Indian Food Retail Market Could Touch $827 Billion by 2023
A joint study titled Food Value Chain: Partnerships in India, conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and consulting firm TechSci Research India’s has predicted that India’s food retail market could touch $827 billion by 2023, at a compound annual growth rate (CAGR) of 9.23 percent. This is the result of several reforms that are making the sector more competitive and market-oriented. The growth in the food processing industry, in value terms, is expected to be more than in volume terms in the next few years which indicates the increase in prices for Indian commodities across the globe.
The study also found this to be a great opportunity for small-scale farmers, who could associate with the leading exporters to boost their earnings by carrying out either contract farming or increasing the production by using the technologically-advanced equipment. Due to the increasing trend of e-tailing, retailers will pick a one-stop farm from where they can procure everything to save the cost of sourcing it from different places, especially within the state. The partnership between retailers and individuals/companies involved in contract farming will increase. Companies are also focussing on two major factors, which are price control and attracting customers with big offers. The only way to control the price is to source the products directly from manufacturers, which requires the need for world-class logistics services, including storage and warehouse facilities.
Kellogg Initiates Alliance with Haldiram’s
Kellogg, the US-headquartered breakfast cereal giant, is in discussions with iconic home-grown snack maker Haldiram’s for a mega alliance. Kellogg is keen to diversify beyond its core breakfast cereal category and wants to enter the ethnic snacks and sweets segment. The proposed transaction is limited only to Haldiram’s packaged products business and the restaurant business is not part of the present negotiations. Kellogg has shown interest in investing a large amount in Haldiram’s Delhi and Nagpur branches. On the other hand, Haldiram’s wants to scale up their domestic business and improve global presence. Deutsche Bank is advising Haldiram’s on this proposed transaction
Swiggy to Engage 2,000 Women for Food Delivery
Swiggy which is a leading food ordering and the delivery start-up has announced that it would engage about 2,000 women as delivery personnel by March 2019. Swiggy has been training women for opportunities in the growing food delivery sector. By engaging women as delivery personnel across the country, the company is aiming to create an inclusive workforce. Swiggy is identifying ‘safe zones’ for women delivery personnel to operate in and will allow them to complete their deliveries by 6 p.m.Currently, about 60 women are engaged by Swiggy to deliver food across 10 cities, including Ahmedabad, Kochi, Kolkata, Mumbai, Nagpur, and Pune. Overall the company engages around one lakh personnel daily to deliver food across 45 Indian cities it operates in.
Hershey India Launches Sofit Protein Cookies
Hershey India Pvt Ltd has stepped into the premium,‘Better for the You’biscuit segment, with the launch of Sofit Protein Cookies. The cookies will be available in three variants; Mango+almond, Coco+flax seeds, and Raisins+ flax seeds in premium packs. The 100g pack will be priced at Rs.45 while the 150g pack will cost Rs.65. The company has stated that Sofit cookies are different from others in the market because they have the goodness of protein, Omega-3, fibre and vitamins and are made from multi-grains, including wheat, oats, and soy. They are trans-fat-free and contain no maida.
Sofit is a brand market leader in the soy milk category since the last 10 years. It is well regarded among consumers as a brand that provides protein and other nutrients. Sofit Protein Cookies makes it easy and convenient to have the snack that has proteins. All Hershey’s products are made in India, for India, and Sofit cookies are being manufactured at Hershey’s partner facility in Hyderabad. The products will be available pan-India across all large cities in modern trade outlets, e-commerce sites and leading general trade outlets.
Coca-Cola Plans to Launch First Energy Drinks
Coca-Cola is planning to launch two energy drinks under its brand name for the first time. This will make a shift from fizzy sodas. Though the date of the launch is not yet known the energy drinks will be called “Coca-Cola Energy” and “Coca-Cola Energy No Sugar”. These drinks would likely have caffeine from naturally-derived sources and guarana extract. Coca-Cola has not given a date for the launch because it is in arbitration with Monster Beverage over the launch of the energy drinks. Monster says the launch could violate their initial 2015 agreement. Coca-Cola has already submitted the difference in interpretation to an arbitration panel for resolution. This mechanism was agreed on by the Coca-Cola Company and Monster in the original agreements.
Cafe Coffee Day Aims to Increase Stores to 2,500
As part of its expansion plans Café Coffee Day (CCD), the leading café chain, is aiming to increase their network of stores to 2,500 in the next 7 to 8 years. CCD is likely to add around 100 stores every year, focusing on the metro markets but would also tap into opportunities in tier II and tier III places. Consumption of coffee in India is on the rise and several coffee chains like Starbucks, Costa Coffee is competing in the segment at different price points.CCD would focus on ‘affordability’ and ‘value-conscious customers’.CCD targets youth and affordable luxury and they will stay with this positioning and also create offerings for value-conscious customers. The company, which opened its first store in 1996 in Bengaluru, is presently operating 1,740 CCD stores in around 250 cities. They need to add another 800 stores to reach their target. However, as part of its expansion process, the company is planning to close some cafes, while new stores would come to new locations.
ITC to Enhance Dairy Portfolio in a Few Months
ITC Limited has decided to enhance its dairy portfolio by entering the paneer and milkshakes segment. The company had earlier entered the dairy segment with the launch of milk and ghee in select markets. It has launched milk and curd in the Kolkata market and is now planning to launch paneer in the Kolkata market and milkshakes pan India. The company sells ghee in Karnataka, Kerala, Tamil Nadu, and Delhi. The milk, ghee, curd, and paneer will be sold under the Aashirvaad brand but for the milkshakes, there is likely to be a different brand. ITC had initiated the food division in 2002 from Munger in Bihar and they have been selling milk also in Munger, Patna, and Bhagalpur in Bihar and now targeting Kolkata. Initially, the milk is being sourced from Bihar and later will be sourced from local manufacturers in West Bengal for which they are already working on a tie-up. ITC is expecting revenue spend of Rs.400 to Rs.500 crore from the dairy business in the next two years.