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Vol. 6, Issue 8, January (I) 2014, Rs. 20/-

INDIA’S CHOCOLATE INDUSTRY TO CROSS 7,500 CR BY 2015

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rowing at a compounded annual growth rate (CAGR) of about 25 per cent, India’s chocolate industry is currently worth about `5,000 crore and is likely to cross `7,500 crore mark in the next couple of years. Globally the chocolate industry is worth over $85 billion. Besides, India’s per-capita chocolate consumption is hovering at about 100 gram and

urban centres comprise 35 per cent of the chocolate consumption in the country. Cadbury is leading the pack with about 70 per cent market share followed by Nestle, Amul, Ferrero Rocher, Toblerone and others, ASSOCHAM said in a report. Though lower penetration levels provide large scope for expansion of chocolate industry across India

but there is a lack of interest amid regional confectionary players to enter the chocolate market as firstly, it requires huge capital investment for production and brand promotion and secondly, facing established global players ruling the market is another tough task,” said ASSOCHAM secretary general D S Rawat. Demand for chocolates as a gift item has

increased by almost 40 per cent with the advent of the festive season already and is likely to rise further as dry fruit prices have increased substantially by about 25-30 per cent, ASSOCHAM said. Adulteration in traditional sweets eroding consumers’ confidence along with dry fruit prices going through the roof and other significant multiple factors like growing acceptance of chocolates amid varied Indian palates, attractive packaging, consistency in quality, growing gifting culture, rising urban affluence amid youth with high disposable incomes and a crazy sweet tooth together with other related factors are driving the demand for chocolates,” according to a survey conducted by ASSOCHAM to ascertain the gifting trends this festive season. ASSOCHAM interacted with about 1,000 consumers, traditional sweet shopkeepers, kirana stores, wholesale dry fruit traders and shopkeepers during the course of past fortnight in 10 cities of Ahmadabad, Bangalore, Chandigarh, Chennai, DelhiNCR, Hyderabad, Jaipur, Kolkata, Lucknow and Mumbai. Most of the consumers said that dry fruits would be the last thing on their

minds as a gifting option this festive season as its prices have already sky-rocketed and will rise further as Diwali draws closer. Besides, majority of these also said they preferred chocolates over sweets as a gift option considering the factors like longevity, health related benefits, attractive packaging and others. Another significant factor that is fuelling chocolate demand during festive season in India is that it can be easily ordered online and its timely delivery at the desired destination highlighted the ASSOCHAM survey. Most of the dry fruit traders and shopkeepers said that recent rupee depreciation against major currencies had lead to an escalation of about 10-15 per cent in wholesale markets and the retail shoppers would have to cough up about 20-25 per cent more money. Chocolate confectionary makers have also increased prices and reduced pack sizes owing to skyrocketing input costs as prices for major ingredients like cocoa, milk and sugar have soared in both domestic/global markets and this will only lead to consumers tightening their purse strings further.


Beverages & Food Processing Times - January - I - 2014

Food Processing News

Food processing sector registers fast growth

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he food processing sector has witnessed fast growth, employment generation and export earnings in the recent past according to the press release issued by the central government. In major indicators, the growth in this sector has been better than other industries and the economy as a whole. On its part, the ministry of food processing industries has contributed to encouraging investment into the sector, improving infrastructure, evolving better standards, removing bottlenecks and initiating R&D and skill development.

The National Mission on Food Processing (NMFP) was approved in June this year followed by quick formulation of guidelines to states. The ministry has taken a number of steps for encouraging investment into the FPI sector; these include issuing expression of interest (EOI) for setting up 15 cold chain projects, information dissemination on resources and facilities available in different states, creating an investor portal, and modification of guidelines for setting up cold chains. On the Ministry’s initiative, concessional duty on food processing machinery is under consideration of the government.

Tetra Pak debuts coiled mono-tube heat exchanger

etra Pak has launched a next generation heat exchanger that can process thick and sticky products such as puddings, purees or soups and products that contain solids such, as casseroles, baby food and ready meals. The Tetra Vertico uses a coiled mono-tube instead of the traditional tubular and scrape heat exchangers, which gives it a higher pressure rating. As many food producers prefer not to use moving parts during aseptic processing and the lack of moving parts and the higher speed of the coiled mono-tube design is a major advantage of the Tetra Vertico. The challenge for the food industry has been applying either direct or indirect heat treatment at a speed and efficiency that can keep up with both modern production demands and without altering the nature of the product being treated. A traditional straight tubular heat exchanger consists of three metre or six metre long pipes connected together with 180° bends. A Tetra Vertico coiled tubular heat exchanger by contrast consists of pipes which are between 30 and 100 metres in length (depending on the duty) with two 90° bends at the inlet and the outlet of the

heat exchanger. This results in a gentler treatment of products that contain solids and improves hygiene due to a lower number of welds and connections. The heat exchanger is designed to withstand a higher pressure within the unit compared to a traditional heat exchanger. This means products can be passed through at a higher speed, leading to a fluid flow characterised by a higher Reynolds number (a measure of fluid flow pattern). As a result, the rate of heat transfer is significantly improved. The high pressure rating also makes it possible to run viscous products at higher capacities to meet production demands. It is also in contrast to a scrape surface heat exchanger, where the product is passing though the heat exchanger at very low speed. In a scrape surface heat exchanger

the heat transfer is facilitated and fouling is avoided by constantly scraping the heated surfaces with rotating scrapes. The mechanical action of a scrape surface heat exchanger means that generally these units have a very small capacity. Tetra Pak confirmed SunOpta of Canada, has bought one of the machines and it decided to launch the product now in response to ‘a growing need for processing solutions that can process both thick and potentially sticky (viscous) products. SunOpta organic food company specializes in sourcing, processing and packaging natural and certified organic food products such as grains, fiber and fruit based food with organic ingredients, private label beverages, natural sweeteners, frozen fruits and vegetables. Highlights of the Tetra Vertico include reduction in both system volumes and holding times by up to 20% (compared to concentric heat exchangers); reduction in product losses by up to 6% (compared to concentric heat exchangers); more gentle mechanical treatment, making it suitable for foods with big particles and it is EHEDG certified.

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Beverages & Food Processing Times - January - I - 2014

Food Processing News

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Sharad Pawar advocates for state level reforms for Food Processing Industries

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he ongoing projects in the food processing industries sector that have been assisted by the Government will create an additional capacity of 1.7 lakh tonnes of cold storage, 1.37 lakh tonnes CA (controlled atmosphere) storage, deep freezers worth 57,000 tonne capacity, 591 reefer carriers and 103 lakh liter per day milk storage in the country. The Agriculture and Food Processing Industries Minister, Sharad Pawar has called for state level reforms and linkages between agricultural production and the

requirement of food processing industries, for fast growth of the sector. S h r i Pawar also expressed the hope that investors will make use of various incentives offered by the Government to them. “In August 2013, the Government has approved 75 new cold chain projects. Out of these, 56 projects have already been sanctioned. MOFPI has now invited offers for setting up of 15 cold chain projects under the Scheme for Cold Chain, Value Addition & Preservation Infrastructure. I hope investors will take benefit of Government’s scheme of grant in aid up to Rs.10 crore for setting up a cold chain project. This will facilitate investment in food processing

Game on for India’s Snack Sector

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arket dynamics will soon change in the Rs 7,200-crore branded snacks sector. To counter competition from multinational players, domestic players like ITC Foods, Parle Products, CavinKare and Parle Agro are drawing up fresh strategies to woo consumers. Despite a slowdown, the sector is growing at 30%. Recognising the growth potential of this sector, Indian FMCG majors are beefing up their operations to drive volumes. To begin with, makers of Bingo, ITC Foods is betting big on innovative products, brand-building plans and digital communications to take on multinational rival PepsiCo, led at the global level by Indra Nooyi . At present, PepsiCo India’s Frito-Lay is leading the pack in the branded snacks sector. While Parle Products is extending manufacturing capacity and distribution network, CavinKare that acquired ‘Garden Snacks’, is strengthening its snack portfolio with retail and marketing initiatives. The company is also scouting for acquisitions to extend product portfolio. On ITC’s plans, chief executive, foods division at ITC, Chitranjan Dar said: “ITC is leveraging its distribution and supply chain investments and cuisine expertise of hotels division to enhance consumer franchise in the snacks segment.” “Our strategy includes, enhanced brand-building efforts, effective use of digital media and clutter breaking communication campaigns,” he added. ITC had entered the branded snacks category in 2007 with Bingo. Meanwhile, Parle Products, makers of Parle Namkeen, is investing in research & development to launch new products to woo diverse audience. “There’s a pipeline of new products to be launched. We are looking at new categories in the snacks sector,” said Pravin Kulkarni, the general manager (marketing), Parle Products. Parle Products is increasing the manufacturing capacity at its four plants. The company is also extending distribution by 20% to reach out to a wider audience. It is also targeting young consumers. On August 16, Parle Products tied up with the international gaming company Rovio Entertainment to promote Parle Wafers. Like ITC, Parle Agro that sells Hippo snack brand is also betting big on innovations. “Our core strategy is to continue focus on innovation and introduce first-of-its-kind brands in India,” said Nadia Chauhan, the joint MD of Parle Agro.

sector by improving availability and quality of horticultural products round the year,” he said. Taking about the problems faced by the food processing industries, the Minister emphasised the need for streamlining the clearance processes and other reforms. He said: “Protection of ground water levels and a clear water usage policy across states will reduce unscrupulous practices and wastage of scarce resource. On the regulatory front, around 40 different approvals are needed to set up a greenfield manufacturing plant. These include clearances

from different government bodies at the centre, state and local levels. If the process is streamlined, India can develop as a manufacturing hub. A number of reforms have to be taken at the state level. For instance, there is an urgent need to have uniform classification for the non-alcoholic beverage sector

by the State Pollution Control Boards and all states should classify non-alcoholic beverages under the ‘orange’ category along with other food processing industries. This will streamline the clearance process for setting up manufacturing facilities.”


Beverages & Food Processing Times - January - I - 2014

Dairy News

France’s Lactalis to buy Indian dairy firm for $250-$300 mln - sources

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urope’s biggest dairy group Lactalis has agreed to acquire a controlling stake in India’s Tirumala Milk Products for between $250 million and $300 million, two sources with direct knowledge of the matter said. The French firm will buy shares from Tirumala’s founders, who own 80 percent of the company, and from private equity firm the Carlyle Group (CG.O), which invested about $22 million in the company in 2011 and holds the remaining 20 percent stake, the sources said. A Lactalis spokesman said the company had agreed to buy Tirumala for an undisclosed amount. Tirumala officials could not be reached outside business hours.

The sources with direct knowledge of the matter declined to be named before a public announcement about the deal expected this week, or to specify the size of the controlling stake Lactalis would acquire. However, one of the sources said the French company would buy all of the Carlyle Group’s holding. The deal is subject to regulatory approval and is expected to close in this quarter, the sources said. Founded in 1998, Tirumala Milk Products, based in Hyderabad, is one of the largest dairy processors in southern India. It sells various milk and other related products. The company’s turnover in the fiscal year that ended March 2013 was 14.24 billion rupees, according to its website.

“This acquisition is a new step in the international expansion of Lactalis,” the French company’s spokesman said. Family-run Lactalis, owner of the Galbani, Lactel and President brands, is Europe’s No.1 dairy group in terms of revenue. It has grown through acquisitions to reach annual revenues of 15.7 billion euros, of which Europe accounts for 60 percent. One of its recent high-profile acquisitions was Italy’s Parmalat (PLT.MI) group in 2012. With the acquisition of Tirumala, Lactalis will enter one of the fastest-growing markets that has the potential to account for a large part of its sales in the medium to long-term, one of the sources involved in the process told. The deal, which took nearly a year to be completed, saw bids from global companies as well as buyout groups, he said. India is the world’s biggest milk producer and most of its produce stays at home as a protein staple for a population of about 1.2 billion. The country’s milk product exports are tiny and restricted mainly to south Asian countries. In India, Lactalis will compete with the likes of Gujarat Cooperative Milk Marketing Federation Ltd, owner of Amul, the nation’s best-known milk and dairy products brand, and the local unit of the world’s biggest food group Nestle (NESN.VX).

