Snapshots of Food Industry News
Maggi to reduce sodium level and fortify their products by 2020
Nestle India is planning ahead so as to be able to contribute to the national objective of reducing salt content and fortifying its food products. They have already announced the launch of their iron fortified noodles which will be part of its 2020 ‘Simply Good’ initiative. The initiative also aims to reduce sodium in its products by 10 percent and to fortify products with micronutrients.
The Simply Good initiative will help Nestle India to build a better and stronger Maggi brand. Through the new initiative they will be able to follow the objective of enhancing quality of life and contributing to a healthier future. Maggi will have new products that will enable consumers to make a healthier food choice. Nestle India will also introduce the concept of GDA (guideline daily amount) on their packaged food labels so consumers can get all the information on nutrients in their products like energy, total fat, saturated fat, sugar and sodium. They would also like to encourage home cooking so they are simplifying their ingredients so consumers can use common ingredients from their own kitchen for home cooking their products.
KLF Nirmal to launch new coconut based products
The coconut oil manufacturer, KLF Nirmal Industries Pvt Ltd has received capital of Rs.75 crore from private equity firm, Banyan Tree Capital. KLF manufactures a number of coconut based products and will use the new capital to launch at least 10 new products by June under the Coconad brand. The products include instant coconut chutney and chutney powders, coconut stew, roasted coconut masala, etc. KLF is the second highest selling coconut oil in Karnataka, Andhra Pradesh, Telangana and Maharashtra and the new launches are part of their plan to triple sales to Rs.550-600 crores in the next five years.
Besides the launch of new products the company is also likely to introduce a range of coconut oils blended with palmolein oil or sunflower oil. These blends will compete well against adulterated products in the market that sell as 100 percent pure coconut oil. KLF will also use the new capital investment to manufacture and market virgin coconut oil and expand its sales in this product to Rs.100crore in next five years. KLF has also set aside Rs.7 crore of the capital to build a state of the art laboratory which will be NABL accredited. The sophisticated facilities will be able to detect even the slightest adulteration especially that of palm kernel oil in coconut which is otherwise difficult to detect.
Nutrition tech start-up First Eat plans to increase its corporate foothold
Gurugram based nutrition tech start-up, First Eat – For Your Health has been providing healthy food options through its corporate health tuck shops which have turned out to be a good revenue channel. The idea behind the health tuck shop is to build a healthy nutrition consumption habit at workplaces. First Eat also provides a platform where users get to know the right diet and subscribe to healthy meals. This facility is available on the First Eat app on Android & IOS. They also conduct employee wellness programs to generate awareness about the importance of nutrition consumption when food intake is concerned for corporates. The thought behind First Eat’s initiative is the adage “let your diet be your medicine,” and they are actively pursuing it to provide the right diets for consumers.
First Eat has a premium account with PepsiCo HQ in Gurugram where they serve calorie counted and nutrient controlled meals for employees over the counter. The company would now like to increase revenues threefold in the next six months by engaging with other corporates. First Eat- For Your Health works through the subscription model and also through corporate heath food outlets and they have been able to make traction in a big way. This model enables them to have predictability so they can plan out their inventory and delivery schedule well in advance. It also allows them to predict revenues and resource allocation is much easier.
Harvest Gold sells majority stake to a Mexican company
Mexico’s Grupo Bimbo, which is a food and bakery company, has acquired controlling stakes in Harvest Gold which is an Indian bread and bakery products maker. The deal has been clinched at around Rs.340 crore and will give Grupo Bimbo a 65% stake in Harvest Gold. Harvest Gold Industries operates through various brands such as Ready Roti India, Rhodanthe Foods, Food Magic India and Mindscape One Marketing. Going forward the Mexican company could acquire more stakes in Harvest Gold as part of the agreement. This is the first time that a global company has bought controlling stakes in an Indian bread and bakery manufacturer. The Mexican company wants to expand its base in Asia and India offers a huge opportunity to grow organically.
Manapasand Beverages and Parle to cross promote products
Fruit juice manufacturer, Manpasand Beverages and biscuits and confectionery maker, Parle Products have collaborated to cross-promote their brands. This will enable the companies to access 4.5 million outlets across-India. Both the companies will promote each other’s brands so they are able to garner a substantial market share in biscuits or snacks and the beverage industry.