IndiaNews - Giract Vol 5... · 2019-01-09 · p.28 Tzinga - Mango-Strawberry, Lemon Mint, Tropical...

IndiaNews

FOOD & FOOD INGREDIENTS REVIEW

August/September 2012 CONTENTS

p.1 Editorial

Food Industry Overview

p.2 Reactions to Govt's nod to 51% FDI in

Multi-brand retail mixed

p.4 Adequate, timely water supply to farmers

essential to boost production

Research by Oxfam sees spike in food

price get worse with climate change

p.6 Soy protein in active nutrition the topic of

first Fi India conference

p.7 Eight mantras with which CavinKare's

Ranganathan has taken on HUL, P&G

p.9 Compulsory labelling for GM food packs

from Jan. 2013. Growing retail sector

main attraction for global players:

Assocham

Wheat exports by private traders may be

banned

p.10 Ban oilmeal exports, says Gujarat milk

Co-op

p.11 FMCG biggies HUL, Godrej, Dabur

report higher sales growth numbers than

estimated by Nielsen

Food Ingredients News

p.12 Kamani launches Riso rice bran oil; to be

made available in Maharashtra

p.13 DuPont India expands Nutrition business,

offers food ingredient solutions

p.14 Novozymes develops fungus for

production of malic acid from renewables

Turmeric futures climb over 2% on lower

rains

Pepper futures down 0.71% on profit-

booking

p.15 Cardamom gains flavour on buying

p.16 Edible oil stockists stay away from buying

Central govt releases additional 4 lakh t of

non-levy sugar for August.

p.17 Karnataka sowing impacted by drought;

poor output could up milk, food costs

Beverages News

p.17 Experts at IDA seminar urge dairy

companies to invest in cheese market

p.19 Britannia launches flavored yogurt in

three variants at INR 15 per pack

p.20 Mother Dairy revises milk prices by 4% in

Delhi-NCR after 1 year

Parag Milk launches Go, zero preservative

UHT product, in two variants

p.21 CavinKare's Pure+ UHT Milk launched

with new 'long- lasting' pouch pack

p.22 Innovative flavors in yogurts and their

popularity in India

p.25 NDRI scientists develop technology for

low-cal lassi with fizz of cola

p.26 Yogurt chain Red Mango to step up India

presence

p.27 Dharampal Satyapal Group launches

Yomil 1-min milk-based powdered

beverage

Mixing alcohol with energy drinks

potentially harmful, says Researcher

p.28 Tzinga - Mango-Strawberry, Lemon Mint,

Tropical Trip – comes to Mumbai

p.29 Nestle India: Concerns over volumes

p.31 PepsiCo's profit falls 21% in 2Q

AVT Natural Products to start subsidiary

in London for value-added tea

(Table of Contents continued on next page)

IndiaNews

FOOD & FOOD INGREDIENTS REVIEW

August/September 2012 CONTENTS

Processed Foods

p.32 FSSAI seeks immediate compliance to

guidelines on imported food samples

p.33 MCCIA to host seminar on new ventures

in food, agri processing sectors

p.34 MTR Foods launched food mixes India

wide

Wrigley launches Doublemint Mints

designed for long-lasting freshness

p.35 Tata Chemicals introduces packaged iron

fortified iodised salt in K'taka

p.36 Re-inventing desserts through artisanal

gelato

p.38 Ad. body upholds complaint; popular

brand cannot call itself ice cream

Consumers in tier 2, 3 markets take a big

bite of pizza

Bio Fuel

p.39 Ethanol In India

Supply Interview

p.39 Supply Interview with P D Navkar

Bio Chem Private Limited

New Product Development

p.40 Kurkure Puffcorn

Glossary

mio '000 000

bio '000 000 000

crore '0 000 000

k '000

lakh '00 000

t tons

kt '000 tons

lpd litres per day

klpd kilo litres per day

tpa tons per annum

tpd tons per day

tph tons per hour

tpm tons per month

cpd cases per day

JV Joint Venture

M&A Merger & Acquisition

pa per annum

Sensex Stock exchange index

IndiaNews is published every 2 months by:

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Aug/Sept 2012 www.giract.com Page | 1

IndiaNews FOOD & FOOD INGREDIENTS REVIEW

Editorial

The industrial production capacity of micro, small and medium enterprises (MSME) in Tamil Nadu

has declined by over 40% in the past two years alone due to repetitive power crises and, if the trend

continues, small industries will face a bleak future.

With foreign direct investment (FDI) in retail, India's USD 450 bio retailing industry is about to

undergo a big change. Lifting and increasing caps on FDI in single and multi brand retail has drawn

widespread debates and protest across the political and technological quarters with most being vocal

about their concerns, misgivings and confidence in the reform that is sure to change the customer's

mindset and his/her weekend shopping.

Entrepreneurship is not about capital infusion, but rather gut instincts and brilliant ideas with a liberal

touch of luck in the present competitive climate. The rivalry for market share amplifies with global

players setting up retail chains across the country.

Ecologically sensible ways of adequate and appropriate supply of water for crops are necessary for

renewed and prolonged sustainability of Indian agriculture. Neglect of near term problems will lead to

an exponential growth of unavailability and price in long term extreme weather events. The global

drought and insufficient supply of grains will lead to a global tightening of supply-demand balance in

the 2012/13 marketing season. As a direct consequence, the Indian government might also ban wheat

exports by private traders. The drought has not spared the milk co-operatives either, with dairy farmers

reeling under rising feed and fodder prices.

The hustle and bustle of city life has led to an unhealthy eating pattern of high fats and sugars, thus the

increasing calls for a switch to a more protein and fibre rich diet in active nutrition. An overall healthy

living can be brought about by new businesses that offer sustainable, science-based ingredients and

advanced microbial diagnostic solutions to provide safer, healthier, and more nutritious food. Their

application by local food companies will also help reduce wastage and prolong shelf life.

Innovations for a greener environment involve production of food additives and enhancers from

renewable sources. The future prospect of milk products depends on investment in cost efficient

cheese production on the back of fast growing demand. Rising health consciousness and the search for

a guilt free dessert have led, for example, to the popularity of frozen yogurts and emergence of unique

and inventive flavors.

The food and agri processing sector needs sufficient finance to expand and diversify its new ventures

using the opportunities in food parks under the government's policies. The ice cream sector has been

provided a strong infusion in the form of artisanal gelatos in conventional and exotic flavors. Gelatos

are seen as a healthier alternative to traditional ice creams and appeal to the aspirations of a refined

clientele.

We look forward to continuing to bring you a quick glance of interesting news from the food, drink

and food ingredients industries in India in every two months.

http://economictimes.indiatimes.com/topic/foreign%20direct%20investment

http://economictimes.indiatimes.com/topic/FDI




Reactions to Govt's nod to 51% FDI in multi-brand retail mixed

The Cabinet's go-ahead to allowing 51% foreign

direct investment (FDI) in multi-brand retail has

elicited mixed responses from farmers’ and

traders' associations and a member of the board of

directors of one of India's leading medical centers.

Ajay Jakhar, chairman, Bharat Krishak Samaj

(BKS), said, "We approve of FDI in multi-brand

retail, but are not particularly thrilled, because

we'd hoped for better conditions to help farmers

become a part of India's growth story”.

Shobana Kamineni, executive director - special

initiatives, Apollo Hospitals Group, said, "I am

delighted that after a year of inertia the

government has taken this bold decision. It will

benefit the consumer most in terms of better price

and superior offerings”.

"Current retail chains such as Apollo, which

dominates pharma retail and is profitable, has

options of partnering with global players to

unlock shareholder value and/or expand even

faster and/or explore new retail formats”, she said.

Economic growth

According to Sandip Somany, president, PHD

Chamber of Commerce and Industry, this is a big-

bang reform undertaken by the government and is

likely to push the real gross domestic product

(GDP) up to a growth trajectory of about 8% in

the next fiscal.

"FDI in multi-brand retail is seen as a very

important reform to revive the economy, and it

will ease supply-side pressures and mitigate

inflation and specially benefit the small and

medium enterprises by way of greater market

access and higher profit margins”, he said.

(Continued in next column)

Reactions to Govt's nod to 51% FDI in multi-brand retail mixed (Contd) The real GDP growth is expected to remain above

6% in the current fiscal year (2011-12) too, vis-a-

vis improvement in the industry production

scenario in the second half of the current fiscal.

Somany stated, "Foreign direct investment is a

lead economic component which indicates the

investment climate in the economy and helps in

building investors' confidence domestically and

internationally”. PHD Chamber said foreign

players' entry will bring in funds as well as

expertise. "FDI infuses technological advancement,

enhances production possibilities and induces

capital flow, which helps in maintaining general

macro economic stability in the economy”, he

further added.

The provision to allow foreign retailers to hold

51% stake in the multi-brand retail sector along

with the enhanced cap on the single brand

segment to 100% would help in reducing

post harvest losses and minimising wastage.

This would provide state-of-the-art infrastructure

right from post-harvest, farm gate linkages,

packaging, and cold storages. Reforms in the

multi-brand retail are needed to mitigate the

demand-supply gap.

Economy faces supply-side constraints not only

because of the lower yield of farm output, but also

because of its delivery from the farm gate to the

consumers, which involves several mediators. The

price of the product rises because of cascading

impact of higher profit margin at each stage.

Further, FDI in retail sector could lower costs and

increase efficiency because of large scale

economies. (Continued on next page)




Reactions to Govt's nod to 51% FDI in multi-brand retail mixed (Contd)

Small production units are not able to sell their

products in the high demand segments because of

lack of accessibility and high transaction costs.

This will link the micro and small enterprises with

the larger markets, which will boost production.

Besides retailers will procure directly from the

farmers, providing them higher prices for their

produce compared to the present situation where

several middlemen are engaged in the process.

The PHD Chamber also welcomes the move to

allow 49% FDI in the aviation sector with the

view of the ongoing crisis in the aviation sector.

The entry of foreign players will not only bring

funds but expertise as well.

"The recent reform to subside the staggering

subsidy burden of the government by hiking

diesel prices by INR 5/litre could go a long way in

improving the fiscal health of the economy”, said

Somany.

BUVM dismayed

Vijay Prakash Jain, secretary general, Bharatiya

Udyog Vyapar Mandal (BUVM), offered a

contrasting take. He said, "BUVM, one of the

leading trade bodies in India, strongly condemns

the government's decision”.

"In fact, Shyam Bihari Mishra, national president,

BUVM (who has, in fact, served as a cabinet

minister himself), Manohar Lal Kumar, chairman,

BUVM and I feel the move is extremely

disappointing”, said Jain.

The trio said the government's approval to FDI in

multi-brand retail could force about 5 crore

traders to shut shop (and lose their livelihoods),

adding that the Centre is at the mercy of corporate

houses, at whose behest this discriminatory step

has been taken. (Continued in next column)


Mishra said, "It is a shameful decision to permit

the sale of 70% of foreign goods in India.

Mahatma Gandhi boycotted and burnt clothes

which made overseas to gain independence. FDI

in retail would wipe out independent small-time

traders and manufacturers”.

He stated, "The East India Company ruled the

country for centuries. Now the government is

inviting all multi-national corporations (MNCs) to

control and exploit all sections of the society,

including farmers and consumers. The trading

community would never accept FDI retail stores”.

Kumar said, "Allowing FDI in retail would lead to

direct supply chain from China to our families,

thus leading to the closing of myriad small

manufacturing units employing over six crore

people. Undoubtedly, a large number of traders

will be rendered jobless by FDI in multi-brand

retail”.

"The government had taken a similar decision last

year. But it was revoked because of nationwide

protests. At that point, both the Prime Minister

and the Commerce Minister had assured us that

all groups of traders would be taken into

confidence before a final call is taken”, Jain said.

He added, "However, the government didn't do

so, and went ahead with the decision. This makes

one fact very clear - the government is a mere

puppet in the hands of national corporate houses

and MNCs, and the common man doesn't seem to

be affected in any way”.

Dharmendra Kumar, director, India FDI Watch,

said, "The government's decision is a blow to

parliamentary democracy”, alleging that the

government has backstabbed the nation after

promising in Parliament that it wouldn't take the

decision unless a consensus is reached.

(Contniued on next page)





He added, "India is kneeling down under pressure

from US and European governments and their

industry lobbyists as it still has no binding

commitment on multi-brand retail services in

multilateral, regional or bilateral agreements”.

Terming FDI in retail a betrayal to Parliament and

the people of India, BUVM announced Bharat

Vyapar Bandh on September 20, 2012, and said

that the protests could intensify if the government

does not roll back its decision immediately.

(fnbnews.com 17 September 2012)

Adequate, timely water supply to farmers essential to boost production Union Minister of Agriculture and Food

Processing Industries Sharad Pawar said that one

cannot hope to increase farm production and

productivity if the challenge to provide adequate

and timely water to farmers is not addressed.

Addressing the dignitaries at the second edition of

the National Conclave on Micro-irrigation in

New Delhi, he said he recently toured various

drought-affected states and felt the urgency of

developing plans and missions for preserving

every drop of water available with us.

He said this year the country’s agriculture

produce exports touched a record level of

USD 37 bio with a fairly diverse basket of

agricultural commodities. However in the process,

the water tables have touched critical levels, and

the ecological sustainability of these production

systems is being questioned. (Continued in next

column)

Adequate, timely water supply to farmers essential to boost production (Contd)

Speaking on the occasion, Ashish Bahuguna,

secretary, agriculture and cooperation said,

“Water is increasingly becoming a scarce

commodity and there is a need for adopting water

conservation technologies in a more

comprehensive fashion”. Dwelling on the

micro irrigation systems, he, however lamented

that large parts of the country are still untouched

by it.

Rajiv Mundhra, president, Indian Chamber of

Commerce, and his team were also present at the

conclave, as were senior officials from the

agriculture ministry.


Research by Oxfam sees spike in food price get worse with climate change

New research findings by international agency

Oxfam indicate that the full impact of climate

change on future food prices is being

underestimated.

The report—Extreme Weather, Extreme Prices—

highlights for the first time how extreme weather

events such as droughts and floods could drive up

future food prices. Previous research only tends to

consider gradual impacts, such as increasing

temperatures and changing rainfall patterns.

A nationwide drought in India and extensive

flooding across Southeast Asia could see the

world market price of rice increase by 22%. This

could see domestic spikes of up to 43% on top of

longer term price rises in rice importing countries

such as Nigeria, Africa’s most populous country.