‘Mini Dairies’ to spread white revolution in UP

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o boost dairy sector, the Uttar Pradesh government has drafted a blueprint for setting up ‘mini dairies’ across the state with interest subsidy. There is a proposal to set up 150 mini dairies spread over all the 75 districts in the state. Each dairy unit to be set up by individual entrepreneurs would comprise 50 cattle heads.

The government would provide interest subsidy to these units on 75% of the bank credit secured through public sector commercial banks. State a n i m a l husbandry minister Raj Kishore Singh has directed officials to encourage entrepreneurs set up such mini dairies in UP. A typical unit would require investment of about Rs 52 lakh, of which 25% of margin money would be incurred by the entrepreneur. The rest could be secured through loans repayable in the next 5 years. The dairy owner would be mandated to get animal insurance and only rear cattle of single

breed. The state accounts for the largest share of about 18% of the total milk production in India and also has the largest cattle population. The major towns in UP alone consume almost 7.5 million litres of milk/day, of which Lucknow consumes nearly a million litres of liquid milk/day. Currently, India is amongst the largest milk producers in the world. The country’s annual milk production is pegged at 128 million tonnes, of which 66% is consumed in liquid milk form and the rest in value added forms such as curd. The nodal agency of dairy development in UP is Pradeshik Cooperative Dairy Federation (PCDF), which was established for multiple objectives of increasing milk production, processing/marketing of milk/ dairy products and development of infrastructure to promote dairy industry.

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Indian Dairy Farm Amul Plans to Sell Liquid Milk in U.S. and Canada, Targets European Countries in Future

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mericans and Canadians will soon have liquid Indian milk at their breakfast tables. Amul, the brand which represents Gujarat Co-operative Milk Marketing Federation (GCMMF), is an Indian dairy cooperative which has revolutionised the way liquid milk is produced and distributed in India and abroad. Three million milk producers from the Indian state of Gujarat own GCMMF which has revealed plans to distribute liquid milk in the United States in 2014. Thereafter, it plans to target Canada along with other European countries in future. Amul prompted the White Revolution in India, which eventually made the country the largest producer of milk in the world. GCMMF Managing Director R S Sodhi feels that the process, however, will take some time. He believes that exporting liquid milk to European countries may take some time even though the company may not take much time to export it to Canada. Amul, which is also a world leader in producing milk products, is soon to begin manufacturing

clarified butter (ghee) and cottage cheese (paneer) at a New Jersey plant starting from February 2014. Amul has joined hands with a local plant in order to manufacture milk products in the city. It has also revealed plans that it may buy milk from local farmers directly in future. Amul will need about 50,000 l of milk every day to fulfil the local requirements. The plan is to produce 5 tonnes of ghee and 2 tonnes of paneer every day during the initial phase. It plans to produce additional milk products such as shreekhand (a type of Indian dessert), yogurt and lassi (curd-based drink). The GCMMF is going to provide infrastructure and technical support to the local plant in order to manufacture milk products, Mr Sodhi informs Business Line. Presently, the GCMMF exports dairy products worth about Rs 100 crore every year to Europe, West Asia and the United States. Around RS 35 crore of it goes to the U.S. only. The co-operative expects a turn-over of around Rs 18,000 crore in 2013-2014, which is 30 per cent greater than the previous year.

Amul to expand its butterly spread

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hey have given their mascot - the iconic red polka-dot dressed Amul butter girl - a new 3D avatar. And now those marketing brand Amul are set to increase the spread of the utterly butter. The Gujarat Cooperative Milk Marketing Federation (GCMMF) will increase its butter manufacturing capacity with a new manufacturing plant at Mother Dairy in Gandhinagar. The first fully automated plant to manufacture butter located at Bhat village at Mother Dairy in Gandhinagar, a GCMMF unit, has a capacity to produce 50 tonnes of butter per day. With the commissioning on this plant by the end of next month, Amul’s total butter manufacturing capacity will touch 300 tonnes per day. Butter silos will be used for the first time in the country at the new plant. Butter stored in these silos will be fed directly to four different automatic packaging lines. “We (Amul) have remained undisputed market leader in this category which has witnessed around ten per cent annual growth. During winters, when milk procurement is high, we will

be able to produce more butter to meet the increase in demand and supply more fresh butter to our consumers through this state-ofthe-art plant at Gandhinagar,” GCMMF’s managing director R S Sodhi told. With the double digit growth both in terms of volume and value, Amul presently enjoys 85 per cent market share in the domestic butter market estimated to be around Rs 1,800 crore. India is not just the world’s largest milk producer but also the largest butter producer. The butter plant at Gandhinagar has been set up with an investment of Rs 80 crore and is equipped with auto cartoners and case packers. Major member unions of GCMMF including Anandbased Kaira District Cooperative Milk Producers Union Limited popularly known as Amul Dairy, Mehsana’s Dudhsagar Dairy, Sabarkantha-based Sabar Dairy, Banaskantha-based Banas Dairy already have butter manufacturing plants while small and manually operated plants also exist at Panchmahalbased Panchamrut Dairy and Vadodara-based Baroda Dairy.


Beverages & Food Processing Times - January - I - 2014

Dairy News

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Umbrella branding of dairy products needed in state : Chavan

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ndian dairy processor Parag Milk Foods has secured funding for expansion from the International Finance Corporation, the investment arm of the World Bank. The IFC is loaning Parag US$15m to help expand its portfolio of value-added products, including UHT milk and whey powder. The money will also be used to improve its supply chain network and for food safety. Parag chairman and MD Devendra Shah said: “IFC’s global knowledge and expertise in the dairy sector will help

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xpressing the need to create a brand for all the dairy products in the state on the lines of Amul in Gujarat, chief minister Prithviraj Chavan said that it help expand the sector on both the fronts - production and marketing. “This has led to price rise and for ushering revolution in this field, there is a need for creating a single brand of the state for all these products,” he said. He was in the city to inaugurate a new administrative building of state commissioner of animal husbandary in Aundh. Deputy chief minister Ajit Pawar and Lok Sabha MP Suresh Kalmadi were also present at the event. Chavan said that though there was an increase in the production of dairy products and milk, the export was minimal. “The per capita consumption of milk is 231 gm than the desired 300 gm per day. There is a need to use the state of art technology for production of fodder and dairy could be supplementary occupation along with agriculture,” he said. According to him, dairy development is need of the hour for North Maharashtra, Marathwada and Vidarbha

regions since it had flourished inWestern Maharashtra for years. Chavan said that the purchasing power has increased leading to more consumption of dairy products, meat and cheese but the production has not. Speaking about the milk price hike, Pawar said, “There is hue and cry when the prices of milk is hiked, but people are ready to pay Rs15 for a water bottle.” He added that the state government has so far undertaken or completed development works worth Rs690 crore in Pune and Pimpri Chinhwad.

the company develop best practices to increase milk yields, adopt environmental and food safety standards and upgrade technology and operational practices. The project will benefit dairy farmers, a critical link in the company’s supply chain.” The IFC has invested $4.5bn across the agricultural sector in 2013, including in projects with Greece-based bakery and confectionery group Chipita. In September, the IFC bought a stake in Brazilian beef processor Minerva as part of an agreement that saw it lend the business BRL137.7m.


Beverages & Food Processing Times - January - I - 2014

GI asks agri-export body to include MP as basmati growing area

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eographical Indications (GI) Registry has directed agri-export body APEDA to file an amended GI application for including Madhya Pradesh as a Basmati growing region. The GI label certifies not only the geographical origin of a product but also confirms adherence to some production standards. Further, it prevents producers who aren’t covered by the tag from using the same. Madhya Kshetra Basmati Growers Association Samiti, Dawat Foods Ltd and the state Department of Farmer Welfare and Agriculture Development had in 2011 filed an “Opposition” (application) against APEDA for excluding the state land area under the GI-145 application, and causing extensive damage to the business interests of farmers and millers. Following that, the Chennai-based GI Registry’s assistant registrar Chinnaraja G Naidu on December 31, 2013 directed APEDA to file an amended GI application including the uncovered area, with map of the region clearly demarcating the area of production, within 60 days from the date of the order. “In Madhya Pradesh, four lakh farmers produce nearly 8 lakh tonnes of Basmati rice; out of which 40 per cent is being exported to countries like the US and others,” Madhya Pradesh Agriculture Department’s Principal Secretary Rajesh Rajora said.

The state government will also file a caveat before the Intellectual Property Appellate Board, Chennai, regarding the matter, he said. A large number of farmers in Madhya Pradesh have been growing Basmati rice for last many years by using traditional and new techniques, Rajora said. “Non-inclusion of the state among the Basmati growing areas will have an adverse effect on the lives of farmers, who are mainly dependent on Basmati rice cultivation,” he said, adding that it will also reduce the country’s turnover from the export of Basmati. The opponents blamed APEDA -Agriculture and Processed Food Products Export Development Authority -- for failing to include in its application areas that cultivate Basmati rice in Madhya Pradesh, including Morena, Bhind, Gwalior, Sheopur, Datia, Shivpuri, Guna, Vidisha, Raisen, Sehore, Hoshangabad, Jabalpur and Narsinghpur. They submitted that since the state is located in the Indo-Gangetic plain, the climatic condition of these areas is favourable for the cultivation of Basmati. The opponents have also submitted proof of cultivation of Basmati within Madhya Pradesh state since as early as 1990 and also provided copies of the Gazetteers, historical documents to substantiate their claim on the issue.

Twofold rise in processed food, Basmati rice exports to Iran

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ndia’s agriculture and processed food exports to Iran have more than doubled in quantum and value terms in the last one year, mainly on account of an exceptional surge in Basmati rice exports. If the trend continues, this year’s export of Basmati to Iran could be the highest. In value terms, Basmati rice exports to Iran increased by 137 per cent (nearly threefold rise), while in terms of quantity it increased by 77 per cent, between April and September 2013 and 2014, data from Agricultural and Processed Food Products Export Development Authority (Apeda) show. Between April and September 2013, total food exports to Iran was valued at Rs 7,104 crore, against Rs 3,043 crore in the same period last year, a rise of nearly 133 per cent, according to Apeda. In terms of quantity, the amount of exports increased by almost 104 per cent between April and September this year over the corresponding period last year. “This year there has been a great surge in Basmati exports to Iran. While the quality of rice exported from India has improved, there could be other reasons for the rise in exports. It might be the reason that the Iranian government wants to stock up their inventory,” said R Sundaresan, executive director, All-India Rice Exporters Association. After US sanctions against Iran, India’ export to that country had suffered a setback. However, with Iran being a key oil supplier to India, both countries reached a new payment mechanism in 2012. Under this, 45 per cent of India’ crude payments were made in rupees through UCO Bank. The rupee resources were being used for making payments for Indian exports. Thus, with Iran unable to procure foodgrains from other countries, India’s rice export has witnessed a surge in volume. About 85 per cent of India’s agriculture and processed food exports to Iran are on account of Basmati. However, India’s exports might be affected by the recent deal of six major countries (the US, France, Germany, Britain, China and Russia) with Iran to ease Iran’s nuclear plans in lieu of temporary relief over sanctions.

