Snapshots of Food Industry News This Week
Nestle: Bigger Budget for Advertising and New Products on the Anvil
Nestle India is looking to increase their product portfolio which also includes new products under the Maggie banner. They are also allocating a larger advertising budget to drive growth in other products that the company manufactures. Nestle says that they are working on some new ideas for Maggie while they also have new products lined up for other categories of foods. Products, other than instant noodles, sold under the Maggie brand will continue to be marketed.
Nestle says that they are a company that always has a large budget for R&D. Since Maggie has suffered a setback the company feels that it needs to concentrate on other product areas. Nestle India also has a good presence in dairy, confectionery, chocolates as well as coffee and beverages. Besides this they are also looking to increase their engagements with stakeholders, communities and also with the authorities.
Tata Coffee Hopes to Create a Name as a Premium Speciality Coffee Brand
Trends in the coffee industry are changing and the speciality coffee market is growing. Coffee has become distinctive and is now categorised as specialty, premium, differentiated, single origin and farm-branded coffee. Tata Coffee is therefore aiming to transform itself from a commodity player to a premium specialty coffee company. The company feels that they have an opportunity to market differentiated premium coffee which generally caters to needs of roasters like Starbucks.
Tata Coffee has been climbing the value chain in both instant and coffee plantation business. They have 19 coffee estates in the Western Ghats from where they produce Arabica and Robusta coffee. Premium differentiated coffee has a distinct taste and appeal which coffee lovers in India as well as globally have come to appreciate. Out of the 150 million bags of coffee produced globally premium differentiated coffee amounts to 30% of the world coffee trade. Tata Coffee’s Annual Report for 2014-15 also points them in the direction of becoming specialty and differentiated coffee players.
ITC LTD. to Expand into the Dairy Sector
FMGC major ITC Ltd. has an impressive portfolio in the packaged foods business. This portfolio has seen good growth in the last 10 years. Now they hope to enter the dairy sector in a big way. They feel that they have a good presence in all three major sectors of the economy; consumer goods, agri-business and services and hotels. So they wish to foray into the growing dairy product market. The company has 250 manufacturing units either self-owned or outsourced. To this number they will be adding two integrated consumer goods plants in Maharashtra and West Bengal, a food manufacturing and logistics facility in Punjab and a packaged food manufacturing unit in West Bengal.
US Frozen Dessert, Cold Stone Creamery to Enter India
US based Kahala brand has signed a master franchise agreement with Tablez Food Company, to bring its frozen dessert brand to India and Sri Lanka. Tablez Food Company is the food and beverage arm of Lulu International Group. Tablez already operates other brands like Peppermill Indian Restaurant, Bloomsbury’s, Galito’s and London Dairy across India, Sri Lanka and the UAE. Tablez food will invest Rs.75-85 crore and will open 40 Cold Stone Creamery outlets in the country in the next five years.
The first outlet will be opened at the Lulu Mall, Kochi in November, where Tablez already has a Bloomsbury’s cafe and bakery. This will be followed by outlets in Bengaluru and other tier one cities in India and Sri Lanka. Tablez Foods is impressed with the consumer spending on ice-cream in India whereas Kahala Brands is looking towards the one billion strong Indian population to propel them towards future growth. Talbez has also signed up recently with Famous Dave’s, a barbecue concept in the US and Genghis Grill, an Asian grill house also based in the United States.
Food Processing could be Star of ‘Make in India’ Programme
Commerce Secretary Amitabh Kant said that the food processing industry had the potential to grow at the rate of 40 to 50% annually if India were to grow its traditional food items under global standardisation and mechanise them. He was speaking at the recent ‘Make in India’ conclave. The conclave was organised by National Institute of Food technology entrepreneurship and Management (NIFTEM) under the aegis of the Food Processing Ministry. He felt that the time was just right for food processing in India and so it had the potential to become the star of Make in India programme. He also said that Indian food products have a good chance to reach global markets provided that we keep in mind global standards and values.
Speaking at the same conclave the Food Processing Secretary, Ranglal Jamuda added that the food processing capacity as present is at a nascent stage and a huge quantity of food produced by farmers is wasted at various levels. The Vice Chancellor of NIFTEM, Ajit Kumar said that the institute was planning to launch a ‘Make in India’ project for standardisation and hygienic mass production of traditional Indian foods.
Position of FSSAI Chairman Filled
Mr. Ashish Bahuguna, former agriculture secretary in the Government of India, has been appointed as the new chairman of the Food Safety and Standards Authority of India. The position had not been filled since January 2015 after Mr. K Chandramouli had completed his tenure of three years. Mr. Bhanu Pratap Sharma, secretary health and family welfare, had been officiating as Chairman temporarily.
Global Rice Bran Oil Conference in Mumbai
Solvent Extractors’ Association of India, an association of vegetable oil industry and trade will be hosting the two – day Global Rice Bran Oil Conference on 7th and 8th August 2015. The event will be inaugurated by chief minister of Maharashtra Devendra Fadnavis. This is the second such global event, the first of which was organised in China. Globally, almost15 lakh tonne of rice bran oil is produced out and India produces about 9.5 lakh tonne per annum which is used as cooking oil, blended oil and vanaspati.
Delegates, comprising of manufacturers, scientists, doctors and nutritionists, from the China, Japan, Thailand, Vietnam, India, and other countries will discuss the prospect of rice bran oil as healthy oil that also has nutritional benefits. Other issues that will be discussed are patronisation of the oil by medical fraternity, regulatory issues and quality control. Research in India has found the oil to be heart friendly as it reduces bad cholesterol. Made from brown layer of rice, it is the only cooking medium which has an ideal SFA/MUFA/PUFA ratio and EFA ratio which is closest to the what has been recommended by World Health Organisation (WHO).