(Continued on next page)

http://fnbnews.com/article/detnews.asp?articleid=32526&sectionid=23






Research by Oxfam sees spike in food price get worse with climate change (Contd) Oxfam’s research seeks to go beyond this and

look at the impact of extreme weather scenarios

on food prices in 2030. The research warns that

by then the world could be even more vulnerable

to the kind of drought happening today in the US,

with dependence on US exports of wheat and

maize predicted to rise and climate change

increasing the likelihood of extreme droughts in

North America.

The research also finds that even under a

conservative scenario, another US drought in

2030 could raise the price of maize by as much as

140% over and above the average price of food in

2030, which would likely be double of today’s

prices.

Drought and flooding in southern Africa could

increase the consumer price of maize and other

coarse grains by as much as 120%. Price spikes of

this magnitude today would mean the cost of a

25kg bag of corn meal – a staple which feeds poor

families across Africa for about two weeks –

would rocket from around USD 18 to USD 40.

Oxfam’s climate change policy adviser Tim Gore

said that such price hikes would be a massive

blow to the world’s poorest who spend up to 75%

of their income on food.

“Rising temperatures and changing rainfall stall

harvests and cause steady price rises. But extreme

weather events can wipe out entire harvests and

trigger dramatic food price spikes. The world

needs to wake up to the drastic consequences

facing our food system of climate inaction”, Gore

said. The research also warns that climate shocks

in Sub-Saharan Africa are likely to have an

increasingly dramatic impact in 2030 as 95% of

grains such as maize; millet and sorghum that are

consumed in sub-Saharan Africa could come from

the region itself.


FAO Food Price Index averaged 213 points in Aug; remains unchanged from July

The FAO Food Price Index averaged 213 points

in August 2012, unchanged from July. Last

month, the index had spiked 6% after three

months of decline. Presenting the index at

FAO headquarters in Rome, director-general

José Graziano da Silva said that the international

community can and should move to calm markets

further.

The new index showed international prices of

cereals, oils and fats changed little in August but

sugar prices fell sharply, compensating for rising

meat and dairy prices.

Although still high, the FAO Index currently

stands 25 points below its peak of 238 points in

February 2011 and 18 points below its

August 2011 level. The index is a measure of

monthly change in international prices of a basket

of food commodities. Meanwhile, the Cereal Price

Index averaged 260 points in August, the same as

in July, with some increases in wheat and rice

offsetting a slight weakening in maize.

Deteriorating crop prospects for maize in the

United States and wheat in the Russian Federation

initially underpinned export quotations, but prices

eased towards the end of the month following

heavy rains in areas hardest hit by drought in the

United States and the announcement that the

Russian Federation would not impose export

restrictions. Renewed import demand sustained

international rice quotations. (Continued on next

page)




FAO Food Price Index averaged 213 points in Aug; remains unchanged from July (Contd)

Supply-demand balance

Latest forecasts also confirm a significant

tightening of global grain supply-demand balance

in the 2012/13 marketing season. FAO's Cereal

Supply and Demand Brief, published together

with the Food Price Index, said global cereal

production will not be sufficient to fully cover

expected utilisation in 2012/13, pointing to a

larger drawdown of global cereal stocks than

earlier anticipated.

FAO's forecast for world cereal production in

2012 stood at 2 295 mio t - down 52 mio t or

2.2% in 2011. This forecast is some 4% below the

estimate in FAO's previous report in July, largely

reflecting the worsening of maize production

prospects in the United States because of the

widespread and severe drought.

Global cereal utilisation in 2012/13 is forecast at

2 317 mio t, down marginally from the previous

season and 2% below the 10-year trend. High

grain prices are seen as curbing demand,

especially for production of fuel ethanol from

maize.

Coarse grains

World production of coarse grains - maize, barley,

sorghum, millet, rye and oats - is projected at

1 148 mio t, down 17 mio t, or 1.5%, on 2011.

The anticipated fall mainly reflects a smaller

maize crop, which is expected to decline to

864 mio t in 2012, 20 mio t less than in 2011.


Soy protein in active nutrition the topic of first Fi India conference

The Fi India 2012 conference was held on

September 5, 2012, inviting many key speakers

from across the globe.

The opening remarks were given by

Lakshmi Narasimhan, regional business manager,

South Asia, Novozymes, who explained how

important it was to maximise the quality and

value through enzymes and innovations to take

place in the sector.

The first speaker, Tony Andrew, senior director,

specialty sales, Asia-Pacific, Solae, threw some

light on soy protein in active nutrition and shaping

the consumers. He said that it was essential for us

to concentrate more on proteins and fibre than

carbohydrates looking at the current heath issues

across the globe.

Replacing ingredients with natural ones in

flavours, colours and preservatives were

thoroughly explained by Sumant Naik, chief

executive officer, ITC Colours, at the conference.

He stressed the importance of using permitted

colours and enforcement of stringent laws.

The third and the last interesting topic that was

discussed was the ingredients perspective in new

product development (NPD). Antoine Barre,

confectionery market manager, Roquette, France,

highlighted that the challenges and the

opportunities in the confectionery products

keeping in mind about the health of the

consumers.

He explained that the today the lifestyle was

moving towards the high fat, high sugar, low fibre

and protein product snacking leading to various

health issues like obesity. (Continued on next

page)




Soy protein in active nutrition the topic of first Fi India conference (Contd)

It is possible to reconcile a healthy way of eating

with good nutrition according to WHO

recommendations adding that it is important to

reduce around 25-30% of sugar for the food

products from each of the segments like

confectionery, beverage, ice cream, chocolates

and baked foods today

Henri Gillard, baking market manager, Roquette,

France, said it was important to include a lot of

fibre in our diet for a healthier lifestyle. WHO

Recommendation for fibre was 30g per day and

this needed supplementation in many countries.

Lastly, a question-and-answer session was

conducted and a token of appreciation was given

by UBM to all the speakers of the day. It

highlighted health ingredients picking up slowly

in India, along with other nations such as the

Middle-East and Europe. (fnbnews.com

06 September 2012)

Eight mantras with which CavinKare's Ranganathan has taken on HUL, P&G ''There are no money problems, only idea

problems”, Chinni Krishnan Ranganathan says, in

between bites of his omlette. We are sitting in the

restaurant of a Mumbai hotel and Ranganathan is

regaling us with stories from his past.


Eight mantras with which CavinKare's Ranganathan has taken on HUL, P&G (Contd) Like the one about being a backbencher through

school and college ("Don't underestimate us back-

benchers”, he says with a grin) or how CavinKare

grew right under the noses of Hindustan Levers

and P&G and continues to be a thorn in their side.

Despite being at a fraction of the size and scale of

those giants, for the last three decades, ideas are

what have sustained the company he founded in

Cuddalore, Tamil Nadu, in the face of

innumerable crises.

Ranganathan walked away from Velvet Shampoo,

which was controlled by his brothers after his

entrepreneur father's demise. An associate

remembers how despite being devastated by the

loss of his father, 19-year old Ranganathan kept

his emotions tightly under control. It is the same

stoicism that helped him transform Beauty

Cosmetics, the company he founded in 1983 with

one shampoo called Chik, into a INR 1 100 crore

firm called CavinKare.

And now, Ranganathan radiates self-assurance as

he talks about fuelling future growth with an

INR 500 crore private equity infusion, for which

the company will start talks in the next couple of

months. So how did the boy from Cuddalore

become a low-cost warrior? With liberal doses of

consumer insight, business savvy and by

following these 8 rules:

1) GOOD IDEAS + GUT INSTINCT = ONE

UNBEATABLE COMBINATION

After breaking away from his brothers,

Ranganathan toyed with various business ideas,

but finally decided to compete with his brothers

and manufacture shampoo. (Continued on next

page)




Eight mantras with which CavinKare's Ranganathan has taken on HUL, P&G (Contd)

By his own admission, Chik, the brand he named

after his father Chinni Krishnan, was a me-too

product. "Velvet had a flavour called 'Lime', so I

called mine 'Lemon'. Similarly, 'Henna' was called

'Heena' and 'Doctor' was called 'Tonic', he laughs.

But when he went to retailers to show them his

products, they called him a copycat. "I then

realised I didn't understand the true meaning of

differentiation. It took me some time to learn it

from retailers and distributors. And that was the

starting point of our growth”. Ranganathan then

'invested disproportionately' in imported

fragrances that helped him shake the 'me-too' tag.

The idea to launch a 50p Chik sachet, in a market

full of INR 1 sachets, was pure gut feel. The early

adoption was driven not just by the sheer

affordability, but the fact that many Indian women

washed their hair once a week — and a single-

dose low cost product was perfect for it. Not only

did the 50p shampoo do well, the Re 1 shampoo

did even better. Today the Chik brand is worth

INR 250 crore.

Over the years, CK added new products to its

kitty, including some that worked and others that

didn't. Former Hindustan Levers executive

director Dalip Sehgal, who worked for the FMCG

giant between 1982 and 2007, acknowledges that

Ranganathan possessed strong insights into the

mind of the consumer.

"The Fairever fairness cream used saffron and

milk, considered by South Indian consumers as

skin whitening products”. He adds, "But it didn't

work in the North because those consumers didn't

feel the same way”. (Continued in next column)

Eight mantras with which CavinKare's Ranganathan has taken on HUL, P&G (Contd)

In recent times, analysts have commented on the

company's inability to focus on its core brands

and innovate. Ranganathan admits that CK was

'caught in the sachet game for a long time'. But

CavinKare has changed tack again and is now

looking at market gaps where it can achieve easier

growth with higher margins. It is also investing

about 2.5% of its revenues in research and

product development.

2) LUCK IS A GENUINE BUSINESS REALITY

There was also a liberal dose of luck involved. All

said and done, making a dent in Velvet's

dominance was no easy task. In fact, Velvet was

doing so well it had become the generic name for

'sachet shampoo'.

Ranganathan then thought up a scheme — buyers

could exchange five empty shampoo sachets and

get one Chik sachet free. His sales staff told him

this would never work and the company would

have to shut down. Ranganathan recalls, "Chik

had barely half a percent of the shampoo market.

And sales had started to dwindle. We needed a

radical idea to get people to try our product." The

great surprise wasn't that the idea worked; the

reason was the shocker.

A sales representative who met a retailer reported

back to Ranganathan saying that collecting empty

sachets and exchanging them for Chik was getting

so profitable, he actually started feeling guilty! So

he bought more Chik sachets and would hand

them to buyers who asked for Velvet. As this

picked up — and also, as people began

appreciating the new fragrances — the market

exploded. "From being present in one out of 10

outlets, we were now present in nine. That's when

I knew we were in business”, says Ranganathan.

(articles.economictimes.indiatimes.com

31 August 2012)

http://articles.economictimes.indiatimes.com/2012-08-31/news/33521585_1_chinni-krishnan-ranganathan-sachet-business-ideas










Compulsory labelling for GM food packs from Jan. 2013

Packs containing genetically modified food will

come with GM label from January 1, 2013.

“The government has made it mandatory to

mention on every package, containing GM food,

at the top of its principal display, the words ‘GM’,

Food and Consumer Affairs Minister K.V.

Thomas said in a written reply to the Lok Sabha

on Tuesday.

The rule would be applicable with effect from

January 1, 2013, he added.

Observing that the level of awareness about GM

foods among people in the country is very low,

Mr. Thomas said: “The reason for this is possibly

that GM is a totally new invention and has not

been widely experimented”. (thehindu.com

28 August 2012)

Growing retail sector main attraction for global players: Assocham

Growing retail and wholesale trading backed by

huge domestic market is the main attraction for

global retail chains to set up stores in the country,

industry chamber Assocham said

"Trading is growing and will continue to grow

because our main strength is our 120 crore people.

They provide a huge market”, Assocham

President Rajkumar Dhoot said.


Growing retail sector main attraction for global players: Assocham (Contd)

The retail sector seems to be largely immune to

the slowdown, unlike in the west where retailers

depend so much on the high end consumer

durables, he said.

"It was no surprise that there is so much pressure

on the government from the global investors to

open the Indian retailing sector”, Dhoot added.

Quoting the RBI data, the chamber said the credit

growth in the trading sector expanded by 26% in

June as compared to the previous fiscal.

"While the wholesale trading absorbed credit

expansion of 30%, the retailers' borrowing

increased by 21%", it said.

The Cabinet had decided on November 24, 2011

to allow 51% FDI in multi-brand retail, but the

same could not be implemented in the face of

strong opposition from UPA allies including

Trinamool Congress, and several state

governments.

(articles.economictimes.indiatimes.com

31 August 2012)

Wheat exports by private traders may be banned The government may ban wheat exports by

private traders under open general licence despite

having enough stocks for two years due to

concerns about high global prices and the

drought-like situation back home that has

triggered a 20% rise in wheat futures in a month.

"There are chances that private traders may divert

all the available wheat in the market -- released at

subsidised rates for roller millers and ration shops

-- for exports to cash in on the global rally in

prices”, a food ministry offical said. (Continued

on next page)

http://www.thehindu.com/news/national/article3831770.ece






Wheat exports by private traders may be banned (Contd)

''We fear that it will create a shortage of wheat

resulting in a surge in domestic prices. We may

ban wheat exports under open general licence

(OGL)”, the food ministry official said. India has

exported over 1.8 mio t of wheat under OGL since

it lifted a four-year ban on exports in September

2011. Export prices have risen to USD 290 –

USD 310/t from around USD 220/t around three

months ago.

Wheat futures prices, ruling at around INR 1 470

a quintal, have risen by over 20% last month. The

government now wants to ship wheat only from

central stocks as it is sitting on huge stockpiles.

The food ministry official said the government

wants to be the monopoly supplier of wheat from

India at a time global supplies are tight and prices

are rising amid dry weather conditions in other

major producing countries. "It makes business

sense for the government to enter the market

when prices are high, almost matching the

expenses the Food Corporation of India bears on

its procurement. That means there will be less

outflow of subsidy on shipping the wheat”, the

food ministry official said.

"Prospects of exports have improved owing to

above-average temperatures in most of the major

maize growing regions of the US, Russia, Ukraine

and Kazakhstan. The market will not see a ban on

private traders while allowing exports by state

trading firms in a positive manner”, said an

official of a multinational grain company.

Anil Monga, managing director,

Emmsons International, which has exported

0.6 mio t wheat, said the company doesn't expect

any ban from the government.

