Snapshots of Food Industry News
Starbucks Believes India Could be one of its Top 5 Markets Globally
While Starbucks has not given a definite timeline but it does see India as becoming one of its top 5 markets. Though India has not shown much growth and has even slowed down expansion, Starbucks sees opportunities in India. Sales performance has been on the decline from the earlier 40 percent and is attributed to the novelty factor wearing off. In India, Tata Starbucks is formed with a partnership with Tata Group and has shown growth of 14 percent and have narrowed losses to just Rs.32 crore and they have just inaugurated their 100th store in the country.
The company still sees India as a profitable market so much so that they extended their partnership with Tata Group to go beyond India. Starbucks launched Tata group’s single-origin coffee in the US and Himalayan mineral water in Singapore as they value the partnership enough to say that it sits on top of all partnerships. Starbucks is confident that its partnership with Tata will see them procure dividends in the long term.
Premium Cookie Maker Unibic Eyes 10% Market Share
In the next 12 to 18 months, cookie maker Unibic sees itself with a market share of 10 percent. In the four markets of South-India, in the premium segment, they have a double-digit market share and almost 60 percent of their sales come from the south. They wish to improve their footprint in the North-east and West, where they have a very small share and which will bring them closer to their targeted 10 percent share nationally. They have 900 distributors and close to 60 percent of their volumes come from traditional trade.
Unibic is backed by private equity investor Peepul Capital and has 21 variants of cookies in five categories with a presence in over 2, 00,000 outlets. Their target is to reach half a million outlets in a couple of years. They have recently added a fifth manufacturing line at their facility at an investment of Rs.12 crore and intend to do so every year. Cookies constitute around 30 percent of the total biscuit market which is estimated to be between Rs.25, 000-27, 000 crore and is growing at twice the rate of the biscuit industry. The cookie market in India is pegged at Rs.7, 500 crores and is split midway between premium and mass segments.
Raw Pressery Raises Funding Worth $6 Million
Raw Pressery, India’s first and largest clean-label beverage company, received Series C funding, worth $6 million from three equal partners, Sequoia India, Saama Capital and DSG Consumer Partners. The company will use the funding to expand its manufacturing capacity and distribution reach of its new product launches. Part of the funds will be utilized for capital expenditure in its cold chain logistics infrastructure, expand headcount and for marketing. Founded in 2014 by Anuj Rakyan, Raw Pressery has now become a household favorite and grown 120 percent since last year. Geographically, the brand has 1,600 points of sale (POSs) in 15 cities in India, and in Dubai, Abu Dhabi and Doha.
All Raw products are 100 percent natural, free from added sugar and preservatives with easily identifiable ingredients. They adopt sustainable practices for procurement, production and waste management across the entire portfolio of juices, smoothies, ready-to-consume soups, coconut water and nut milk. The funding will enable them to increase capacity to 5, 50,000-6, 00,000 liters per month from the present 3, 50,000 liters a month. The company will also add new products to its five categories of beverages and could foray into dairy products as well. It could move into the food space in 2018-19.
PepsiCo India Unveils Aquafina Vitamin Splash
PepsiCo India has launched its vitamin-fortified water category – Aquafina Vitamin Splash. At approximately 35 calories per serve (250ml, Aquafina Vitamin Splash is the lowest calorie vitamin fortified water to be introduced for consumers in India. The launch also reiterates PepsiCo’s commitment to introduce only those products that contain 100 calories or fewer from added sugar per serve (355ml), This is the first ever vitamin fortified water from the beverage major in India and marks the company’s efforts to increase the availability of convenient and affordable nutrition. The beverage will be available in the top 15 cities and on various e-commerce platforms at Rs.30 for a 300ml bottle and Rs.50 for a 500ml bottle.
Aquafina Vitamin Splash is available in two variants – Aquafina Vitamin Splash Kiwi Lime Flavour and Aquafina Vitamin Splash Raspberry Mint Flavour. The former contains Vitamin B6, Vitamin B12, zinc, and selenium which is five times more than can be found in a medium-sized apple. The latter contains Vitamin E and selenium nutrients and has nearly twice the Vitamin E and selenium as there are in a medium-sized apple/guava. Aquafina Vitamin Splash is also being seeing as a health and wellness beverage since the category has aroused consumer interest in healthier options. The move is somewhat of a milestone as it marks the entry of Aquafina trademark in India.
Veeba Expands Product Portfolio
Veeba Food Services Private Ltd, one of India’s leading sauces, dips and dressing company is expanding its range and has launched Veeba Peanut Butter in two mouth-watering variants. Creamy: Deliciously smooth, melts in the mouth and the second one is Crunchy: Delectable peanut butter with a satisfying bite of peanuts. Veeba Peanut Butter is India’s first peanut butter fortified with Calcium, Iron, Vitamin A & D. The Peanut Butter is a healthy ingredient in snacks and meals and will fulfill Veeba’s promise of tasty and better-for-you products. Made from roasted peanuts, Veeba Peanut butter is an excellent source of fiber and protein. Veeba peanut butter comes in sealed in PET Jar of 340gm and 1kg. They are available at retail outlets across India at Rs.154 and Rs.299, respectively.
Hindustan Food to Acquire Reckitt Benckiser
FMCG firm Hindustan Foods Ltd (HFL) is all set to acquire the pest products manufacturing factory of Reckitt Benckiser India (RB) at Samba, Jammu. RB is a running company but HFL is acquiring it in a slump sale. Transfer of the unit from RB to HFL and start of operations will begin in about two months on completion of legal documentation. RB will also transfer the leasehold rights over the factory which it has got on lease from the State Industrial Development Corporation (SIDCO, J&K). HFL has also entered into a supply agreement on October 26 for a supply of pest products to RB which will commence from date to be decided by the two parties. HFL is confident of achieving a minimum top line of Rs.125 crore from the acquisition.