Snapshots of Food Industry News
Baba Ramdev predicts Patanjali noodles to be the top brand
Baba Ramdev has predicted that in the next five years Patanjali’s atta noodles will be the top noodles of the country. He feels that Patanjali noodles will topple Maggi from the top spot as the price of the noodles is favoring sales. Presently Patanjali produces 100 tonnes of the atta noodles but they intend to gradually increase production by another 300 to 500 tonnes in the coming years.
The Yoga Guru opines that the ‘swadeshi’ FMCG will do better than any other multinational firm in the consumer goods space, but has excluded Hindustan Unilever from this calculation. In the next five to seven years, Patanjali expects to earn profits of Rs.5, 000crore to Rs.10, 000crore. Patanjali has already begun to capture the market especially as the price of its products is lower. The company says that it will divert all its profits into social service and people’s welfare.
Mother Dairy partners with IEISL for selling organic compost
Mother Dairy’s ‘Safal’ outlets across Delhi and NCR region will soon be selling organic compost processed by IL&FS Environmental Infrastructure & Services Ltd (IEISL) under the brand name ‘Home Garden.’ The compost is supplied from Okhla composting facility where the IEISL has a public-private partnership with South Delhi Municipal Corporation for processing biodegradable compost. Since there is a great demand for alternatives to chemical fertilizers for the home gardens, Mother Dairy has partnered with IEISL to market organic compost.
Organic compost is suitable and beneficial for all types of crops, vegetables, fruits, flowers, lawns and potted plants. According to the partnership ‘Home Garden’ will be sold from 350 outlets in 2 kg and 5 kg packs and will be priced at Rs.49 and Rs.99, respectively. ‘Home Garden’ organic compost will enrich the soil, help to reduce Greenhouse gases and pollution.
The new year to see McDonald’s focus on brand extension and delivery
As a means to increase revenue fast food chain McDonald’s will concentrate on their delivery business, brand extension, and innovation this year. This is McDonald’s
20th year of operations in India and the company hopes that their focus in 2016 on brand extensions like McCafe should bring in more revenue. The year will also see them unfold their new menu choices to give customers a healthier alternative. Since home deliveries have tripled for the company they mean to continue with the progress there.
Players like Burger King have entered the international restaurant chain market and the existing Dominos, PizzaHut and Dunkin Donuts already have a sizeable market presence. McDonald’s intends to beat this competition by growing its food category. It also intends to focus on home deliveries as that sector has tripled in the last seven years thanks to food technology. McDelivery Service which caters to online ordering is responsible for almost 40 percent of revenues. By 2020 McDonald’s India hopes to double their 216 outlets and by 2017 increase the McCafes to140 from the present 62.
Bagrry’s to launch more brands and eye turnover of Rs.400crore
In the next five years the breakfast cereal maker, Bagrry’s, hopes to increase their turnover to Rs.400crore. In this fiscal, the company is likely to clock a turnover of Rs.100crore. The company has all the intention to continue in the health and wellness space though they are looking to become a multi-brand, multi-product company in the food sector. Presently they have two brands Bagrry’s and Lawrence Mills but they would soon launch other brands and new food product categories under the Lawrence Mills brand.
They are also likely to increase their distribution network of 50,000 to 1 lakh outlets in the next two years. Though Bagrry’s India’s focus remains the domestic market they export products to countries such as the US, Canada, Nepal, and Bhutan. However, they are now also exploring other overseas markets. Once the company scales up they could raise funds through initial public offer (IPO) for faster growth.
Mother’s Recipe’s online stores launched
In order to reach a wider segment of customers Desai Brothers’, processed food brand, Mother’s Recipe has launched its online store for retailing food products. Through the e-commerce website, customers will have the choice of all Mother’s Recipe products, across categories, including pickles, papads, paste, ready-to-cook spice gravy mixes, ready-to-eat meals, and chutneys. The company has called the launch of the website a ‘natural progression’ as customers now shop through this platform, for their daily needs.
Customers will be able to access region-specific products through the website especially as these may not be available in brick and mortar retail stores, in all the regions of India. Through its centralized warehouse in Pune, the company will deliver products through FedEx courier, in spill-proof, easy to carry pouches. Though Mother’s Recipe already retails online through e-grocers but having their own online portal will help them engage better with loyal customers and also give them a chance to target new customers. Presently the online pie is only a small portion of sales but the company is hopeful it will grow exponentially.
Dineout ties up with large restaurant chains
Dineout, which is an online table reservation platform, has acquired a number of new partnerships with large restaurant chains in India. The start-up announced its premium dining programme – Dineout Plus recently and this saw it go into partnerships with SM Group, Barbeque Nation, Lite Bite Foods, Chili’s and TGI Fridays. The dining service is an on the subscription basis and subscribers get the benefit of a 25 percent discount in the top 150 five star restaurants across Delhi, Mumbai, Bengaluru, and Kolkata. Dineout aims to continue to add newer restaurants and provide them with the technology that will enhance diner experience as these will allow diners to seamlessly reserve places at the more popular restaurants.
Hector Beverages: Tzinga to see re-launch
In the next two months, Hector Beverages will re-launch its energy drink Tzinga. If you remember Tzinga was recalled last year on the orders of the FSSAI as the energy drink formula contained both ginseng and caffeine together. The FSSAI said that there was no scientific basis which could prove that the combination is safe to consume. The FSSAI had asked the company to, therefore, change its formula.
The company has now removed ginseng from the formula for Tzinga. Hector Beverages feels that the regulations on energy drinks were not clear when they first launched Tzinga, especially as the energy drink market in the country is quite small. The company also owns Paper Boat drinks however, Tzinga was the first product launched by Hector Beverages. Presently the energy drinks market in the country stands at about Rs.700crore and is growing at almost 25 percent annually.
Piyush Desai, Chairman Wagh Bakri is on Board of DLX Limited as an independent director
Piyush Desai, chairman of Wagh Bakri Group and president of Western India Tea Dealers Association has joined the Board of DLX Limited as an independent director. Desai is a renowned Darjeeling tea taster and has been able to put his company on top ten Darjeeling tea companies. DLX plans to expand its reach in the domestic as well as international markets in the near future and hopes to leverage Desai’s expertise.
DLX Ltd owns a renowned tea garden in Darjeeling called Glenburn Tea Estate. Glenburn has a total area of 758 hectares with 285 hectares under tea and the rest as reserve forest. Glenburn tea is available in consumer packs and caddies and is marketed successfully both in India and around the world.