"The country has ample stocks and we don't

foresee the government banning exports by

private traders”. (Continued in next column)

Wheat exports by private traders may be banned (Contd)

We are asking the government to take the average

price of the tender and make it open for everyone

to export rather than going for tenders and other

formalities”, he said.

Global companies such as Toepfer, Starcom,

Cargill, Louis Dreyfus and Glencore have bid

USD 260-USD 302 a ton for wheat - much above

the base price of USD 228 fixed by the Cabinet

Committee on Economic Affairs (CCEA), which

had last month allowed exports of two mio t of

wheat for this financial year from over 57.3 mio t

of wheat lying in the central stock.

(economictimes.indiatimes.com 07 August 2012)

Ban oilmeal exports, says Gujarat milk co-op

The Gujarat Co-operative Milk Marketing

Federation (GCMMF), which owns the Amul

brand, wants an immediate ban on oil meal

exports to ensure adequate domestic supplies for

dairy farmers reeling under the impact of rising

feed and fodder prices, as drought hits kharif

crops in parts of the country.

In the past month, livestock feed prices have

shoot up by about 35%, while green fodder prices

have almost doubled, resulting in increased milk

production costs for the farmers. (Continued on

next page)

http://economictimes.indiatimes.com/markets/commodities/wheat-exports-by-private-traders-may-be-banned/articleshow/15382466.cms








Ban oilmeal exports, says Gujarat milk co-op (Contd)

The total oil meal exports, including soybean,

rapeseed, groundnut, castor and rice bran extracts,

grew 9% in volume terms for the year-ended

March 2012. The Government has recently

decided to waive duty on imports of oil meal to

boost supplies.

GCMMF has hiked the procurement prices by

13 to 14% in the current financial year, Mr.Sodhi

said, but clarified that there were no immediate

plans to raise product prices for consumers.

In the last financial year, the average procurement

price paid by GCMMF and its member unions to

the farmers stood at INR 465 a kg of fat, an

increase of USD 16. The total payout by the

co operative to its milk producers in 2011-12

stood at INR 10 160 crore, an 18% increase over

last year’s INR 8 345 crore.

He maintained that prevailing drought in parts of

Gujarat has not hit milk production and that the

average daily procurement has gone up by about

16%. Farmers tend to sell more milk, which

becomes the only source of income when crops

are hit by poor rains, he said. The average daily

milk procurement stood at 10.30 mio kg in

2011-12, a growth of 6% over previous year.

(thehindubusinessline.com 06 August 2012)

FMCG biggies HUL, Godrej, Dabur report higher sales growth numbers than estimated by Nielsen

Market research firm Nielsen reports disagreably

lower growth rates in the FMCG sector. In the

April-June quarter of 2012, sales growth in value

terms of some of India's biggest consumer goods

companies is higher than Nielsen's growth

estimate for the overall FMCG market, raising

concerns over the world's largest research firm's

accuracy in India. (Continued in next column)

FMCG biggies HUL, Godrej, Dabur report higher sales growth numbers than estimated by Nielsen (Contd) Seven listed domestic companies, which control

over 70% of the FMCG market, have posted an

average value sales growth of 19.28% in the first

quarter of fiscal 2013 while Nielsen’s figure for

this period is 17.6%. Even in categories such as

soaps, juices, oral care and hair oils, leading

players, which contribute between 60 and 75% to

each segment, have posted much higher volume

growth than what Nielsen's data suggests. When

contacted, Nielsen did not validate the numbers

that ET has obtained from the research firm's

FMCG clients.

For instance, Godrej Consumer Products Ltd saw

a 24% spurt in soap volumes even as Nielsen

estimates growth for the overall segment at a

sombre 5% in the April-June quarter.

"There is a bit of under-reporting by Nielsen. The

issue lies with its statistical method”, says Adi

Godrej, chairman of Godrej Group.

"We generally use Nielsen's data for market share

as there isn't any other option for us. However, for

category growth, we rely on our sales numbers

and listed companies' performance", adds

Vineet Agrawal, president at Wipro Consumer

Care & Lighting, which saw a 15% jump in

volume growth in soaps in the first quarter of the

fiscal year.

It is a similar story in toothpastes, a category that

grew 9% in volumes according to Nielsen;

however, this doesn't tally with internal sales data

of Colgate and Hindustan Unilever Ltd (HUL),

which together command roughly 80% of the

market. Colgate saw a 13% rise in volume

growth. (Continued on next page)

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article3734702.ece?homepage=true&ref=wl_home





Food Industry Overview/


FMCG biggies HUL, Godrej, Dabur report higher sales growth numbers than estimated by Nielsen (Contd) No Stranger to Controversy

Regarding packaged juices, Nielsen says the

category grew 18-19% in the April-June quarter

in value terms and that Dabur grew 24%. But

Dabur's quarterly sales numbers show its juice

business grew 34%. Dabur leads the packaged

juices market with the Real brand, which accounts

for more than half of all juices sold.

Dabur CEO Sunil Duggal says: "Our quarterly

growth numbers are generally ahead of what

Nielsen reports. So we prefer to study Nielsen

numbers as a longer-term trend — over a

12 month period — because that evens out

errors”. Nielsen counters that the retail audit

cannot be compared with sales numbers that

companies report.


Kamani launches Riso rice bran oil; to be made available in Maharashtra

Kamani Oil Industries Pvt. Ltd has launched rice

bran oil with its new brand Riso.

Rice bran oil also known as the 'the world's

healthiest' edible oil or the 'healthy heart oil' is

unique cooking as an oil which is a value-added

product produced from rice bran, a by-product of

the rice milling industry. (Continued in next

column)

Kamani launches Riso rice bran oil; to be made available in Maharashtra (Contd) The new product will cater to the western market

of India and will spread its wings to other states

over a period of time.

Rajiv Behere, deputy GM, Kamani Oils, stated,

“The product launched in Mumbai will be initially

made available in Maharashtra. The company

intends to focus on Maharashtra and slowly

spread in the western region with Gujarat

followed my Rajasthan and so on. The company

would be investing around INR 20 crore for the

next three years on this brand”.

There are three different fatty acids found in oils

that are generally consumed---Saturated Fatty

Acids (SAFA), Monounsaturated Fatty Acids

(MUFA) and Polyunsaturated Fatty Acids PUFA),

which are required by our body in the right

proportion. Any imbalance of these proportions in

the cooking oil can lead to a rise in unsuitable

cholesterol levels.

The AHA (American Heart Association) and

WHO (World Health Organisation) recommend

an oil which is rich in SAFA: MUFA: PUFA in

proportion of 1:1.5:1 and the nearest naturally

occurring oil is rice bran oil, therefore making it

the preferred oil for achieving desired cholesterol

levels and preventing heart and other related

ailments.

“Rice bran oil is rich in oryzanol, a natural

antioxidant which helps to reduce cholesterol and

tryglicerides. This is based on numerous studies

conducted internationally and in India. We are

proud to present Riso, our new rice bran oil with

benefits that do wonders for one’s family’s health

while they enjoy home cooked food. Riso is

produced by the latest process of physical refining

and is completely bland and odourless, bringing

out the natural taste and flavour of the food”,

stated Behere. (Continued on next page)

http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-hul-godrej-dabur-report-higher-sales-growth-numbers-than-estimated-by-nielsen/articleshow/15411473.cms








Kamani launches Riso rice bran oil; to be made available in Maharashtra (Contd)

“Riso rice bran oil is produced by the latest

process of physical refining and is completely

bland. It helps retain the natural taste and flavour

of the food cooked in it. Apart from reduced

calories and lighter tasting food, one gets

enhanced flavour and palatability. Whether to fry,

sauté, bake, and use it as salad dressing, Riso rice

bran oil is perfect for all kinds of cooking. It has a

very high smoke point and hence prevents

breakdown at high temperatures and extends shelf

life of the food cooked in it. Being MUFA-rich,

the oil can be re-used without losing its nutritive

value”, he added.

“Adolescent age group invites health problems

due to incorrect eating habits. It is essential to

know the characteristics of the fats and oils used

for the preparation since they are the responsible

factors for the health disturbance. A good quality

of vegetable oil will provide the necessary

nutrient requirement to the consumer and reduce

the chance of health-related diseases. Recent

survey indicates that an individual family

consumes junk food once a week. With nutritional

awareness among parent, cook, and chef at

restaurant and hotels one can reduce the risk of

health-related problems originated from fats and

oil and rice bran oil is the best suited as healthy

oil”, says Dr Meena Mehta, department of food

science and nutrition, SNDT University.


DuPont India expands Nutrition business, offers food ingredient solutions

DuPont India on Wednesday announced that it is

expanding its Nutrition & Health business and

will offer food ingredient solutions and

technologies that enhance food nutrition, quality

and safety. (Continued in next column)

DuPont India expands Nutrition business offers food ingredient solutions (Contd) The new business addresses the challenges in

food by offering a wide range of sustainable,

science-based ingredients and advanced microbial

diagnostic solutions to provide safer, healthier and

more nutritious food. In India, the primary focus

will be to provide science-powered solutions in

local food formats that will help improve food

nutrition and safety, help reduce wastage, and

enhance shelf life. The company’s functional

ingredients will benefit consumers and help meet

their needs in the areas of child and family

nutrition, overall healthy living, weight

management and food safety & quality. DuPont

India will set up a local food application

development centre to work collaboratively with

food companies to develop customised solutions

and bring them to market faster.

Craig Binetti, president, global DuPont Nutrition

& Health business, said, “India is a key market for

us and we are committed to serving customers. As

Indian consumers increasingly make buying

decisions and choices based on food safety and

quality, DuPont will work with local food

companies to provide ingredients technologies

and solutions to make better quality, safer and

more nutritious food”.

“DuPont is focusing on food and agriculture as

key growth segments in India. With urbanisation,

increasing income and a growing middle-class,

there is an increasing need for high-nutrition,

better quality and convenience-based food. By

expanding the Nutrition & Health business,

DuPont India is well positioned to collaborate

with leading Indian food companies and bring

science-powered innovations to the Indian

consumers”, said Rajeev Vaidya, president, south

Asia, DuPont.











Novozymes develops fungus for production of malic acid from renewables Novozymes, the company known for

bioinnovation, has developed a fungus that

enables production of malic acid from renewable

raw materials instead of oil. Malic acid is used as

a flavour enhancer in the food industry and can be

converted into other chemical derivatives used for

a variety of plastic, polymer and resin products.

Novozymes is now out-licensing the technology

to partners who are interested in producing and

commercialising malic acid and derivatives made

from renewable raw materials instead of oil.

“This is our first biochemical building block and a

major milestone towards building a biochemical

industry together with partners”, says

Novozymes’ executive VP Thomas Videbæk.

“Oil-based products are all around us, and

biochemicals produced from renewable raw

materials meet a global need for sustainable

alternatives. This need is growing due to concerns

about crude oil scarcity and price fluctuations”.

The global market for malic acid is around

60,000 t per year with a value of USD 130 mio

and a growth rate of 4% per year. The market for

BDO and derivatives is around 1.4 mio t with a

value of USD 2.8 bio and a growth rate of 3% per

year. (fnbnews 20 August 2012)

Turmeric futures climb over 2% on lower rains


Turmeric futures climb over 2% on lower rains (Contd) Turmeric prices went up by over 2% to

INR 6 480/quintal in futures trade today as

participants indulged in creating speculative

positions amid reports of slow progress of sowing

due to deficient rains.

At the National Commodity and Derivatives

Exchange, turmeric for delivery in September

traded INR 128, or 2.02%, higher at

INR 6 440/quintal, with an open interest of 21 920

lots.

Likewise, the spice for delivery in August traded

120 INR, or 2%, higher at INR 6 100/quintal, with

an open interest of 2 520 lots.

Analysts said the rise in turmeric futures was

mostly due to speculative positions created by

participants, driven by reports of a decline in the

area under cultivation and lower rains in key

growing regions. Besides, strong overseas

demand also influenced turmeric prices at futures

trade.

Meanwhile, the total area under cultivation in

India, the world's biggest producer and exporter of

the yellow spice, is likely to fall 30% this season.

Turmeric is planted between June and August.


Pepper futures down 0.71% on profit-booking Pepper prices declined by 0.71% to 44 185

INR/quintal in futures trade today as speculators

indulged in booking profits amid sluggish export

demand at prevailing higher prices.

However, thin supplies in the spot markets and

subdued rains in major producing regions, which

may hurt output, restricted the fall. (Continued on

next column)

http://economictimes.indiatimes.com/markets/commodities/turmeric-futures-climb-over-2-pc-on-lower-rains/articleshow/15373837.cms








Pepper futures down 0.71 pc on profit-booking (Contd) At the National Commodity and Derivatives

Exchange, pepper for delivery in October fell by

INR 315 or 0.71%, to INR 44 185/quintal, with an

open interest of 569 lots. Similarly, the spice for

delivery in September lost INR 185 or 0.42%, to

INR 43 750/quintal, with an open interest of

26 379 lots.

Analysts said emergence of profit-booking by

speculators after recent gains and reports of lower

exports as Indian product failed to attract buyers

at current levels in overseas markets mainly led to

a fall in pepper futures prices.

However, subdued supplies are in the market due

to deficient rains in key growing regions, which

could hurt output, capped losses.


Cardamom gains flavour on buying

The cardamom market continued to move up last

week on domestic buying support despite increase

in arrivals at the auctions held in Kerala and

Tamil Nadu. Upcountry buyers were actively

covering on fear of a sharp fall in the next crop

due to the drought conditions prevailing in the

growing areas, trade sources said.

The individual auction average has shown a

significant rise and crossed the INR 850 a kg level

for four days from Tuesday last and declined to

INR 834.03 on Sunday. (Continued in next

column)

Cardamom gains flavour on buying (Contd) Last week, nearly 30-50% of the arrivals were

from the new picking, trade sources said. Those

holding stocks were liquidating as the prices are

ruling at moderately higher levels. Export buying

was negligible and estimated to be below 10 t and

large quantity of cardamom might have been

shipped out well before Ramzan when the prices

were ruling at lower levels.

Sources in Bodinayakannur said bold 8mm good

colour capsule was fetching INR 1 250-1 300 a

kg. However, volume of high quality material was

limited. Officially, the new cardamom season has

begun from August 1. Thus, total arrivals during

the current season from Aug 1-5, was at 280 tons

and that in the corresponding period previous

season stood at 300 t. Sales were at 275 t and

289 t respectively. Total arrivals last season from

Aug 1, 2011 to 31 July 2012 stood at an all-time

high of 21 103 t and sales at 20 350 t whereas

previous season arrivals stood at 13 374 t and

13 054 t respectively.

