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Parliamentary panel for declaring A tea as national drink

Parliamentary panel has suggested declaring tea as a "national drink" to increase its consumption besides exports. In its report, the Parliamentary Standing Committee on Commerce, chaired by Shanta Kumar, said it would like to the Department of Commerce to consider declaring tea as a national drink keeping in mind the growing demand from the stake holders and the heritage value it carries. "Its essential presence in the life of every Indian, directly or indirectly, assumes sufficient reason to declare it as a national drink. Its declaration would give it a desired prominence in promotional schemes and activities strengthening the beverage's association with India in global markets and helping in exports," it said.

In order to increase tea production in the country, it recommended to prepare a blue print for mechanisation and modernisation of operations of tea industry under a time bound programme. It also asked the Department of Commerce to increase efforts towards value addition of tea by way of blending, packaging, tea bagging and intensify its research for developing new varieties. The committee expressed concern over the unscrupulous exporters importing cheap tea from other countries and are exporting it without significant value-addition under false certificate as tea of Indian

origin. It recommended the department

"to evolve an appropriate monitoring mechanism in respect of import of tea for exports and ensure that the licenses are issued only to individuals /organisations with proven credentials." It also said that the problem of

increased cost of fertlisers with no subsidy benefit is one of the main factors behind less productivity and also high cost of production. "This high cost of production would adversely affect our price competitiveness in world market. The committee would like the department to ensure that fertlisers subsidy is available to growers and it also engage the state governments for timely availability of fertliser for them," it said. Further, it asked to become innovative towards raising the production since there is a strong demand of Indian tea in the global markets. To boost coffee sector in the

country, the committee has asked the Coffee Board to increase its domestic promotion activities to enhance the beverages consumption in the country, as it can act as an insurance against volatile coffee prices in the international market. "Presently about 70 per cent of the coffee grown in the country is exported and as such there is no fall back option to our growers when the international prices fall to non-remunerative levels," the parliamentary committee said. It said creation of domestic demand would provide buffer to Indian coffee prices as the growers would be in a better position to fall back upon relatively higher domestic process arising out of higher consumption and demand within country.


Beverages & Food Processing Times-Aug-II-2012

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News

Indian Institute of Sugarcane Research teams with mills

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n India, just as in Australia, sugar cane research organizations are tying up with producers and mills. The Institute of Sugarcane Research on has agreed to join with the sugar mills in the state to offer technological support to enhance cane yield and sugar recovery. The decision was made during an institute-industry conference held at Indian Institute of Sugar Cane Research. IISR director S Solomon, said sugar mill owners are seeking solutions for low sugarcane productivity and decreasing sugar recovery in western Uttar Pradesh. A gradual decrease in sugar recovery has taken place in the past five years, along with poor soil quality and insect and pest problems. Solomon advised farmers to implement the complete package of cane cultivation practices, including techniques of soil health improvement, improved sugarcane varieties, varietal planning, three-tier seed production programme, wheat-sugarcane system, biointensive management of diseases and pests, post-harvest techniques to improve sugar recovery, training of sugar mill cane development staff for improving productivity and sugar recovery on sustained basis.

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Beverages & Food Processing Times-Aug-II-2012

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Beverages & Food Processing Times-Aug-II-2012

Food Grains News

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Basmati exporters expect good performance this year too Govt will export surplus agri

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asmati export companies like Satnam Overseas Ltd (Kohinoor brand rice) and L T Overseas Ltd (Dawaat brand) are hopeful of repeating last year's good performance this season too. India exported 3.2 million tonnes of basmati rice last year and is projected to export four million tonnes of basmati rice this year. Prices of the commodity in

international markets are high and increased sowing in this kharif season will ensure availability of paddy for exports. As a strategy to harvest better quality paddy for export purposes, some companies including Amir Chand Exports (owner of the Aeroplane brand basmati rice) have entered into

buyback arrangements with farmers. Satnam Arora, joint managing director of Satnam Overseas Ltd, said the demand for basmati rice is picking up in the international markets and Indian exporters are eyeing a bigger pie this year. “I don't see much impact of rain on basmati cultivation. The price of basmati is $1,000-1,500 a tonne for

different varieties. Last year, it was close to $800-900 a tonne. Iran is coming up as a big importer and we are now scouting new markets in the African continent. Daawat, as a basmati brand, is doing well and we expect a 20 per cent jump in exports,” said V K Arora, managing director, L T Overseas Ltd.

“In the past few years, the awareness about basmati rice has grown tremendously and so has the demand. The acceptance of Pusa 1121 as basmati has widened the scope for exporters. Even African countries are now demanding basmati rice,” said J K Suri, chairman of Amir Chand Jagdish Kumar Exports Ltd (Aeroplane brand rice). He added the company has a buyback arrangement with farmers for organic rice, meant for the niche market. The export price of basmati rice in the international markets is $800-1,400 a tonne, depending on the variety. The price remained close to $800 a tonne due to high supply last year. Apprehensions regarding a decline in paddy area due to delayed and deficit rain are fading because the latest data available with government agencies shows that rice has been sown on 23.4 million hectares, compared to 19.1 million hectares a week before. The normal sowing at this point in year is 24.1 million hectares. According to Mahinder Pal Jindal, president of the All-India Rice Exporters Association, the yield of basmati rice will not be affected this year as it is grown mainly in the irrigated belt of Punjab, Haryana and Uttar Pradesh.

Spice farmers in TN to benefit from mobile voice messaging

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he Spices Board launched a venture that would help farmers in Tamil Nadu in receiving voice messages related to various aspects of spices cultivation, processing, marketing and exports, board officials said. The board in association with Iffco Kissan Sanchar Limited (IKSL) of Tamil Nadu has formed a new community of spices farmers called the 'Tamil Nadu Spices Community' who will use the mobile telenetwork for direct interface. “The board is enlisting spices farmers across the state of Tamil

