LE ADERS SPEAK
A brief history of FieldFresh Foods…
Opportunities in food processing industry in India…
Business model of Del Monte Foods and Beverages vertical…
FieldFresh Foods is a joint venture (JV) between Bharti Enterprises and Del Monte Pacific Ltd. The company offers two brands – FieldFresh for branded fresh fruits & vegetables being sold across Indian & international markets and Del Monte for processed foods & beverages aimed at the Indian consumer. FieldFresh Foods was initially set up in September 2004 as an exportoriented venture for fresh produce. The company went on to become the largest Indian exporter of fresh baby corn in 2008-09 and currently enjoys over 10 per cent marketshare in the UK retail for fresh baby corn with nearly 800 million tonne of export from over 4,000 acre of contract farming across Punjab and Maharashtra in 2009-10. We began supplying fresh fruits & vegetables to the Indian modern retail in 2008. To widen our portfolio, we added the Del Monte range of processed foods & beverages so as to capitalise on the huge domestic potential of India’s fast expanding economy. This led to the successful launch of the brand Del Monte in May 2009 in 15 cities, which we plan to expand to over 35 cities in the future.
The food processing industry has a huge potential in India and is in its initial stage of development in the country. India has an abundance of fruits and vegetables due to its diverse climatic conditions, which offer a source of competitive advantage in the food processing industry. It is believed that in the future, the impact of the food processing industry on the rural economy will be similar to the effect that information technology industry had on urban India. Statistically, the food processing industry is presently growing at a rate of 14 per cent against 6-7 per cent growth in 2003-04. We have seen the government formulating ‘Vision-2015
Del Monte operates in the retail customer segment as well as the business-tobusiness (B2B) segment, with good taste and innovation as its key differentiating planks. It has a wide product range, incorporating popular food and beverage products like ketchups & sauces and fruit drinks as well as category-defining products like packaged fruits & new emerging categories such as the Italian range of food products. The product packaging and pricing is decided according to the purpose they serve. For instance, large tin packs are for institutions that require lower per unit costs and higher shelf lives, while smaller & slim cans are for fruit drinks and on-thego consumption. In terms of geographical scope, the brand is targeting to extend its reach to the top 35 cities. In categories where the company finds a relative competitive advantage, the products will continue to be sourced from the country of origin, providing a clearly differentiated and superior offering. In other categories such as ketchups & sauces and fruit drinks, we will manufacture the products in India and deliver the taste profile desired by the Indian palate along with a strong value proposition to the consumer.
Building brands that ride on the ‘Freshness, wellness & convenience’ platforms… Our vision of providing high-quality branded fresh food is reflected in our brand name ‘FieldFresh’. Even though, fruits and vegetables contribute to a major share in the householders’ fruit basket, there are not many active players with national ambitions in this segment. We aim to bridge this gap in the marketplace with our offerings. Del Monte sources its products from the best possible producing regions to ensure the high quality for its customers. The Del Monte range of fruit drinks, sauces & ketchup, Italian food and packaged fruits spell innovation in taste & high quality.
India has an abundance of fruits and vegetables due to its diverse climatic conditions, which offer a source of competitive advantage in the food processing industry Action Plan’ as a catalyst for growth with specific targets and timelines. This includes tripling the size of the food processing industry from approximately $ 70 to $ 210 billion, increasing the level of processing of perishables from 6 to 20 per cent, increasing value addition from 20 to 35 per cent and enhancing India’s share in the global food trade from 1.5 to 3 per cent, which would imply a total investment of $ 20.6 billion. All these encouraging developments, along with the evolving consumer trends, a growing middle-to-affluent class and an emerging modern trade, especially in Tier 1 and 2 cities, have led to opening up new windows of opportunity for Bharti as we enter into the processed foods business.
Branded fruits & vegetables… We believe that branded fresh fruits and vegetables will redefine the way the average middle class Indian buys food, because the category fits well with the requirement of convenience, hygiene and affordability along with catering to the consumer’s penchant for fresh food. Major fresh fruit & vegetable offerings by FieldFresh are apples, bananas, baby corn and sweet corn. These are grown in farms and orchards where the company works closely with the farmers, bringing in international practices of growing to produce high-quality products. On the customer end, while our fresh baby corn and sweet corn find their way to the shelves of the leading retailers in the UK, the FieldFresh branded fruits are
May 2010
Modern Food Processing
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