Thus, last season witnessed bumper crop and

stocks of which are still held by rich

growers/stockists, the trader claimed. Arrivals

stood at 51 t as against 70 t in the previous week

and the entire quantity was sold out, Punnoose

said. Maximum price was at INR 1 182.50/kg and

the minimum was INR 501.50. The individual

auction average increased to around INR 835 a kg

from INR 800 the previous Sunday, he said.

Weighted average price as on Aug 5, 2012 was at

INR 853.1 as against INR 636.8 on the same date

last year, according to market sources. Prices of

graded varieties (in INR/kg): AGEB 1 125- 1 135;

AGB 845-855; AGS 825-835 and

AGS 1: 805 to 815.


http://economictimes.indiatimes.com/markets/commodities/pepper-futures-down-0-71-pc-on-profit-booking/articleshow/15372641.cms











Edible oil stockists stay away from buying

In edible oil markets, imported palmolein and

soyabean refined oil dropped by INR 4 and INR 9

for 10-kg each on Monday tracking weak futures

and need-based demand in the physical market.

Groundnut oil, Sunflower oil, rapeseed oil and

cotton refined oil ruled steady. Stockists preferred

to book profit on recent price hike and kept away

from fresh buying. Volume was very thin and

isolated.

During the day about 150-200 t of the palmolein

was resale traded cautiously in the range of

INR 618-621 for ready use. Deficit rain will push

up bullish sentiment further in coming festival

days. New season is expected to be delayed by a

month. Domestic refineries have reduced their

rates by INR 5 in line with weak sentiment

abroad.

Liberty was quoting palmolein at INR 625-626

for August and INR 628-629 for September,

Super palmolein at INR 665-667, Soy oil INR 748

and Sunflower refined oil INR 770. Ruchi quoted

palmolein at INR 623 for August and INR 626 for

September. Soy refined oil was INR 741 for

August and INR 744 for September. Sunflower

refined oil was INR 767 for August and INR 770

for September. Allana’s rate for palmolein was Rs

629 for 1-15 September and super INR 670.

Vaibhavi quoted palmolein at INR 625 for August

and INR 628 for September.


Edible oil stockists stay away from buying (Contd) In Saurashtra – Rajkot, Groundnut oil was up by

INR 10 to INR 1 880 for Telia tin and INR 1 230

(INR 1 220) for loose-10kg. On National Board of

Trade – Indore, Soy refined oil August futures

was lower at INR 780 (INR 785.60) while

September was at INR 787.50 (INR 795.50).

Malaysia's crude palm oil September contracts

settled lower at MYR 2 898 (MYR 2 907),

October at MYR 2 918 (MYR 2 918) and

November at MYR 2 934 (MYR 2 935)/ t.

The Bombay Commodity Exchange spot rates

were (INR/10 kg): groundnut oil 1 220 (1 220),

soya refined oil 741 (750), sunflower exp. ref. 705

(705), sunflower ref. 770 (770), rapeseed ref. oil

890 (890), rapeseed expeller ref. 860 (860) cotton

ref. oil 755 (755) and palmolein 620 (624).


Central govt releases additional 4 lakh t of non-levy sugar for Aug

The Central Government has released additional

4 lakh t of non-levy sugar for the month of

August 2012. With the earlier release of 45 lakh t

in June and 2.66 lakh t in July, a total of

51.66 lakh t of non-levy sugar will be available,

according to a release issued by the ministry of

consumer affairs, food and public distribution.

The release added that the additional quantity has

been released from the production stock to be sold

and delivered/dispatched for the month of August

2012. The mill-wise additional non-levy quota has

accordingly, also, been released. Any sugar mill

found selling quantities less than the quantities

prescribed by the government for this quarter,

within the stipulated time, would face conversion

of unsold non-levy quantity into levy sugar.

(fnbnews.com 09 August 2012)

http://www.thehindubusinessline.com/markets/commodities/article3734850.ece?homepage=true&ref=wl_home



http://www.fnbnews.com/article/detnews.asp?articleid=32323&sectionid=1





Food Ingredients News /

Beveage News

Karnataka sowing impacted by drought; poor output could up milk, food costs

The drought in Karnataka, Maharashtra, and

Gujarat is the worst in forty years, according to

Union minister for rural development

Jairam Ramesh.

The Union Government is now reviewing the

agricultural sowing situation and looking at ways

to help the farming community. Ragi has been

sown on 0.71 lakh hectares against the target of

7.54 lakh, sunflower has been sown on 0.78 lakh

hectares against a target of 2.77 lakh while

groundnut coverage has been a mere 2 lakh

hectares against the targeted 7.05 lakh. This could

reduce the food grain production by 25 to 30% for

the current year

According to the Karnataka State Natural Disaster

Monitoring Centre as on July 30, the total sowing

was 33.59 lakh hectares against 74.7 lakh

hectares.

“Dry land crops like oil seeds and millets have

already borne the brunt of deficient monsoon. It

would be foolish to even state economic growth

will not be affected. The drought is beginning to

create catastrophic crisis which will trickle down

to all aspects of the Indian economy”, observed

KC Raghu, MD, Pristine Organics.

The University of Agricultural Sciences (UAS)

has estimated that the total production for the

current year could be around 100 lakh t as against

125 lakh t in 2011-12.

Dr K Narayana Gowda, VC, University of

Agricultural Sciences, said that food and fodder

production could drop further if the rains failed in

the coming weeks. It could be detrimental to the

consumers too as there could be a significant rise

in prices of food grains by 40 %. (Continued in

next column)

Karnataka sowing impacted by drought; poor output could up milk, food costs (Contd) Area under coarse cereals, also used as animal

feed is lagging behind and could impact fodder

supply to livestock, thereby affecting production

of dairy products and increasing prices.“All that

can be said is that the present drought condition is

not good for the dairy industry”, stated

Dr M N Venkataramu, MD, KMF (Karnataka

Milk Federation). The reports by the Indian

Metrological Department indicate that rainfall

could be deficient in the second half of the

monsoon too.

South interior Karnataka and north interior

Karnataka along with the coastal regions are

among the 17 areas in the country which have

received deficient rainfall.

According to the Institute of Economic and Social

Change, Bengaluru, the scarcity of animal feed

looms large in a drought-parched India becoming

a serious hurdle for economic growth. India's first

drought in three years will cut output of some

coarse grains used for animal fodder apart from

other food grains. (fnbnews.com 07 August 2012)

Experts at IDA seminar urge dairy companies to invest in cheese market


http://www.fnbnews.com/article/detarchive.asp?articleid=32314&sectionid=1





Beverage News

Experts at IDA seminar urge dairy companies to invest in cheese market (Contd) Today, cheese is one of the fastest-growing

foreign milk recipes in Asian region, particularly

in India. The current problems and future

prospects of the Asian and Indian cheese market

were recently discussed in a full-day national

seminar titled, 'Cheese - Future milk product of

India'.

The Indian Dairy Association (Western Zone), in

association with Koelnmesse YA Tradefair Pvt

Ltd, has organised this conclave - parallel to the

seventh International FoodTec 2012 exhibition

here. The conclave registered over fifty national

and international specialists from dairy sector.

The seminar started with remembering the late

Verghese Kurien, father of the White Revolution

in India.

Speaking on 'Cheese History and Different Types

of Cheese around the World', S S Gokulakrishnan,

manager, QA, Amul, said that India did not

manufacture all kinds of cheese although

organised retailing is helping to bring globally

renowned cheese types in the Indian market.

Cheese is an ancient milk food has no convincing

evidence indicating where cheese-making

originated, either in Europe, Central Asia or the

Middle-East. However it reached the world via

European markets.

"Roquefort, cheddar (the UK), Ricotta (Italy),

Gouda (Netherlands), Emmental (Switzerland),

Cottage Cheese and Monterey Jack (the US),

Mozzarella (which has been widely used in pizza

making) and others are the most popular types of

cheese”, Gokulakrishnan said. (Continued in next

column)

Experts at IDA seminar urge dairy companies to invest in cheese market (Contd)

Further, he discussed latest technologies for

cheese manufacturing across the world. "Till date,

huge numbers of cheese making units prefer

manual supervision or semi-automation. For

instance, if dairy unit is processing 10 lakh litres

with 100 employees than it may have over

50 employees supervising the cheese making

procedure thanks to its sensitivity”.

Gokulakrishnan noted.

Shiva Mudgil, senior manager,

food & agribusiness research and advisory, Rabo

Indian Finance Ltd, spoke on 'Cheese - Global

Trends and Future Outlook'.

The Indian dairy was and will be the world's

largest milk producing nation. Today, it offers

phenomenal opportunities at procurement level.

By 2020 it has been estimated to cross 200 mio t

milk productions. This country is on the verge of

becoming the world's largest milk consumer

also”, Mudgil said.

As per the current stats, India, the US and EU

produces 50% of the global milk. India's annual

milk production is around 110 to 125 mio t. China

is one of the fastest developing countries but it

has only 1/3rd of what India produces. Currently,

China imports around 50 000 to 60 000 t of milk

annually.

"Cheese is a costlier product but with constant

R&D and innovations we hope it will be served to

commoners' plate soon. Due to international

economic crisis and inflation, we expect price rise

in dairy products in Q4 (2012) and Q3 (2012)”,

Mudgil added.

The European Union (EU) is largest exporter of

milk and it will play a crucial role in coming

years. (Continued on next page)



Beverage News


"Though India is the world's largest dairy player

with a market size of over USD 55 bio it has a

smaller organised sector. The market share of the

organised sector in the Indian dairy industry is

only USD 12 bio. Of this, about two-thirds are

contributed by packed raw milk sales. Further,

India's major concern is producing good quality of

milk, quantity alone never helps. Another

worrying issue is our inability to do quality value

addition”, Mudgil told FnB News at the sidelines

of the seminar.

Cheese and India

At present, the Indian cheese market is small

compared to other developed or developing

countries. An average we process only 20 000 to

25 000 t of milk into cheese, accounting for a

compound annual growth rate (CAGR) of 25%

The current market drivers are rise in the number

of quick service restaurants (QSR) and organised

retail outlets, young generation's mounting

affection towards cheese. As per market gurus,

mozzarella & slice cheeses will drive the Indian

cheese market. "The success mantras are good

quality milk, appropriate cold chains, brand

equity, use of by-products like whey, and brand

positioning”, Mudgil said.

Cheese and the world

The global market is growing at a CAGR of only

1.5% CAGR. This dismal growth rate will be

there for next 5-6 years thanks to international

financial downturn.

Captain H S Oberoi, president, Parag Milk Foods

Pvt Ltd, said, "The milk constituents fat, lactose,

casein, and calcium. (Continued in next column)


The Indian milk plants processes milk at least

5 to 7 days after procurement. It becomes very

essential for us to maintain adequate hygiene at

procurement, transportation and at pre-processing

levels”.

Oberoi talked on important quality aspects in

cheese making like fermentation, warming milk at

50-60 degree Celsius, pasteurisation at around

72 degree Celsius, ultra-filtration and

micro filtration.

The event was sponsored by Gowardhan and

Gokul Hatsun.

Ashish Powari, market development manager, and

Hariprasad Manavalan, head, dairy and agri

sector, Sealed Air discussed risks involved in

supply chain and extending shelf life of dairy

products, in particular cheese.


Britannia launches flavoured yogurt in three variants at INR 15 per pack

Britannia Industries Ltd, a company known for

biscuits, bakery and dairy products, has launched

a range of flavoured yogurt in three flavors -

mango, vanilla and strawberry. (Continued on

next page)






Beverage News

Britannia launches flavored yogurt in three variants at INR 15 per pack (Contd) According to a press release by the company, the

product is fortified with five active nutrients: iron,

iodine, calcium, zinc and vitamin A and is

available in a set form, making it easier to scoop

and eat.

Speaking at the launch, Vinod Menon, head, dairy

business, Britannia Industries Ltd, said,

"Flavoured yoghurt has emerged as a distinct

segment in the last one year. Internationally,

flavoured yogurt - in both frozen and fresh form is

well developed and seen as a healthier option.

Majority of the flavoured yogurt consumers are

today's youth and young working adults, who are

open to trying new products & experiences”.

All variants have a shelf life of 18 days and have

to be stored in a cold environment. The product

will be priced at INR 15/100 g pack. It will be

initially launched across Mumbai, Delhi,

Bangalore, Hyderabad and Chennai.


Mother Dairy revises milk prices by 4% in Delhi-NCR after 1 year After holding the price line steady for one year,

Mother Dairy has revised milk prices by 4% in

Delhi-NCR effective from Sept 8, 2012. The last

price increase by the company became effective

in September 2011. The increase is being

attributed to significant increases in power tariff,

polyfilm cost, and diesel cost, and milk

procurement prices.

According to a release by the company, while its

milk had been priced lower than its nearest

competition earlier, even after the increase

became effective, it continued to be lower by

INR 1/litre in the full cream milk variant.


Mother Dairy revises milk prices by 4%in Delhi-NCR after 1 year (Contd) The new prices are thus: full cream milk (poly

pack) – INR 39, toned milk (poly pack) – INR 30,

toned bulk vended milk (token milk) – INR 28,

double toned milk – INR 26, and skimmed milk

INR 22. (fnbnews.com 11 September 2012)

Parag Milk launches Go, zero preservative UHT product, in two variants Parag Milk Foods Pvt. Ltd, a leading dairy player,

recently launched Go Milk, a 100%

natural & zero preservative UHT milk. The

product will be available in two variants - Go

Milk and Go Slim.

Speaking on the occasion, Devendra Shah,

chairman, Parag Milk Foods Pvt. Ltd, said, "The

key objective in entering the UHT milk space is to

cater to the growing needs of young consumers,

who seek safety, nutrition & convenience.

Increasing urbanisation and working women

profile will increase the demand for safe,

convenient and ready-to- drink milk in India.

With UHT milk being safe and ready-to-drink -

without the need of boiling, its popularity among

urban households is expected to increase

significantly in the near future”.

Shah added, "We have great plans for the Go and

Gowardhan range of dairy products. Our vision is

to be seen as the fastest growing and most

innovative dairy producer in the sector. The UHT

Milk launch is one such step in that direction. We

plan to improve our sales through new product

launches and constant innovations. With launch of

UHT Milk under Go brand, we are further

expanding the product basket under the brand

portfolio and also extending the reach of Go brand

beyond urban cheese consumers to much diverse

consumers in the hinterland of the country".

