Snapshots of Food Industry News
Mondelez to launch Cadbury ‘Fuse’
Mondelez International is all set to launch Cadbury Fuse. Its new peanut coated chocolate which will be in direct competition with Mars and Nestle chocolates in the same segment. Cadbury Fuse bar is not totally new and after its launch in the UK in 1996, the bar that sold 40 million pieces in the first week of release, was discontinued 10 years later However, Mondelez feels that the time is right to launch it in India as a premium product and create a whole new segment in this category. The company hopes that just like the Five Star, Cadbury Fuse too will create a name and place for itself here. Fuse is likely to be fist launched through Snapdeal before it hits retail stores.
Report: By 2021 the food services industry set to touch Rs. 4, 98,130 crore
According to a National Restaurant Association of India’s report the food service industry is growing at an annual rate of 10 percent and is likely to reach US $77 billion or Rs. 4, 98,130 crore by 2021. The food services industry could become a key sector of the economy. In 2016 the expected market is likely to grow to Rs. 3,09,110 crore and the unorganised sector will account for 67 per cent share with an estimated size of Rs. 2,07,635 crore.
The unorganised market is likely to fall to 59 per cent by 2021. Out of the organised sector the chain outlets, standalone and restaurants in hotels will grow at 15 per cent. Drivers for the growth are exposure to new cultures and cuisines, increase in eating out, take-away and home delivery and with changing economic patterns the trend is likely to continue. The report also noted that Delhi and Mumbai make-up a total of 22 per cent of the food services market while the 6 mini-metros account for 19 per cent. Besides impacting tax revenues the food service industry will also generate direct employment.
DFRL unveils curd machine that prepares curd even in sub-zero temperatures
The Defence Food Research Laboratory (DFRL has recently unveiled their curd making machinery. The curd machine is patented and was invented by Dr A Ramakrishna, was launched by A K Srivastava, director and vice-chancellor, National Dairy Research Institute (NDRI), Karnal, and chairman, LRC, DFRL. The Mysuru based lab said that the curd machine could be used to prepare curd in a short duration even in sub-zero temperatures. The final product is consistent and has the permissible acidity even though temperatures are low. The machine can be used to prepare about 10 litres of curd in four hours and weighs only 3 kg.
The DFRL has also transferred its technology for creating an aloe-pineapple-based anti-fatigue drink to the Jabalpur-based Arboreal Agro Innovations. The high performance aloe-pineapple drink has been developed by Dr Farhath Khanum (scientist G), Dr T Anand (scientist E), D Singsit, technical officer, Dr A D Semwal (scientist G, head technology transfer) and senior scientists, DFRL. It has now been scientifically proved that the drink actually helps to enhance performance. All documents transfer technology documents have been handed over to Swathi Pandey, CEO Arboreal Agro Innovations Pvt Ltd. and business partner Manish Chouhan by Dr Rakesh Kumar Sharma, director, DFRL
Japan and Korea looking to invest in seafood in India
Japan and Korea are both acknowledged leaders in seafood and are likely to invest in value added seafood products in India. Speaking at the inaugural function of the 20th India International Seafood Show in Vishakappatanam, Union Commerce Minister, Nirmala Sitaraman invited both countries to visit the aquaculture farms in Andhra Pradesh and elsewhere in the country. Indian value added seafood exports have touched R.30,000 crore annually but the central and state government are both keen to increase the volume in this segment .Sitaraman hopes that the two countries will bring technology and best practices and implement those in India in a cost effective manner.
The total outlay of the Merchandise Export from India Scheme is also likely to be increased from Rs.22, 000 crore to Rs.23, 500 crore. The government has also extended the scope of MEIS by bringing some seafood products under its ambit. At present Andhra exports 45 percent of India’s seafood but the state government wants to increase that to 70 percent and make Andhra the aquaculture hub of India. Nirmala Sitaraman is also exploring the idea of setting up a coastal agency for the development of aquaculture and fishery under the Marine Products Exports Development Authority.
Pizza Hut outsources delivery
Yum Restaurant owned, Pizza Hut has more than 350 stores in India, but has now outsourced its delivery riders to a third party. The second largest pizza restaurant has taken this measure to cut costs as western-style food chains are on a downturn. The restaurant chain has reported a 7 percent year–on –year decline in same store sales for the quarter that has just ended In June. Pizza hut has selected a low volume player to cut fixed costs. The restaurant chain’s employees will no longer be delivering pizzas in the top five cities.
Patanjali to have a Rs.1, 600 crore food park in UP
Patanjali Ayurved is likely to announce an investment of Rs.1, 600 crore for setting up an herbal food park in Noida. The Baba Ramdev backed company is to make an announcement around Diwali. Though it is being seen as a ‘poll’ move by the ruling Samajwadi party, Patanjali is quick to say that the UP government is fair and transparent and the food park will help the state to generate jobs. Though there was speculation about the date of the announcement, it seems that matters have been brought forward and land has already been identified near the Yamuna Expressway. CEO Acharya Balkrishna has already held a meeting with Yamuna expressway Industrial Development Authority.
Patanjali has stated that the food park would serve the international as well as the domestic market and will become operational within 12 to 18 months after allotment of land. Since it is close to airports and dry ports in the NCR the food park will manufacture some of Patanjali’s major products. Patanjali is in the process of setting up food parks in Madhya Pradesh, Assam, Maharashtra and Jammu and Kashmir.