Nadu to the proposed community. It is expected to have an initial strength of around 6,000 farmers,” Spices Board chairman A Jayathilak said. “The spice farmers will get the benefit of voice messages every day from the Spices Board on the schemes, projects, prices of spices and announcements. Farmers of spices like cardamom, chillis, curry leaf, coriander, pepper, nutmeg, cloves and herbs will benefit. The spoken message service can be a boon to farmers in distant areas. This will be of a great use to illiterate farmers who are not

technologically equipped thus leading to better involvement and participation of the farming community with the Board. There will be a help line also, where farmers can seek solution to their farm-related problems from the experts” Jayathilak added. “We are happy to partner with IKSL who will issue green cards to the farmers free of cost during enrollment as member of the spices communities. These SIM cards when used will help the farmers in receiving the voice messages daily from the Board, ” he said. IKSL will also transmit messages on weather conditions and weather forecasts. There are opportunities for Phone-in programme through which farmers can interact with the expert for announced specialty. There will be quiz programmes in which farmers can participate and win some prizes also. Tamil Nadu is a major spice producing state contributing commercially important spices grown by thousands of farmers. The board is planning to link spice farmers in every state. To begin with, the board has launched the service in Tamil Nadu and will take it to Kerala, Karnataka, Sikkim, North Eastern States, Rajasthan, Gujarat and Madhya Pradesh. “We are launching this programme when efforts are being made for large scale backward linkages of exporters with the farmers. Simultaneously the board is also taking initiatives to bring in traceability of spices produced, processed, value added and exported, ”Jayathilak said.

commodities: Sharma

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he government said the surplus quantity of agriproducts such as wheat, rice and sugar, would continue to be exported despite concern over possible fall in farm production due to poor monsoon. "What is exportable surplus available will be exported and for the commodities for which we do not have exportable surplus we will take an appropriate view," Commerce Minister Anand Sharma told reporters when asked if government plans to ban export of agri-products due to drought like conditions. The minister said there is adequate stock of wheat, rice and sugar in the country. "...I don't forsee a situation that

India will have any shortfall of foodgrains and food security of the people will be ensured," he said after meeting Finance Minister P Chidambaram. Stating that the country faces a shortfall in pulses and edible oils, Sharma said: "... What India needs to import are edible oil and pulses and for that the final figures will be known once the Agriculture Ministry gives the crop sizes. There is always a shortfall of pulses and edible oil." Earlier this week, Agriculture Minister Sharad Pawar had opposed any move to ban sugar export in a bid to contain price rise. "I do not think that kind of thinking is there. I have not received any proposal to ban export of these items," he had said when asked whether the government may ban export of commodities like wheat, rice, maize and cotton to contain prices. India had lifted the ban on wheat and non-basmati exports in September 2011. The country is estimated to export 3.5 million tonnes in 2011-12.


Beverages & Food Processing Times-Aug-II-2012

News

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Beverages & Food Processing Times-Aug-II-2012

Dairy & Ice Creme News

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Hindustan Unilever told to erase 'Ice Cream' Nestle India enters Amul's word from Kwality Walls advertisements home with Gujarat factory

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ndia's advertising regulator has told consumer goods major Hindustan Unilever to stop mentioning its Kwality Walls brand as 'ice cream' in certain advertisements following a complaint by top ice-cream brand Amul. Kwality Walls is frozen dessert, which looks and tastes like ice cream but is made with vegetable fat and not milk fat. Hence, under

India, the self-regulatory body of advertising industry. The advertisements in question are in the form of advertorials, or advertisements designed in the style of editorial matter. HUL published three print advertorials, each featuring a celebrity talking about Kwality Walls brand, complete with heading, extensive text and photograph. They feature singer Shaan, chef Sanjeev Kapoor and TV

advertorial, it should be considered as an expression of opinion of the celebrity featured in the advertisement. However, with a view to close the issue amicably, we agreed with ASCI to include the words 'Kwality Walls frozen dessert,'" he said in an email response to ET's query. Gujarat Cooperative Milk Marketing Federation, which markets Amul, had complained toASCI that the mention of Kwality Walls as ice cream was a deliberate attempt to mislead people. "The advertorial makes a clear mention to Kwality Walls Strawberry Cheesecake being an ice cream when in reality it is a frozen dessert," Nitin Karkare, COO of ad agency DraftFCB Ulka that represents Amul, wrote in a letter to the regulator soon after HUL released the first ad featuring Shaan. "This is a case of a deliberate attempt at misleading the consumer, considering that the term has been strategically highlighted and hence cannot be a case of oversight," Karkare said.

Indian laws, it does not qualify as ice cream. The consumer complaints council has concluded that the mention of Kwality Walls as an ice cream is misleading," said Alan Collaco, secretary general of Advertising Standards Council of

actress Smita Bansal along with their families.An HUL spokesman said the company will replace the word 'ice cream' with 'frozen dessert' in the ads. "We have agreed with ASCI that wherever the word ice-cream appears in the said

The ice cream-plus-frozen desserts market in India is estimated at about 1,700 crore, with market leaderAmul holding about 40% share. Other big players include Kwality Walls, Ahmedabad-based Vadilal, NDDB's Mother Dairy and Ravi Jaipuria group's Cream Bell.

Amul, Cocoberry offering yogurt in smaller packs to penetrate new markets

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HMEDABAD, JULY 21: What do Cocoberry, Amul and McDonald's have in common? They are all offering smaller packs with lower price tags to penetrate new markets and jack up the volumes of products in the Indian cities.Mr G.S. Bhalla, CEO and Founder of frozen flavoured yogurt maker Cocoberry, says the yogurt market is moving up with “innovative pricing” to capture wider target customers.“We have not reduced prices in absolute terms but offered lower price portions. Recently, we have reduced the yogurt pack's weight from 90 gm to 60 gm with price tags correspondingly going down from Rs 54 to Rs 30.”He told that while Amul offered factory-packed yoghurt, Cocoberry offers fresh product in retail. “Amul, too, now offers 100 gm of yogurt for Rs 30.”This innovative pricing, he

said, is expected to make companies penetrate fresh markets through

The yogurt market is moving up with “innovative pricing” to capture wider target customers, says Mr G.S. Bhalla, CEO and Founder of Cocoberry.

affordable prices as more consumers can taste the new products.While the Gurgaon-based Cocoberry had launched yogurt in 2009, Amul did so in 2011. Mr Bhalla said the market for these products is nascent in India but is expected to go up to Rs 300 crore in the next five years.At present, Amul

and Cocoberry are the only major players in the country, he said, adding that his company currently has an 85 per cent market share in India. While Amul appeals to masses, Cocoberry is attempting to penetrate a 'class market'.With a turnover of Rs 11,668 crore in 2011-12, Amul has around 6,500 outlets and plans to add another 1,000 this fiscal.Cocoberry, with a turnover of nearly Rs 16 crore in 2011-12, currently has 50 outlets in nine cities and plans to introduce two retail formats, Café Cocoberry and Cocoberry2Go.According to market sources, the global food chain giant McDonald's also lowered the prices of some products to reach wider audience across the world.The same-store sales in the US market increased 3.7 per cent in the April-June 2011 quarter yearon-year as more customers flocked to its outlets.