(Continued on next column)









Beverage News

Parag Milk launches Go, zero preservative UHT product, in two variants (Contd) The products will be available in retail at INR

45/litre and INR 50 INR/litre respectively. The

product's shelf life of 180 days is achieved by the

UHT technology and Tetra Pak packaging, which

seals the freshness inside preventing the entry of

air, light and bacteria, according to a release by

the company. (fnbnews.com 10 September 2012)

CavinKare's Pure+ UHT Milk launched with new 'long-lasting' pouch pack Dairy is a burgeoning business in emerging India

where milk and milk products are slowly shifting

hands from the monopoly of the cooperative

movement a couple of decades ago to private

ethnic and multinational companies building the

market with an array of value-added products.

CavinKare the homegrown diversified FMCG

group from south India led by C K Ranganathan

ventured into the dairy business in 2009 and is

already making its presence felt with leading

innovations in line with its business mantra to

make 'innovations the way of life.'

Vision

With a strong vision for the long-term and

investing heavily in state-of-the-art technology

and R&D, CavinKare has recently launched New

Cavin's Pure+ range of UHT milk that lasts for

120 days in a revolutionary multilayer NEW GEN

pouch pack that keeps milk fresh without the need

for refrigeration.

This is first-of-its-kind in India and CavinKare's

dedicated R&D worked together with chosen

vendors to develop the unique 'New Gen'

multilayer poly pack suitable to Indian conditions

to keep milk fresh for more than four months.


CavinKare's Pure+ UHT Milk launched with new 'long-lasting' pouch pack (Contd) Packaging

The packaging offers outstanding barrier

properties and high resistance to organic solvents

to safely preserve the high quality milk. This is

the first time that UHT milk is offered in a format

other than Tetra Pak in India, where 99% of the

regular milk, which is basically pasteurised, is

sold in HDPE pouches across the country.

The new well designed and innovative packaging

mimics the regular milk pack format and the milk

is competitively priced to encourage consumers to

conveniently upgrade to the high quality and long

lasting UHT milk. Cavin's Pure+ is available in a

range of regular milk variants namely

'Standardised Milk,' 'Toned Milk,' 'Double Toned

Milk' and the niche 'Diet Milk,' in pack sizes of

500 ml family packs and 200 ml single serve

pouch packs.

Benefits

Cavin's Pure+ offers superior benefits to

consumers and retailers alike in the Indian market.

Consumers can now afford to get milk that has

0% bacteria and which is 100% pure without any

preservatives, which can be stored for up to

120 days without refrigeration and consumed

directly even without boiling. Children especially

will love the benefit of having cold or fresh milk

with their breakfast cereals, home-made milk

shakes and so on. Consumers need not fear that

their milk would get spoilt during the summer

months or during power-cuts as this milk need not

be refrigerated. (Continued on next page)






Beverage News

CavinKare's Pure+ UHT Milk launched with new 'long-lasting' pouch pack (Contd) Convenience

Today more than 80% of consumers buy their

daily milk from nearby shops every morning.

They can now conveniently buy and store Cavin's

Pure+ milk for several days. Likewise these packs

would benefit retailers too. Retailers need not

refrigerate this milk or keep their refrigerators

running all night thus saving precious electricity.

They can now conveniently stock and also ensure

milk is available at all times. They need not fear

damages due to spoilage which could be high in

the cash and carry milk business”.

While Cavin's Pure+ UHT milk has been

successfully launched in Tamil Nadu, CavinKare

is extending it across the south Indian markets

initially and will then go national. The product

has gained widespread acceptance among

consumers and already contributes to more than

10% of the company's regular pasteurised milk

sales, which is a phenomenal achievement within

a short time. CavinKare's strong distribution

network provides the right platform to ensure that

Cavin's Pure+ is successfully rolled out and made

available pan-India. (fnbnews.com 03 September

2012)

Innovative flavors in yogurts and their popularity in India Yogurt has always been a very important and

integral part of the Indian and Middle-Eastern

diets. However, the present day yogurt offerings

have its origins in the US.

Keeping in mind the health aspects of yogurt, the

trend of flavoured yogurt, for the first time mixed

with strawberry started in the 40s in the US.


Innovative flavors in yogurts and their popularity in India (Contd) Frozen yogurt was introduced in the 90s and

started gaining in the 2000s in the European

countries. One could mistake it for an ice cream,

but these were yogurts with low fats, churned in a

soft serve machine with berry infused flavors.

Health-consciousness was already a rage among

the Europeans in the 2000s, like the introduction

of organic farming for chemical-free fruits and

vegetables. This was the time when plain favored

yogurts were quick frozen to replace the ice

creams. This consciousness took time to reach

India. The consumers in India slowly started

understanding the side-effects of the food habits

they had inculcated under the influence of the

Western culture.

Now the revolution of desserts and indulgence

into some guilt-free dessert coming form the West

started to throw its impact on the Indian masses.

This was the right time to enter this product space

due to the uniqueness of the concept. However, it

seemed quite challenging as the category was

completely new to the market. It was then when

Cocoberry launched its first store in February

2009 and became India’s first and premium

frozen yogurt chain that offered the ultimate

frozen dessert experience.







Beverage News

Innovative flavors in yogurts and their popularity in India (Contd) History of flavoured frozen yogurts

Dessert manufacturers had for long, researched

with an array of ice cream flavors and styles.

However it was health guru Gayelord Hauser who

pushed yogurt into the limelight when he

proclaimed it a wonder food in his book "Look

Younger, Live Longer," published in 1950. Sales

of yogurt skyrocketed, increasing its production in

the 60s.

In the 1970s, frozen yogurt's opening into the

dessert market was a distinctive disappointment;

consumers complained that it tasted too much like

yogurt. Despite the initial reaction, manufacturers

modified and refined their frozen yogurt recipes

to reinvent the dessert, and the increasingly

health-conscious populace of the 1980s finally

accepted the low calorie dessert. Frozen yogurt

was soon available in a variety of flavours

throughout the US. It proved to be just as versatile

as ice cream, served in cones and cups, with

toppings, on crepes, waffles, and banana splits.

Frozen yogurt offered a tangier flavor than ice

cream and had more depth in flavor and texture.

The making of the frozen yogurt…

Frozen yogurt gets its sole flavour from strains

of Lactobacillus bulgaricus and

Streptococcus thermophilous. The yogurt culture

comprises all the strains of bacteria in the product

and makes up about 1% of the ingredients.

The production of frozen yogurt is quite similar to

ice cream, with the exception of yogurt culture;

they are prepared out of similar components. Two

of the most important elements in frozen yogurt

are water and air. Air is integrated into the

mixture to add volume. Water exists in the liquid

elements of the mix and is considered the

continuous phase, which goes from liquid to a

partially solid state. (Continued in next column)

Innovative flavors in yogurts and their popularity in India (Contd)

Frozen yogurt is never completely frozen; it

simply contains ice crystals. Milk Solids, Not Fat

(MSNF) makes up between 8 and 14% of frozen

yogurt. The protein element increases the

smoothness, viscosity, and compactness of the

frozen dessert and makes it more resistant to

melting.

Sugar makes up between 15-17% of the

ingredients. Sucrose, in the form of cane or beet

sugar, is generally the primary sweetener, though

other sweeteners are often combined. Sugar not

only adds sweetness to the yogurt but also

improves the body and viscosity and increases the

concentration of total solids (TS) in the product.

Total solids add body and texture as well as food

value, since solids take the place of water in the

mixture. Egg solids may be used for solids with

the added benefit of decreasing the amount of

time necessary for freezing the mixture.

Ever since its introduction in the market there has

been a lot of addition in the flavors of the frozen

yogurts. The line of the frozen yogurt is extended

by flavors like raspberry, strawberry, peach, and

blueberry. Besides the flavors of the yogurt, the

toppings on the yogurt are what make it delicious.

There are various kinds of topping available in the

market that makes the yogurt experience

worthwhile. The list of topping in the market is

endless. Collectively, there are 100 garnishes to

choose from — go from fresh fruits to the

trademark Oreo cookies. Weight-watchers can

skip fattening jujubes and chocolate sprinkles and

opt for freshly cut fruits, cereals, and dried fruits.

Flavors like strawberry lemon sorbet, mango

pinacolada, vanilla, salted caramel, blackberry

lemon mint tart, orange tart, blueberry tart,

raspberry tart, guava pineapple tart, green apple

tart, peach tart, lychee tart, and so on. (Continued

on next page)



Beverage News


Fresh fruits like mango, grapes, kiwi, pineapple,

and cherry give these frozen yogurts the

mouthwatering taste. Considering the rising

popularity we and various other players in the

market have been experimenting with the flavors

and toppings and introduced the chocolate flavor.

Besides we use toppings like cookies, gems,

chocolate strands, white chocolate chips, walnuts,

almonds and butterscotch crispies. The

innovations in flavors will continue for the

patrons of frozen yogurt to savour.

Innovations in frozen yogurt

The frozen yogurts have now gone beyond just

the frozen yogurt and introduced its delicious and

healthy parfait in a wide variety. The parfait from

Cocoberry consists of ingredient like fruit,

granola and yogurt that result in having a non-fat

and healthier product with a richer flavour profile.

The parfait in Cocoberry is served on transparent

glass, looks colourful and tempting and can be a

very good breakfast option. This is another first of

its kind and refreshing option from Cocoberry.

Parfait is extremely popular in the Western

countries and this is the first time we have

introduced the same across our stores. I am sure,

like all our earlier introductions, this is also going

to be appreciated by our customers. Cocoberry

Parfait comes in five different varieties - mango,

blueberry, kiwi, raspberry and blackberry in two

sizes: small & large.

Popularity of frozen yogurts in India

The frozen yogurt started gaining popularity in

the last couple of years after it was introduced by

Cocoberry and the Indians started realising the

health benefits of yogurt. The makers of frozen

yogurt claim that these sweet treats are sin-free

because frozen yogurt is a healthy dessert option.

Cocoberry's frozen yogurt comes in fruit flavours

like strawberry and blackberry. (Continued in next

column)

Innovative flavors in yogurts and their popularity in India (Contd) They also offer fresh berry toppings, which are

rich in antioxidants, and the yogurt itself contains

probiotics. Yogurt is one of the safest foods

because of its acidic nature. It is scientifically

proven that probiotic bacteria like Lactobacillus,

which are present in yogurt, help prevent

travellers' diarrhoea and it is beneficial to have

yogurt after completing a course of antibiotic

medication, if you are going through one.

Marketing and expansion of the business

For plunging into the business of frozen yogurt

and marketing the product in the Indian territories,

this is the right time. According to a survey

conducted by Tata Strategic Management Group,

the size of the Indian health and wellness food

market will rise to INR 550 bio by 2015, from an

estimated INR 101 bio in 2010 - a growth of

35-37%. But the success of these chains depends

upon factors like location, menu, and toppings on

offer. The players are adopting various tactics to

market the frozen yogurt.

They are ready to tweak their standard menu

based on Indian tastes. Although the basic concept

and most of the menu items would remain the

same, it would include yogurt flavors and

smoothies based on local taste and toppings,

which would be more popular and suit the Indian

markets. The Indian market is very large and

attractive but at the same time very diverse in

terms of geography, languages, taste palate, and

purchasing power. Therefore, franchising makes it

easier to get capital and human resources, and the

speed of expansion is also much better in this

model, than opening up company outlets. It is

going to be a tough competition among the

players as their target audience would be the

same. Eventually, it will come down to who is

located where. Different areas will evoke different

responses. (Continued on next page)



Beverage News


It seems that the coming months are going to be

exciting for the companies as well as the young

health-conscious breed, as the world of colours

and flavours beckons like never before.


NDRI scientists develop technology for low-cal lassi with fizz of cola

A team of scientists from the National Dairy

Research Institute in Karnal, Haryana -

comprising Falguni Patra, Sudhir Kumar Tomar,

A K Singh and Rameshwar Singh - has developed

the technology for a reduced-calorie, naturally

carbonated, sweetened, fermented dairy beverage,

which they believe is not just inexpensive to

produce (at INR 7/100g), but also has distinct

sensory attributes and moreover, is commercially

viable.

Diabetics and weight-watchers (who have to

control their sugar and calorie intake respectively)

can also enjoy this sweet, flavorful and nutritious

lassi, which carries all the virtues of milk. The

fizzy characteristic of the product is likely to

appeal to children who prefer carbonated drinks

(which are otherwise junk foods). This way this

product is suitable for consumers of all age

groups. (Continued in next column)

NDRI scientists develop technology for low-cal lassi with fizz of cola (Contd) The scientists, who are currently in the process for

patenting the technology to manufacture the lassi,

claim that it was developed by co-culturing

Leuconostoc Ln27, a mannitol-producing native

strain of Leuconostoc mesenteroides subsp.

mesenteroides isolated and characterised from

indigenous fermented milk products, and L. lactis

subsp. lactis NCDC 90 under a set of optimised

growth conditions.

The final composition of the product so developed

was as follows: fat - 1.55 ± 0.05%; protein - 4.73

± 0.25%; lactose - 4.25 ± 0.25%; sucrose - 5.7 ±

0.3%; mannitol - 3.1 ± 0.17%; pH - 4.43 ± 0.02%;

titratable acidity - 0.93 ± 0.026%, and viscosity,

0.395 ± 0.004 centipoises

The calorific value of control product was

106 kcal/100g where as the developed product

had 78 kcal/100g. During product formation there

is a 35% reduction in calorific value and

50% reduction in sugar.

Besides, the product has a novel characteristic

effervescent and tingling flavour owing to natural

biofortification of product with carbon dioxide

produced during fermentation of milk. The

product has a storage life of five days under

refrigerated conditions.

It produces mannitol, a white crystalline polyol

(sugar alcohol with six carbon atoms) found in

animals and plants, and in small quantities in fruit

and vegetables. (Continued on next page)






Beverage News

NDRI scientists develop technology for low-cal lassi with fizz of cola (Contd)

Applications of mannitol

Mannitol is widely used in the food,

pharmaceutical, medicine, and chemical

industries. It is only half as sweet as sucrose.

Mannitol and other sugar alcohols exhibit lower

calorific values than the respective value of most

sugars (the calorific values of mannitol and

sucrose are 1.6 kcal/g and 4 kcal/g respectively).

This makes them applicable as sweeteners in so-

called 'light' foods.