Agri Business News

Look East Policy can boost the agri-horti sector: Tarun Gogoi

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he Directorate of Agriculture, the Directorate of Horticulture and Food Processing, Assam and the Assam Agricultural University in association with the Indian Chamber of Commerce and the Assam Horticultural Society organized the 1st Assam International Agri-Horticultural Show 2014 at the College of Veterinary Science Playground, Khanapara, Guwahati, Assam. The biggest ever Conference-cumExhibition organized in North East India the event scheduled till January 11, 2014 will showcase the prospects and potentials of the region particularly that of Assam with respect to the agriculture and horticulture sector. The conference, which is the fourth in its row, has gone International this year with active support and participation of countries like Bangladesh, Bhutan, Taiwan, Nepal, Italy, China, Indonesia, South Africa, Israel, Canada, UK, Myanmar, Laos, United States of America, Netherlands and more than 70 Indian companies and corporations representing agri-machinery, seeds, fertilizers, financial institutions and various boards of the agriculture sector. Sectors of specialization for international exhibitors include agriculture and horticulture products like seeds, fertilizers, pesticides and agrochemicals, food and beverage industry, food processing, nutritional management, animal feeds, fruits and vegetables, biotechnology, livestock and storage units. The event will also find the participation of international Chambers of Commerce, the Consulates, High Commissions and overseas Farming and Development Societies informed Mowsam Hazarika, Publicity Coordinator of the exhibition and SDAO(Information) Directorate of Horticulture and Food Processing, Assam. Eminent dignitaries and personalities of the Government of India, Government of Assam and the Consulates attended the inaugural session of the 4-day conference. The personages included Tarun Gogoi, Hon’ble Chief Minister, Government of Assam; Vinod K Pipersenia, Additional Chief Secretary, Government of Assam; Charan Das

Mahant, Hon’ble Minister of State for Agriculture & Food Processing Industries, Government of India; Kanna Lakshmi Narayana, Hon’ble Minister of Agriculture, Government of Andhra Pradesh; Dr Benjong Liba, Hon’ble Minister of Agriculture, Government of Nagaland; Nilamani Sen Deka, Hon’ble Minister of Agriculture, Horticulture & Food Processing & Parliamentary Affairs, Government of Assam; Mr Pankaj Agarwal, Secretary, Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, Government of India; Anup Kumar Thakur, Secretary, Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, Government of India; Madhav Lal, Secretary, Ministry of MSME, Government of India; Ardhendu Dey, Hon’ble Minister of Irrigation, Government of Assam; Member Gogoi, Chairman, Assam Agricultural Marketing Board; Mr Jitesh Khosla, Chief Secretary, Government of Assam; H.E. Mr Saw Myint Oo, Hon’ble Minister of Agriculture and Livestock, Sagaing Region of Myanmar; H.E. U Myint Than, Hon’ble Minister of Agriculture and Livestock, Mandalay Region of Myanmar; H.E. Dr Khamphad Sourinphoumy, Hon’ble Vice Minister, Ministry of Agriculture and Forestry, Government of LAO PDR; M K Saharia, Chairman, ICC NE Initiative and Dr. Rajeev Singh, Director General, Indian Chamber of Commerce. Chief Guest Tarun Gogoi, Hon’ble Chief Minister, Government of Assam, appreciated the performance and activities of the Ministry of Agriculture and Ministry of Horticulture of Government of Assam for their efforts in developing the sector in the recent years. Speaking on the need and importance of agricultural sector in the country and especially in the state of Assam, he said that development and prosperity of the sector helps in improving the economic condition of the residents and people of the state. He also mentioned about the prospects and opportunities of the state’s sector; there is ample water and irrigation facility in the state, significant amount of land availability and

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good weather condition conducive for performing multi-cropping and increasing productivity of the crops. Gogoi said that opportunities are galore in the state with respect to the sector and he cordially invited the foreign investors and industrialists for investing in the state across agriculture and horticulture sector. While mentioning about the advantages of the region and that of the state, he said that future of the sector lies with proper implementation of the ‘Look East Policy’ and hoped that the policy will help in increasing trade and commerce with the nearby countries. However, for witnessing the envisaged growth of the sector and the economy, the requirement of skilled employment and large number of educated people in agrihorti sector is called for. In the concluding remarks, he said that the State Government is looking for employment of sustainable development in the sector. “There is a need to remove the presence of middlemen to reach the desired level of growth and development of the sector. He hoped that there will be more investments and capital deployment in the agriculture and horticulture sector in the state in days to come,” he said. Speaking of the prospects and development in the agri-horti sector Nilamani Sen Deka, Hon’ble Minister of Agriculture, Horticulture & Food Processing & Parliamentary Affairs, Government of Assam said that the sub-tropical climate of Northeastern India is extremely favorable for the cultivation of several plantation crops. “The state has performed extremely well in the last fiscal and has even reached record production of some of the crops including tea, jute and paddy. The farmers in the state have developed significantly in the last five years, owing to development and mechanization of farm-level practices,” he said. He hoped that with guidance from the Chief Minister Tarun Gogoi, the sector will grow more intensively. Charan Das Mahant, Minister of State for Agriculture & Food Processing Industries, Government of India said that the state of Assam has performed extremely well in the recent past and has in fact performed better than many other states of the country. Owing to some of the favorable weather conditions, availability of rich resources and irrigation facility, the sector has developed significantly. He is optimistic that with proper implementation of Central and State Policies, the sector will foresee multidimensional growth in the future. Speaking on lines similar to the other speakers M K Saharia, Chairman, Indian Chamber of Commerce, NE Initiative mentioned that with the proper application of policies, the state has not only witnessed significant growth rate in the present fiscal vis-à-vis last fiscal, but also has helped in developing the economic profile of the farmers considerably. He hoped that the growth path of the sector in the state will continue and reach higher summits in the days to follow.


Beverages & Food Processing Times - January - I - 2014

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Beverages & Food Processing Times - January - I - 2014

Corporate News

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Kellogg grows 31% to cross Errors in India expansion Rs 500 crore sales mark in India push; accepts Nestle’

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he world’s largest breakfast cereal maker, The Kellogg Co, crossed Rs 500-crore sales mark in India after growing 31% last fiscal and more than doubling its business in three years, helped by India-centric innovations and single-serve affordable packs that attracted new consumers. The American firm’s rapid growth has come at a time when most of its multinational rivals, including Nestle and Heinz, have been struggling to register single-digit growth numbers in a slowdown market. Sangeeta Pendurkar, MD at Kellogg India attributed the growth

to building a relevant portfolio of products driven by consumerc e n t r i c innovations. “The singleserve packs priced at Rs 10 in tier-I and tier-II towns have helped recruit new consumers into the nutritious ready-toeat breakfast cereals market,” she said. Kellogg’s new launches in recent years include Heart-to-Heart oats, bran wheat flakes, and Chocos and Honey Loops made with whole grain. Kellogg India has been growing at a scorching pace since Pendurkar took over in 2010. Kellogg’s has invested in changing habits, by backing innovation-led products like savories and oats and making the portfolio very India-specific, given that the Indian palette is very difficult and challenging to crack for multinationals,” said Devendra Chawla, chief executive at Food Bazaar that contributes 8%-10% of Kellogg’s overall sales. The company, for instance, launched savory variants

Britannia plans another baked goods

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ndian food major Britannia Industries is set to build another baked goods facility in the country. Varun Berry, the newly-appointed of head of Britannia’s Indian business, told the Greenfield plant in Tamil Nadu is expected to be commissioned in early 2015 at an estimated cost of US$16m. “The factory will be wholly-owned and primarily serve the south markets in India,” Berry said. “It will produce popular household brands like Marie Gold and Good Day, which are large volume brands and with good volume growth rates.” Berry’s comments came after Britannia’s latest baked goods factory, in the western state of Gujarat, started commenced commercial production. The US$12-16m plant is manufacturing Britannia’s popular biscuit brands such as Vita Marie Gold, as well as the Bourbon and the Good Day ranges. Based on an industrial estate at Jhagadia, it has an annual production capacity of 45,000 tonnes and will supply nearby markets in the states of Gujarat and Maharashtra, including the latter’s capital, Mumbai. The company, which turns over more than US$1bn annually, is pursuing a strategy of setting up large, highly automated bakery plants close to a number of its major markets to reduce the distance travelled by products so that they arrive fresher. Plants are also planned for the eastern states of Bihar and Orissa. Britannia, part of Indian food-textiles-propertyland-chemicals conglomerate Wadia Group, claims a third of the country’s bakery products market. Its biscuits, bread, cakes, rusks, and dairy lines are available at 3.5m retail outlets and reach more than 40% of Indian homes.

green pudina and tomato salsa flavours, and even introduced mango cornflakes. Interestingly, Kellogg’s first attempt to localize, over a decade ago, had bombed. With increasing competition, however, it won’t be easy for Kellogg to keep up its scorching pace and market share. While Kellogg is trying Indianisation, rivals such as MTR and PepsiCo have already launched packaged Indian breakfast foods like idli, upma and poha. MTR Foods, with sales of Rs 411 crore in FY13, is on the heels of Kellogg India. Even in the Rs 700-crore Indian organised breakfast cereal market, where Kellogg holds more than 60% share, the brand is facing increased competition with firms such as PepsiCo, Marico, GlaxoSmith-Kline and Dr Oetker entering the oats and muesli segments. Yet, Kellogg sees high growth potential, especially from untapped markets. The company, which expanded its distribution footprint by 50% over the last three years, is building a factory in Sricity, Andhra Pradesh, signaling renewed confidence in the Indian market at a time its parent company is seeing stagnant growth. Last month, parent Kellogg Co said it will cut about 7% of its workforce and slash capacity by 2017, after reporting quarterly decline in sales.

Del Monte to Enter Indian Snack Market

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estlé, the world’s biggest food company, has admitted to erring in India by ignoring more affluent consumers as it pursued those spending pocket change on sweets and noodles. “We made a mistake,” said Nandu Nandkishore, who heads Nestlé’s Asia business. “We basically focused on driving the mass market, and we really ignored a little bit the emerging affluent segments.” The maker of Maggi noodles and Kit Kat chocolate bars concentrated on emerging markets and now account for 43 per cent of its $98.2bn global sales. However, like its peers, Nestlé is now being forced to redraw its strategy in the face of depreciating local currencies, deceleration in economic growth, the impact of inflation on input costs, and rising domestic competition. Such factors are especially punishing on cheaper massoriented goods, as L’Oréal, like Nestlé, has discovered. The French cosmetics group last week halted sales of its massmarket Garnier brand in China. Nestlé’s sales in India grew by around 20 per cent a year annually in the three years to 2011, but growth decelerated sharply to just 8 per cent in the third quarter of last year At the peak of its rapid growth in India, Nestlé focused primarily on making its more massoriented products available to large numbers of new, costsensitive consumers deep in the countryside, even though

Hershey to acquire majority stake in Chinese confectionery firm SGM

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merican snack food giant Del Monte will soon be entering the Indian snack food market with a range of fruit-based packaged snacks. The California-based food and beverage company will offer Indians a range of fruit-based packaged snacks between March and December 2013. Del Monte plans to price its packs a little more than the average Indian price at present. Traditional snacks such as potato chips, puffs and nuts cost much less. “Pricing is important, along with innovation and uniqueness,” said Yogesh Bellani, COO of Field Fresh Foods, the 50-50 Joint Venture with Bharti Ventures and Del Monte Pacific.

demand for premium products at the upper end of the market was also exploding. But now its filling in the gaps and recovering the loops. The Swiss manufacturer is now switching tack in India to cater to rapidly growing demand from more affluent Indians, whose household budgets are more immune to the country’s rising inflation and faltering economy. Nestlé recently introduced its high-end Alpino chocolates to India to compete against Ferrero Rocher and the premium offerings of Cadbury. Nestlé’s difficulties reflect how tough it is for large global consumer goods companies to devise a strategy for a market characterised by vast disparities between wealth and poverty. “The challenge is developing an organisation that is able to manage the extremes of going after the rural market and the affluent at the same time,” Mr Nandkishore said, in terms of price and quality. But he said Nestlé was finding the most difficulty in spurring growth in the mid-range of the market. “Rural demand is robust,” he said. “Growth in [the] premium [market] is very strong – where we have felt pressure is in the middle.” Sales in India account for just 1.5 per cent of Nestlé’s global sales, but over the past four years, Nestlé has invested Rs35bn ($569m) to increase its manufacturing capacity in the country, expanding seven existing plants and setting up one new facility.

