Snapshots of Food Industry News
Trading in food products gets 100 percent FDI
The government has allowed 100 percent foreign direct investment (FDI) in trading of food products. FDI will be allowed through the government approval route in food products manufactured and produced in India. The trading will be permitted through e-commerce platform as well. FDI of 100 percent had been announced earlier in the Union budget for this year as it was considered the right move to give a boost to the food processing sector.
The food processing sector has been able to garner FDI to the tune of USD 5.285.66 million between 2012 and 2015. However, the Food Processing Minister, Harsimrat Kaur Badal, has remarked that FDI in food processing could cross USD 1 billion with the reforms in FDI as well as the streamlining of food regulations in the country by the Apex Food Regulator, FSSAI. The government is going all out to double the level of processing of fruits and vegetables which presently stands at 10 percent. It aims to strengthen the entire food processing chain so there is no fluctuation in the prices of vegetables like tomatoes.
Mother Dairy’s new cow milk variant in Delhi
Mother Dairy has recently launched a new variant of cow’s milk in Delhi. The new cow milk is light, digestive and nutritious and is aimed at children ages 1 to 7 years. The milk is hygienic, homogenized contains 4 percent fat and 9.5 percent solid not fat and before packaging the milk goes through several quality checks. This variant of milk is prized at Rs.40 per litre. The company also plans to launch the new variant in other metros – Mumbai, Hyderabad and Chennai.
There is a great demand for cow milk on the whole and Mother Dairy supplies 50 to 60 thousand litres of cow milk per day in Delhi. They would like to increase sales to -one lakh litres in the next fortnight or so. Though milk is in high demand, Mother Dairy has no intention of increasing the price of any of its products. However, they have increased the price of milk they are paying to farmers. Says that Mother Dairy that they can absorb the farmer price increase without passing the burden to consumers.
KFC launches ‘watt a box’ meal with Blink Digital
KFC has launched the ‘watt a box’ meal through a tie-up with digital agency Blink Digital. In March KFC had launched their 5-in-1meal Box but with ‘Watt a Box” meal they have gone a step further and added value for the customer. The box will have a 5-in-1 meal as well as built in power bank through which consumers will be able to charge their mobile phones. The company says that they have added an ‘element of utility’ in the box for consumers. These days everyone spends a lot of time on their smartphones and the phone battery running out is common. With a utility like this available with a meal consumers will be able to recharge their phones immediately while enjoying the meal. This is being seen as a ploy by the fast food company to push sales as all QRS companies are recording growth only in single digits. Presently ‘watt a box’ is available only in Delhi and Mumbai.
Nestle India plants to introduce health and nutrition products
FMCG major, Nestle India is mulling over the idea of expanding its health and nutrition products in India. At present the company markets two proprietary products ‘Resource’ and ‘Peptamen’ through doctors and hospitals. These speciality products bring metabolic balance and provide energy, protein and nutrition. Nestle India is waiting for some more regulatory clarity in foods for special medical needs before they introduce some other products from their global portfolio into the Indian market.
The parent company has a health and nutrition products business called ‘Nestle Health Science’. On a global scale the business is big but in India Nestle Health Service is very small even though there is now a demand for food that works as medicine. One of the health and nutrition products the company is developing is a food for people with signs of Alzheimer’s. This product aims to prolong the onset of the disease as much as possible. The growth in the health and nutrition market in India can be exponential but the company needs to have more clarity on regulatory framework before they take a step in this direction in India.
FCEL enters snack market with new products
Future Consumer Enterprises Limited (FCEL), a part of Future Group has launched ‘Nimbu Chataka’ and ‘Crispy Strips.’ The two new products are being introduced under the brand Tasty Treat and will mark the company’s entry into the namkeen and savoury snacks category. ‘Nimbu Chataka’ as the name suggests is a crunch made with potato flakes combined with the tangy flavour of lemon. Consumers can give it a twist by adding onions, green chillies and a sprinkle of coriander to the snacks. The new products will cost Rs.35 for 140gm pack and will be available through Future Group stores like Big Bazaar, Easyday, Nilgiris and Star Bazaar.
The company is planning to adopt a new marketing strategy for these products that will involve store displays, tasting for consumer and engaging consumer/shoppers through various in-store activities. There would be deals given to the loyalty shoppers. They will advertise through social media too. They also have plans to target the health conscious consumers and are planning to launch healthy oils, seeds and dried fruits under their Karmiq brand. An innovation in this direction is their ‘5 Badam Pack’ that will contain 30 mini packs of five almonds that makes it convenient to have one pack of five almonds daily in the month.
Amul registers a growth of 187 per cent in 6 years
At its 42nd Annual General Meeting, the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) has said that with a CARG of 19.2 percent its Amul brand of milk and dairy products have registered a quantum growth of 187% in the last six years. Amul has also registered a turnover of Rs.23, 004 crore during 2015-16. Dairy farming across the world has seen a decline in farm-gate prices only the farmers associated with Amul have seen growth in milk procurement by as much as 17 percent because of the production of value added packs for consumers. The price paid to the farmer has increased by almost 90 percent which has acted like an incentive for dairy farming. Besides this the new concept of commercial, scientific, cooperative dairy farming is also helping to attract the next generation of dairy farmers to remain in the business and this will give rise to ‘Make in India’ initiate in rural India.
The company has achieved its targeted expansion plan for milk processing which stands at 280 lakh litre per day. Besides commissioning and expansion in the capacity of new dairy plants in Faridabad, Rohtak, Amreli and Kutch the company has also set up two new high capacity packaging lines for PET bottles, a feed plant at Kapdivav village of central Gujarat and a state-of-the-art, cheese plant at Palanpur and expansion of their existing cheese factory at Khatraj. It is no wonder then that the International Farm Comparison Network (IFCN) data shows the company has moved upwards in global rankings and is now the ranked as the 13th largest dairy organisation in the world.
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