At present, mannitol is mainly used in the food

industry as a sweetener in sugar-free chewing

gums and for dusting chewing gum sticks.

Mannitol is also widely used in hard and soft

candies, flavored jam and jelly spreads,

confections and frostings and cough drops. In

addition, mannitol is used as a bodying and

texturizing agent, anticaking agent, and

humectant.

Starter cultures of LAB are often prepared by

drying which impose stress conditions on the

cells. Mannitol has been shown to exhibit

osmoprotecting effect during drying of LAB.

Mannitol is also known to be endowed with an

antioxidant effect by scavenging off free hydroxyl

radicals has the potential to extend the shelf life of

various foodstuffs.

Some microorganisms can specifically produce

mannitol from sucrose or fructose without making

a sorbitol byproduct. Several heterofermentative

lactic acid bacteria (LAB) belonging to the genera

Lactobacillus and Leuconostoc have been studied

for production of mannitol from fructose and

sucrose.

Out of these bacteria, Leuconostoc has been

recognised to be endowed with enormous

technological, functional, and economic

applications. (Continued in next column)

NDRI scientists develop technology for low-cal lassi with fizz of cola (Contd)

They play an important role in several industrial

and food fermentation processes. In dairy and

food technology, Leuconostoc plays vital

multifunctional roles, manifested especially

through the production of gas and aroma

compounds. (fnbnews.com 30 August 2012)

Yogurt chain Red Mango to step up India presence

Frozen yogurt chain Red Mango, which entered

the Indian market earlier this year, plans to

expand across the country by launching 15-20

outlets in metro cities by next year, cashing in on

the Indian consumer's increasing appetite for

healthier foods. It has five outlets in and around

Delhi as of now. The chain, which calls itself the

country's 'first health food QSR' (quick service

restaurant), serves frozen yogurt, ice teas and

smoothies.

The company says it is the first frozen yogurt

brand to bring to India flavors such as kiwi and

Madagascar vanilla. Red Mango adds that it is the

only frozen yogurt chain in the country to be

certified by the National Yogurt Association

USA. Technopak Advisors, a Delhi-based

consulting firm estimates the global frozen yogurt

market to be close to USD 75 bio, growing at a

CAGR of 15-18%. According to Technopak, the

Indian market frozen yogurt will grow to USD 5

bio over the next three years, fuelled by the entry

of new players and growing demand for healthy

foods.

Red Mango has over 235 stores across the world.

Founded in 2002 by entrepreneur Ronni Choo, in

Seoul in South Korea, it has expanded its network

to 19 countries, the biggest presence being in the

US with 170 stores. (Continued on next page)






Beverage News

Yogurt chain Red Mango to step up India presence (Contd)

Besides the US countries, Red Mango has a

presence in Australia, Korea, China, South Africa,

and now in India.

Korea-based frozen yogurt maker Yogurberry had

announced two months back, that it would set up

over 100 stores in the country over the next five

years.(articles.economictimes.indiatimes.com

26 August 2012)

Dharampal Satyapal Group launches Yomil 1-min milk-based powdered beverage

Dharampal Satyapal Group, which is known for

brands like Rajnigandha, Catch, Pass Pass, Piyoz

and Chingles, on Wednesday launched Yomil

one-minute shake, a milk-based powdered

beverage.

A press release by the company claimed that the

shake was first-of-its-kind product in the

beverages segment in the country. It added, the

product provides a unique content composition

that creates refreshing flavoured shakes in just

one minute by adding only water.

“It offers consumers the convenience and value-

for-money while retaining the goodness of a

shake in a wide variety of Indian ethnic flavours.


Dharampal Satyapal Group launches Yomil 1-min milk-based powdered beverage (Contd)

The product does not require milk or sugar to be

added and is a rich source of energy with the

goodness of protein and calcium too”, the release

said. It is currently available in four flavours -

Choco Milky, Milky Mango, Milky Rose, and

Milky Kesar Badam.

Speaking at the launch, Rajiv Kumar, VC,

D S Group, confectionery & powdered

concentrate, said, “DS Group has defined its

growth with singular focus on product innovation

in line with explicit customer requirements. With

Yomil, the industry’s first-ever milk-based

powdered beverage; we are expanding our

product portfolio in the segment whilst focussing

on convenience, taste, affordability and health and

offering an industry first, yet again. With Yomil

we aspire to build a focussed consumer connect

while catering to evolving customer requirements.

We have always been front-runners in achieving

industry breakthroughs and, with Yomil, we

continue the tradition of enriching industry with

our trend-setting products”.


Mixing alcohol with energy drinks potentially harmful, says researcher Young Australians who mix alcohol and energy

drinks experience significant negative physical

and psychological effects, a UTAS researcher has

found.

In the first investigation of the frequency of this

behaviour in an Australian community, University

of Tasmania PhD student Amy Peacock has found

that it is associated with heart palpitations, sleep

difficulties, agitation, and tremors. (Continued on

next page)

http://articles.economictimes.indiatimes.com/2012-08-26/news/33402424_1_yogurt-market-yogurt-chain-yogurt-brand












Beverage News

Mixing alcohol with energy drinks potentially harmful, says researcher (Contd) Having surveyed 403 Australians aged 18 to 35,

Amy and her colleagues also found significantly

increased odds of irritability and tension,

associated with over-stimulation, as well as 'jolt

and crash' episodes where drinkers experience

increased stimulation followed by a sharp, sudden

drop in energy. The research will be published

later this year in the journal 'Alcoholism: Clinical

and Experimental Research'.

Peacock and her colleagues collected data from

across the country in an online survey. All

participants had consumed alcohol/energy drinks

and alcohol-only drinks in the preceding six

months. The survey showed consumers are six

times more likely to have heart palpitations and

four times more likely to have sleep difficulties

when drinking alcohol/energy drinks compared

with drinking alcohol only.

However, energy drinks appeared to counter some

of the sedative effects of alcohol, including

reducing the odds of slurred speech, impaired

walking and vision, and nausea. Psychologically,

mixing the drinks produced significantly higher

odds of feeling 'on edge' and irritable and

significantly lower odds of feeling sociable and

content. While drinkers had similar rates of

feeling more impulsive and novelty-seeking they

had significantly lower odds of feeling

disinhibited behaving than alcohol-only drinkers.

But on 26 risk-taking behaviours the drinkers

reported more surprising results.

“People reported engaging in risk-taking

behaviour such as driving while intoxicated,

casual sex, using illicit drugs and engaging in

verbal or physical aggression during both alcohol

drinking sessions and mixed alcohol and energy

drink sessions”, Peacock said.(Continued in next

column)

Mixing alcohol with energy drinks potentially harmful, says researcher (Contd)

“But the odds of these risk behaviours were lower

when using the mixed drinks”.

However, the researchers are not suggesting that

alcohol consumers should mix alcohol with

energy drinks to reduce these risks associated

with drinking. This finding regarding risk-taking

contradicts the limited international research

available.

Peacock said more research was needed to

examine the potential mechanisms explaining the

effects of mixing drinks on risk-taking.


Tzinga - Mango-Strawberry, Lemon Mint, Tropical Trip - comes to Mumbai

Energy drink Tzinga that comes in three flavours -

Mango-Strawberry, Lemon Mint and

Tropical Trip comes to Mumbai. The product is

competitively priced at INR 25.

Suhas Misra, director and head of marketing, said,

"Mumbai is the biggest energy drink market in the

country and people here consume energy drinks

not just as mixers but for functional reasons. We

wanted to be absolutely sure that we get

everything right here”.

"As a product, Tzinga has a combination of

caffeine and guarana, a naturally occurring herb

which helps in the process of body getting energy

without the crash that follows the high with most

energy drinks. Also, to make sure that the energy

is delivered in the healthiest of ways, Tzinga has

ginseng, which is again a naturally occurring herb

with anti-carcinogenic and anti-oxidant

properties”, claims a press release issued by the

company (fnbnews.com 21 August 2012)









BeverageNews

Café Coffee Day offers new range of cold beverages – Frosteas, Lemonades (Contd)

Café Coffee Day (CCD) has launched a new

range of ice cold beverages - Frosteas and

Lemonades. The range will be available at all

CCD outlets.

Frosteas are lemon iced teas but with a difference.

They come with a dash of spunky pomegranate,

tangy cranberry or cool cucumber and are

designed to uplift one’s spirit at any time of the

day, according to a press release issued by the

company.

The lemon Frosteas come in three flavours –

Lemon Pomegranate, pomegranate flavour with

yummy red jelly chunks; Lemon Cranberry,

cranberry flavour and soft white jelly chunks; and

Lemon Cucumber, tinged with fresh cucumber

flavour and topped with mint leaves.

The Lemonades are available in three variants,

Classic, Kiwi and Strawberry. They are prepared

with mild tones of mint, hints of ginger and

topped with basil seeds.

K Ramakrishnan, president, marketing, CCD,

said, “At Café Coffee Day, we are committed to

enhancing the experience for consumers through

exciting new recipes. These new beverages added

to our menu are recognition of the fact that every

season needs a specialised offering both in terms

of ingredients as well as taste”. (Continued in next

column)

Café Coffee Day offers new range of cold beverages – Frosteas, Lemonades (Contd)

The new range of Frosteas and Lemonades is

designed to tantalise the mind and refresh the

senses and are sure to make a mark among the

youngsters with flavours that are unique, fresh

and have a universal appeal."


Nestle India: Concerns over volumes

Nestle India, which declared its June quarter

results on Friday (post-market hours), is trading

nearly flat (up 0.3%) since then, compared to the

Sensex and BSE FMCG index that are up 2.4%

and 1.3%, respectively. The stock is in the

positive zone partly due to the 180% interim

dividend declared, say analysts.

Otherwise, sales growth in the recently concluded

second quarter, (Nestle follows January-

December calendar year) has been disappointing.

Net profit margin has come in flat due to a rise in

interest and depreciation costs. However,

operating profit margin has improved

significantly helped by lower raw material costs,

price hikes in the earlier quarters and better

product portfolio/channel mix.

The company's management has expressed

concerns about the future outlook. Says Antonio

Helio Waszyk, Nestle India's, chairman and

anaging director: (Continued on next page)






Beverage News

Nestle India: Concerns over volumes (Contd) "As expected, 2012 is proving to be a very

challenging year. We remain cautious thanks to

persistent inflation, uncertain monsoons and

economic volatility."

Analysts also echo this concern. They believe

sales growth will be restricted given the change in

Nestle's strategy of focusing on pricing rather than

volumes. Margins are also expected to come

under pressure, as major overheads trend higher.

These risks aren't fully reflected in the stock's

valuation at 31-times calendar year (CY) 2013

estimated earnings.

CY12: GROWTH CONCERNS

In INR

crore

Q2’ CY12 CY2012E CY2013E

Net sales 1993.4 8648 10644

Y-o-Y

change (%)

12.7 15.1 23.1

Operating

profit

431 1865 2287

Y-o-Y

change (%)

25.4 21.4 22.6

Adjusted net

profit

238 1117 1372.8

Y-o-Y

change (%)

11.2 14 22.9


Nestle India: Concerns over volumes (Contd) June quarter: Slow growth

Growth in the domestic business (94% of total

sales) at 13.7% year-on-year was disappointing

but was steady compared to the previous quarter.

Volume growth was impacted by an estimated

12% price hike undertaken by the company over

the last several quarters, analysts say. Notes:

Pritesh Chheda, analyst, Emkay Global Financial

Services in his post. "This is against our

expectation of pick-up in volume growth due to

Tahliwal factory”. Even exports fell by 1.5%,

despite rupee depreciation.

Operationally, profit margins improved 218 basis

points to 21.6%, led by lower raw material prices

in percentage to sales (down 404 basis points) and

price hikes. These would have been better if

employee (up on account of higher headcount)

and advertising costs (due to focus on brand

building) would have been under control. Higher

depreciation and interest costs also restricted the

net profit margin, which remained flat at 11.9%.

Outlook

Nestlé's stock valuation is way above its five and

ten-year historical average of 28 times and

25 times, respectively. The stock at INR 4 462

does not factor in the impending risks to volumes

and margins, says an analyst at a domestic

brokerage. While Nestle has commissioned new

capacities, it remains to be seen how fast it can

increase utilisation levels given the muted demand

environment amid slowing economic growth, as

well as its focus on pricing. Chheda of Emkay

points out that volume ramp-up becomes

imperative as favourable base for margin wanes.

However, Abhijeet Kundu, analyst, Antique Stock

Broking, is not so worried.




Beverage News

Nestle India: Concerns over volumes (Contd)

"Volume growth would gradually recover over a

period of six-nine months led by substantial ramp

up in operations and subsiding of the impact of

price hikes”, he says in a post-results note.

Nevertheless, the trend in sales growth remains a

key monitorable, going ahead, given the fact that

Nestle derives 30-35% of sales from the price

sensitive rural market.

Given that Nestle is heavily dependent on agri

commodities (wheat, milk and sugar, among

others); deficient rainfall across the country could

push raw material costs higher and hurt margins.

Also, it could impact volume growth if Nestle

resorts to further price hikes. The advertising

expenditure is also expected to remain at elevated

levels given the focus on brand building, product

innovation and distribution strategy. Hence,

developments on these fronts also need to be

watched.

On the other hand, depreciation and taxation will

continue to weigh on the back of Nestle's capacity

expansion plans. In this backdrop, the risk-reward

ratio is not favourable at the current levels.

Existing investors may hold though fresh

investments could be made on a significant

correction, analysts say. (business-standard.com

01 August 2012)

PepsiCo's profit falls 21% in Q2

PepsiCo Inc. says its profit fell 21% in the second

quarter as one-time restructuring costs and a

stronger dollar ate into results. The company,

whose brands include Frito-Lay, Gatorade, and

Tropicana, is among the many U.S companies

taking a hit as the dollar strengthens. PepsiCo said

it earned USD 1.48 bio, or 94 cents per share.

That's down from USD 1.89 bio or USD 1.17 per

share, in the same period last year.


PepsiCo's profit falls 21% in Q2 (Contd)

Excluding one-time items, PepsiCo said it earned

USD 1.12 per share. Analysts polled by FactSet

expected USD 1.09 per share.

Revenue slipped to USD 16.5 bio, from

USD 16.8 bio, which the company said was

primarily the result of refranchising its beverage

businesses in China and Mexico.