ershey Netherlands, a wholly-owned subsidiary of chocolate producer The Hershey Company, has entered into an agreement to buy an 80% stake in Chinese confectionery firm Shanghai Golden Monkey Food (SGM), for an undisclosed amount. The completion of the deal, which is subject to Chinese regulatory and SGM shareholder approvals, is expected in the second quarter of 2014. With the proposed acquisition, Hershey aims to leverage SGM’s brands, diverse product portfolio, in-country manufacturing as well as growing sales force to speed up its growth in China. The deal will also help Hershey improve its ability to address the needs of Chinese consumers, while providing increased opportunities for employees in the country. The Hershey Company president and CEO John P Bilbrey said that the strength of SGM’s confectionery portfolio and overall distribution capabilities is an opportunity for

the company to leverage scale to make Hershey’s and SGM’s brands even more powerful. “Additionally, SGM’s focus on protein-based products and snacking is on-trend with Hershey’s consumer-centric marketplace insights,” Bilbrey added. Following the transaction, SGM will operate as a standalone business, with most of its senior management team continuing in their current roles alongside a few Hershey appointed executives. SGM manufactures markets and distributes Golden Monkeybranded products; its product range includes Golden Monkey candy, chocolates, protein-based products and snack foods. The company produces products in five cities and has over 130 sales offices, around 1,700 sales representatives and nearly 2,000 distributors spread across all regions and trade channels in China. In 2013, SGM is expected to generate net sales of over $225m.


Beverages & Food Processing Times - January - I - 2014

Food Processing News

9

India wheat crop reaching 100 mt, a record

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Monsoon, winter “The crop will get the benefit from a normal winter predicted,” said K K Singh, head of Agromet division at India Meteorological Department. “More than average monsoon rains and its late withdrawal provided adequate moisture.” State stockpiles totalled 31 mt on December 1, compared with 37.7 mt a year ago, according to the Food Corp of India. The government raised the minimum price paid to growers to an all-time high of Rs 1,400 a quintal for the 2013-2014 crop. The government purchases rice, wheat and oilseeds from farmers at guaranteed prices and sell these to the poor at subsidised rates through state-run shops, to prevent distress sales in the open market. Wheat shipments from India could drop five per cent to 6.5 mt in 2013-2014, according to the USDA. Exports totalled 2.8 mt between April 1 and December 13, according to ministry estimates.

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h e a t production in India, the world’s secondlargest grower, will probably climb to a record, as alltime high domestic prices boost planting, adding to global grain surpluses. The harvest could total 100 million tonnes (mt) in the marketing year starting April 1, Agriculture Commissioner J S Sandhu said. Output had fallen 2.5 per cent to 92.5 mt a year earlier from a record 95 mt in 2011-2012, according to the agriculture ministry. Crop prices from wheat and corn to canola are slumping as record harvests from the US to Brazil expand global grain inventories. The Standard & Poor’s GSCI Index of eight crops fell to the lowest since July 2010, extending its biggest annual drop since 1981. Record output might force India to accelerate exports from state reserves to make room for the new crop, extending a decline in global food costs tracked by the United Nations. “Exports will pressure global prices,” said Vedika Narvekar, chief manager at Mumbaibased Angel Commodities Broking. “Exports will largely depend on the crop in the US and Russia. Domestic prices will be stable.” Wheat futures tumbled 22 per cent in 2013, as world production climbed 8.4 per cent to a record 711.4 mt versus consumption of 699 mt, according to the US Department of Agriculture (USDA). Futures fell to $5.8675 a bushel, the cheapest since December 2011, and were at $5.8825 in Chicago. ‘Exports difficult’ Prices in India rallied to an all-time high on December 27, after the government increased the minimum price for farmers to a record. The February delivery contract fell one per cent to Rs 1,640 ($26.4) a quintal on the National Commodity & Derivatives Exchange in Mumbai. “The international market is not very promising for at least six months,” said Abdolreza Abbassian, a senior economist at the UN’s Food & Agriculture Organization. “If India’s output increases, as it looks, global prices will fall below local prices, making exports difficult.” Area for wheat in India may reach a record of 31 million hectares this year, said Sandhu. Sowing increased 5.6 per cent to 30 million hectares as of Janu-ary 3, compared with 28.6 million a year ago, according to the ministry. The average yield of wheat in India is three tonnes a hectare and the crop is planted from October and harvested in April and May.

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Beverages & Food Processing Times - January - I - 2014

Food Safety

w India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

www.timesinfomedia.com

Solutions to GMP-GH

Vol. 6, Issue 8, January (I) 2014, Rs. 20/-

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he food industry has developed drastically over the years. Being among the industry watchers as well as a media person I keep up with the latest happening in this sector. I recently observed that all the show about this industry is not erroneous; in fact it is improving with time. For example let’s take the cold chain issue in India – food wastage is synonymous with it...what a sorry state! I know that the cold chain industry is still in a nascent stage, with a large number of small and unorganised players. However, we are witnessing a clear shift towards usage of better technology, equipment and operating processes. The government alas is waking up, and has put a high focus on developing the cold chain in India. The National Centre for Cold Chain Development (NCCD) has been appointed to help cold chain development, formulate standards and review subsidy schemes. The challenges faced by the cold chain industry include tedious formalities in land acquisition, weak infrastructure in terms of roads and access, power shortages, high energy costs, and non-uniform consumption points in the urbanising environment. Hence over the last few years, organised retail and food service industries have emerged as new segments of cold chain, mainly due to the changing consumption pattern. The cold storage industry’s continued progress will also fuel the flow of investment by multibrand companies and sustain their interest in the retail food sector. To develop a world-class cold chain infrastructure, the government and industry bodies need to work collaboratively to encourage the adoption of better and more efficient refrigeration technologies that can prolong the shelf life of food products and bring commensurate economic returns to the farmers. While I am counting out the maturation of cold chain sector there is another zone that bidding for let go. The pulses trade has reiterated its demand to lift the ban on exports, as some pulses are ruling below the minimum support price levels on higher output. The moment exports are allowed, the trade will get dynamic and the milling industry will stand to benefit and the market will find its balance. The Government had allowed exports of pulses in 2001 but banned shipments, except for kabuli chana (chickpea) in 2007 after a sharp increase in prices. However, domestic production has increased in recent years as also consumption. Thus it’s important that the Government open up exports, but impose quantitative restrictions to ensure adequate domestic availability. India is the largest producer of pulses – estimated at 19 million tons in 2013-14 and is also the largest consumer. The country is expected import around 3.2 million tons, about 10 per cent lower than last year’s 3.5 million tons. Let’s get on to next issue of edible oil. India, the world’s leading buyer of edible oils, has increased the import duty on refined edible oil. The Cabinet Committee on Economic Affairs (CCEA) took on to raise duty to 10 per cent thus giving support to the domestic industry and farmers. Though all leading oil companies may have welcomed it, however this would not impact the retail prices of edible oil. As a matter of fact, it is too meagre to have any impact on refiners or the edible sector. The industry had been demanding an increase in the import duty on refined oil to 14.5 per cent thereby ensuring a marked difference between crude and refined edible oil. Currently, the import duty on crude edible oil is 2.5 per cent and on refined edible oil is 7.5 per cent. Owing to a bare 5 per cent gap in the duties, there has been an increase in the import of refined oils, leading to a fall in the capacity utilisation of domestic refiners. Refiners have become packers and seen a 30 per cent fall in their capacity utilisation, however, for consumers the 2.5 per cent increase on duty is unlikely to make an impact. Domestic edible oil consumption was pegged at 17-18 million tonne with imports accounting close to 10 million tonne. Indonesia and Malaysia were the key exporting countries with palm oil accounting for nearly 80 per cent of oil imports. It will help move the needle from refining in Indonesia to back in India and it is to have any impact on domestic prices of edible oil. We might even see prices in Indonesia correcting as a reaction to the hike in duty by India. Albeit all these ups and down, The Indian food industry is expected to touch US$ 66.3 billion by 2018, registering a growth of 18 per cent. With a huge agriculture sector, abundant livestock, and cost competitiveness, India is fast emerging as a sourcing hub for processed food. Estimated to be worth US$ 121 billion, the Indian food processing sector is poised for excellent growth in the coming years. It is ranked fifth in terms of production, consumption and exports. Anticipating the future growth, many big international players are entering the Indian market by partnering with the domestic players. There are tremendous opportunities for large investments in food and food processing technologies, skills and equipment, especially in the areas of canning, dairy and food processing, specialty processing, packaging, frozen food/ refrigeration and thermo processing. I am highly bemused by the labyrinth of the food industry, but Iam not confused where its development is concerned. Over time I have seen this industry grow into multibillion sectors. Hopefully the market stays stable enough to make this industry the best in India as well as internationally.

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Sanjay Indani Introduction: Snack is a type of food not normally eaten as a main meal such as breakfast, lunch or dinner but to mitigate hunger between these meals. Snack may also be consumed between meals purely for the enjoyment of its taste. Traditionally snacks were prepared from leftovers or ingredients easily available at home and included sandwiches, nuts, fruits etc. More recently, because of the popularity of such foods packaged snack food is a big business. Snack foods are made so they are portable, quick and satisfying. They have become more appealing than prepared foods and contain tempting, flavourful ingredients. Indian Snacks & Industry Snacking in India is not new. At one time there were mostly nuts or roasted pulses including chikki as well as dried fruits, but then fried snacking items became quite popular such as sev, ganthia, papdi, chivda, farsan, chaat items made from cereals and pulses. People used to eat wafers and popcorn mostly at cinemas. More recently considerable western influence has been seen with the influx of a variety of snacks including potato and corn chips variants and other salty snacks, cookies, candies, doughnuts etc. The Indian snacks have also grown and the industry is showing a very high rate of growth. The variety is almost mindboggling with specialties from all regions, which have gained national acceptance. It is one of the major segments of the packaged food division, which comes under the broad category consumer foods. Indian snack food industry is estimated at about $ 3 billion (more than Rs. 10,000 crores) and growing rapidly at 15 to 20%. The organised sector at one time was not significant but today produces half the snack foods.Although the snacks market in India is mostly dominated by unorganized players, presence of MNCs in organized domain have also been significant. Snacks are typically prepared commercially in large quantities by continuous processes; they are usually seasoned with salt, spices and often with additional flavorings. Though there is no specific regulation pertaining to snacks, quality & food safety standards laid by FSSAI has to be followed by the industry players. Different Types of Snack Foods Potato chips or sticks are the most popular among the snack foods and dominate markets almost everywhere. There are many variations due to the innovative shapes and size (including stackable) of the final product along with a large number of flavours including cheese, onion, barbeque, pepper, tomato, garlic, paprika and a long list of other flavours. Corn chips, tortilla etc. are becoming significant portion of snack foods consumed. Corn is a versatile material that can be used alone or

