Snapshots of Food Industry News
Reliance to Digitise 5 Million Kirana Stores by 2023
Kirana stores in India wish to modernise their tech infrastructure and the entry of Reliance Industries Limited (RIL) would help digitizefive million stores by 2023. Kirana stores are particularly keen to upgrade their merchant point-of-sale (MPoS) technology.The PoS system provides an option of adding in-built discounts and also push offers to entire customer database via SMS.
Some of the key players in the scattered merchant point-of-sale (MPoS) technology are SnapBizz, Nukkad Shops and GoFrugal.The current one-time price point of Rs 50,000 somewhat limits the market to Class A/B stores that have a turnover of Rs 900K+/month. RIL’s current one-time deposit is Rs 3,000 and their reach should help to expand the technology swiftly.RIL can help to expand the current 15,000 digitized stores to over five million stores by 2023. Reliance, with a deep footprint in over 10,000 Reliance Retail outlets pan-India, is working on to create the world’s largest online-to-offline new ecommerce platform.
Fresca Juices to Focus in North India and Increase Revenues
Fresca Juices, one of India’s fastest-growing packaged juice brands, has announced its multipronged growth strategy. Fresca will build on its strong presence in regional markets across North India by strengthening its channel ecosystem, expand the number of retail outlets, and improve product availability. With these in place, they are looking to be well -received by their customers and to increase their pan-India presence by 2022 with the objective of achieving an annual revenue rate of around INR 150 crore by 2020.
Fresca currently has more than 2 lakh outlets in North Indian States alone. The brand has also been adding 700-900 new outlets on a daily basis, increased distribution and retail supply chain. and has made strong headway in the retail market by making its products available even in tier-4 geographies.Fresca Juices was the first company to introduce holographic packs in aseptic packaging in India. It now aims to capture 2% market share in the nectar category and achieve 400% growth in the fruit drink category in aseptic packaging. The brand will also be looking to build on its market presence in North India by capturing 10% of the overall market share in northern states by 2021.
Vahdam Teas brings Its Teas to Travel Retail
Vahdam Teas has launched an exclusive range of premium unblended single-estate teas and gourmet in-house blends for Duty Free outlets. The globally acclaimed Indian tea brand is targeting discerning global travellers passing through Indira Gandhi International Airport, Delhi; Chhatrapati Shivaji International Airport, Mumbai; Rajiv Gandhi International Airport, Hyderabad; Chennai International Airport; and Dabolim International Airport, Goa.
Vahdam Teas became the first and only Indian brand to be a part of Oprah Winfrey’s favourite things list in 2018. The Oprah Chai Tea Trio has also been exclusively launched in Duty-Free outlets. Vahdam Teas offer garden fresh tea leaves to consumers across the globe in the shortest possible time by leveraging technology and cutting out unnecessary middlemen. The tea is procured directly from plantations and tea growers and within days of harvest, the packaged product is shipped directly from source in India to various parts of the world.The brand has registered a growth of more than 200 percent CAGR in the last two years and emerged as the fastest growing tea brand.
Mother’s Recipe Targets Double Growth from its Foodservices Segment
Mother’s Recipe is focusing on expanding its foodservice division (HORECA) nationally and plans to double the growth in the current fiscal.Mother’s Recipe Foodservice has products that are tailor-made for the HORECA segment with pack sizes ranging from 100g to 10kg.The company caters to various segments of foodservice like star hotels, restaurants and caterers, fine dining to QSRs as well as railways and airlines. The company plans to double their business in FY 19-20 and in the next five years are targeting revenues of 20 percent through their Indian business.
Mother’s Recipe has been focusing on building appropriate infrastructure to ensure timely delivery and consistency in taste and a superior quality of products which are essential for this segment. Their focus remains on demand categories like condiment pastes, ready-to-cook, instant mixes and other verticals.Currently, the company has operations across prominent markets like Mumbai, Pune, Ahmedabad, Delhi NCR, Kolkata, Guwahati, Bhubaneshwar, Hyderabad, Chennai and Bangalore with their own distribution network and sales team.
Deepika Padukone Invests in Epigamia
Drums Food International, the parent company of fresh FMCG brand Epigamia and Deepika Padukone have entered a strategic partnership, which includes an investment from the Bollywood actress. This investment is an extension of the recently closed series C round of funding led by Verlinvest, a Belgium-based consumer-focused investment firm, Danone Manifesto Ventures, the venture investment arm of one of the world’s leading food and beverage companies, and DSG Consumer Partners, an Asia focused venture capital) fund.
On the back of this funding Epigamiawill now look to expand into new products and enter new cities. Launched in June 2015, Epigamia is currently available in 20 stock keeping units (SKUs) under Greek yogurt, artisanal curd, snack pack, MishtiDoi and smoothies.The brand retails across approximately 10,000 touch points, including modern trade chains, e-commerce and general trade retailers.
Lub Lub Lebanese Opens Third Outlet in Gurugram
After the success of their second outlet in Gurugram, Brand Lub Lub Lebanese opened their third outlet in the millennial city in the niche 32nd Avenue. The third outlet has opened just within two months of opening of second outlet.Lub Lub Lebanese is founded by Nitin Kapoor, Kumar Saurabh, Kumar Gaurav, Sumit Arora &MasterChef fame Ashish Singh.
Lub Lub Lebanese outlet has been tastefully designed as a small café in a 700sqft space. As the name suggests they serve Lebanese and Mediterranean cuisine which includes the healthiest versions of Shawarma’s and salads.Brand Lub Lub’s next expansion plans include outlets in Delhi, Noida and Chandigarh in 2019.
Havmor Ice Cream Opens Manufacturing Unit at Solapur
Ahmedabad based ice-cream brand Havmorhas launched its new manufacturing plant in Solapur.This will be the company’s third manufacturing unit after Gujarat and Faridabad. This facility will be run by Vaishno Devi Foods Products, who will manufacture only for Havmor Ice-creams. The Solapur plant is part of the company’s expansion strategy so they can have a national presence and push towards a leadership position. They wish to therefore, manufacture products closer to the consumer markets. The Solapur plant will fuel penetration into the Maharashtra and Southern market.