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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:
GIRACT
24 Pré Colomb, 1290 Versoix – Geneva
Switzerland
Tel +41 22 779 0500
Fax +41 22 779 0505
info@giract.com
http://www.giract.com
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.
Aug/Sept 2012 www.giract.com Page | 2
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
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)
Aug/Sept 2012 www.giract.com Page | 3
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
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)
Reactions to Govt's nod to 51% FDI in multi-brand retail mixed (Contd)
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)
Aug/Sept 2012 www.giract.com Page | 4
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
Reactions to Govt's nod to 51% FDI in multi-brand retail mixed (Contd)
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.
(fnbnews.com 13 September 2012)
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)
Aug/Sept 2012 www.giract.com Page | 5
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
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.
(fnbnews.com 07 September 2012)
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)
Aug/Sept 2012 www.giract.com Page | 6
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
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.
(fnbnews.com 08 September 2012)
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)
Aug/Sept 2012 www.giract.com Page | 7
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
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.
(Continued in next column)
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)
Aug/Sept 2012 www.giract.com Page | 8
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
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)
Aug/Sept 2012 www.giract.com Page | 9
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
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.
(Continued in next column)
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)
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Food Industry Overview
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)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Industry Overview
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)
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Food Industry Overview/
Food Ingredients News
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.
(economictimes.indiatimes.com 09 August 2012)
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)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Ingredients News
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.
(fnbnews.com 13 September 2012)
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.
(fnbnews.com 07 September 2012)
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Food Ingredients News
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
(Continued in next column)
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.
(economictimes.indiatimes.com 06 August 2012)
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)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Ingredients News
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.
(economictimes.indiatimes.com 06 August 2012)
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.
(thehindubusinessline.com 06 August 2012)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Food Ingredients News
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.
(Continued in next column)
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).
(thehindubusinessline.com 06 August 2012)
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)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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
(Continued on next page)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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)
Aug/Sept 2012 www.giract.com Page | 19
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Beverage News
Experts at IDA seminar urge dairy companies to invest in cheese market (Contd)
"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)
Experts at IDA seminar urge dairy companies to invest in cheese market (Contd)
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.
(fnbnews.com 17 September 2012)
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)
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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.
(fnbnews.com 11 September 2012)
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.
(Continued in next column)
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)
Aug/Sept 2012 www.giract.com Page | 21
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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.
(Continued in next column)
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)
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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.
(Continued in next column)
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.
(Continued on next page)
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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)
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Beverage News
Innovative flavors in yogurts and their popularity in India (Contd)
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)
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Beverage News
Innovative flavors in yogurts and their popularity in India (Contd)
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.
(fnbnews.com 04 September 2012)
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)
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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)
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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.
(Continued in next column)
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”.
(fnbnews.com 24 August 2012)
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)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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.
(fnbnews.com 18 August 2012)
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)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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."
(fnbnews.com 22 August 2012)
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)
Aug/Sept 2012 www.giract.com Page | 30
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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
(Continued in next column)
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.
(Continued on next page)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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.
(Continued in next column)
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.
(Continued on next page)
Aug/Sept 2012 www.giract.com Page | 32
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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)
Aug/Sept 2012 www.giract.com Page | 33
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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.
(fnbnews.com 23 August 2012)
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)
Aug/Sept 2012 www.giract.com Page | 34
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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”.
(Continued in next column)
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)
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IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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.
(fnbnews.com 02 August 2012)
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.
(Continued in next column)
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.
(fnbnews.com 04 August 2012)
Aug/Sept 2012 www.giract.com Page | 36
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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.
(Continued in next column)
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)
Aug/Sept 2012 www.giract.com Page | 37
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
Processed Foods
Re-inventing desserts through artisanal gelato (Contd)
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.
(Continued in next column)
Re-inventing desserts through artisanal gelato (Contd)
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.
(fnbnews.com 01 August 2012)
Aug/Sept 2012 www.giract.com Page | 38
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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
(Continued in next column)
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.
(thehindubusinessline.com 06 August 2012)
Aug/Sept 2012 www.giract.com Page | 39
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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.
(Continued in next column)
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.
Aug/Sept 2012 www.giract.com Page | 40
IndiaNews FOOD & FOOD INGREDIENTS REVIEW
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.
(Continued in next column)
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
Aug/Sept 2012 www.giract.com Page | 41
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
Aug/Sept 2012 www.giract.com Page | 42
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
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