Snapshots of Food Industry News
PepsiCo Launches Mirinda Joosy
PepsiCo India has recently launched their Mirinda Joosy, which is a fizzy drink but contains orange fruit juice. The orange fruit juice in Mirinda Joosy has been made with oranges sourced from local Indian farmers. The new drink containing fruit juice is a product expansion in their beverage brand Mirinda, which has an annual sale of Rs.1000 crores. Mirinda Joosy, with 5 percent fruit juice is presently available in Tamil Nadu at Rs.35 a bottle of 500ml.
The launch is another milestone in PepsiCo India’s journey as it has sourced the fruit pulp from India. PepsiCo sees this as their commitment to partner with the government’s efforts to introduce fruit juice in carbonated drinks so as to benefit Indian farmers. PepsiCo has also partnered with the Maharashtra government to develop the citrus eco-system in the state and have invested in the citrus facility in Nanded. They have also partnered with farmers to improve productivity.
Papacream eyeing a Turnover of Rs.5 crore
Papacream entered the ice-cream market only on 2015 and because of the huge demand for ice-creams the company was operationally profitable from the word go. Papacream began with revenues of Rs.1.2 crores in the first year and has quadrupled to Rs.4.5 crores in the second year. They opened their first store in Mumbai and now have a total of three stores there and one each in Jaipur and Surat. Papacream caters to mixed age groups as they have ice-creams and frozen ice-cream based desserts on their menu. Their future plan is to have a footprint in every city, in the country and so they have big plans to enter Tier II cities. They are also exploring the potential in the Middle East markets.
Papacream has shown growth through franchising and they intend to continue on that route. They have however, invested in research and development, machinery and operational advancement for which funding has come from internal accruals. Papacream products range includes ice-creams, sorbets, savoury and sweet waffles and milk shakes. They also offer beverages like iced-tea, hot chocolate and hot and cold coffee. There ice-creams are meant for niche consumers as the imported ingredients used in their ice-creams add to costing especially as they wish to provide an overall dessert experience.
Zucca Pizzeria Plans to Open 100 outlets in India
Zucca Pizzeria is planning to open at least 100 outlets across south India in the next two years. Presently they have three outlets that are operational and have another three that are in the pipeline. The company also have 17,000 unique pizza delivery customers and which they are working to increase to one lakh customers in the next one year. The USP of the company is freshly baked hand-crafted pizzas and this is something which other leading brands do not offer. The demand for handcrafted pizzas is on the rise and so more entrepreneurs are willing to open franchises. One outlet involves an investment of Rs.20 lakh to Rs.25 lakh each. Zucca has also partnered with online company ASK, which has many kiosks in populated residential areas and apartments across Coimbatore where Zucca has a major presence. The Company has its own billing system, which eliminates the traditional PoS and uses mobile devices for taking orders. This method is quick and easy to take orders, which has created efficiency and also huge saving in capital investment.
SLN Coffee launches Levista brand
SLN Coffee has recently launched ‘Levista’ an instant coffee brand. SLN Coffee hopes to increase their revenue to Rs.1100 crores after this launch. Initially they have launched the brand in Tamil Nadu and Karnataka only. The brand will be available in 30,000 outlets in Tamil Nadu and 25, 000 outlets in Karnataka. By 2019 SLN hopes to have a presence in Andhra Pradesh and Kerala. South India is the biggest consumer of coffee, however, in three years’ time SLN hopes to have a pan India presence, as instant coffee market is growing at the rate of 10 percent.
SLN sells coffee in the domestic and overseas markets and last year they registered a top-line Rs.800 crores. Before launching the new Levista brand they tested over 50,000 cups of the blend. After testing they have launched Levista in four variants. SLN has a manufacturing facility in Coorg, Karnataka and each year the company exports more than 10,000 tonnes of coffee.
LT Foods to Invest in Branding and Expansion into Europe
Basmati rice brand LT Foods, well-known for the Daawat brand of rice, is likely to invest USD 20 million for branding and expanding into Europe. In the next four years, the company is likely to increase its sales six times from the branded segment. The investment will be used to increase its geographical footprint in the European markets and add to the product portfolio.
The company plans to focus on growth of their Daawat brand in Europe and so they have opened a new plant in Rotterdam, Netherlands which will cater to this region. They wish to gain five percent of the branded segment in this region in the next two years. They have expanded their distribution network and are continuously investing in the brand. They expect to increase sales from 5000 tonnes to 30, 000 tonnes in the branded segment in the coming four years.