added to other ingredients including potato, rice, wheat etc. While potato chips are fragile and are easily broken, corn chips are sturdy. Extrusion technology gave a phenomenal boost to the snack food industry by increasing the possibility of new shapes and sizes and textures using various raw materials several folds. These snacks may be either ready to eat or ready to fry or bake and consume. Possibility of cooking while extruding and due to expanded products there is a possibility of having less oil or fat in the product that could be ready to eat. Also various flavours could be incorporated into the dough to be extruded so there is ease in processing. Bakery products like biscuits, cookies, cakes and pastries, wafer type products, cream filled biscuits, doughnuts etc. with their multitude of variations have been another large section of snack food industry. Chocolate and sugar based products also comprise a huge market with products including candy bars, various specialty chocolates, cereal based products coated with chocolate, energy bars, soft and hard candies, jujubes, lollipops, coated confections, and a large variation of all these. Here also there are products that are pure enjoyment with very less health and those that are healthy granola bars and a large number in between. GMP-GHP implementation is a mandatory requirement to be complied with. Good hygiene practices need to be religiously adhered every time to comply with the regulation & to ensure the consumer safety. Following are some of the requirements which needs attention & shall be in place. FBO (Food Business Operator) shall take this on priority & initiate the process approach to set standard. We help industry to set the processes & assure the continual implementation of the compliance through the process of training of the team & through periodic verification. Cleaning & Sanitation: Cleaning is the process to remove floor dust, grease, dirt, stains and odors from all surfaces, fixtures (i.e. benches and sinks), utensils and equipment by using detergent and potable water. Detergent used for cleaning is soap in a liquid form that attracts and washes away grease, dirt and debris from the surface. Detergents do not kill bacteria. Sanitizing is the process of killing food poisoning micro-organism and is achieved by using heat and/or chemicals. Sanitizers are chemicals that are used after detergents and they kill and reduce the number of microorganisms and spores. A thorough understanding is necessary for use of various types of cleaning and sanitizing compounds, and their interactions with food matter, with each other and with equipment, with walls &surfaces. Adequate supply of potable water along with adequate cleaning equipments is necessary for effective cleaning. Vacuum pump, cleaning agents, sanitizing agents should be used appropriately to clean and sanitize the process area &equipments. Cleaning frequency & standard operating procedures shall be well defined for every equipment and area. Process Area: Structures within process area should be soundly built with durable materials and easy to maintain, clean and where necessary, able to be disinfected. Since flour dust spreads easily everywhere therefore regular cleaning is very important in process area. The surfaces of walls, partitions and floors should be made of impervious materials with no toxic effect. • Walls and partitions should have a smooth surface up to a height appropriate to the operation


Beverages & Food Processing Times - January - I - 2014

Food Safety

11

HP Compliance in Snack Food Industry..!! •

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Ceilings and overhead fixtures should be constructed and finished to minimize the accumulation of dirt, condensation, and the shedding of particles Windows to be fitted with removable and cleanable insectproof screens Doors should have smooth, non-absorbent surfaces, and shall be easy to clean

Equipment: Process equipment of snack food industry like dough mixers, conveyors, rounders, dough dividers, racks, proofing equipments, oven, rollers, slicers, extruders and siftersshall be located, designed and fabricated from noncorrosive metals so that it permits necessarycleaning and facilitates good hygiene practices. Contact surfaces of equipment need to be kept clean and wherever necessary, shall be disinfected. Cleaning and sanitation program for all the equipments& area shall include: • Frequency of cleaning: Frequency of cleaning depends on part of equipments.If it is in direct contact of food material then it needs to be cleaned after use or after every session. Bench surfaces &utensils needs frequent cleaning and sanitization • Cleaning tools to be used: Specialized tools are required for certain equipment cleaning. Dough mixers need to be flushed and then cleaned with an alkaline cleaner that contains an emulsifier to ensure that the fat will be removed. • Cleaning Agents: Detergents, alkaline cleaner (Sodium Carbonate, Sodium Hydroxide) and acid cleaner (Hydrochloric acid, Acetic acid) are used for cleaning.Recently stream cleaners are used for hygienic cleaning of equipments like dough mixer, conveyer belt, bench tops, tray holderbelts with superheated dry steam at up to 190°C. • Training: Employees need to understand the risks involved if the process area is not cleaned regularly and properly. They must be given training (to enable them to carry out Good Hygiene Practices), time and resources. Storage: Adequate facilities for the storage of raw materials like flour, salt, sugar,seasonings, spices, other ingredients, non-food chemicals (e.g. cleaning materials, lubricants, fuels) and finished goods to be provided and shall be identifiable. It shall have provisions to • Permit adequate maintenance and cleaning; • Avoid pest access and harbourage; • Enable product to be effectively protected from contamination during storage; andwhere

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necessary, provide an environment which minimizes its deterioration(e.g. by temperature and humidity control). Have screened ventilations Have water storage tanks which shall be cleaned periodically.

Housekeeping: Housekeeping practices relate to a number of measures that deal with preventing the loss of raw materials, minimizing waste, conserving water, saving energy, and improving the company’s operational and organizational procedures. The implementation of these practices is relatively easy and fast. Recommended housekeeping practices • Follow safe work procedures and the requirements of the law. • Keep work areas, aisles clean. • Keep exits and entrances clear. • Keep floors clean, dry and in good condition. • Vacuum or wet sweep dusty areas frequently. • Stack and store items safely. • Store all work materials in approved, clearly labeled containers in designated storage areas only. • Use proper waste containers. • Keep sprinklers, fire alarms and fire extinguishers clear. • Clean up spills and leaks of any type quickly and properly. • Clean and store tools, items and equipment properly. • Fix or report broken or damaged tools, equipment, etc. • Keep lighting sources clean and clear. • Follow maintenance requirements. Pest Control: Pest control is the process of minimizing or removing a wide range of undesirable insects and other pests from the premises • Birds, insects and rodents are potentially a major contamination problem in snack food industries • The production building, walls & ceilings should be appropriately designed to keep pest out & allow them to survive • Preventive pest control program and regular inspection for all areas of the site to be carried out to minimize pest infestation • Mixers, conveyor belts, packaging machines, walls etc. should be properly cleaned to prevent infestation outbreaks In many industries it is observed that it is the responsibility of the pest control agencies to control the activity of the pests and eradicate it in case of infestation. This is becoming a challenge for the food industries since they completely rely on the pest control agencies and nobody is appointed to monitor their activity & effectiveness thereof. Personal hygiene: Personal hygiene refers to practices that aim at an individual’s

cleanliness and grooming of his own self. It aims to prevent product contamination &maintain a high standard of personal hygiene and cleanliness People engaged in food handling activities should refrain from behavior which could result in contamination of the product, for example: • Spitting • chewing tobacco • smoking • sneezing or coughing over unprotected food Personal belongings such as jewellery, watches, pins or other items should not be worn or brought into processing areas if they pose a threat to the safety and suitability of the products Food handlershall wear clean protective clothing, head cap, mask, gloves & foot wear.They must wash their hands thoroughly with soap and water and dry it properly by towel or hand drier. Hands shall be washed after: • Toilet use • Handling raw material • Handling garbage • Touching your ears, nose, mouth or other parts of the body • After every break Food handlers must not work when they are suffering from contagious disease orillnesses which are likely to be transmitted through food. These include gastroenteritis, hepatitis A and hepatitis E or Cuts, other skin infections and wounds.Every one working in a food premises should be encouraged and trained in safe food handling activities. However, it is quite often observed that all the above mentioned requirements for personal hygiene are challenging aspect across the industry due to frequently

changing manpower, care free attitude of the food handlers and lack of understanding towards its consequences on food safety aspects. The food business operator must seek assistance of the Food Safety Expert to standardize the requirements & train food handlers in personal hygiene to overcome their casual approach towards good hygiene practices. Maintenance: Maintenance is the work that is carried out to preserve an asset or equipment (such as a roof, floor or a baking oven, mixer), in order to enable its continued use and function, above a minimum acceptable level of performance. After maintenance of the equipment is completed, the product contact surfaces of equipments shall be cleaned and sanitized & product which was processed during that duration may be required to be reprocessed or checked for quality to get safe finished good. Preventive maintenance is performed at regular intervals at defined frequency, expected equipment life spans and failure patterns while breakdown maintenance is intentionally with held until an asset stops working. Maintenance activity should as a minimum cover the following aspects: • Regular inspection, maintenance, replacement/ repair of damaged equipment. • Procedure for reporting damage. • Procedures for in-house or contract engineers detailing precautions to be taken. • Thorough cleaning after maintenance. • Inspection prior to production

We have already made our way into the Indian market

Sunil Kachru Head Business Development-Food & Beverage India and South East Asia

SACMI ENGINEERING (I) PVT. LTD.

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ou have been working in the Indian packaging industry from the past two decade or so, what are your views about Sacmi, where it will fit best?

Sacmi group is almost 100 years old and is serving globally with pride as leaders in segments like ceramics, labeling, caps and closures. Sacmi is not new to the world but we of course believe in continuous upgradation of technology for better and quality product. Being known globally we have already got breakthrough in many big corporates in beverages segment and are aiming in small companies also because our aim is that every company should be benefited with the latest and good technology. We have already made our way into the Indian market. Beverages industry has been you domain in all these years do you think there are huge opportunities for Sacmi in this segment? Yes, we have a wide range of equipments almost for every sector so we have lot of opportunities to cater but we are at the same time careful to give the right technology

Other Requirements of Snack Food Industry: • All personnel engaged in snack food industry should be aware of their role and responsibility and trained from food safety professionals related to good hygienic practices (GHP) andgood manufacturing practices (GMP). • Waste materialshall be removed at regular frequency to avoid contamination of the finished goods or potable water. Waste storage bins should be cleaned daily. • Monitoring and verification of cleanliness and hygiene of transportation vehicles is necessary. Process controls like adequate temperature and humidity are necessary & shall be maintained to prevent the growth of pathogenic or spoilage microorganisms. • Cleaning procedures shall be validated when cleaning is required during product change over from one allergen to another or to a non-allergencontaining ingredient. • Traceability of the products manufactured right from receiving of raw materials to dispatch to point of sale should be well established to enable product recall during customer complaint. Author is Head-Food Safety at Qsafe Consultants (India). He is lead auditor & trainer in food safety. He is empanelled with FSSAI & State FDAs as a trainer & conducted more than 500 training sessions across India. For any query related to food safety or FSSR, he can be contacted on 07666578715 or sbi@ qsafeindia.com to specific requirement .We are not in a hurry, our aim is to get the project and make it 100% success and then proceed further. What will be your priority areas for the promotion of Sacmi in India especially media and exhibitions? Media and exhibitions will be no doubt a priority but at the same time we believe in face to face interaction. We meet customers personally and understand their requirement and create a bonding between the two companies. What are the real challenges you see in front of the Indian packaging industry? India is a price sensitive market so our main challenge is to educate small sectors and make them understand that how a good technology and good products helps you to be profitable even though they are little costly than the local competition. We have made presentations where in we mainly stress the benefits of good technology.


Beverages & Food Processing Times - January - I - 2014

Biscuit & Bakery News

Around the World in 80 Cakes takes customers on international taste trip Buttercream from India and Cinnamon Bun Cupcakes from Sweden at ArtsQuest’s Cupcake Bowl in December and took time to talk about how her vision came to fruition.

