Here below the snapshot of business news this week
Packaged Food Spending to touch $50 billion by 2017; says ASSOCHAM
Presently the size of the Indian packaged food industry is about $30 billion and this will touch $50 billion by 2017 with a CARG of 30%. The industry includes snacks food, ready-to-eat food, health and functional foods. A rise in income which has raised the standard of living, greater confidence in packaged foods, working mothers, urbanization and working away from home are some factors that are encouraging the growth. The main categories of packaged food sold are bakery products, canned/dried processed food, frozen processed food, ready-to-eat meals, dairy products, diet snacks, processed meat and health products and drinks.
A survey conducted by ASSOCHAM Health Committee Council in the metros revealed that almost 76% of working parents with children under five years serve easy to prepare meals at least 10 to12 times in a month because of the pressure of work. Among the bachelors, about 72% prefer convenience foods because they are instant, easy to prepare and are hygienically manufactures and free from microbial contamination. However, the Committee says that though the industry is growing health concerns can crop up like rising in blood pressure due to the fact that packaged foods contain high levels of salt. Some foods are also high on trans-fats which lead to increase bad cholesterol.
Ice-Cream and Milk Powder Dairy Products to Fuel Growth of Dairy Foods in India
As per a report from Ken Research, India is the largest producer of milk in the world and the consumption level of milk and dairy industry is also the highest in India. This is why the CAGR is likely to cross Rs.250 billion by 2019 for dairy food products in India. A rise in incomes, innovative technology and a better portfolio of dairy products has promoted the upsurge in the dairy food market. While Amul is likely to focus on emerging markets the rest of the companies like Nestle, Flavor Dynamics, GSK and Danone will see competition in the industry.
The dairy farming sector is also growing and there is a better yield of milk per cow. However, sourcing still remains a challenge as well as logistics and milk prices which could be factors that could affect future growth. Presently dairy food products have seen consistent growth at a CAGR of about 14.5% right from 2009 to the present. There is a boom in infant population and with the rise in income, the preference for milk powders is likely to increase spending on these products as well as other convenience dairy products.
DSM and SOBISCO Join Hands to Fortify Foods and Beverages for Eastern India
In an initiative to combat micronutrient deficiencies in India Royal DSM, the global Life Sciences and Materials Sciences Company signed a Memorandum of Understanding (MoU) with Sona Biscuits Ltd. (SOBISCO) in the presence of Prime Minister of The Netherlands Mark Rutte and his team. Due to the size of the growing population, India faces a problem in tackling malnutrition. Through this joint venture, DSM and SOBISCO will broaden the efforts already being undertaken by the government, industry and social sector in fortifying foods. The food and beverage products will be co-branded together by DSM & SOBISCO. DSM will use its brand “NU-Shakti Nutrition for you” which has been developed in India for this venture.
The product categories to be fortified have been selected keeping in mind the consumption patterns of people from Bihar, Jharkhand, West Bengal and Orissa. Besides biscuits, food that will be fortified is popular local snacks Sattu and Jhalmuri and beverages. Fortification will be scientifically based on deficiencies and nutritional gaps in children, young mothers, and households in general. The joint venture will operate under the name of DSM SOBISCO Foods Pvt Ltd. and will fortify foods and beverages with essential micronutrients such as Vitamin A, Vitamin D, Folic Acid, Iron, Zinc, Iodine etc.
Taco Bell Outlet Debuts in New Delhi at Ambience Mall
Burman Hospitality Private Limited (BHPL) the promoters of Dabur have launched the Mexican-style quick service restaurant, Taco Bell. Burman Hospitality is also the first franchisee of Taco Bell in India through the QSR already has six restaurants in Mumbai and Bangalore. Taco Bell, along with Burman Hospitality Private Limited aims to increase the count to 25 restaurants in the next two years and will target the northern states of New Delhi, Punjab, Chandigarh, and Uttarakhand.
Besides serving classics like Crunchy Taco Supreme, Crunchwrap and Burritos the Delhi outlet will also serve Kathitto which has been specially developed for local tastes. The 75 seat restaurant has a contemporary design to match the Mexican food and its California origins. Delhi fans of the Mexican cuisine are excited about the opening while Taco Bell is equally looking forward to winning the hearts of the consumers with their differentiated and innovative product offering and breakthrough values.
Cocoberry to Open in Four Locations
Cocoberry Restaurants & Distributors Pvt Ltd recently opened its first franchised frozen yogurt outlet in Lucknow and is all set to open the second one in the same city. On the anvil are three more outlets in Chandigarh, Kanpur and the Maldives. The total stores that the brand now has have increased to 32. Cocoberry has also launched low fat ice-creams in India. The calorie-conscious avoid premium ice creams that have about 10% fat, but Cocoberry’s low fat ice cream has less than 2.5% fat. The ice cream is in keeping with the Cocoberry image of being a low calorie, frozen dessert which is pure and fresh.
The company has also unveiled its distinctive new range called `Sattvik’ for the Indian customers which are inspired by the healthy yoga food. This is why the ‘Sattvik’ theme will stress the freshness of the product that will also be free of preservatives. For this range, the equipment and raw material are all designed and formulated in India and there is no import content in the product.