Ice-cream parlour owner told to pay Rs 50k penalty

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he Food and Drugs Administration (FDA) imposed a penalty of Rs 50,000 on the owner of an icecream parlour in Pune district for using saccharine, an artificial sweetener banned in certain food products including ice-cream.

"Samples of two different flavours taken from an ice-cream parlour at Yelse village in Maval taluka did not conform to set standards of quality. A laboratory test found the presence of saccharine in both the samples," said Shashikant Kekare,

joint commissioner (food), FDA, Pune division.

50 and 47 of the Food Safety and Standards Act ( FSSA) 2006. Saccharin is 300 to 500 times sweeter than table sugar. Due to its bitter aftertaste, it is often blended with other artificial sweeteners. It is widely used in diet foods and beverages as it provides no calories and passes through urine.

As an adjudicating officer, Kekare imposed the penalty under section

"Studies have shown that use of saccharine in inappropriate amount can have harmful effects on human body," Kekare said.

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estle India, the subsidiary of Swiss dairy major Nestle, is all geared to set up its ninth plant in the country. The company had acquired about 50 acres of land at Sanand, nearly 30 kilometres from Ahmedabad, for a manufacturing plant, said Gujarat government officials. The proposed investment was estimated to be about Rs 400 crore. The company had bought land at the Gujarat Industrial Development Corporation (GIDC) estate by paying Rs 1.3 crore per acre, informed sources. An email query to Nestle India remained unanswered. The state, which had been dominated by Gujarat Co-operative Milk Marketing Federation (GCMMF), had found opposition about multinational companies entering the state with Dr Verghese Kurien, former chairman of GCMMF, being most vocal about the threat to milk co-operatives. However, in recent times, a number of MNCs had been setting units in the state. Nestle would join a number of other fast moving consumer goods companies that are

setting up manufacturing units in the state. These include, Colgate-Palmolive, Amway India and Teva-Proctor & Gamble joint venture. Israel's Teva Pharmaceutical Industries, through a joint venture with Proctor & Gamble (P&G), plans to establish its first manufacturing facility at Sanand. Colgate-Palmolive, with an investment of Rs 200 crore (Rs 2 billion), plans to have its facility by 2014. And, Amway India had lined up an investment of about Rs 400 crore (Rs 4 billion) for its first company-owned manufacturing facility in the country. Nestle India's first manufacturing facility was set up in 1961 in Moga, Punjab, followed by factories in Tamil Nadu, Karnataka, Haryana, two in Goa, Uttarakhand and the eighth one in Tahliwal, Himachal Pradesh, this year. The company is expected to launch new products this year, and according to market expectations, the Switzerland-headquartered FMCG major may launch breakfast cereals in the Indian market. This is a category where Nestle has a strong presence worldwide.

New Zealand upset over India's silence on opening farm and dairy sector to imports

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he proposed free trade agreement between India and New Zealand has hit a speed breaker due to the Centre's silence on opening the country's dairy and farm goods sector to imports. The broadbased free trade agreement that proposes to cover goods, services and investment was supposed to be concluded by March. The agreement is important for India as it hopes to get more work visas for its professionals especially teachers, healthcare providers, technicians, IT experts, architects and hospitality providers. The commerce department has told a negotiating team from New Zealand that visited New Delhi recently that it was yet to get a nod from the ministries of agriculture and food and therefore was not in a position to make any offers in the agriculture and dairy sectors. "The New Zealand team was disappointed and nothing significant could happen at the meeting as its offers in areas important to New Delhi such as services is contingent upon what it gets in the farm and dairy sectors," a government official told. New Zealand was also not happy with the safeguard measures India has proposed to guard its agriculture sector that will allow the country to increase import duties several times if there is a surge in imports. The India-New Zealand free trade negotiation that began in 2009 have already missed

March 2012 deadline set when New Zealand Prime Minister John Key visited India last year. The eighth round of negotiations that took place in New Delhi in end June was supposed to move the talks towards conclusion but got stuck on dairy products. "There is no way we could have made any offers in the dairy sector without taking in views of the agriculture and food ministries as it is a very sensitive sector," the official said. India has not yet given any significant concession in dairy to any of its other FTA partners including Singapore, Japan, South Korea, Sri Lanka and the Asean. The dairy industry, however, is central to New Zealand's economy and it is not willing to seal its offer in services without commitments in the area. "We are absolutely aware of the sensitivities that you have in your agriculture sector. But there is scope to work around it," New Zealand trade minister Tim Groser had told earlier in an interview. New Zealand could export highend dairy products and also share technology, he said. New Zealand, on its part, is willing to offer greater work opportunities to skilled workers. It has already started discussing reciprocal recognition of some professional degrees outside the FTA. The two sides are hoping to increase bilateral trade from a little over $1 billion at present to more than $3 billion by 2012.


Beverages & Food Processing Times-Aug-II-2012

News

FSSAIto reward customers on info over wrong claims of manufacturers

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ny information regarding misleading or extravagant claims about a food product may earn you a reward of Rs 500. The Food Safety and Standards Authority of India (FSSAI) has come up with this idea to bring about awareness among the customers and to keep a check on violations in manufacturing of

packaged food products. Under the provision of the Food Safety and Standards Act, 2006, informants

about violations by food manufacturers can be rewarded but it is only now that the FSSAI has decided to get the public into the picture - to seek information from them and reward them.

of Preventive Medicine (IPM) said.

"As it is there is a lot of awareness among people about the product they buy. If one is alert and reads the details on the product packaging

The public have been asked to attach the audio or visual publicity material of the concerned food product manufacturer and the same may be produced before the FSSAI authorities to claim the reward. representation or pronouncement made by means of any light, sound, smoke, gas, print, electronic media, internet, notice, circular, label, wrapper, invoice or other documents'.

which could be misleading, the same can be intimated," A Sudhakar Rao, joint food controller, Institute

In fact, food safety authorities in the state have already started to record, take photographs or make note of advertisement relating to food products to verify their claims.

Once the unfair trade practice is recorded, the FSSAI will take action under section 24 of the FSS Act, 2006 against the manufacturer. Specifications pertaining to labelling of a product have been defined in the Act. It may be mentioned here that the FSSAI has been particularly concerned about the wrong nutritional claims, health claims and claims of risk reduction of products. Manufacturers will have to necessarily rely on reliable research data to make claims about their products. Claims cannot even be made in general terms. For those interested in playing policemen and informing the FSSAI about wrong claims being made by manufacturers, the authority will also keep the identity of the informants secret.