(nwcn.com 03 August 2012)

AVT Natural Products to start subsidiary in London for value-added tea

AVT Natural Products Limited, Kochi, lndia,

started AVT Tea Services Limited, London

(AVT TSL) as a wholly-owned subsidiary to be

based in London, UK to be operational by

October 1, 2012. This subsidiary will allow

AVT Natural to offer its decaffeinated tea and

instant tea to its customers all over the world

through the cost-efficient supply chain.

AVT Natural Products Limited is part of

AV Thomas Group of Companies based in

South India. AV Thomas Group has been growing

tea in South lndia since 1925 and produces

10 mio kg of tea annually. AVT Natural

specialises in extraction of natural products like

marigold, spices and value-added teas and

marketing of speciality spice oils and oleoresins.

AVT Natural is the market leader in marigold

extracts and has established a competitive

manufacturing base for decaffeinated tea in lndia

with experience of close to ten years. Armed with

state-of-the-art pilot plant facilities and in-house

analytical laboratory, AVT Natural has a

processing facility with ISO 9001-2008; ISO

22000- 2005; ISO 14000; FSSC 22000; Kosher

Fair Trade and Rain Forest Alliance certifications.


http://business-standard.com/india/news/nestle-india-concerns-over-volumes/481953/





http://www.nwcn.com/news/business/163674916.html





Beverage News /

Processed Foods

AVT Natural Products to start subsidiary in London for value-added tea (Contd)

Richard Darlington, a tea veteran with over

thirty-two years of experience, will head the AVT

TSL operations as managing director. He brings

to the table rich global tea sourcing expertise with

in-depth knowledge of the market segments and

customers.

"AVT TSL is a logical extension of AVT

Natural's proven competency in value-added

beverage manufacture in India," said Ajit

Thomas, chairman, AVT Natural and AVT Group

of Companies. "Adding AVT TSL to our

marketing infrastructure reinforces our continued

commitment to provide high and consistent

quality to our customers at affordable prices. We

are committed to follow the same stringent

supply chain management, and good agricultural

and manufacturing practices that are used to

manufacture our tea products", he added.

"The new subsidiary of AVT Natural will offer a

compelling value proposition to the customers by

maximising supply chain efficiencies. Combining

AVT Natural's proven strengths in manufacturing

over the past ten years with AVT TSL's global

sourcing competency and deeper understanding

of ever-changing customer needs will provide the

much needed unique value to customers", said

Darlington. (fnbnews.com 03 August 2012)

FSSAI seeks immediate compliance to guidelines on imported food samples

The Food Safety & Standards Authority of India

(FSSAI) has issued guidelines regarding the

harmonisation of laboratory parameters for

analysis of imported food samples. These have

been finalised in consultation with the

Central Food Technological Research Institute

(CFTRI), Mysore.

Following this development, FSSAI, in a

communiqué via F. No. 06/QAS/2012 import

issues/FSSAI to all referral and authorised labs,

has stated that the order should come into effect

immediately. Imported food will now need

clearance based on these guidelines, according to

Dr Dhir Singh, director, QA&S, FSSAI, in the

communiqué.

As per the FSSAI list, there are 37 categories of

imported food with methods for standardisation.

The details on the limits of contents and methods

of analysis followed have been provided. The list

of products covers processed baby food milk

powder including cheese. Fat oils and fats covering

crude palm oils, crude sunflower oil, rapeseed or

mustard oil, crude degummed soyabean oil, RBD

palmoline, and olive oil.

Further, all fresh fruits, raw sugar, poppy seeds,

raisins, salt and spices inclusive of dry fruits’

nuts/betel nuts, curry powder/masala powder,

saffron, split cassia, cloves mace, garlic powder,

cereals and pulses, red and green lentils, fish and

fish products, as also meat covering frozen,

canned, and chopped products are covered.

There is also a category for additives like

ammonium bicarbonate, monosodium glutamate,

phosphoric acid, and enzymes. (Continued on next

page)






Processed Foods

FSSAI seeks immediate compliance to guidelines on imported food samples (Contd)

In the thermally processed fruits and vegetable

products there are tomato paste, juices, squashes,

besides, a sweets and confectionary category,

which includes chewing gum

Bakery products, fruit and vegetable products like

dates, proprietary foods, flavouring substances,

macaroni products, sweetening agents, alcoholic

and non-alcoholic beverages, dehydrated fruit and

vegetable products, processed vegetables like

olives in brine, flavouring agents, cereals and

cereal-based products, culinary pastes and other

sauces, carbonated and sweetened beverages and

seasoning powders also form a key part of the list.

The FSS regulations dealing with microbiological

parameters of milk and milk products mention the

microbiological limits at production stage by the

industry. But as per the regulations, no defined

limits have been given for microbiological

analysis of milk and milk products, and the

parameters and limits for cheese samples have

been those followed under the PFA Act.

The methods of analysis are based on directorate-

general of health services, ministry of

health & family welfare, and Association of

Official Analytical Chemists. The guidelines are

also in consultation with the norms of Bureau of

Indian Standards and Alpha methods are based on

American Public Health Association.

According to a section of the food industry

represented by MTR Foods, ITC Foods, and

Kohinoor Foods, the guidelines for imported

products will put a check on the quality. With the

profusion of food retailers vending a variety of

imported foods, the norms will now keep tabs on

the contents, according to officials from the

Karnataka Food Safety Commissioner’s office.


MCCIA to host seminar on new ventures in food, agri processing sectors The Mahratta Chamber of Commerce, Industries

and Agriculture (MCCIA), in association with

Reliance Commercial Finance (a part of

Reliance Cpital Ltd), will host a seminar on 'New

Ventures and Financial Opportunities in Food and

Agri Processing' at MCCIA Trade Tower, Pune,

on Friday.

MCCIA has an agri business committee whose

objective is to develop food and agri-processing

in Pune. According to the official notice about the

event, which was sent to FnB News via email by

D V Shukla, director, agri business, “There are a

lot of opportunities available in the food and agri

processing sector”.

“These include new ventures and diversification

into a new food and agri processing industry in

food parks under the government's industrial

policies. The food and agri processing sector

needs sufficient finance to expand and execute the

food processing projects and new ventures. We

are organising the seminar keeping this sector's

needs in mind”, it said.

Entry to the seminar, which will be followed by a

networking dinner, is free. It is for food business

operators (FBOs) and small and medium-scale

enterprises (SMEs) in the food and agri

processing sectors.

Likely attendees include owners, proprietors, food

technocrats, food and agri processing industry

entrepreneurs, chief executive officers (CEOs),

chief financial officers (CFOs), managing

directors, finance directors, decision-making

authorities, and those who wish to diversify into a

new food processing venture. (Continued on next

page)






Processed Foods

MCCIA to host seminar on new ventures in food, agri processing sectors (Contd) Food technologists, senior officers from Reliance

Commercial Finance, food business service

providers and so on will speak at the event, and

the topics covered will include new venture

opportunities and new finance schemes and

approval procedures, which Reliance Commercial

Finance will present. The food and agri

processing industry and FBOs will interact with

them. (fnbnews.com 24 August 2012)

MTR Foods launched food mixes India wide

MTR Foods Pvt. Ltd., a producer with a tradition

of 85 years in authentic Indian vegetarian cuisine

and currently present in the breakfast, dessert and

snacks categories, has launched the Rasoi Magic

brand of meal mixes nationally. Rasoi Magic is

according to the company already a market leader

in western India in the meal mixes segment.

MTR Foods acquired Rasoi Magic Foods (India)

Pvt. Ltd. in April, 2011, in line with their plans to

expand into the meals segment. Meal mixes is a

nascent category valued at INR 60 crores in 2011

and expected to grow at a CAGR of 45% in the

2012 – 2014 period. (Source: MTR).

Commenting on the launch, Mr. Sanjay Sharma,

Chief Executive Officer, MTR Foods Pvt. Ltd.

said “Rasoi Magic has strong brand equity in

West India and our ambition is to build on this

and extend it nationally. With this launch, we’ll

gain a larger share of the consumer’s meal space”.


MTR Foods launched food mixes India wide (Contd) Research shows that today’s woman leads a busy

lifestyle yet spends maximum time and effort in

cooking. She wants to surprise her family with

new dishes and is looking for cooking solutions

that reduce her time in the kitchen but allow her

control over the taste of the final dish. She seeks

help in the kitchen but does not want to be

replaced and this is a key driver for the meal

mixes category since it helps the woman make

interesting dishes in a short time and yet be able

to customize it.

Mr. Vikran Sabherwal, Vice-President,

Marketing, MTR Foods stated “Consumers prefer

the powder format to paste. Rasoi Magic meal

mixes are in a powder format and the consumer

just has to add fresh ingredients such as

vegetables, paneer, milk, etc. Rasoi Magic brings

home the magic of popular restaurant dishes such

as Paneer Butter Masala, Paneer Makhanwalla

and Methi Mutter Malai, and that too in just 3

easy steps and in just 15 minutes”.

The Rasoi Magic range consists of 21 regular

dishes and 9 No Onion No Garlic products. A

pack of Rasoi Magic serves four and is priced

between INR 36 to INR 42. Rasoi Magic Foods

has its plant in Pune from where the products are

also exported to markets like USA, Canada, UK,

Oman, and Australia. (foodindustryindia.com 08

August 2012)

Wrigley launches Doublemint Mints designed for long-lasting freshness Wrigley, a subsidiary of Mars Inc, has now

introduced Doublemint Mints, the range of sugar-

free mints that offer strong long-lasting fresh

breath. With this launch Wrigley’s Doublemint

brand includes both chewing gum and mints in its

portfolio that appeal to a wider range of

consumers across all age groups. (Continued on

next page)




http://www.foodindustryindia.com/newfood/detailnews.jsp?n=MTR%20Foods%20launched%20food%20mixes%20India%20wide&id=941





Processed Foods

Wrigley launches Doublemint Mints designed for long-lasting freshness (Contd)

This new product stays true to the core brand

promise of fresh breath confidence at all times.

Introduced for the first time in India in a suave

new tin packaging which is easy to carry around,

Doublemint Mints is targeted at people whose on-

the-go lifestyle demands a breath freshening

product that truly delivers and is perfect for those

who prefer to be stylish and image-conscious.

Wrigley is a recognised leader in confectioneries

with a wide range of product offerings including

gum, mints, hard and chewy candies and

lollipops. It has its operations in over 40 countries

and distributes brands in more than 180 countries.

Leading brands are Wrigley's Spearmint, Juicy

Fruit, and Altoids along with Orbit, Extra,

Skittles, Doublemint, Starburst, Freedent,

Airwaves, Life Savers, Eclipse, and Winterfresh.


Tata Chemicals introduces packaged iron fortified iodised salt in K'taka

Tata Chemicals, a leading salt manufacturer, has

made a regional launch of India's first national

brand of packaged iron fortified iodised salt in

Karnataka.

The product is aimed at addressing and

eradicating iron deficiency. The launch also

marks the long-awaited entry of iron fortified

iodised salt in Karnataka - the result of 20 years of

research. A kg pack of the product is priced at

INR 20.

"With the launch of Tata Salt Plus in Karnataka

and a national rollout into metro and mini metro

cities, we also hope to see migration of user base

from iodised salt to iron fortified iodised salt”,

said RMukundan, MD Tata Chemicals.


Tata Chemicals introduces packaged iron fortified iodised salt in K'taka (Contd)

"Being the market leader with about 64% of the

market share in the organised national branded

salt segment, and with a retail penetration into

more than 11 lakh outlets across India, Tata Salt

Plus has recently made its entry in markets such

as Andhra Pradesh, Delhi, Rajasthan, Uttar

Pradesh, Tamil Nadu, and Chandigarh”, stated

Ashvini Hiran, chief operating officer, consumer

products business, Tata Chemicals.

According to the National Family Health Survey

(NFHS-3), at the national level, anaemia has been

found amongst 70-80% of the children, 70% of

the pregnant women, 55% of the women in

general and 25% of the adult men across the

population strata. Prevalence of anaemia in India

is high because of a low dietary intake and

especially, the poor availability of iron.

The iron fortified iodised salt formulation has

been developed by the National Institute of

Nutrition (NIN), Hyderabad, after more than two

decades of research and studies.

According to Dr B Sesikeran, director, NIN, the

deficiency of iodine and iron poses serious risks

to public health, and food fortification, especially

salt fortification, has proved to be one of the most

viable solutions to address this issue. "We have

developed double fortified salt with the objective

of countering both these challenges by leveraging

salt, which, as a food product, is consumed across

the board, and at the same time it is self-

regulatory in terms of intake. NIN also conducted

extensive research on the stability, safety, bio-

availability and impact of double fortified salt,

both in experimental and community situations,

and the results have been convincing”, he said.










Processed Foods

Re-inventing desserts through artisanal gelato

An Indian meal is considered incomplete without

a sweet course at the end. Capitalising on this are

companies dealing in desserts, through an array of

commercially available desserts to satisfy the

consumer palate.

The gelato industry in India is relatively new and

developing to find its foothold among the

consumers. Though generally considered as an ice

cream, gelato is a low fat and high flavoured

product. Unlike most industrial ice creams, it is

prepared from fresh and natural ingredients. The

gelato made its entry in the Indian market some

seven years ago and basically caters to the

premium consumer. With not many players in this

niche business segment, there is lot of scope and

untapped market to take advantage of.

Industry Snapshots

As per the latest market research report, India is

considered to be the largest milk producer across

the globe and has a one-fifth share of the total

global milk production and has seen strong

growth in the market.

The Indian ice cream sector is a promising market

with strong competition from the unorganised

sector at regional levels. The INR 4 500 crore ice

cream market is divided into two segments,

organised and unorganised. The organised

segment covers approximately 60% market share.

The unorganised segment, which constitutes about

40% of the market share, is nurtured by regional

players with a strong local presence.

New Segments

Technology has made consumers more informed

and aware of global product basket and hence

demand international quality products that include

Italian gelato, mellorine and frozen desserts.


Re-inventing desserts through artisanal gelato (Contd)

In India, gelato customers are divided into two

independent groups: people who consume gelato

and people who substituted it for ice cream.

Surveys published recognised ice cream as one of

India’s comfort foods. Ice cream, an old-

fashioned favourite for children, still remains an

enticing treat for people of all ages, and is likely

to be the same in the future.

Market Opportunities

The whole ice cream segment is at a nascent stage

in India. As per industry sources, the ice cream

consumption in India is just 300 ml per person per

annum, compared to 750 ml in Pakistan, 2 litre in

China, and as much as 23 litre in developed

countries. But with higher disposable incomes and

stronger distribution networks and cold-chain

infrastructure, growth has been at a CAGR of

15% in the last five years.

