Snapshots of Food Industry News
Food Processing Ministry keen to operationalize all 42 sanctioned food parks in 30 months
Food Processing Minister, Harsimrat Kaur Badal has stated that the government is keeping to operationalize all the 42 sanctioned mega food parks in the coming 30 months. The total investment in these food parks will amount to more than Rs.12, 000crore as about Rs.125crore is required to establish one food park. Presently five such food parks are operational and an additional four parks will be operational in the coming year.
The government is keen to operationalize all 42 food parks so that agricultural production can be processed. Even though India is one of the largest producers of food globally only 10 percent of the food is processed. Establishment of food parks will reduce wastage which in turn will prevent food inflation. A mega food park provides various facilities to food processors, farmers, retailers, exporters and generates income for farmers and employment for unemployed. With the announcement of 100 percent FDI, through the FIPB route in marketing food products produced and manufactured in India, will help to create infrastructure.
Tea Board: Tea output drops in January
According to the Tea Board, the production of tea in January fell by 16.3 percent as compared to the production in the previous year. The production dropped by more than 17 million kilograms as there was a drop in plucking in the southern states of India. In the south alone there was a drop in production of 15.2 percent as compared to a year ago. The unpredictable weather and delayed rains and increased pests are also likely to cause a production downturn in the high-value first flush tea in North West Bengal and sub-Himalayan region. The labor strike at Kanan Devan Hill Plantations last year already put pressure on tea suppliers and this season frost in the Nilgiris has added a further blow. Small tea growers feel that this year the first flush crop is also likely to show a downward trend. India is the second largest producer of CTC grade (crush tear curl) and exports this variety to Pakistan, Egypt, and the UK while traditional tea is sold to Iraq, Iran and Russia.
PepsiCo has a new mini can for the ‘aspirational class’
Summer is drawing near and PepsiCo has launched their ‘aspirational class’ mini can to boost sales. Since the cans offer an attractive price it will pull in consumers with its good aspirational value. Priced at just Rs.15 a mini can, it will be available in 40 cities across India. Presently 30 percent of Pepsi sales are from returnable glass bottles and 70 percent from PET bottles. With the launch of the aspirational value cans, PepsiCo is hoping to see sales in cans turn to double figures. Though the cans are small they could become bigger but the company feels that they are “relevant now at the relevant price.”
Another innovative move by the beverages and snack Company is to introduce the global PepsiMoji campaign in India. They have developed 38 PepsiMoji signs for India that will reflect moods and emotions on Pepsi cans and PET bottles. Eight of these designs are typically Indian and reflect a traditional turban man, lunch Dabba, popular foods like samosas and dosa and musical instruments like tabla and celebrities Virat Kohli and Ranbir Kapoor. The Emojis, which the youth can identify with, is likely to draw in the younger generation who use them all the time in digital messaging and web pages. The Company feels that these ideograms and smileys will attract consumers enough to grab a Pepsi. PepsiCo also plans to launch vending machines on emoji signs and will begin with Terminal 3 Delhi Airport.
Subway opens the first restaurant in Gwalior
Quick service restaurant chain, Subway, known for its fresh sandwiches and salads, opened its first restaurant in Gwalior and the ninth in Madhya Pradesh. Subway’s franchise business model coupled with its globally appealing menu offers an attractive investment opportunity for entrepreneurs. Training to franchisees is provided through Subway’s world headquarters in Milford, Connecticut, USA and the five regional offices and various country offices across the globe. Subway already has more than 44,000 restaurants in 111 countries.
The new Subway restaurant is conveniently located in Din Dayal City Mall, a popular landmark in Gwalior. This is in keeping with expanding Subway’s footprint in metro and non-metro locations including tier- II and III cities. The low fat vegetarian and non-vegetarian sandwiches and salad options are popular. Innovative menu ideas like ‘Sub of the Day’ and the snack ‘SubWrap’ which has a great price point have added to Subway’s appeal. Subway celebrated its 50th anniversary in August 2015 presently operates 551 restaurants in India spread across more than 70 cities.
Broaster Chicken to launch 40 outlets in 2016
Broaster Chicken is the first brand to be launched under Yellow Tie Hospitality Management LLP. Yellow Tie Hospitality has been created with the objective of helping global food brands and Indian food start-ups find growth and sustainable scalability. With Yellow Tie backing them, Broaster Chicken is planning to launch 40 outlets in 2016 and by 2018 the brand has a target to open 150 outlets. In India, the chicken brand will also offer vegetarian options like gunpowder, stuffed paratha wraps, paneer bhurji pav and beverages like bulbul soda. Broaster Chicken plans to expand through multiple business models like ‘Star’ (kiosk format), ‘More’ (QSR format) and ‘Pint’ (casual dine in a format with alcohol) and will work on the USP ‘back to good old days.” The global brand is an acknowledged name in the USA for 60 years and now operates in 36 countries.
Yellow Tie Hospitality works with start-ups and also explores partnerships and operational efficiency in order to manage a food business better. The services provided by Yellow Tie Hospitality include franchise partnership, menu standardization, building business processes, customer engagement and retention, housekeeping and hygiene and kitchen sanitization besides others. They provide training to start-ups and also brush-up training to keep up to date with trends. It also plans to provide marketing and Ad support for the grand launch of stores in a clustered manner.