Snapshots of Food Industry News
More fizzy juice drinks on the anvil from PepsiCo
PepsiCo India had launched Nimbooz Masala Soda with 5 percent lemon extracts but now they are likely to offer a broader choice of carbonated fruit juices. PepsiCo has taken the cue from the Prime Minister, Narendra Modi’s request and so is happy to help out Indian farmers. PepsiCo points out that they source potato, corn and fruits from more than 24, 000 Indian farmers locally. Another reason why PepsiCo wishes to offer fizzy drinks with 10 to 15 percent fruit juice is because that is part of its global agenda to offer healthier drinks. PepsiCo feels that sourcing ingredients locally for their fruit based aerated drinks would require a high amount of testing but they have already begun the process.
Fruit juices are already making inroads into the market share of the sugary carbonated drinks. Research conducted by Euromonitor International says that the fruit juice market grew by 20.6% as compared to the carbonated drinks market which grew by a mere 8.42% in 2015. Consumers are getting health conscious and most cola companies are hunting for solutions to combat the decline in carbonated drinks. Keeping with the trend Coca Cola launched their Fanta Green Mango with 10.4 percent fruit juice and Dabur came out with their Real VOLO which has 20 to 25 percent fruit juice. With the GST bill likely to be passed the government has already proposed an additional tax of 40 percent on aerated drinks so most cola companies are planning to turn to water based drinks.
DuPont will soon have a pre-packaged roti out in the Indian market
DuPont’s health and nutritional department has been able to develop ingredients that can be used to make ready-to-eat pre-packaged rotis. The ingredients include enzymes, emulsifiers and hydrocolloids that will improve the texture of the rotis. The multinational company has developed the wheat packaged rotis as Indian households are turning more and more towards convenience foods. Since roti making is a long drawn out process consumers have a desire for a semi-cooked or ready-to-eat version of roti that also tastes fresh.
DuPont says that they have put in years of research in order to develop a product that will change the way rotis are produced, distributed and consumed. The company’s Denmark based research and developmental centre has been exploring flour components and mechanisms that contribute to providing quality rotis. The researchers have been able to develop a range of solutions that provide rotis that are fresh, soft and have a good shelf life. One of the main ingredients in the rotis is soy protein. This the company sees as a strong point as for a vast majority of Indians the soy protein will act to fortify the wheat rotis.
MobiKwik partners with Indian Railways to deliver meals to train passengers
The mobile payment company, MobiKwik is to partner with the Indian Railway Catering and Tourism Corporation (IRCTC) to accept eCash payments on behalf of the railway eCatering service, ‘Food on Track’. Passengers that use the ‘Food on Track’ app can order food from Domino’s, Punjab Grill, KFC and others which is delivered to them at more than 300 stations across India. MobiKwik already partners with Indian Railway Catering and Tourism Corp. as it is the primary mobile wallet used by ‘IRCTC Connect app’, which enables users to book train tickets.
The IRCTC has chosen to work with MobiKwik for its eCatering service also because it not only loads money in the online wallet but also enables cash loading. MobiKwik picks up cash at select cities and deposits it at over 100,000 locations across 1,000 cities in India. The cash pick-up service is geared towards people who don’t go to banks or don’t want to use online banking. MobiKwik feels that the growth in mobile wallet will come from consumers who don’t have a bank account but want to buy things on their phone. The company already has 32 million users and 100,000 merchants in its network.
Centre to establish 42 cluster-based mega food parks
Minister of Food Processing Industries, Harsimrat Kaur Badal has announced that the Central Government is all set to establish 42 mega food parks that have a cluster based approach. Under this scheme the average mega food project would have around 30-35 medium food processing units with a collective investment of around Rs.250 crore. The cluster based mega food parks will be set up in a phased manner and so the government has invited proposals from potential investors by 15 September, to setup the first six mega food parks under this scheme. Those states that have not yet been covered will be given priority. These mega food parks will create employment for 2500 directly and 30,000 indirectly.
The Minister said that the Mega food park scheme has been reformulated with the aim of providing modern infrastructure facilities, along the value chain from the farm to the market. This would result in creating processing infrastructure near the farm, with transportation, logistics and centralised processing units. Under this ‘SAMPADA’ scheme smaller food parks, with cold storage facilities will be set up which will be a step towards ‘zero wastage.’ In the past two years the Ministry has been able to increase processing of 32 lakh tonnes of perishable fruits and vegetables and reduce wastage by 10 per cent a year.
Marvellous Mondelez launched to drive sales
Mondelez India has launched the ‘marvellous collection’ under its flagship Dairy Milk brand. The move has come up in the wake of demands from consumers for unique formats which the company hopes will also drive sales. Mondelez already controls two-thirds of the Rs.7.500 worth confectionery market but have experienced slow growth last fiscal after almost a decade. The ‘marvellous collection’ is likely to be rolled out first from Amazon before it moves into other retail formats.
As compared to competitor Ferrero’s 60 percent growth, Mondelez has seen a growth of only 12.5 percent. Even though Ferrero products are priced high they still have captured the market with their innovative releases. Mondelez believe that their global leadership in chocolates gives them the leverage to bring to India their world leading brands. This year Mondelez has launched Bournvita biscuits, Oreo Gold and the ‘marvellous’ dairy milk will be its third new launch.
Yumlane manages to get funding from Flipkart and People Group
Yumlane, which is a food start-up owned by QwikPikTechnology Pvt Ltd has managed to acquire seed funding from Binny Bansal, CEO &Co-Founder, Flipkart and Anupam Mittal, Founder, People Group. While the company did not disclose the exact amount raised but it seems that they have been able to garner US $1 million. The funds will be utilised to enhance the brand, increase customer base and reform its marketing strategies. Yumlane would like to make food accessible to everyone and everywhere.
Yumlane operates through its consumer goods outlets and provides ready-to-eat meals within the price range of Rs.50-80. Customers also have the option to pre-order and collect their meals from the nearest outlet. The company has a tie-up with 10 stores in Mumbai and can also make the payment online. Yumlane has been founded by Hitesh Ahuja, the former vice-president of New Silk Route, an Asia-focused private equity fund.
Cupcake Factory opens its flagship store in Mumbai’s Bandra
Cupcake Factory has recently launched its flagship store in Bandra, Mumbai. The company, which was conceptualised in 2015, focuses on making high quality and delicious cupcakes. The mouth-watering and attractively decorated cupcakes are delivered to the customers’ door step. The brand has selected few niche suppliers as it wants to maintain the high quality and freshness of its cupcakes. The Bandra store has a factory theme and the rich interiors blend perfectly with the delicacies on offer. Rita Sujan, the Proprietor, says that the opening of The Cupcake Factory has resulted from her love for baking.
The concept began with a hobby as she loved baking family recipes. Once they travelled the world the hobby grew into a realisation especially as they were able to get the latest in new technology and methodology. Cupcake Factory is modern yet an authentic brand that remains committed to delivering the best. The store also believes in the green concept and therefor it uses environmentally friendly materials and adopts green practices. The company is hopeful of opening more stores in the financial capital in the near future.