Food processors, get free help……

food technology companies, register with us……….. Food processing help line (FP Dial) - 91-22-28555069 - you have got questions and we have got answers.... You have got questions and we have got answers.....our agro and food processing directory is going to get you direct business. If there are a few names in the agri & food processing magazines market and we are definitely one of them (Beverages & Food Processing Times). Empowering the agri and food industry family to make a better industry is our target. Business owners from various agri and food can get tied up with us to sell their own offerings and in return to get inquiries from our help line. This will help to get more businesses and ease the dilema of many agri and food processing companies. As customers are always in the need of information as well as business vendors, we strive to satisfy both – Customers as well as businesses. For any type of food processing, packaging, food safety, cold chain technologies you can get in touch with us. So just dial the green number +91-2228555069 and we create free help from our side. Just like that...

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Metallized Carbon Corporation Announces Metcar Grade M-58 for Food Contact Applications

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etallized Carbon Corporation, a global leader in the manufacture of oil-free, selflubricating, carbon-graphite materials for severe service lubrication applications, announces that its Metcar Grade M-58 has received approval from the FDA so that it can be used in food contact applications. This will permit the use of Metcar Grade M-58 in dry running, food mixer seals to provide lower seal friction and longer seal wear life. Dry running mechanical seals are used on large, vertical mixers to seal the clearance between the agitator shaft and the mixer housing at the location where the shaft enters the top of the mixer. Primary seal ring wear life has been a problem with these mechanical seals because they must run dry with high shaft runout. Metcar grade M-58 is an electro graphite base material that contains a special additive to reduce friction and improve the dry running wear rate. Available fully machined to the customer's drawing specifications, Metcar Grade M-58 primary seal rings can be used in temperatures between -30o and 800 o F. It is anticipated that Metcar Grade M-58 will also be useful in

many other machine part applications where an FDA approved, self-lubricating material, with low friction and long wear life is required. For FDA approved bearings, seal rings, vanes, rotors, end plates, piston rings, valve seats and other machine parts that must run submerged in beverages or liquefied foods, Metcar carbongraphite grades that are impregnated with thermal setting resin, copper, tin bronze or nickel chrome are used. About Metallized Carbon Corporation Since its inception in 1945, Metallized Carbon Corporation has been manufacturing highquality, dependable bearing solutions for severe operating environments. With over 50 years of Application Engineering experience, Metallized Carbon offers the field expertise and data necessary to provide The Solid Choice for Lubrication® in a wide variety of industries, supplying completely machined components as well as materials for customer machining. Metallized Carbon is ISO certified and produces the Metcar brand of solid, oil-free, selflubricating materials.


Beverages & Food Processing Times-Aug-II-2012

Beverage News

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Soft drinks market will reach $2,4 billion by 2015

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he size of the non-alcoholic beverages market in India is likely to reach the $2,4 billion mark by 2015, Associated Chambers of Commerce and Industry of India (Assocham) said. Growing at a CAGR of about 20%, the non-alcoholic beverages sector is currently worth about Rs. 6,000 crore, according to a study on 'Opportunities in the Indian NonAlcoholic Beverages Market´ by the Associated Chambers of Commerce and Industry of India (Assocham). “Domestic consumption of nonalcoholic beverage currently stands at about 17,200 crore litres and is likely to cross the 34,000 crore litres mark by 2015,� said Assocham secretary general D S Rawat while releasing the findings of the study. Coca-Cola, Pepsico, Parle Agro Pvt Ltd, Dabur and Godrej are among the leading players in the domestic non-alcoholic beverage circuit, highlights the Assocham study.

Big Cola set to take on Coke, Pepsi Barring the odd soundbyte around the official launch a few weeks ago, Spanish beverage major Aje, the owner of Big Cola, a brand strong in Latin America, has opted to maintain a low profile in the Indian marketplace - the fourth Asian country it has stepped into after Thailand, Vietnam and Indonesia in the last few years. Big Cola is ranked number two in Latin America (including markets such as Peru, Mexico, Ecuador, Venezuela, Colombia etc) after Coca-Cola thanks to its local flavours and discount pricing. India, say officials at the privatelyheld Aje, is demographically similar to the Latin American region with a large and growing middle class, youth population and climatic conditions that make it imperative for the beverage major to launch operations here. "India is an important market for us

and a country where we felt we could make inroads into," says Sorin Voinea, director, marketing Asia-Pacific, Aje Group. But the big question is: Can Big

There was some testmarketing of Big Cola too in and around Mumbai, Pune and Surat last year. But with a formal launch now, its footprint is wider including places

such as the US. Big Cola is also not available in returnable glass bottles, which make up 35-40 per cent of sales for a cola company in India, and are key for penetration into traditional trade too. Despite this, Devendra Chawla, president, food & fast moving consumer goods business, Future Group, says that the response to the brand has been good at Big Bazaar. "It is available at Big Bazaar in Mumbai and has done pretty well," he says.

Cola really shake-up the cola market here like it did in Latin America? Aje actually debuted in India in December 2010 when it set-up a bottling plant outside of Mumbai, in Patalganga, Maharashtra.

such as Aurangabad, Ahmedabad, Goa, Indore and Navi Mumbai besides the cities of Mumbai, Pune and Surat. In all these locations, Big Cola, available in three flavours including orange, lime and cola, retails mostly in modern trade including Big Bazaar (from Future Group) and D'Mart besides allied malls and hypermark ets. Price points include Rs 12 for a 300-ml PET bottle, Rs 20 for a 500-ml bottle and Rs 40 for a 1.5-litre bottle more or less in line with competitio n (read Coke and Pepsi), which are also aggressivel y priced owing to the low penetration of carbonated beverages in India. India's percapita consumpti on of carbonated beverages is just 20 bottles of 200 ml per person a year as opposed to 92 bottles of 200 ml per person a year, which is the percapita consumpti on in mature markets

