Snapshots of Food Industry News
Report suggests 100% juice market to grow in India
Tetra Pak has just released a report that suggest that despite the economic slowdown the hundred percent juice market is likely to offer growth opportunities. Though there is some debate about sugar, there are new growth hotspots and established markets are stabilising. The report has found that about 40% consumers include 100% juices in their daily diet and for a lot many it is significant part of their diet. On a global scale, besides China, Brazil, Malaysia, in India consumers have begun to choose 100 percent juices over non-healthy options.
Tetra Pak South Asia have stated that they will continue to support Indian juice brands so they can develop products based on evolving consumer and category needs. The growth opportunity is likely to come from healthy and out of home consumable juice products. Vegetable based nutritional products, natural and hundred percent juices are becoming popular with millennial consumers. The market has therefore already responded to these consumer preferences by offering innovative juices in these categories.
Mondelez to invest in a global research centre to come up in Thane
Mondelez International is likely to invest Rs.100 crore in setting up a development and quality technical centre in Thane. Mondelez makes Cadbury chocolates and Bournvita in India and therefore the research centre in Thane is likely to focus on chocolates. The Research and Quality Development centre (RDQ) is part of Mondelez’s plan to develop nine RDQ centres in the next two years. The company says that India is a priority market for them and they have been successful in developing a “best of local and best of global” formula for India which has accelerated growth. Mondelez has selected the India centre to also service global markets. It will have 150 scientists and specialists who will develop technology platforms for chocolates and beverages. This is Mondelez’s second big investment in India after the Rs.1, 270 crore investment it made in a Greenfield plant in Andhra Pradesh which is now operational.
Imly to open 12 new outlets in 12 months
Varun Puri owned Imly is likely to open 12 new outlets in the coming 12 months. Varun Puri is supposedly one of India’s youngest restaurateurs and is said to have established his own brand Viva Hospitality. The brand owns unique concepts like Molecule, Lights Camera Action –Air Bar and now an all vegetarian concept Imly. Imly serves street foods from across India. Last year Imly had a turnover of Rs.50 to 60 crore as he believes in providing customers with a ‘wow’ experience but at affordable prices. Presently they have three outlets of Imly but are planning to scale up. Not new to the restaurant business the dynamic restaurateur started his career with Oberoi’s and then worked for Lite Bite Foods before opening his own company- Viva Hospitality.
Besides the three Imly outlets the brand also runs Molecule- Air bar in Gurugram and Lights Camera Action in Delhi’s Rajouri Garden. Molecule – Air Bar is based on German-USA war theme and has a fine air bar, molecular kitchen and offers freshly brewed beers. Lights Camera Action is Bollywood-themed restaurant that serves global cuisine based on molecular gastronomy. With Imly he is looking to modernize street food by presenting is it a hygienic and sophisticated way. Besides locational advantage, following new trends and international concepts and creating dishes at affordable prices are some of the important aspects that have led to Imly’s success.
Hardcastle to expand McDonald’s in India
Hardcastle Restaurants, the franchisee of McDonald’s in West and South India are likely to invest Rs.750 crore in the next five years to double the number of outlets in the region. The franchisee is planning to expand in key existing markets but will also look to opening outlets in two to three smaller cities to take the number from 240 outlets to 500. A new McDonald’s outlet costs the company an average of Rs.2 to Rs.2.50 crores. Presently the company has enough cash reserves and they could evaluate and look for other financial options after two years. Around that time they will also look to double their McCafe outlets to 200 from the present 100. The company says that after Coffee Café Day they have the largest number of coffee shops in India. Besides opening new outlets Hardcastle Restaurants is also building a number of drive-through McDonald’s outlets in the region.
Swiggy raises US$ 15 million in fourth round of funding
Swiggy, the food ordering and delivery platform has raised USD 15 million from Bessemer Venture Partners and existing partners. Swiggy is likely to use the funds for growth with technology upgrades, delivery efficiency and improved customer experience. They are also likely to increase their spread of restaurants. In January 2016 the company had raised US $35 million from old and new investors like New York-based Harmony Partners and Singapore-based RB. Swiggy believes that India’s concept of food ordering has changed from one of convenience to having a good food experience. Swiggy is working to ensure that customers have top-of-the mind recall when ordering foods. Swiggy has recently also reorganised its senior leadership to propel growth. They will also consolidate and focus on capturing a larger share of the market.
MOFPI to formulate special packages to increase export
The Ministry of Food Processing Industry (MOFPI) is willing to formulate a special package for the food processing sector to increase exports just like the Textile Ministry has done. A meeting was recently held between the Commerce Secretary, Agriculture Secretary and the Secretary, Ministry of Food Processing Industries to take this issue forward. The Trade Promotion Council of India (TPCI) gave a detailed presentation during the meeting. It focused on value added products that have the potential for higher exports to developing countries and least developed countries (LDCs).
People and Positions
Jubilant Foodworks CEO Ajay Kaul steps down
Jubilant FoodWorks has informed BSE that their Chief Executive Officer, Ajay Kaul has resigned from his position and will not be with the company beyond March 2017. Kaul is an IITian as well as XLRI alumnus. In April the company had also switched the roles between Dev Amritesh, President and Chief Operating Officer (COO), Dunkin’ Donuts India and Tarun Bhasin, President and COO, Domino’s Pizza India, to invigorate the business. Despite this change Jubilant announced a drop in its year-on-year same-store sales growth to below the street estimates of 4 percent. The company’s operating profit was down 14 per cent, while net profit declined 31 per cent to Rs.19 crore in the June quarter.