Category — Food Processing
Restaurant News Source reports that Scottsdale, Arizona-based Cold Stone Creamery launched its first franchise location in India at the Lulu Mall in Kochi, in the western state of Kerala. Kahala Brands, the parent company of the Cold Stone Creamery brand has joined forces with Tablez Food Company, part of Lulu Group International, LLC, to bring the Ultimate Ice Cream Experience to India and neighboring Sri Lanka.
The opening event saw a crowd of 4000 people in attendance, with one family driving 150 miles from the capital city of Kerala to be one of the first to taste the premium ice cream brand. “Over the next five years, Tablez Food Company plans to invest around $11-13 million in the Cold Stone Creamery business across India and Sri Lanka,” said Shafeena Yussuf Ali, chairperson at Tablez Food Company. The company aims to open a total of 40 locations in India and five in Sri Lanka over the next five years.
July 15, 2016 No Comments
Winning a World Trade Organization dispute which the United States brought against India, American companies can now export poultry and pork products to India.
In 2007, India banned U.S. poultry, chicken eggs, and other agricultural products ostensibly to prevent avian influenza outbreaks. India just lost the appeal at a World Trade Organization appellate body when the United States argued that it had not had an outbreak of high pathogenic avian flu since 2004, while India had 90 such outbreaks between 2004 and 2014, reports Forbes.
July 11, 2016 No Comments
Pizza Marketplace reports that according to Coupon Hippo‘s research, Domino‘s in India dominates the pizza quick service restaurant category with 70% market share. The company quotes seven reasons for Domino’s success in India:
- Domino’s India currently has 1000+ outlets and is the second biggest market outside the U.S. It is on track to add 150 new stores every year throgh 2020.
- The company has localized recipes for the Indian palate (where 56% of the population is vegetarian), with pizzas such as Peppy Paneer, Farmhouse, and Margherita that cater to the vegetarians.
- A Domino’s pizza in India is the lowest priced compared to other countries: in U.K. it’s $8.62; in U.S.A. $5.99; Australia $5.04 and in India the pizza is available for $1.47.
- On social media Domino’s has five times the engagement as compared to its closest competitor.
- Pizza fits in with the Indian culture of eating with one’s hands and sharing one’s food.
- Domino’s has a super fast delivery guarantee in India: if the pizza isn’t delivered in 30 minutes, it’s free.
- Since most Indians only use a mobile phone to access the Internet, the focus for the company is taking orders via a mobile phone. By 2021 it is estimated that India will have 810 million smartphone users.
June 29, 2016 No Comments
Eighteen months ago, Tata Chemicals, set up a plant in the southern city of Chennai in India which now produces more than 800 tons of nutraceuticals a year. By 2020 Tata Chemicals is looking at a target of 10,000 tons of fructooligosaccharides (FOS) and galactooligosaccharides (GOS), carbohydrates that are dietary fibers consumed to improve gut health.
The company’s flagship FOS ingredient is Fossence, a naturally sweet prebiotic dietary fiber with several wellness benefits. “Fossence can be used in every sweet and bakery shop in India,” says Anish Chowdhary, senior manager of Tata Chemicals, and a core member of the nutraceuticals team. “The key to success lies in fulfilling the customer needs.”
“Edible oil consumption in India has increased per person from 6.6 pounds in 1950 to more than 33 pounds in 2014,” says Chowdhary. “Indians consume almost 50 percent more fat every day than recommended. We also consume 15 percent of the sugar produced globally. Add to these, the deficiencies in micronutrients, vitamins and proteins and you have a ‘death-by-food’ recipe. What we need is scientifically proven, high-quality products designed for India. While there are sugar-free and fiber-enriched products in this market, they have not tapped into the huge potential of the processed food sector with ingredients that are healthy, tasty, safe and convenient to use,” he added.
Nutraceuticals is estimated to become $4 billion market in India by 2018, reports Business Standard. The company plans to make oligosaccharides, sweeteners, and anti-obesity products through green routes.
June 9, 2016 No Comments
India’s packaged food industry is rapidly growing. The sector is likely to rise to $50 billion next year from $32 billion last year, according to the Associated Chambers of Commerce and Industry of India, which said, “There has been a major shift in food habits in the metropolitan cities. About 79 per cent of households prefer to have instant food due to steep rise in dual income level, standard of living and convenience.” The main categories of packaged food are bakery products, canned/dried processed food, frozen processed food, ready-to-eat meals, dairy products, snacks, processed meat, health products and drinks.
New Jersey-based Mondelez International is setting up its largest factory in the APAC region in the southern state of Andhra Pradesh in India at an investment of $190 million. Spanning 130 acres, creating 1,600 jobs, this factoruy is and has an annual capacity of 250,000 tons. Currently the company produces 60,000 tons of Cadbury’s Dairy Milk chocolate a year . “We are bullish about India and see this country as a huge opportunity,” says Maurizio Brusadelli, the president, Asia Pacific, for Mondelez International. “India is a priority market for us. We are investing today and building capacity for tomorrow.”
The National reports that the demand for ready-to-eat food and snacks is surging in India due to:
- the country’s young demographics
- growth in e-commerce
- rising incomes
- demand for hygienically produced goods
- expansion of organized retail
- more working women in India
- better distribution network
Danone, ITC, Mondelez, Nestle, PepsiCo are some of the foreign companies in India in the packaged goods sector. Some regional companies are Amul, Brittania, Haldiram’s, Kwality, and Mother Dairy.
Data from Euromonitor shows that the market for packaged goods in India is very fragmented, with the top seven packaged-food companies holding just 27 per cent share of the market. Domestic manufacturers dominate the packaged food sector, “whereas international players still have to understand the dynamics of the Indian consumer mindset”. Domestic manufacturers are increasing both their range of products and their distribution and penetration into rural India, according to Euromonitor. “Launching smaller packs with lower price points boosted their efforts in this direction in 2015.”
Nawal Sharma, the president and head of business transformation at Kwality, a major dairy products company in India, says there “is not a situation of cut-throat competition or bleeding price wars” in India. Multinational corporations can get into this space and still flourish,” he says. “We would rather invite more players to get into industry. We see a lot of growth for everyone over the next five to ten years.”
There is a lot of scope in launching goods in the market with flavors or sentiments that appeal to the Indian population, and both regional and foreign companies are striving to do this, though the regional companies seem to be able to do this better – being smaller they are nimbler, and being regional they understand that certain flavors are typical to a given area.
Mother Dairy markets Nolen Gur, a palm jaggery-flavored ice cream, to cater to palates in the eastern region. Jagger makes quality dark chocolates with organic jaggery (brown sugar). With Indians becoming conscious of health foods, Kwality has patented reduced-cholesterol ghee (clarified butter). Shivam Gupta, the director of WestCoast Group based in Mumbai, says that sales of its seafood, snacks and frozen vegetable packaged products are growing by 20 per cent annually. “Superior cold chain technologies, growth in e-commerce, convenience, dropping culinary skill sets, busy urban living, increased awareness about the health benefits of frozen foods, which are free from preservatives, are the factors mainly responsible for the growth of our products,” he says.
Among foreing players in India, Danone launched Mishti Doi a sweet yogurt famous in Bengal, which it also plans to market in Europe. Nestle’s Maggi noodles returned to leadership position with close to 50% share in the $300 million instant noodles category. However, Mondelez’s Cadbury chocolate reigns supreme in the world of India’s confectionery market!
June 9, 2016 No Comments