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he owner of Around the World in 80 Cakes in Washington has developed cake and cupcake recipes from nearly every corner of the globe. Traveling from her former career as a chemical engineer for an oil company inspired the flavors. Matcha powder picked up in Japan fuels a Green Tea Cupcake. A trip to Sicily inspired her cannoli cake infused with Marsala wine and cinnamon, cannoli filling and chocolate ganache. While a Bermuda escape led to the

creation of a Dark & Stormy -- a riff on the country’s popular drink of black rum and ginger beer. The Dark & Stormy was the toughest to create in cupcake form, Rao says, adding that she played with dry ground, crystallized and fresh ginger to tease out the best flavor. It’s not just the taste she’s after but a recipe that’s easy to re-create in any kitchen. There’s a cookbook already taking shape in her mind. Rao showed off her Mango Ginger Cupcakes with Saffron

Baking up a plan Rao bakes while working full time as an instructional technologist at Lafayette College. She started Around the World in 80 Cakes in 2009, though she didn’t officially open until 2010. She makes wedding cakes, cupcakes, mini bundt cakes and other baked goods. When work sent her to India, she came back with a desire to recreate the Indian dessert laddoo, which involves batter pushed through a sieve into hot oil, forming morsels that are dunked in sugar syrup and spices. When she tried making the actual dessert, it flopped. In cake form, it had potential — taking form as a Rose Pistachio Cake made from rose water, pistachios, cardamom, almonds and saffron. “These are flavors that people might be reluctant to try, but when it’s in a cupcake it seems harmless enough to try,” Rao says. In the beginning, she focused

on recipes she could make from items she brought home from her trips, exotic ingredients she found perusing grocery stores in other countries. Her Mexican Coffee Cake draws strength from half cinnamon coffee and half hot chocolate, flavors often used with coffee in Mexico. After taking a class to learn to make Greek baklava, she developed an olive oil-based cake with alternating layers of cake and a cinnamon, sugar and walnut mix crowned with a honey, lemon and cinnamon glaze. Recipe testing When she’s in recipe development mode, her engineering days come back to her. She charts recipes in Excel and finds her background in math and science helps her bake. She jokes the exotic flavors are a contrast to the traditional foods she grew up with but says her love of baking goes back to her EasyBake Oven days. When she started the bakery, she made the farmers markets rounds through Washington, Belvidere and Lehigh University. She tried cookies and brownies, but it was the cupcakes that got customers excited. She says the markets were a testing ground for her and a way to spread the word. She looked at storefronts but wasn’t sure she was ready to take the plunge. “We’ve seen so many businesses in our town start, close down, start and close down,” she says.

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Instead she and her husband, Rohit Rao, built a commercially licensed kitchen out of their basement to handle orders. Rao jokes Rohit is her only assistant — the one to drive the car, carry the wedding cakes and the business’ official taste tester. What’s next? Will she rule out a storefront? Not yet. But in the meantime, she’s got a lot cooking. Today she has her 80 recipes but is in the process of testing recipes and drafting a book proposal. A friend of a friend introduced her to Rose Levy Beranbaum, her favorite cookbook author and a James Beard Award-winning baker, and she’s been helping Rao with the publishing process. “No matter what, I’m going to publish it. I’ll find a way to make it happen,” Rao says. “Thus far, I’ve been a one-woman everything — Web developer, accountant. ... If I have to, I’ll figure out how to selfpublish, too.” She shares her story and recipes in the blog on her website, 80cakes.com. She sells edible baking decorations on Etsy and is working on gluten-, egg- and dairy-free recipes. Though some of those close to her have cautioned against giving away her recipes, Rao sees it differently. “The worst part of traveling was going to these places by myself. This is my way of offering a window into these places,” Rao says.


Beverages & Food Processing Times - January - I - 2014

Beverages News

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Manpasand Beverages hold hand of Kristal Spirits to expand Sunny Deol for Mango sip brand Fashion Beverages range in India

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anpasand Beverages, India’s leading fruit juices company, has signed up Bollywood’s ‘Action King’ Sunny Deol as the brand ambassador for its flagship brand ‘Mango Sip’. Manpasand Beverages is in the business of beverages since a decade with its flagship brand Mango Sip established by first generation entrepreneur Shri Dhirendra Singh. It has carved a niche for itself in the market with a basket of 25 product variants. Mango Sip brand has

grown to become one of the leading mango drink brands in India. The company plans to invest over Rs 100 crore in next one year even as it continues on its fast paced growth to take its sales to Rs 1000 crore in coming three years’ time from current Rs 300 crore plus. The Bollywood action star with a strong fan following amongst the urban and rural masses gels well with Manpasand’s Mango Sip brand which has a strong presence amongst the masses across the country. With a super-hit debut ‘Betaab’ in 1983, Sunny Deol went on to create a mark for himself and emerge as a Bollywood super-star with hit films like Arjun, Tridev, Ghayal, Jeet, Ziddi, Damini, Indian and Border amongst others. Sunny’s biggest blockbuster hit to date has been ‘Gadar: Ek Prem Katha’. Endorsing the Mango Sip brand, Bollywood superstar Mr. Sunny Deol said, “I am extremely thrilled and honoured to be part of Manpasand family. I am personally very fond of mangoes and feel that only an Indian brand like Mango

Beverage industry to grow at 16.5-19%: report

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onsumption of nonalcoholic beverages is expected to increase by 16.5-19% over the next three years as more people are trading up to packaged drinks, according to a report by the Indian Council for Research on International Economic Relations (ICRIER) and the Indian Beverage Association (IBA) released. Corporate manufacturers of non-alcoholic beverages are expected to grow at an annual rate of 16.5% and non-corporate manufacturers at 19%, according to the report titled Unleashing the Potential of the Non-alcoholic Beverage Sector. The estimates are based on an assumed gross domestic product growth of 7%, which is much higher than the 5% growth several economists are forecasting. India’s beverage market is largely unorganized, with nearly 75% of the demand serviced by companies in the unorganized sector. But in the past 18 months, the world’s largest beverage

makers Coca-Cola Co. andPepsiCo Inc. invested heavily towards building capacity and developing bottling infrastructure in the country over the next 7-8 years, to meet the growing demand for packaged beverages. The ICRIER-IBA report said that with the rise in incomes India’s non-alcoholic beverage sector has evolved both in terms of product variety and the number of companies in the market. According to another report by researcher Business Monitor International, the Indian market of non-alcoholic beverage market comprising carbonated drinks, juices, bottled water, ready-to-drink tea and coffee, and sports drinks is expected to touch $5.18 billion by 2015. S.R. Goenka, president, IBA, said India’s non-alcoholic beverage sector holds several advantages in terms of its large consumer base, abundant supply of raw material and a pool of low-cost, skilled labour. “The sector has seen double digit growth post-liberalisation, and is currently contributing over 1% to India’s GDP. With industry leaders such as Coca-Cola and PepsiCo announcing significant investment plans for India, there is a clear indication that the sector offers significant potential for growth in the coming years,” he said in a press release.

Sip can understand the importance of mango fruit as a whole and make the national fruit the most consumable beverage product in India. Mango is a fruit loved by all Indians, irrespective of their age, region, religion or caste. It is our duty to address the masses and educate them about the importance that mango drink holds.” Speaking about the company’s new brand ambassador, Mr. Dhirendra Singh, Chairman & MD of Manpasand Beverages said, “We are very proud to have Mr. Sunny Deol as the brand ambassador for our flagship mango juice brand and are confident that his association will help in significantly increasing the per capita consumption of mango drinks in the country. With a strong presence in tier-2 and tier3 markets, our network is spread across 2 lakh plus retail outlets and over 2000 dealers. Our aim is to double these numbers in a few years and make Mango the most loved beverage product in India. We will be starting a full 360 degree media campaign shortly.”

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elhi-based Kristal Spirits India Pvt Ltd is likely to introduce champagne and other energy drinks from the Fashion Beverages stable. Cyprus-based “Fashion Beverages” is the beverage brand of Fashion TV. According to Arun Aditya, Managing Director, Kristal Spirits, there remains a huge scope for growth in the vodka segment. Target segment would be the youth and party goers. “We are looking to bring in other brands from the Fashion stable over the next six months. We would give some time for Fashion vodka to gain traction before launching other products,” he said. Kristal Spirits currently markets two Fashion vodka brands - one imported or bottled in origin (BIO) variety and another locally bottled or India

manufactured foreign liquor (IMFL) variant - across select cities of India. While the BIO variant caters to the super premium segment and is priced at Rs 4,900 for a 750 ml bottle; the other IMFL priced at Rs 900 a bottle will cater to the premium segment. In the super-premium segment Fashion will compete with GreyGoose; while in the premium, it will be placed a notch higher than Smirnoff and Gorbachev.. Cities where Fashion vodka has so far been launched include Delhi, Hyderabad and Kolkata. According to Aditya, the company is looking to garner a 10 per cent market share. Of the Rs 30,000 crore liquor market in India, 3 per cent is vodka consumption. Whisky, rum and beer still occupy the major market share.

PepsiCo India investing over 1,200 crore on new plant in Andhra

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he company plans to build a new Greenfield beverage manufacturing plant in Sri City, Andhra Pradesh, which upon completion will be PepsiCo’s largest beverage plant in India, PepsiCo India said in a statement. PepsiCo intends to invest more than Rs 1,200 crore in the project, which is part of the recently announced plans by PepsiCo and its partners to invest Rs 33,000 crore in India by 2020. The company also announced plans to substantially increase sourcing of mango pulp from Andhra Pradesh in the next six years. Commenting on the development, PepsiCo India Chairman and CEO D Shivakumar said the new beverage facility is a key part

of the company’s growth plans for the Indian market and “we are delighted to locate it in Andhra Pradesh”. The plant will manufacture a range of beverages, including fruit juice based drinks, carbonated soft drinks and sports drinks. Sri City is ideally located and offers the perfect opportunity to harness the benefits of superior

connectivity, great infrastructure and an ample talent pool, which are the prerequisites for every industry,” said Mr. Shivkumar. Welcoming PepsiCo’s investment in the state, Andhra Pradesh Chief Minister N Kiran Kumar Reddy said: “The proposed plant will be completed in three phases and once fully operational, the plant will provide direct and indirect employment to over 8,000 people”. PepsiCo Indian already has a beverage manufacturing plant at Sangareddy in Andhra Pradesh. With seven production lines, the plant manufactures and supplies PepsiCo products to the entire Andhra Pradesh region and parts of Karnataka


Beverages & Food Processing Times - January - I - 2014

News

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The “Portable Powder Blending” factory of Blend hub incorporates a new “big bags” packaging system

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lend hub has developed a new “big bags” packaging system for its “Portable Powder Blending” factory. This is an additional module allowing package quantities of 300 to 800 kg of powdered products. The new system is compatible with the traditional packaging in bags of 15 y 25 kg, which already includes the portable factory, and allows to give it greater flexibility without altering its handling along with meeting the diverse needs of packaging of the food powder distributors. Furthermore, the “big bags” packaging system is easy to install and transport, since it can be carried in a container of 20 feet, which can be assembled at the same time as the container of 40 feet that stores the factory without the use of cranes, rather, by a forklift truck. The bag filling is carried out by a vacuum process, which ensures the tightness, safety and quality of the packaging process. The new module is totally made of stainless steel, and with a design conceived to make the maintenance and cleaning tasks of all components even easier.


Beverages & Food Processing Times - January - I - 2014

Krones transfers its valve technology business to new subsidiary, EVOGUARD GmbH

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rones, the world’s market leader for beverage filling and packaging technology, has founded Evoguard GmbH to operate its valve technology business on a stand-alone basis.Evoguard GmbH is located in Nittenau, Germany, and is owned 100% by Krones AG. The company started its business operations in Nittenau at the beginning of January 2014. Krones began to develop its own series of innovative valves that are optimally matched to the needs of the food and beverage industry as well as the dairy sector under the name of Evoguard several years ago. Thanks to long years of experience in valve development and an extensive knowledge of its customers’ requirements, Krones is now able to offer a complete, cutting-edge product range that is not only an attractive proposition for the food, beverage and dairy

industries but also ideally suited for the pharmaceutical and biotech sectors. In order to accelerate sales growth in sectors outside the food and beverage industry, Kronesh as spun off its valve technology operations from its core business into a stand-alone unit. As an independent and autonomous company, Evoguard GmbH is benefiting from a favourable cost structure, high flexibility, and the efficient decision-making of a streamlined management structure. Evoguard valves are produced in Nittenau, where the 4,000m2 production and administration building houses the R&D, design, sales and assembly operations. In the years ahead, Evoguard will provide reliable components and quality “Made in Germany” to modern production facilities of existing and new customers and achieve profitable growth.