But executives at Coca-Cola say that with modern trade constituting under 10 per cent of sales for a cola company, consumer response to the brand at these outlets cannot be a true measure of its success. "For the cola segment as is the case with most other FMCG categories, traditional trade is still the most critical aspect of the business. If the code can be cracked there, then yes, you will be taken seriously," says an official. Voinea declines to indicate whether Big Cola will be available in mom and pop stores - a segment that is difficult to crack owing to the stranglehold of Coke and Pepsi in these outlets. "A combination of factors have helped Coke and Pepsi in traditional trade including providing refrigeration facilities to its strong brand pull, which goads small retailers to stock their products," says Arvind Singhal, chairman, Technopak Advisors. Ironically, Aje has opted for an aggressive distribution strategy in its home turf of Latin America, where it dived right into the heart of the cola market with its proprietary cola drink, opting to position it as a brand for the lower-income groups, who found Coke and Pepsi too high-priced and aspirational. Starting from Peru, Aje through Kola Real, as Big Cola is referred to in this market, saw a ready base when Coke and Pepsi found it increasingly difficult to distribute their products during the war between guerrillas and government forces in the late 1980s. Distributing Kola Real in recycled beer bottles, Aje slowly graduated to marketing it in PET bottles that it produced in-house. Today, Aje has nearly 30 plants across the world, all controlled by it and vertically integrated. This, say experts, has allowed the company, which also markets juices, tea, water, beer as well as sports and energy drinks, to keep costs under control as well as to be able to monitor progress and set targets, which is not possible when you have a string of bottlers doing production for you. To tide over these issue, both Coke and Pepsi have a mix of franchise bottlers and company-owned units in India to ensure that production is not marred on account of too much dependence on the former. According to industry estimates, Coke has 35-40 per cent of its overall production coming from bottlers, while the balance 60-65 per cent is managed by it at its own production facilities. For Pepsi, nearly half its production comes from bottlers, while the balance comes from its own inhouse units.


Beverages & Food Processing Times-Aug-II-2012

Beverage News

9

Premium food and beverage market to see fast growth

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he premium food and beverage market in India is expected to grow rapidly. Going by the traditional business rule book may not be enough. Premiumisation continues to be one of the most significant trends in the FMCG sector with consumers shifting across categories and also upgrading within categories. In fact we can see this shift most apparent in what we eat and drink on a day-to-day basis. For example, the shift from squashes to carbonated soft drinks to juices, from glucose biscuits to cookies, from polypack to tetrapak milk, from palm oil to refined vegetable oil to heart healthy oil. This trend has given rise to a sizeable premium segment in multiple food and beverage categories. In fact some categories have evolved riding on this trend. The premium food and beverage market in India had reached a market size of Rs 140 billion in FY2011, more than 10 per cent of the total market. In the past, this premium segment in branded F&B products was niche due to low levels of affordability, acceptability, availability and awareness which are the key drivers in the F&B landscape. This led to the share of this segment being below one to two per cent at an overall level till about five to six years back. Positive demographic shifts are forming the basis for a turnaround across all these 4As, thus driving consumption for this segment. Increasing incomes, faster urbanisation, younger population, more working women, smaller families are driving affordability and acceptability. The spread of modern trade and refurbishing of stand-alone self service outlets has provided a fillip to availability of these products. Emergence of niche, focused media vehicles has also played an important role in this evolution, for example the TV channels targeting the urban upper middle class or social media where the youth of today spend a lot of their time. They have provided a viable platform for creating awareness. From the overarching trends impacting the overall F&B market, we believe that three trends will be enablers for future growth of the premium segment. This would be in addition to the premiumisation trend in itself which has been discussed earlier: Health and wellness: Growing awareness of health and wellness and rising incidences of lifestyle diseases would drive the consumption of categories such as olive oil, sugar substitutes as well as health and wellness offerings within categories such as salt and juices/juice drinks. Convenience: Changing household profiles and busy

lifestyle are expected to propel the need for convenience leading

also broad level boundary conditions that might be at play

smaller size. Hence effective utilisation of low cost BTL activities become critical. In case it is a newer product offering in the market, sampling activities become critical, especially in initial years. In case the product is established and the brand premiumness needs to be established, then shopper experience zones in modern trade could be effective. Digital media which typically plays a supporting role could easily be the cornerstone for any branding strategy in this segment.

to increased consumption of categories such as RTE and UHT milk.

because all investment decisions would need to be made in that context.

Western influence: Rising acceptance of Westernised products is expected to drive the consumption of categories such as breakfast cereals. There are expected to be 5.3 million households in FY2016 with average incomes equal or higher than the average income in the United States (on a PPP basis).

Having identified the target consumer segment and their need gap, an unbiased view on the market opportunity needs to be formed. A syndicated research exercise could provide significant confidence with respect to the validity of the concept.

Their consumption patterns would be similar to those in the United States (and in other developed markets). These households would be at the forefront of new category adoption and thus would be lead users for the premium F&B segment. Tata strategic research suggests that this premium segment is expected to reach a market size of Rs 450 billion by FY2016, that is 16 per cent of the total market. In large categories like biscuits, the share of premium is expected to increase from Rs 10 per cent to Rs 21 per cent between FY201116. We are likely to see growth of multiple premium categories like premium yogurt drinks, functional beverages, smoothies and seasonings which are available today in a limited manner. Share of modern trade in the F&B market will go up in coming years. This share would be much higher for the premium segment given overlap of the target segment of these categories and the footfalls into the modern trade outlets. Already in certain urban centric premium categories like ready meals, noodles, sauces and soups, modern trade constitutes more than a quarter of the overall market. How should companies effectively target the premium F&B market in India? Extending a traditional FMCG mindset for the premium F&B market is more likely to make the business model inefficient and/or ineffective for any company with ambition in this segment. The starting point is like any other business entry decision. The company needs to have a clear understanding of its business intent from the Indian market and

Our experience indicates that consumer research output coupled with India market trends and discontinuities, global learnings and surrogates provide a sound basis to assess the market opportunity. The importance of having the right price point should not be under-estimated even in the premium segment. There could be a case where in the company would import finished products in the near term with plans to shift to India manufacturing in a gradual manner. The long term pricing strategy should be thought through and implemented from launch to avoid any pricing related backlash from the market. The distribution of such products needs to be highly targeted, focused on modern trade outlets and top groceries in the more than 10 lakh population cities. The phasing in of the number of cities and penetration within each city would vary by category, target consumer and proposed price-value equation. Existing players could look to set up a separate channel for premium products to bring focus into distribution by sales like Pepsi has done for its Tropicana brand. A widely exercised option by existing large players is to create appropriate check mechanisms in an as-is channel that the product reaches the right outlets and is showcased effectively. Newer, smaller players entering this market have traditionally adopted the importer route. In fact even for a global brand like Pringles, P&G had adopted an importer route even while having a large on-going Indian operation. Premium brands tend to have lower marketing budgets vis-avis mass brands given their

Brands which are well recognised globally have a clear advantage here. Pringles, Nestle Coffee Drink, Ferrero Rocher are examples of such products who command shelf space with minimum brand building. When it comes to the organisation, any new company should look to be lean initially and the

n gradually ramp up capabilities to avoid high corporate overheads. Traditional organisation structure frameworks would not be feasible. The last few years has seen the premium segments in many F&B categories become sizeable. With players having realised this, the market shelves are expected to get increasingly cluttered. Traditional methods are likely to yield below par results. Players should look to adopt a differentiated, targeted approach in all key business activities. That would provide them with a sound platform to cream the premium F&B market opportunity in India. Rajiv Subramanian is principal, Rakesh Nag is consultant and Manmohan Agarwal is associate consultant, Tata Strategic Management Group


Beverages & Food Processing Times-Aug-II-2012

Filtration in Beverages report

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Filtration in beverages: Process for further process optimization to reduce filtration costs.