Challenges for Gelato Industry

The gelato gourmet industry has several factors

that are critical for its growth prospects. These

include issues pertaining to the supply chain

mechanism, infrastructure requirements, and

enhancing product awareness along with

increasing consumer base for this specialty

product.

Supply Chain Management: The shelf life of

gelato is a few days only and mostly; it is freshly

prepared and sold on a daily basis. Therefore, the

franchisors prefer having a manufacturing unit

close to the franchise stores. The franchisee would

need to place orders in advance mostly 24 hours,

so that the franchisor is able to supply the stock

on time.

Infrastructure: The refrigeration and display

cabinets are typical and different from those used

in regular ice cream stores. (Continued on next

page)



Processed Foods


This is due to the fact that gelato is 10 to 15

degrees warmer than ice cream and requires

different temperature settings. Unlike ice cream,

gelato is not completely frozen solid. Moreover,

the equipment is sourced from Italy and usually

supplied by the franchisor. The gelato

manufacturing involves typical recipes,

equipment, production process, and store formats.

Lack of Product Knowledge: Gelato has still to

carve its identity as a different product other than

ice cream. A large section of consumers are not

able to differentiate between ice cream and gelato.

In case of ice cream, the content ratio of ice cream

to air is 30:70 and for gelato, this ratio is typically

70:30. Gelato is prepared from natural ingredients

(milk and fruits), and is mostly fat-free (only

3 to 4% of fat) and is more creamy, rich and tasty

and therefore nutritious. However, the variations

in gelato containing chocolate or nuts are more

calorized. Also, there are other gelato products

available such as water-based sorbettos, gelato

cakes and shakes.

Small Consumer Base: As of now, the gelato

industry in India is very small catering to a niche

market. Its consumer base comprises those

foodies who have knowledge and appreciation for

the quality food ingredients and its history. Also,

with many options available in the category of

frozen desserts and ice creams, the gelato finds

clientele in people who have a more refined

palate. The current scenario is that the gelato

market is limited to metros and tier-I cities.

Looking to the potential growth of this industry,

the gelato segment is also expected to grow at

parallel rate of 15% in the coming five years.



Anil Group’s hospitality venture,

Amazo Gelateria, offers a menu with unique

combinations including variants of gelatos, shakes

and tasty quick snacks. Gelateria is a typical

Italian gelato shop that provides its customers a

unique European atmosphere and homemade

Italian ice cream not only for working adults, but

for people of all ages who will enjoy the special

taste of artisanal Italian ice cream.

Amazo believes in offering homemade gelato

according to authentic Italian recipe. The second

advantage is the healthy nature of the product sold

in Amazo Gelateria Parlours. Italian lifestyle apart

from fashion trends signifies the alimentary

products consumed and is famous all over the

world as a standard to reach. Speaking about

gelato, it is less fat than, for instance, ice cream or

many other desserts meaning that it is much

healthier (while ordinary ice cream has 18% of

butter fat, gelato contains 4-8% of fat).

Apart from the conventional range of gelato,

which includes orange cookie, vanilla antica,

cheesy strawberry and rose; Amazo offers exotic

flavours like the ferrero rocher, Belgium

chocolate, hazelnut, chocolate brownie, cheese

cake and caramel latte. Keeping in mind, the

seasonal taste preferences of its patrons, Amazo

will launch a new range of gelato flavours in the

coming months. Amazo operates in three different

formats - Amazo restaurants, Amazo gelato

kiosks and, recently launched, Gelateria parlours,

and steadily climbing popularity charts.







Processed Foods

Ad. body upholds complaint; popular brand cannot call itself ice cream

A top official of the Advertising Standards

Council of India (ASCI), the country's advertising

regulator, told FnB News via telephone that it

upheld a complaint filed by the Gujarat

Cooperative Milk Marketing Federation

(GCMMF), which stated that competing frozen

dessert brand Kwality Wall’s [a Hindustan

Unilever (HUL) product] misled consumers by

categorising itself as ice cream in a series of

celebrity-endorsed advertorials.

He said, “HUL agreed with the conclusion by

ASCI's Consumer Complaints Council and will

change the phrase ice cream, which is commonly

used by consumers, to frozen dessert on its packs

soon”. However, HUL is also believed to have

explained that the company cannot be hauled up

for any statements made by its brand

ambassadors, because they are their own.

GCMMF also mentioned that under Indian law,

frozen dessert is not ice cream although they have

a similar look and taste, because the former is

made with vegetable fat, considered an alternative

to milk fat, which is generally used to make the

latter. (fnbnews.com 03 August 2012)

Consumers in tier 2, 3 markets take a big bite of pizza


Consumers in tier 2, 3 markets take a big bite of pizza (Contd) Cheese-topped pizzas may soon give our

traditional food items such as idli, vada, dosa and

parathas a run for their money in tier 2 and even

tier 3 markets. Many fast-food chains such as

Pizza Corner, Coffee World, Domino’s, and Café

Coffee Day are looking to these towns for their

next phase of growth.

Joseph Cherian, CEO of Global Franchise

Architects (GFA), says there is a huge opportunity

for growth in tier 2 and tier 3 towns such as

Madurai, Tiruchi, Coimbatore, Puducherry,

Visakhapatnam, Mysore, Mangalore, Manipal,

Thiruvananthapuram, and Kochi.

Global Franchise Architects (GFA) is a

Switzerland-based group that builds, operates and

franchises a portfolio of food service brands such

as Pizza Corner, Coffee World, Cream and Fudge,

and The Donut Baker.

He says “Till a few years ago, there were not

many stores in these smaller towns. But, in the

last two years, our growth in these towns has been

phenomenal”. Currently, GFA has 91 stores

across its four brands in the country. And of this,

20% are now in tier 2 towns. The company’s

future expansion plans has mapped many such

small towns. “Going forward, the number will

grow manifold as we see great potential in these

towns”, says Cherian.

Quoting a market study, a city-based analyst says

tier 2 and tier 3 markets are proving to be a huge

platform for these fast-food chains to grow as the

penetration is still low. The consumer behaviour

patterns are fast changing thanks to increasing

literacy rates, disposable incomes and aspirations

driven by greater media exposure, she says.





http://www.thehindubusinessline.com/industry-and-economy/marketing/article3734860.ece?homepage=true&ref=wl_home





Bio Fuel/

Supply Interview

ETHANOL IN INDIA

India imports nearly 70% of its annual crude

petroleum requirement, which is approximately

110 mio t. The prices are in the range of

USD 50 to 70 per barrel, and the expenditure on

crude purchase is in the range of INR 1 600 bio

per year, impacting in a big way, the country's

foreign exchange reserves.

Crude Oil 93.51 + 0.17%

The petroleum industry now looks very

committed to the use of ethanol as fuel, as it is

expected to benefit sugarcane farmers as well as

the oil industry in the long run. Ethanol (FUEL

ETHANOL) can also be produced from wheat,

corn, beet, sweet sorghum etc. Ethanol is one of

the best tools to fight vehicular pollution, contains

35% oxygen that helps complete combustion of

fuel and thus reduces harmful tailpipe emissions.

It also reduces particulate emissions that pose a

health hazard. (ethanolindia.net 09 August 2012)

Supply Interview with P D Navkar Bio-Chem Private Limited

109 & 110, 4th Phase

KIADB Industrial Area

Bommasandra - Jigani Link Road

Bandenallasandra, Anekal Taluk

Bangalore 560 015, Karnataka, India

Ph: +91 80 22157444

Company Background

Incepted in 1989 PD NAVKAR Bio-Chem Pvt.

Ltd (PDNBC) is a trusted name in manufacturing

high-quality Food and Flour Additives,

Micronutrients, and Quality Chemicals.


Supply Interview with P D Navkar Bio-Chem Private Limited (Contd)

Relevant Products Manufactured

Food and Flour Additives, Fine Chemicals and

Micronutrients

Interviews

The future of antioxidants in India is good and

overall the industry is rapidly growing. The

production of total demand in antioxidants is goes

to various sectors.

In India we have around 5 producers for

antioxidants and number of small producers.

There is no change in the production of

antioxidants. The main issue is the lack of

knowledge and the technical details which creates

the price difference.

http://oil-price.net/dashboard.php?lang=en#TABLE3



http://www.ethanolindia.net/





New Product Introductions

Kurkure Puffcorn

Company Name : PepsiCo India

Brand Name : Kurkure Puffcorn

Product Type : Snacks

Ingredient Standard : Corn Meal (52.6%) Edible

Vegetable Oil, Gram Meal

Salt, Garlic Carbonate,

Milk Solids, Fructose,

Cheese powder, (0.2%)

Citric Acid, Spices &

Condiments.


Kurkure Puffcorn (Contd)

Description of product:

Pepsico has launched the Kurkure snacks

India’s most popular namkeen brand from

PepsiCo India’s foods portfolio, has launched two

new fun offerings- Kurkure Puffcorn. The brand

takes pride in using trusted ingredients found in

Indian kitchens to offer innovative products to its

consumers. After the immense success of

its ‘Ingredients of India’ limited edition range

made with dal last year, these new anytime snacks

are Kurkure’s latest ‘tedha’ take on snacking.

Kurkure Puffcorn uses corn as the main ingredient

and is available in two irresistible flavours -

Yummy Cheese and Mad Masala. The snack

promises a delicious crunch in every bite before

melting in the mouth. Monster Paws on the other

hand takes Kurkure’s promise of ‘tedha’ fun to

the next level with its unique shape. It is also

available in two flavors- Mad Masala and Funky

Tomato and every bite guarantees an explosion of

zesty flavor in the mouth.

Nalin Sood, Director, Indian Snacks, PepsiCo

India Foods said, "Kurkure is known for its great

tasting and fun offerings and with this new

launch, we are adding delight to the consumers’

snack basket. Puffcorn and Monster Paws, bring

Kurkure’s signature ‘tedha’ twist to snacking,

resulting in crunchy and enjoyable treats for our

consumers. We are confident that they will

appreciate the innovative range”.

Kurkure’s new and existing range is an exciting

mix of regional and topical flavours, with

ingredients like rice and corn. This new fun range

will add playfulness and excitement for those who

constantly look out for newer and distinctive taste

experiences. Now available nationally, Kurkure’s

Puffcorn and Monster Paws are available in 18g

and 38g packs, priced at INR 5 and INR 10

respectively.

(articles.economictimes.com 26 August 2012)

Cornitos nacho crisps





IndiaNews Food & Food Ingredients Review

Tradeshows & Events

Trade Events Date Venues Website

India Foodex

2012

25-AUG-12 to

27-AUG-12

Palace Grounds, Bangalore http://www.indobase.com/events/deta

ils/india-foodex-2009-2691.php

GrainTech India

2012

25-AUG-12 to

27-AUG-12

Gayathri Vihar, Bangalore http://graintechindia.com/

DairyTech India

2012

25-AUG-12 to

27-AUG-12

Palace Grounds, Bangalore http://dairytechindia.in/

Food & Bevtech

2012

11-SEP-12 to

13-SEP-12

Bombay Exhibition Center,

Mumbai

http://www.tradefair.jimtrade.com/fo

od_beverages.htm

INTERNATION

AL FOODTEC

INDIA 2012

11-SEP-12 to

13-SEP-12

Bombay Exhibition Centre

- NSE Exhibition Complex,

Mumbai

http://www.foodtecindia.com/

Fine Food India

New Delhi

17-SEP-12 to

19-SEP-12

Pragati Maidan, New Delhi http://www.biztradeshows.com/trade-

events/ifde-india.html

Annapoorna -

World of food

India 2012,

26-SEP-12 to

29-SEP-12

Bombay Exhibition Centre

- NSE Exhibition Complex,

Mumbai

http://www.worldoffoodindia.com/

Drink

Technology

India

06-NOV-12 to

08-NOV-12

Bombay Exhibition

Center(BEC) , Mumbai

http://www.biztradeshows.com/trade-

events/drink-technology-india.html

http://www.indobase.com/events/details/india-foodex-2009-2691.php

http://www.indobase.com/events/details/india-foodex-2009-2691.php

http://graintechindia.com/

http://dairytechindia.in/

http://www.tradefair.jimtrade.com/food_beverages.htm

http://www.tradefair.jimtrade.com/food_beverages.htm

http://www.foodtecindia.com/

http://www.biztradeshows.com/trade-events/ifde-india.html

http://www.biztradeshows.com/trade-events/ifde-india.html

http://www.worldoffoodindia.com/

http://www.biztradeshows.com/trade-events/drink-technology-india.html

http://www.biztradeshows.com/trade-events/drink-technology-india.html


Source: www.agmarknet.nic.in

IndiaNews Food & Food Ingredients Review

Agri Commodity Prices

Commodity Price Range

(INR)

Commodity Price Range

(INR)

Coffee & Tea

(per kg) - Bangalore

Cinnamon 98/100

Arabica Cherry-raw 101/104 Coriander seed 60/85

Arabica parchment-raw 205/207 Dry ginger 110/00

Robusta Cherry-raw 51/52 Dry mango 40/00

Robusta parchment-raw 104/105 Methi seed 34/40

Tea 75/190 Poppy seed 180

Dry fruits

(per kg)-Delhi

Red chillies 70/00

Almond 265/268 Green chillies 75/95

Cashew kernel 340/400 Dairy

(per kg) - Delhi

Kishmish 120/185 Milk powder 168/186

Pistachio 700/1300 Oil & oilseeds

(per kg) - Delhi

Grains & Pulses

(per quintal) - Kochi

Coconut (per nut) 7

Bengal gram 28/00 Palmolein 55

Black gram 43/00 Mustard seed 25/00

Green gram 63/50 Gingelly seed 42/00

Horse gram 19 Castor oil 78

Peas dal 29/37 Coconut oil ready 69/80

Toor dal 61/50 Linseed oil 85

Rice boiled 23/25` Mahua oil 60

Rice broken 17/20 Mustard oil 94

Rice raw 19/00 Palm oil 56

Wheat 12/85 Sunflower oil 41/00

Spices & Condiments

(per kg) -Delhi

Rapeseed 75

Ajwain 90/120 Linseed 79

Betelnut 137/19 Neem 68/70

Black pepper 395/00 Sugar

(per kg) - Delhi

Tamarind 35/38 Sugar 44/00

http://www.agmarknet.nic.in/

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