Positive EFSA claim evaluation based on new research on chicory oligofructose to lower blood glucose response

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ollowing collaboration between BENEO, Cosucra and Sensus, a dossier for an EU Art 13.5 claim was filed that contains new data to show the link between oligofructose and improved blood glucose response after intake. The dossier submitted to EFSA was based on several studies* including newly developed science, and shows that oligofructose has a significant part to play in the area of glycaemic control. The application targeted an EU Art 13.5 claim on the contribution of oligofructose to a reduction of post-prandial blood glucose response. EFSA’s positive evaluation allows the approval by the Commission, the Member States and the European Parliament within the health claim procedure. This opens the way for new food and drink applications to benefit both the industry and consumers alike. This proprietary new research from BENEO, Cosucra and Sensus, has shown the positive impact on blood glucose response when a proportion of the sugars in a product is replaced with the prebiotic fibre oligofructose that is derived from chicory. The new oligofructose data demonstrate a significantly lower blood glucose response with only 20% replacement. The conditions of use proposed in the evaluation refer to the “reduced

sugars” claim as published in the annex of Regulation (EC) No 1924/2006, i.e. a 30% replacement. A second dossier focusing on chicory inulin and also including additional newly developed scientific research was ready for submission at the moment when EFSA’s opinion on chicory oligofructose was published. As EFSA broadened the scope to non-digestible carbohydrates when evaluating the oligofructose dossier chicory inulin is included and benefits de facto from this evaluation. With increasing challenges placed on society by diet related diseases such as obesity, overweight, impaired glucose tolerance and diabetes, there is increased emphasis on food and drink producers supporting the development of new, lower glycaemic response products. According to a spokesperson of the companies that invested in the research, “this approach is in line with the thinking of the nutritional advisors to expand consumers’ choice for healthy products. The research has provided additional physiological evidence why oligofructose is a very suitable sugar replacer and therefore represents new opportunities for the food industry to meet consumers’ demand for more low glycaemic and tasty products”.

News

Profile Select Metal Detector Boosts Flexibility on Food Processing Lines

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emand for convenience foods in both Europe and Asia is growing strongly as consumers seek convenient, on-the-go products perfectly aligned with their hectic modern lifestyles[1]. Food producers seeking to tap into this lucrative market are greatly expanding the range of products they produce on their processing lines, necessitating the installation of flexible product inspection solutions. For this reason, Mettler-Toledo, a leading global manufacturer of precision instruments, is seeing strong demand for its Safeline Profile Select variable frequency metal detector, due to this detector’s ability to inspect multiple types of products on one single line. This supports food producers as they increase the quantity and variety of products they are producing and inspecting for metal contaminants. Designed with flexibility in mind, the Profile Select’s unique Product Clustering Function allows food producers to run their processing lines at optimal speeds, as they can use a single detection frequency setting for groups of multiple products with similar moisture

content. Simplified product changeovers further support this flexibility, reducing downtime and the risk of operational error. Visual vector diagrams are displayed, demonstrating the signal generated by each product, as well as the active product inspection settings in use. This facilitates product setup for operators, allowing them to easily tune the metal detection settings to ensure accurate results. With its advanced Variable Frequency technology, the Profile Select can also ensure optimised product inspection sensitivity for both dry and wet products such as meat, cheese, frozen and semifrozen ready meals, ensuring compliance with food safety standards and protecting brand reputations. With the impact of international regulations such as the British Retail Consortium (BRC) Global Standards Version 6 and International Featured Standards (IFS) Version 6, product safety and security are clearly core priorities for food manufacturers. For this reason, the Profile Select incorporates key elements of HACCP (Hazard Analysis and

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Critical Control Point) food safety principles, with its Human Machine Interface (HMI) requiring duallevel user name and individual password login. This ensures only authorized staff can alter machine settings and access the contents of the lockable reject bin. In addition, the Profile Select’s sophisticated Performance Validation Routine (PVR) guides operators through mandatory test regimes to ensure test accuracy while enhanced on-screen HACCP reporting software ensures compliance with regulations by facilitating data access and analysis in the event of an audit. “In today’s competitive food production market, manufacturers must maintain their strategic advantages by adapting their products to match consumer lifestyles and trends” explained Jonathan Richards, Marketing Manager of Mettler-Toledo Safeline Metal Detection. “As our customers have increased the flexibility of their processing lines to handle a growing variety of products and pack styles, we’ve seen heightened demand for our Profile Select metal detector. This is because it can enable producers to increase their production efficiency, supporting their bottom line, while allowing them to comply with international regulations and export to lucrative markets worldwide.”

CHINESE BICARBONATE

Anomaly regarding food grade bicarbonate imports

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n FY14, India is expected to import approximately 33,000 MT of sodium bicarbonate. China caters to more than 90% of the country’s imports. Sodium bicarbonate is broadly classified as a technical grade for industrial purposes and refined grade for food applications. The primary physical differentiator for the 2 grades is the better whiteness of the food grade product. Chemically, Indian food grade standards stress Sr. No. Characteristics upon low chloride, sulphate & insoluble matter presence. Sodium bicarbonate [food grade] finds wide applications in

bakeries, confectionaries, animal feed, and personal care products. However, it has been brought to our notice that substantial volumes of Chinese material are being sold in domestic markets as food grade despite not meeting the Indian food standards [IS 2124:2000]. Chinese national standards subject food grade sodium bicarbonate to lowered standards than the Indian IS2124:2000 UOM

Criteria Indian standards

counterparts. As noted in the illustration below [Figure 1], Chinese food grade bicarbonate is acceptable with 0.4% chlorides and undefined sulphates & insoluble. But Indian standards stipulate an adherence level of 0.06% for chlorides & 0.1% maximum limit for insoluble matters as most of the end products are ingested.

GB1887-2007

FCC

China Nat. Standard

Food Chemicals Codex

TATA Chemicals Technical

Refined

China

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Puratos India introduces Cremfil, ready to use creamy fillings Cremfil When reliability meets convenience

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uratos India, a leading manufacturer of specialist products across all 3 verticals viz. Bakery, Patisserie & Chocolate has strong focus on product innovation of bringing new variety, new technology & new types of products to market therefore offering a lot more to customers in India. Puratos India has launched their brand-new product, Cremfil which is a range of ready to use creamy fillings

designed for ambient and cold bakery and patisserie goods. The Cremfil range is recognised by many leading manufacturers as a reliable creamy filling thanks to its great stability during pumping, baking and freezing. Today, these fillings, which combine excellent technical characteristics with great taste, are produced in more than 25 countries around the world. With 2 ranges Cremfil Silk and Cremfil Classic, Puratos India

offers Vanilla, Chocolate, Orange, Mango, Strawberry, Pineapple, Lemon, Irish crème& Blueberry in the Indian market. Suitable for use in many types of bakery and patisserie products, the product has a shelf life of 9 months. At Puratos our mission is to help their consumers with great tasting fillings, through a variety of finished goods, be it Muffins, Breads, Cakes, Pastries, mousse or anything that the chef imagines.


Beverages & Food Processing Times - January - I - 2014

QSAFE CONSULTANTS (INDIA) YOUR FIRST PARTNER IN FOOD SAFETY

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Biscuit & Bakery News

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RPG - Sanjiv Goenka group to invest Rs. 70 cr for bakery chain roll-out

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he Hindu Sanjiv Goenka, Chairman, RP-Sanjiv Goenka Group at the inauguration of the flagship outlet of Au Bon Pain bakery café in Kolkata. Photo: Ashoke Chakrabarty The café-cum-bakery chain of the RPGSanjiv Goenka Group, Au Bon Pain, will go national within a year, entailing an investment of Rs. 70 crore. Talking at the launch of flagship store, Chairman Sanjiv Goenka said that there would be 70-odd stores in a year, and 120 by March 2015. With this launch, Au Bon Pain has 31 stores in Bangalore and Kolkata. To a question on how the group planned to take on competition, he said that this would be done through product

differentiation by offering healthy options in fast food. Spencer’s Retail Ltd. had tied up with Au Bon Pain, a U.S.-based fast dining and bakery café chain, to launch outlets across India, beginning with a store in Bangalore. Au Bon Pain means ‘the place of good bread’ in French. The group signed, in 2008, a master franchisee arrangement, to be owned by a joint venture of Spencer’s and the director and promoter of Au Bon Pain, Thailand. Mr. Goenka said that there would be 18 stores in Kolkata at an investment of around Rs. 33 crores. The café here, which has come up on the now closed Music World premise, will also be open to music releases and book launches.


Beverages & Food Processing Times - January - I - 2014

UAE’s LuLu eyes meat processing plant in India

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usuffali MA, founder of EMKE Group which owns LuLu. LuLu Group, the Abu Dhabibased hypermarket chain, is reportedly looking at setting up a new meat processing unit in West Bengal in India. “We are looking at setting up a meat processing unit in the state solely for supply to our hypermarts,” said Sanju Philip, commercial executive of LuLu Group in comments published in local media. The group operates these units under the Amronn Food and Fair Exports and already has similar facilities at Lucknow, Mumbai and Sahibabad in Uttar Pradesh, Indian papers reported. Philip was quoted as saying that the company would do a feasibility study on the project.

LuLu already operates the largest mall in the country in Kochi. In November, the boss of retailing giant Lulu Hypermarkets says he was forging ahead with ambitious expansion plans that include 42 new Lulu Hypermarkets in the next two years. Yusuffali MA, who was ranked the 40th richest Indian on the planet with a fortune of $2.2bn, said despite numbering 104 stores in the Middle East his Abu Dhabibased company had no signs of slowing down. It will open seven new hypermarkets in the UAE in 2014-15, six in Oman, four each in Qatar and Kuwait, three each in Bahrain and Egypt and 15 in Saudi Arabia. New markets were also being pursued in Malaysia, Indonesia, Iraq, Algeria, Morocco and Libya.

Norwegian dairy, meat products may be banned alongside fish

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ussia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) will tighten control over dairy and meat products imported from Norway following the January 1, 2014 ban on the import of some Norwegian fish products, Rosselkhoznadzor spokesman Aleksey Alekseyenko said after talks between the agency’s heads and the Norwegian Embassy’s officials. Rosselkhoznadzor expressed concern over the level of quality guarantees provided by the Norwegian Food Safety Authority (Mattilsynet). “Considering the fact that this organisation provides its guarantees both for fish and some other regulated products, such as dairy and meat products, we will also have to tighten control over these types of goods,” Alekseyenko said, adding that the lack of sufficient government guarantees could possibly lead to a ban on the import of Norwegian dairy and meat products to Russia. On January 1, 2014 Russia announced a ban on the import of some fish and seafood products from Norway. The ban did not affect salmon fishes and products of 29 fish-processing enterprises

earlier inspected by the Russian veterinary authority. In November 2013, Rosselkhoznadzor had to impose restrictions also on the import of codfish liver and molva (blue ling) due to the systematic detection of live nematodes in batches supplied from Norway. Salmon supplies are currently allowed only from salmon farms earlier inspected by the Russian watchdog. “In the event that some violations are detected at these enterprises (at least twice, according to Russian regulations), the list of suppliers will inevitably be reduced,” Alekseyenko said. He added that it was insufficient that Norway’s supplying companies controlled the quality of products themselves. Rosselkhoznadzor considered it also necessary to be secured with guarantees from the country’s official veterinary authority. In 2013, as well as in 2012, Russia became the largest importer of Norwegian fish. According to the Norwegian Committee of Fish Exporters, the total value of exported fish has increased by ten percent year on year to 1.06 billion dollars in 2013, which “makes Russia the most important export market for Norway”.