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ood contamination is a colossal issue today in the world of food processing. Every year we tend to see thousands of cases of illness due to it. In addition to the public cost, the impact of food safety lapses can be devastating within the food industry. While many food industry executives think of regulatory penalties as a risk, the major risks are potential shut downs or, even worst, more permanent damage to brands and companies. The news media of today is attuned to food safety stories. They know that food safety stories sell a lot of newspapers and generate a lot of TV viewers. Does the consumer care? Of course, they do. And this can have a devastating effect on the products and there sale……..Nervous consumers can cause distributors and brokers to quickly abandon such tainted products in the channel….. Many food companies are investing significant money and effort to build awareness for their brands in the market, which strategy can pay-off amply in competitive, commodity markets. One highly publicized recall and the negative image generated in the media, however, can turn an established brand asset into a liability. Food safety is a global issue, and the present-day threats and potential costs associated with food safety have never been higher. As companies seek to increase their control and in turn, minimize the risks, they discover that many varied activities, both within and outside the organization and both up and down the supply chain, must be considered and addressed. Also I believe it was time that the govt. brought very Stringent Food safety regulation for imported food items. The move by the FSSAI was on time and welcomed;as a matter of fact they have started working on developing quality standards for imported foods items in India. FSSAI is working on the standards with all the stakeholders including scientists, experts, industry officials and laboratories from the food business operators (FBOs), involved in import-export of food material.To ensure that imported food items are accepted, there is a need to set standards that are internationally obligatory. It is important for our food exporters have to adhere to various stringent set of rules and regulations for exporting food, while we do not strain the same sort of stringency on imported food and thus it is imperative to evolve standards for domestically consumed food as we have been having a lackadaisical approach towards setting standards. Still talking on food regulation it doesn’t come as surprise to me that Indian government has extended ban on import of milk and its production from China for one more year. The prohibition of import includes chocolates and chocolate products and candies/ confectionary/ food preparations with milk or milk solids as an ingredient. The prohibition on import of milk and its products from China was originally imposed September 24, 2008 with reports that the milk products imported from China contain melamine – a banned substance injurious to health. The ban was extended since then time to time. As many reports have said that milk sold in China was laced with melamine, which possiblycauses acute toxicity problems - basically damaging the kidneys and forming stones (solid deposits within the kidneys or bladder). As we have seen tens of thousands have been affected and several have died in China. Why this problem is not more widespread, given the rather large number of infants potentially having been drinking contaminated formula-milk for months is unclear. Despite repeated clarification from the Chinese Authorities of resolving melamine issue, the ban on imports of milk and its products continued in India which saw similar ban on import of Indian seafood into China. India is gearing up to fight the US….and not on any political agenda…rather the US will formally fight India at the World Trade Organisation over import restrictions imposed by New Delhi on poultry products from countries reporting outbreak of low-intensity bird flu, hoping to grab the country's growing market for chicken legs. India has rejected US' attempt to establish a dispute panel last month on the ground that its restrictions were based on science and there was scope for more discussions between the two countries on the issue. But the US maintains that the ban imposed by India on import of poultry products from countries' reporting outbreaks of low pathogenic notifiable avian influenza have no basis in science and was also not supported by World Organisation for Animal Health. The US is keen to ensure predictable market conditions in India for its poultry exporters so that they can encash the big demand for chicken legs where they are hugely competitive.The US has put forward the point that if India's 'trade barriers' were eliminated, the value of US poultry exports to the country each year would surpass $ 300 million. But India isn’t standing behind it has already started getting more studies done to strengthen its case that the ban is backed by scientific evidence of risk. Food safety is a vital issue where several levity as well as lives depends and its high we all take a serious step to make our food safe, thus making food industry global and create an India with safety as its prerequisite. I can’t end without adding this important information; we just started the agro and food processing help line - A reliable information source for all your queries related to the agro and food processing. If there are a few names in the agri & food processing magazines market and we are definitely one of them (Beverages & Food Processing Times). Empowering the agri and food industry family to make a better industry is our target. Business owners from various agri and food can get tied up with us to sell their own offerings and in return to get inquiries from our help line. This will help to get more businesses and ease the dilemma of many agri and food processing companies. As customers are always in the need of information as well as business vendors, we strive to satisfy both – Customers as well as businesses. For any type of food processing, packaging, food safety, cold chain technologies you can get in touch with us. So just dial the green number +91-22-28555069 and we create free help from our side. Just like that... Food processing help line (FP Dial) - 91-22-28555069 - you have got questions and we have got answers......

Prefiltration and Membrane Filtration The differentiation between a prefilter and a membrane filter is based on the filter media used. A prefilter consists of a threedimensional network of non-woven fleece material with a relatively non-directional

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particles and microorganisms. Air or carbon dioxide used to prepare the beverage is membranefiltered as well.

