Snapshots of Food Industry News
Coffee Day Enterprises expects to grow by 18 percent in 2016
Coffee Café Day Limited which runs the Café Coffee Day chain may have debuted on a weak note in the capital markets but the company hopes to grow at an annual rate of 15 to 18 percent after expanding its coffee business. They expect to make a profit from higher footfalls as coffee consumption is on the rise. The company commands a share of 46 percent and a network of 1,s500 outlets.
Since the past three financial years, the company has continued to make losses because of high operational costs incurred in some of the subsidiaries. The company is not inclined to venture into new areas and would like to concentrate only on coffee. CCDL will increase volumes by opening outlets in high visibility areas and in areas where traffic is high and concentrate on increasing sales in the existing cafes. In 2015 -16 the company plans to double its coffee roasting capacity to 14,000 million tonnes and will also add an in-house tea packaging capacity to improve operating margins.
Punjab dairy farmers to supply milk to Amul
More than 1,000 villages in Punjab will supply milk worth Rs.2000 crore annually to Gujarat Cooperative Milk Marketing Federation owner of brand Amul. About 100 dairy farmers from each village will supply 2000 liters of milk daily. Amul would also set up processing plants in Khamano and Bathinda while they already have one in Batala. They are also planning to place modern milk testing, weighted and bulk milk cooler systems in each village with an investment of Rs.15 lakh by each village. Punjab produces 2.70crore liters of milk and out of which 1.60crore liters is surplus. Of the surplus, 50 percent goes to the organized sector of which 15 percent is obtained by Verka cooperative. The remaining is procured by companies who are unable to pay a good price and so farmers are not encouraged to carry out dairy farming on a bigger scale.
Amul has a turnover of Rs.2, 4000 crores and is owned by 36 lakh farmers. Farmers not only produce milk here, they process and market products themselves so the benefit of value addition goes back to farmers. Amul would now like to go out of the state to provide benefit to farmers from other states. The Punjab venture has materialized after MD R. S. Sodhi met with Union Food Processing Minister Harsimrat Kaur Badal and Punjab Deputy Chief Minister Sukhbir Singh Badal last year.
Punjab to receive investments worth Rs.8, 000 crores in food processing
The government is making concerted efforts to facilitate big investments in the food processing industry and therefore have announced tax sops for setting up food processing units. Punjab received 55 proposals worth Rs.8, 000crore after this announcement. The MoU was signed in the presence of Union Food Processing Minister Harsimrat Kaur Badal. The government would like to make the state a food processing hub of the country and hence has also announced a conducive and transparent regulatory environment.
Speaking on the occasion the Union Food Processing Minister said that Punjab gets an edge over other states because it already has a pre-existing ecosystem for the Agro and Food processing sector. The state is looking to enhance the capabilities by adopting modern food processing technologies and by building links across the value chain. Badal said the Green Revolution began in Punjab and even today it is blessed with good quality soil that ensures high fertility and abundant natural resources that yield high-quality agricultural produce. The agriculture sector is responsible for boosting India’s economy by 21per cent of GSDP as compared to all India figures of 14 percent.
Hyderabad to get a taste of Burger King
Hyderabad saw the opening of the first Burger King store. The American burger chain now operates 32 restaurants across Mumbai and Navi Mumbai, Delhi NCR, Bengaluru, Pune, Chandigarh, Ludhiana, and Jalandhar. With the opening of the Hyderabad outlet, the brand has shown its intention to spread its footprint across south India. Burger King is one of the largest global chains of hamburger fast food restaurants.
Burger King has not carried any of its products from America but has created a dedicated menu for Indian customers. The idea is to be innovative and create a distinct experience and taste that customers can relate to. Hi-Fries in three variants Cheesy, Italian and Chicken is an innovative product they have recently introduced. The menu was created after testing it on 3000 consumers to ensure quality across price points. Another interesting idea they have is that customers can upgrade any burger to a combo including fries and fountain drink at just Rs.50 across the menu.
Hindustan Coca-Cola Beverages takes over Georgia business
Coca-Cola’s largest bottling partner in India, Hindustan Coca-Cola Beverages will take over the running of Georgia Tea & Coffee business from Coca-Cola India Pvt Ltd. Hindustan Coca-Cola Beverages Pvt Ltd will take over the manufacturing and distribution of Georgia and increase their product portfolio and offer both hot and cold products to end consumers. Georgia is the tea and coffee offering from The Coca-Cola Company. HCCB has made this move with the intention to expand business in the coming years and their strong belief in Georgia Tea & Coffee.
The company is confident that the aromatic and smooth tasting coffee will appeal to Indian consumers. They will work to expand Georgia’s reach by leveraging their strong distribution network. Georgia is a vending machine concept and offers premium hot and cold beverages – including fresh brew coffee, hot premix flavored tea, coffee, iced tea and cold coffee. They have already deployed 5000 vending machines with McDonald’s being their largest customer. An increase in Georgia’s market share would see the acceleration in the company’s growth. Currently, the Georgia pre-mix is being manufactured at the Hershey India in Bhopal which is the co-packer facility of HCCB.
Johnny Rockets opens the first express restaurant in India
Johnny Rockets, a Californian burger chain, had its first restaurant at Select CityWalk Mall in Delhi 2013. They also have restaurants in four other different locations in Delhi-NCR including DLF Promenade and Ambience Mall. They have now opened the first Express restaurant in Cyber Hub Gurgaon which is the city’s well-known lifestyle destination. The restaurant will be able to accommodate 46 guests in its indoor and outdoor seating areas and will offer Johnny Rockets’ quality menu items.
Johnny Rockets is a fresh concept for the Indian market that has been well-received by the community. The burger chain’s world-famous cooked-to-order burgers, sandwiches, salads and hand-spun shakes have popularised the concept. India’s quick-service industry is expected to double to almost $4.61 billion by 2020. Keeping this in mind Johnny Rockets plan to have at least 20 restaurants across the country.
Thai Five Star Chicken to set up 150 more outlets in India
Thai brand, Five Star Chicken has already opened 330 outlets across India in Bangalore, Karnataka, Tamil Nadu, Kerala, Telangana, Andhra Pradesh, Goa, Pune, and Mumbai. In India, Five Star Chicken had launched its first outlet in November 2012 in Bangalore. As part of their expansion plans, they will open another 150 more outlets in the coming two years. The brand was founded in the year 1985 in Thailand and comes from a Thai multi-national conglomerate – CP Foods which has over $13 billion worth of sales in agro and food industry globally. The popular Asian brand has a presence in Thailand, Myanmar, Cambodia, Vietnam, Laos, Malaysia, China, Bangladesh and India and has more than 7000 outlets in these nine countries.
Jubilant appoints S Murugan Narayanaswamy senior vice-president of marketing for Domino’s
Jubilant FoodWorks which operates the Domino’s Pizzas brand in India has appointed S Murugan Narayanaswamy as new vice-president and marketing director for the India operations. Narayanaswamy replaces Harneet Singh Rajpal who had quit in August. Narayanaswamy has earlier worked for Kansai Nerolac, Britannia, Danone Waters and Philips.