ITC Eyeing Double Digit Market Share in Packed Juice Segment
ITC is aiming to increase its market share of juice and fruit beverages segment to double digits by 2019. Presently ITC has around 7 percent of the share in the juice market and it would like to see the figures reach 10 to 12 percent of market share. The FMCG is banking on its ‘not from concentrate’ strategy for beverages to meet this target. The company also intends to continue to add new flavors and new variants to its B-Natural portfolio each year. The B-Natural brand is worth Rs.100 crore and is growing at 25 percent annually.
Globally the trend is to shift from concentrates, so ITC is leveraging its Agri division to source fruit directly from Indian farmers and make juices from fruit pulp. They are likely to source 2.5 lakh tonnes of fresh fruits from these farmers and which will be used to make the 13 products in their entire B-Natural range. So ITC could reach the dream double-digit market share by next fiscal especially as it has moved away from making juices from concentrates which are primarily imported. ITC is also strengthening its distribution network to cover Tier III cities where demand for packaged juices is on the rise. ITC has begun exporting B-Natural to the Middle East and is looking towards US, Canada, New Zealand and Australia.
Increase in Cocoa Rates Could See an Increase in Chocolate Rates
Cocoa is the main ingredient in chocolates and with an increase of 28 percent in global cocoa rates in 2017 chocolates in India are likely to become costlier. There has been a crisis in West Africa, which is the top cocoa producing region, which has inflated the prices. According to the International Cocoa Organisation, this increase has also reflected in the Indian cocoa prices which have shot up by 6% in the past few months and have reached Rs.170 per kg. This will also impact other products as can be seen from the fact that the prices of cocoa butter and cocoa powder are already seeing an increase.
Flury’s Café Chain to Position itself in the Niche Category
The growing café culture in India is seeing considerable traction with new players entering the space. The sector is evolving and different formats of the café have seen growth in double digits. The organized café market is around Rs.5000 crore. While Flury’s see themselves as a café but their concentration on confectionery and bakery products sets them apart from other cafes, where coffee is the main selling point. Flury’s have always had a huge presence in Kolkata as they have been there for the past 90 years. Now the café chain is working to build their presence in other cities in India.
In the past one year, Flury’s has seen an increase in the number of outlets and revenues. Now they plan on aggressive expansion to other metros and Tier II cities. Flury’s is aware that customers are quality and brand conscious nowadays and so they are planning on being leaders in the gourmet bakery and confectionery segment. They have been working in innovative products and have brought out single origin chocolates and their Create Your Own (CYO) range of cakes, but their best bet still remains their iconic rum balls and chicken patties. The brand also prides itself on being one of the few 100 percents handcrafted gourmet establishments that market handcrafted truffles and bread.
Ludhiana Based Bonn Group to Foray Into Fast Food Biz
Ludhiana based Bonn Group, the bread and biscuits maker, has decided to foray into fast food restaurants business with the launch of its burger brand chain, La Americana. The company presently operates outlets in Delhi and plans to expand the chain across many states in the next 12-18 months. The fast-food business in India is around Rs.8, 000 crores and is growing at a pace of 30 percent CAGR. Since the Delhi outlets have been getting a good response from their different tasting burgers so the company wishes to replicate this success elsewhere too. The company’s recently launched La Americana range of gourmet cookies in North Indian cities also elicited a good response.
Their La Americana chain outlets will also offer different types of vegetarian and non-vegetarian wraps, mojitos, iced teas, shakes, and fries besides burgers. Since the brand already enjoys a good reputation in the bun and bread business they will leverage that and use their own buns for fresh burgers. The company already has a strong footprint in Punjab, Haryana, Jammu, and Kashmir and Himachal, where their biscuits, cakes, and bread are popular and entering these geographies with their fast food chain, makes good business sense.
Kamats Plan to Open 100 Outlets in Next 12 Months
Vegetarian restaurants chain Kamats opened their first outlet in 2010 and since then they have grown from strength to strength. Kamats has been in the business of healthy hygienic and pure vegetarian Indian food for over 80 years and has over 51 franchised outlets across six states in India. Now in the next 12 months, they plan to open 100 more outlets and expand pan-India. Kamats best-selling products are idli and dosa and Kamats aloo chaat vada but they recently launched an innovative vidli vada is gaining ground and has become immensely popular.
South Indian foods like idli, dosa are popular favorites and so Kamats aims to make idli, dosa, Kamats vada, filter coffee and great Indian kadak chai available to all through their expanded outlets. The brand mantra is ‘Hot healthy and hygienic pure vegetarian food’ and to this end, they have the various electrical equipment and other standardized dispensing equipment like idli shooter, dosa maker, etc. that enables them to make their products in a clean, hygienic and efficient manner. They have developed logistics and specialized equipment, which will enable them to operate within malls and societies without using any gas fuel.