Applications (wine, beer and water) Several filtration steps are performed during the beverage production process. For example, prefiltration with crossflow systems in the preparation of wine removes

Prefiltration with crossflow systems in the preparation of wine removes particles and microorganisms To prevent a contamination of the bottled beverage a final filtration step prior to bottling is installed between the filling tank (buffer tank) and the bottling machine. In bottling plants, both manually operated and fully automated filtration systems are encountered. Most systems are equipped with two filter housings installed in a series. The first filter housing is equipped with filter cartridges for the prefiltration step and the second housing contains membrane filter cartridges for the final filtration step prior to bottling. The filter housings are connected to the supplies for water, steam, gas and the CIP solution. These media are used for the cleaning and sterilization process of the filter elements, housings and stainless steel pipe work. The pressure conditions across the filtration system are monitored by pressure gauges. For the regularly performed integrity test the final filter housing is equipped with the required connection valves. Fully automated filtration systems are programmed with process control software which allow regular cleaning and sterilization cycles to be performed. Process data and test results of the integrity test are stored in database systems. The process data can be regularly reviewed in order to monitor the consistency of the process and

ntroduction: Due to the increased customer demand for bottled beverages, implementation of a final filtration step prior to bottling has become state of the art in most beverage applications. The filtration step upstream of the filling machine consists of a prefilter (depth filter) and a final membrane filter. The filtration step during production of the beverages (e.g. wine, beer, water), has to assure that the beverage is free of productspoiling micro-organisms to guarantee reliable quality for the customer. As well as this, filtration costs need to be reasonable and the filtration process has to be performed without affecting the taste or the aroma of the beverage itself.

structure. The retention of particles and microorganisms is mainly achieved in the “depth” of the filter matrix by mechanical retention and adsorption. The main advantage of these filters is the high particle holding capacity. The particle retention capability is influenced by the diameter of the fibres and the thickness of the filter structure. The main advantage of these filters is the high particle holding capacity. The particle retention capability is influenced by the diameter of the fibres and the thickness of the filter structure Membrane filters are predominately used in the final filtration step because they assure the most reliable retention of particles and specific beverage-spoiling microorganisms. Retention mainly takes place on the membrane surface by the sieving affect. Particles and microorganisms larger than the actual pore size of the


Beverages & Food Processing Times-Aug-II-2012

Filtration in Beverages report

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innovation for the final step prior to bottling membrane are effectively removed. The selection of the right pore size of the membrane is based on the potential beverage spoiling microorganism present and the size of the particles which need to be retained. To install an economic filtration system and to optimize the total filtration

conditions. Polypropylene fleece shows the highest performance compared to other polymer fleece (polyester), because the fleece structure of the polypropylene is able to withstand long-term thermal exposure in comparison to other fleece materials, e.g. polyester.

The production processes for beverages demand that the final result is a drink that meets the expectations of customers, both visually and gastronomically. Ulrich Braeutigam of Sartorius explains how the last step in this process could be the most important, and how a new product could help. process, the optimal combination of a prefilter and a final membrane filter has to be selected. The prefilter must protect the final membrane filter effectively to guarantee an extended service life for the complete filtration system and thereby reduce the filtration costs significantly. Membranes and fleece media The service life cycle of filter cartridges used in beverage production plants ranges from several months up to one year, depending on the process conditions. Many sterilization cycles (hot water or steam) are performed during the period of use. Long-term use and stressful process conditions are variables to be considered during the development process of new filter cartridges. Another aspect to be considered is the cleaning and disinfecting agents used for CIP. Long-term use and stressful process conditions are variables to be considered during the development process of new filter cartridge Usually, non-woven polypropylene fleece or glass fibre fleece is used for prefilters. The combination of coarser and finer fleece has a strong impact on particle retention and the service life of the filter cartridge. Polypropylene features a broad chemical compatibility. Caustic and acid can be used for the CIP process in the pH range from 1 to 14. In the beverage industry sterilization processes are commonly performed with hot water (> 80 °C) or steam (105 °C – 110 °C). The complete filter cartridge construction (outer cage, inner core, adapter) is made of polypropylene to withstand these harsh process

Glass fibre fleece compared to polypropylene fleece provides an additional adsorption effect in specific wine applications. Finer particle retention in combination with a higher dirt holding capacity is the main advantages of this fleece material. Sartorius have developed Jumbo Star, a unique prefilter cartridge designed especially for applications with extremely high flow rates. A new pleating technology guarantees an extended filter surface area. This new development assures a long service life and the highest degree of protection of the final membrane filter in the prefiltration step of multiple beverages prior to filling. Membranes are characterized according to their pore size (e.g. 0.2 μm, 0.45 μm or 0.65 μm). The type of beverage spoiling microorganisms present in the beverage to be bottled determines the pore size of the mmembrane filter to be selected for the filling step. The type of beverage spoiling microorganisms present in the beverage to be bottled

determines the pore size of the membrane filter to be selected for the filling step. In beverage applications mainly membranes made of PESU (Polyethersulfone) or CA (Cellulose Acetate) are used. Long term stability for pressure pulsations and high flow rates, the two main considerations when looking to reduce filtration costs, are achieved by new membrane developments. Improved membrane structures, developed according to the different application requirements, assure an improved service life performance. The key features of Polyethersulfone membranes is the chemical compatibility for caustic and acetous CIP solutions in the pH range 1 to 14. The key features of PESU membranes, which are used for Vinosart PS, Sartocool PS and Aquasart PS final filter cartridges is the chemical compatibility for caustic and acetous CIP solutions in the pH range 1 to 14. Caustic, available in every plant, guarantees an effective regeneration process. The service life performance of the filter elements is extended by repeated cleaning which results in lowest filtration costs. For sensitive beverage (near water drinks) application, where lowest adsorption of ingredients is required, cellulose acetate membranes show the highest filtration performance. In bottled water applications filter cartridges with a cellulose acetate membrane yield extremely high performance which results in extended usage. Filter qualification Membrane filter elements are individually integrity tested during the manufacturing process to guarantee highest product quality and reliable process conditions

for the user and uncompromised safety for the consumer of the beverage. For filter cartridges, standard test procedures are defined to check for: flow rate; long-term mechanical stability; thermal stability; chemical compatibility;and service life. Prefilters are typically tested for particle retention and dirt holding capacity. Furthermore the protection efficiency of the prefilter for the final membrane filter is tested under application conditions. Membrane filters used in breweries are tested with Saccharomyces Cerevisiae and Pediococcus Damnosus, known as two typical species with need to be effectively removed from beer The test is performed using a standard test solution, which consists of particles, colloids and proteins as a worst case challenge fluid. Different fleece material combinations are evaluated for optimal protection of the final filter. The finally selected fleece material combination assures best protection of the final membrane in a given application. The most important aspect of the qualification of membrane filter cartridges is their capability to removal microorganisms reliably from the fluid stream. These tests are typically performed using beverage spoiling microorganisms which are present in the different beverages to be filtered. For example, membrane filters used in breweries are tested with Saccharomyces Cerevisiae and Pediococcus Damnosus, known as two typical species with need to be effectively removed from beer. Integrity Test To guarantee the functionality of the membrane filters under process conditions even after multiple steaming and cleaning cycles and to reliably prevent microbiological contamination, membrane filters are regularly tested for integrity. The integrity test has to be performed after the sterilization process of the filter cartridges and the