Meat & Poultry News

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Ethiopia: Largest Indian Food Processor Joins Ethiopian Meat Sector

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he largest Indian meat processor, frozen foods producer and exporter, Allana Group, has invested USD 20 million to establisha a meat processing and exporting business in Ethiopia. The government has provided 75 hectares of land in Ziway town, in the Oromia Regional State, and the company intends to begin commercial production by September 2014. Aman R. Khan, head of the company, signed an agreement at the Ministry of Industry (MoI) with ETG Designers & Consultants Plc, a local private firm, for the establishment of a modern meat processing and exporting plant. During the ceremony, Khan

asserted that the Indianbased Allana Group will strive to add value to the Ethiopian meat and the livestock sectors. According to Khan, the first phase of the project will see the employment of some 600 permanent staff. On the issue of environmental protection, Khan promised that a world-class effluent treatment plant will be constructed alongside the meat processing project. He said that the waste produced by the slaughterhouse will be processed to produce biogas, and the excess blood of the livestock will be re-used as animal feed. Mebrehatu Meles (Ph.D.), minister of state at the MoI, said that Allana is in the process of acquiring additional land in the Borena Zone of the Oromia State, an area blessed with abundant livestock resources. The company is also looking at the Somali Regional State as it provides the rich and fertile ground ideal for meat processing. The minister of state urged that both Allana and the local companies commit themselves to meeting the

deadlines. Allana hopes that the ‘integrated meat processing plant’ will be in production by September 2014, aiming to slaughter around 200 cattle and 5000 sheep/goats a day. Initially the plant expects to produce 75 tons of meat daily. Allana Group, known as Allana Sons in India, exports frozen Halal buffalo meat, coffee, fruit and other commodities from India to some 70 countries. It was established in 1865 and has come to Ethiopia with its own capital and market knowhow, Mebrehatu said. The MoI is budgeting for export earnings of some USD 250 million in the 2006 Ethiopian fiscal year, yet its task is not helped by possessing only five slaughterhouses targeted at exports. The meat-processing sector of Ethiopia is the most untapped, but also the most treacherous, with perennial issues, including the illegal smuggling to foreign countries and supply side constraints. The Ambassador for India, Sanjay Verma, hopes the arrival of Allana will add more value to the Ethiopian economy, following on from the existing USD five billion investment by Indian companies.

Dancing Turkeys Forays in the Indian Meat Market

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remium turkey and turkey meat products brand Dancing Turkeys has recently forayed into the Indian market by launching its turkey products in the country. According to the company officials, turkey meat is one of the largest consumed nutritious meats in America, EU, and the EMEA regions. However, due to various reasons like size, taste, availability and demand, the meat did not really gain traction in the Indian market. Dan Turk Farms and Services (DTFS), Owner of the Dancing Turkeys brand, is a farmstead focussed on providing nutritional food to the Indian masses. While Dancing Turkey is currently focussing on Turkey Meat, DTFS soon plans to launch

new categories that have not been launched in India so far. Sharing his vision on transforming the brand into a food processing company, Sameer Mathur Managing Director and CEO, Dancing Turkeys, said: “With a distinct change in the lifestyle of Indian consumers, there is a huge surge in nutritional demand of foods, and Dancing Turkeys fills this gap perfectly here. We are planning to make Dancing Turkeys as, one of the strongest brands in its category outside the United States. Turkey consumption today makes it a festive food, but we would like to change that perception, and make it as much a staple diet as possible. We believe that Dancing Turkeys shall bring about healthier citizens, which in turn shall build a healthier India. Our intention

is to usher a small change in the eating habits, and drop the misnomer that non vegetarian diet is bad for health.” Mathur further added: “To keep up with the vision of being the best, we have stitched supply chains to become robust and flexible, yet conforming to benchmarked systems and processes in India.” Dancing Turkeys claims to have tied up with leading chefs to create turkey recipes for the Indian masses, largely to enable trials and garner interest. Seeing a huge potential in the Indian market with nutritional organic food consumption growing at approximately 20 percent each year, DTFS plans to invest close to 20 million USD in building the infrastructure and take a dominant role in the Indian marketplace. It is also planning to cater to the mid-East and African markets and targeting to achieve a turnover of 200 crore in the next couple of years. In the next few months, the company plans to focus on addressing the needs of the 117.7 billion USD Hotel and Tourism industry along with other sectors like healthcare, institutional, fine dining, QSR, and retail.


Beverages & Food Processing Times - January - I - 2014

Meat & Poultry News

How India - Yes, India - Became a Global Beef Powerhouse

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ne surprising fact from the Heinrich Böll Foundation’s new “Meat Atlas” is that India, a country where many people have a religious veneration for cows and a third of the population is vegetarian, has emerged as a major player in the world beef market. Just not cow beef: The star of the day is India,

thanks to its buffalo meat production, which nearly doubled between 2010 and 2013. India is forcing its way onto the world market, where 25 percent of the beef is in fact now buffalo meat from the subcontinent. According to the U.S. Department of Agriculture, India became the world’s largest exporter of beef in 2012—just ahead of Brazil.

Buffaloes are inexpensive to keep. This makes their meat a dollar a kilo cheaper than beef from cattle. In addition, the Indian government

has invested heavily in abattoirs. Faced with the high price of feed, Brazilian cattle-raisers are switching to growing soybeans. This presents an opportunity–albeit a small one–for Indian buffalo-meat exporters. Though buffaloes are less venerated than cows in India, the country’s emergence as a major player in the beef market is still controversial among Hindu nationalists and has been

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criticized by Narendra Modi, currently the favorite to become prime minister after this year’s elections. While killing cows for food is illegal in many part of India, there’s a flourishing illegal trade. Not surprising given that there are more than 280 million cows in India, more than any other country. In one highly publicized incident, violence broke outbetween students during a beef-eating festival at a university in Hyderabad in 2012.

Plan for poultry sector on cards - Orisha

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he state government will soon prepare an action plan for growth of the poultry sector. Fisheries and animal resources development secretary Bishnupada Sethi held a discussion with senior officials in this regard. This followed chief secretary J K Mahapatra directing the fisheries and animal resources development department to chalk out a plan in step with a suggestion from the Centre, official sources said. Earlier, the Union animal husbandry, dairying and fisheries ministry had told the state government it was going to unveil a National Livestock Mission (NLM) programme this fiscal and advised the latter to prepare an action plan for poultry sector, sources said.

Official sources said Union finance minister P Chidambaram, in his budget speech in February, had promised launching NLM in 2013-14 with an investment of Rs 307 crore. The mission would aim at supporting poultry, dairy farming and fisheries, which are critical for small farmers to maintain a steady income when crops fail. In 2011, the state government had drawn up an ambitious plan to boost fisheries and animal resources development sector, including poultry. The department’s Vision-020 document not only aims at achieving self-sufficiency in milk, egg and meat production, but also becoming a state surplus in livestock productivity by providing sustainable livelihood to the poor, sources added.


Beverages & Food Processing Times - January - I - 2014

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BUNGE INDIA PRIVATE LIMITED #1, Victor Mansion, Old Airport Road, Kodihalli, Bangalore - 560 008 Phone: (080) 41151120, 24 Fax (080) 41265075 www.bunge.com

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Beverages & Food Processing Times - January - I - 2014

Comply with Food Safety and Standards Act All those who are into food business, including roadside canteens and hotels will have to obtain a licence or registration under the Food Safety and Standards Act 2006, before February 4.

T

he authorities in Karnataka are making all preparations to create awareness among Food Business Operators (FBO), to register with the Food Safety and Standards Authority of India (FSSAI). Speaking to Deccan Herald, District Surveillance Officer Dr Rajesh, who is the in charge district-level designated officer said “we have been creating awareness on the need for registration, by visiting the FBOs individually and distributing pamphlets furnishing details on the Act. The registration process is on. We have met Hotel Owners Association, Fishermen Association, to create awareness. In fact, when we visited fish market to appraise the Act among fishermen, many refused to consider fish as food item. Hence, we have appraised the Act among Fishermen Association, so that they in turn will create awareness

among fishermen who sell fish in the market, to register under the Act.” According to the Act, all Food Business Operators should be registered under FSSAI and obtain license. FBO includes hotels, permanent or temporary stallholders, hawkers, home based canteens, Dhabawalas, food manufacturers, processors, repackers, food stalls arrangements in religious gatherings, slaughterhouses, storage houses, retail and wholesale traders, hostels, packaged drinking water units and so on. Milk producers who are not a member in the Dairy Co-operative Societies should also register under the Authority. The Food Safety wing of the district has pointed out that several school and college hostels and canteens, as well as several office canteens are functioning in the district without registration as stipulated under the

Back Page Food Safety and Standards Act 2006. He said that the district-level unit of Food Safety and Standards Authority of India (FSSAI) will get a full-fledged designated officer shortly. The district-level structure consists of Food Safety Officers (FSO) in each taluk, a designated officer at districtlevel and an adjudicating officer. Currently, there are three FSOs in Dakshina Kannada district. The FSO from Mudigere taluk is given charge of the Mangalore city. All FBOs which have not obtained FSSA licence/ registration till now should apply immediately. Operating food businesses without a licence or registration will attract a penalty up to Rs five lakh and imprisonment up to six months, Dr Rajesh added. Petty retailers, hawkers and smallscale food business with an annual turnover not above Rs 12 lakh should get registered by paying the annual fee of Rs 100. Largescale units involved in dairy, vegetable oil processing, meat processing, food processing and export oriented whose turnover is above Rs 12 lakh should operate by getting licence. The registration will be renewed every year. One of the objectives of enforcement is to ensure that registration/licensing provisions are fulfilled and food items are hygienic, wholesome and free of contaminants, he added.

20

Ishida

using Snacks as Growth tool for Africa

I

shida Europe plans to expand into Africa next year and snacks will spearhead the move. The packaging and processing specialist will delve into a handful of African markets next year in a bid to grow business further and pull in £135m ($221.4m) next fiscal year, up £13m from this year. The company has now started to look into Africa – the main part of Africa – in a more determined way, and as with all new markets, the snacks side of Ishida will likely spearhead this entry. When a new market starts up, the area it tends to come from first is snacks… So with Africa, Ishida expects to follow the same pattern. Snacks will be a very important sector in that growing area and created a niche for the company. However, Ishida Europe does plan to develop new business in Africa on a broader level – beyond snacks covering

sectors like meat and poultry and fresh food. It has been compiling market research on African markets for the past few months – looking at key players and the state of development in each. After fundamentally analysing and looking at market research reports and secondary data. Ishida now has identified the key players and the current state of development and the next stage now is to actually do some primary research. However, the company is focused on working slowly to ensure a secure market entry. There are supermarkets, they are selling products there and Ishida wants to make its presence to be there.” Snacks represents around a third of Ishida Europe’s total business – between 25-30% - and despite the move into Africa, the aim is to actually shrink this to 15-20% over the next few years.

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ISHIDA INDIA PVT. LTD., 382, Ground Floor, Udyog Vihar, Phase-II, Gurgaon 122 016. Haryana. Tel: +91 - 124 - 3854392, Fax: +91 - 124 - 3854393 www.ishidaindia.com E-mail: sales@ishidaindia.co.in

EDITOR Firoz H Naqvi

CONSULTING EDITOR Basma Husain

MARKETING EXECUTIVE Brijesh Mathuria

PRODUCTION MANAGER Syed Shahnawaz

GENERAL MANAGER Gyanendra Trivedi

CIRCULATION MANAGER Seema Shaikh

Marketing & Circulation Office: 301-A, Diamond Kiran, Shrikant Dharve Marg, Naya Nagar Circle, Mira Rd (E), Mumbai-401107, T:+91-22-28555069, E:info@timesinfomedia.com, W:www.timesinfomedi.com Printed, Published By- Firoz Haider Naqvi, RNI no.-MHBIL05093/13/1/2007, Printed at Roller Act Press Services, C-163, Ground Floor, Naraina Industrial Area, Phase-1, New Delhi-110028, Reg Office: 103, Amar Jyot, Pooja Nagar, Mira Rd (E), Thane-401107, Delhi Office: F14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi-110025


Beverages & food january 2014