook period 2017- 2026 the production of wheat in India is also projected to increase by 11 percent. The increase in wheat production is expected to occur through higher yields. Asia – Pacific will account for 46 per cent of additional wheat production with Indian production slated to be 15 million tonnes. Major production gains for rice are also are projected for India, Indonesia, Myanmar, Thailand and Vietnam. The report has pointed to the fact that the global food commodity prices are likely to remain low over the next decade compared to previous peaks.
Amazon to invest $500 million in food retail
Amazon has obtained the approval to invest approximately $500 million in food retail. Following the announcement of 100 per cent foreign direct investment (FDI) in food retail and the abolition of the Foreign Investment Promotion Board (FIPB) Amazon’s proposal is the first big investment plan to be approved. The direct investment would give Amazon an opportunity to look after the entire supply chain in food retail. This is part of the Government‘s efforts to bolster ease of doing business.
The ministry of food processing and industries (MoFPI) has also received proposals for investment from other e-commerce players like Grofers and Big Basket with an aggregate investment plan of $700 million. MoFPI is also expecting potential investors to invest in the back-end infrastructure to boost farm to fork and supply chain to strengthen the food processing ecosystem in the country.
Australian bistro Patissez forays into Indian market
Patissez, the Australian bistro known for its Freak Shakes, has entered the Indian market with franchise master Eljay Infratech. They are likely spread their footprint in the food space in Jaipur, Mumbai, Delhi, Hyderabad, Bengaluru, and Chennai in the first phase. Patissez will offer a menu that consists of Freak Shakes as the Pretzella, Muddy Pat, Bano Freak and Fruity Freak, as well as savoury items like Freak Burgers and Freakfast.
The transformation in the retail landscape of the Food & Beverage (F&B) industry is likely to see rapid growth by 2020. Young people hang out in cafés and resto-bars and this trend has seen a sudden surge in the F&B industry in metros as well as in Tier-II and III cities across the country. Eljay has been in food retailing for a number of years now and so have brought Patissez to India so they can be established here firmly. By the last quarter of 2018, Eljay aims to open Patissez outlets across major cities in the country. Eljay Infratech is open to sub-franchisees who can help them establish Patissez.
Mother’s Recipe launches Bhelpuri Chutney and others
Mother’s Recipe, the FMCG brand of Desai Brothers Ltd.’s food division has introduced a new range of home style chutneys in five variants. The chutneys have been manufactured in its state-of-the-art plant in Pune under strict hygienic conditions. The five chutneys variants are Delhi Chutney, Bhelpuri Chutney, Red Chilli Garlic Chutney, Samosa Chutney and Tamarind Date Chutney. Mother’s Recipe is committed to deliver products, which satisfy Indian palates. The chutneys are priced at Rs.79 for a pack of different chutneys that weighs between 330 to 380 grams.
This home-style range of chutneys has been developed after extensive research and consumer insights. They are made from the fresh ingredients so they deliver authentic taste of home-cooked food. These chutneys are likely to inculcate healthy eating habits and can be relished during the monsoon season. The chutneys will be available at all hypermarkets, exclusive Mother’s Recipe outlets and local retail stores across Bengaluru, Pune, Mumbai, Delhi, Noida, Hyderabad, Ahmedabad and Punjab, as well as on bigbasket.com. In pickles, Mother’s Recipe already dominates the category market with more than 64 variants and they are expecting the chutneys to do equally well.