Snapshots of Food Industry News
Dabur sees juice sales fall due to supply issues
Dabur is one of the first Indian companies to be hit by the political situation in Nepal. The FMCG major saw a fall in juice sales because of the disruption of supplies from its plant, across the border, in Nepal. In the Q3 for FY 2015-16 the company is expecting a drop of 10 to 15 per cent in revenues as compared to the previous year. Dabur’s Birgunj plant in Nepal is only making local sales currently as the Indo-Nepal border continues to remain closed. However, Dabur has made alternate arrangements till the situation eases. The company has pumped up operations in its Sri Lanka and Newai, Rajasthan plants. To cater to demands they have also engaged third parties. Once the border re-opens only then will Dabur be able to evaluate costs and take a call on the impact this has had on inventory.
Europe to get a taste of Mishti Doi
French dairy giant, DANONE plans to introduce ‘Desi’ dairy products in some of its international markets The Bengal yogurt ‘mishti doi’ would soon be competing with the French crème brulee for a place on the dining tables of Europe. DANONE is also planning to put mango lassi on retail shelves in Europe. The company says that French and Indian food habits are similar with both using fresh ingredients and yogurt. Also there is a global trend for healthy alternatives and the exotic lassi and ‘misti doi’ could tickle European palates. DANONE is also preparing to launch ready to-serve custards and has applied to the FSSAI for product approval for several of its brands from its nutrition portfolio.
DANONE started its dairy business in India in 2010 and nutrition business in 2012 after it acquired the nutrition portfolio from Wockhardt Group. Since then, it has brought in its international range of flavoured yogurts and fresh dairy products like mishti doi, ‘chaas’, lassi, ‘dahi’, flavoured yogurts and smoothies to India. The company has introduced Protinex in elaichi and vanilla because those are popular flavours in India. The company likes to calls the introduction of new products with Indian tastes `Indovation.’
Andhra Pradesh expecting Rs.5, 000 crore investments in food processing
State Chief Minister, N Chandrababu Naidu has recently released ‘Food Processing Policy 2015-20′ at a networking conclave between Japanese and domestic food processing industry. Naidu said that Japanese food processing industrialists must consider Andhra Pradesh their second home and utilise all opportunities and resources available in the state. Andhra Pradesh government is expecting an investment of Rs.5, 000-crore from food processing and is therefore, taking all steps to encourage the industry. It is also aiming to create 50,000 jobs in the sector in the state over the next five years.
With the aim of encouraging food processing the Andhra government aims to set up integrated food processing parks in all districts. Each park will be set up in a minimum of 30 acres of land and have a minimum of 10 processing units. Among the incentives provided for setting up the parks the state government has promised 50 per cent financial assistance with a limit of Rs.20 crore. Power will be supplied at Rs.1.50 per unit. They will also provide 25 per cent capital subsidy for processing units limited to Rs.5 crore. On exports, 30 per cent of road transport charges will be reimbursed with Rs.5 lakh limit per annum for a period of 3 years.
Barcelos aims to set up 30 outlets
Barcelos, the South Africa based casual dining restaurant chain, is to set up about 30 stores in India over the next four year. With this the brand hopes to have a turnover of Rs.200 crore. In the first stage they hope to open four outlets and by 2017 at least 10 outlets. For this Barcelos will make an initial investment of USD 5 million. The food chain opened their first restaurant, in India, in New Delhi in March. They intend to set up new stores through company-owned and franchise modes and have an eye on expanding more in Delhi-NCR and also Kochi, Chennai, Mumbai, Jaipur, Pune, Hyderabad, Bengaluru, Goa and Kolkata. In India Barcelos has introduced Black Burger and Red Burger and is planning to expand its food and beverage menu. Barcelos runs more than 120 outlets in more than 18 countries worldwide.
Godrej Nature’s Basket opens three new physical stores
Gourmet food retailer, Godrej Nature’s Basket, has opened three new stores in Gurgaon, Pune and Mumbai. With this the company’s physical store footprint has expanded to 36. Godrej Nature’s Basket has created a niche for itself in the gourmet space through Pan-India online operations. The launch of pan-India operations in September 2015 has seen the company expand its reach to 125 Indian cities in 3000 pin codes. With this roll out the company has seen a 40 per cent increase in the frequency of orders on a month-on-month basis.
Keeping in mind their new Omni-channel strategy, the company has introduced new stores in these three places so that they can serve as catchment areas. In the past one year the chain has expanded some existing stores in key markets for this reason also. Nature’s Basket is also tapping into emerging markets across India and so is catering to tier-II and tier-III cities. Even though the company delivers only non-perishable products in tier-II and tier-III cities, the average order is about Rs.1,500 says the food retailer.
Sandwich Chain, Subway, has a new Chief Marketing Officer
Joseph Tripodi will take over as Chief Marketing Officer for Subway following the departure of Tony Pace. On taking over the Sandwich Chain, Tripodi said that he would like to build on Subway’s legacy of innovation as tastes are continuing to evolve. He was chief marketer for Coca-Cola between 2007 and 2015. Subway has also rehired former advertising executive Chris Carroll and contracted a new creative agency to help rehash Subway’s public image so they remain leaders in their market.