system prior to the start of the filling process to guarantee that the complete production lot is free of beveragespoiling microorganisms. Summary For the final filtration step of beverages prior to bottling two main aspects have to be taken into consideration. The bottled beverage must be free of product-spoiling microorganisms. This important quality parameter of the beverage is achieved by using membrane filter cartridges with appropriately selected retention performance to remove reliably the product spoiling

microorganisms present. Regularly performed cleaning and disinfection cycles Cleaning cycles of the whole filling system including the filtration equipment are a major prerequisite for a safe and reliable process. The functionality of the filtration systems in place for bottling must be regularly verified by performing filter integrity tests. Based on the different application needs the selection of theoptimal combination of prefilters and final filters assures the most economic process solution. Contact: Ulrich Braeutigam, Ulrich. Braeutigam@sartorius.com. Sartorius is a total solution provider for the beverage industries. The comprehensive product portfolio consists of multiple techniques for preparation of beverages, especially wine, water and beer. One major component of these solutions are filtration systems for final bottling of beverages, utilizing the companies broad range of prefilters and final filters. Ulrich Bräutigam has been working at Sartorius AG for Seven years as a product manger Filtration Technologies.


Beverages & Food Processing Times-Aug-II-2012

Beverages News

Food & personal care marketers like PepsiCo and Parle Products go local en masse

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hree years ago when, for the first time in its history, beverage maker PepsiCo tweaked the taste of its Pepsi cola brand with higher fizz in Andhra Pradesh to challenge rival Thums Up's dominance in the state, it was an unheard-of move. The jury is still out on whether it paid off well for PepsiCo or not, but increasingly makers of consumer goods, from biscuits and packaged snacks to beverages and even hair oil, are customising products to cater to regional preferences. Reason: they are either unable to challenge regional brands or capture market share in smaller but captive markets. "The next wave of growth in packaged consumer products will come from community-specific and regional-focused efforts. Many companies are working closely with us in this direction," says Devendra Chawla, president (food & FMCG)

at the country's largest organised retailer Future Group, although he declined to mention specific examples. PepsiCo Foods' Rs 1,000-crore-plus national snack brand Kurkure is now selling locally relevant variants like Mumbai Chatpata, Bengali Jhaal and South Spice Mix mainly in captive markets like Maharashtra, Kolkata and Chennai, respectively. India is among the few

markets where the New Yorkheadquartered PepsiCo has regionalised its brands to such minute detailing. Says Vidur Vyas, PepsiCo's marketing director foods: "Making Kurkure regionally relevant is core to our strategy. It helps us gain share in key markets." PepsiCo has been facing stiff competition from local brands like Balaji and Garden in the west and Haldiram's in the north. It has been losing share to such regional biggies in the Rs 7,500 crore salty snacks market, a category it dominated till four years back. The country's largest biscuit maker Parle Products challenged West Bengal stronghold brand Bisk Farm by launching its Top crackers in the state last year in the buttery segment, and managed 15-20% share in general trade within the year. Enthused, Parle rolled out products like Fulltoss Jhalmuri Kolkata Bhel in that region. Says

Mayank Shah, group product manager at Parle Products: "Locally relevant products have helped us not only help in getting a foothold in new markets, but they are also great testing grounds." British firm United Biscuits, maker of McVitie's, says it has begun customising its products for different cities. The digestives segment is growing more rapidly in markets like Chennai; indulgence

products like cream biscuits sell better in Punjab and Delhi. "Regional differences are becoming quite stark now...the metros especially have a life of their own, and are almost like unique countries," says Jayant Kapre, president, UB. The biscuits category, at 12,000 crore, has been growing at 10-12%, but is fraught with challenges like low margins and price-sensitivity. Future Group which rolled out its own brand Ektaa two years back, under which it only sells commodities catering to regional tastes, is looking to add more variants. It has been selling rice in variants like Red Matta from Kerala, Sona Masoori from Andhra Pradesh, Govind Bhog from West Bengal and Basmati from Punjab at its Big Bazaar and Food Bazaar stores under the Ektaa umbrella. Future Group's Chawla says: "India is like many countries put together as taste varies every 200 km; besides, the size of each region is large enough to launch regionfocused brands." The retailer expects Ektaa to be a 100-crore brand within two years. Dairy giant Amul, which sells butter, ice-cream and cheese nationally, says its regional products like fermented milk drink Shrikhand has captive markets like Gujarat and Maharashtra. The same is the case with AmulBasundi, a traditional Gujarati dessert made from concentrated milk. Says R S Sodhi, MD of Gujarat Cooperative Milk Marketing Federation (GCMMF), maker of Amul: "The regional products don't have a huge national market but they are meeting our expectations and those of consumers as well. They complete our portfolio." Customisation is not just restricted to foods but personal care products as well. Dabur, which makes Vatika shampoo and Amla hair oil, is calling the same product different names across cities to drive consumption. So its Amla hair oil is called Amla Usiri in Hyderabad, and Amla Nelli in Tamil Nadu. Says George Angelo, Dabur's executive director - sales: "The reality is India is a continent in itself - a mix of different markets. So, you need to add a distinct local flavour to your brands to help them gain acceptability."

Rajnigandha maker forays into powdered drinks, Rasna zone

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S Group, the Rs. 2,200 crore business conglomerate with footprint across diverse sectors that ranges from Rajnigandha pan masala to infrastructure, has set its eyes on the rapidly growing beverage concentrate market with launch of YOMIL — a milk-based drink concentrate. “With YOMIL, the industry's first ever milk-based powdered beverage, we are expanding our product portfolio. With this product we aspire to build a focused consumer connect while catering to evolving customer requirements,” said Rajiv Kumar, vice chairman DS Group.With this foray, the

company is fully geared up to challenge and compete with market leader Rasna, which for several years has enjoyed a near monopoly in the market. The similarity of YOMIL with Rasna ends wherein both are beverage concentrate products. Even as Rasna remains a soft drink concentrate the DS Group's YOMIL is milk-based. DS Group claims a ready-todrink milk concentrate powder is the first of its kind in India. The beverage concentrate market is estimated at around Rs. 500 crore that is growing at a robust pace of 15% annually. The overall beverage market in India is estimated at Rs. 1,500 crore that is growing at 20%

every year. DS Group already has several popular brands such as Rajnigandha pan masala, Catch brands of spices under its kitty and boasts of a robust supply chain across India through which it would take YOMIL from the neighbourhood grocery stores to modern retail outlets.

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MTR digs up Ice Age to launch beverages for kids Animated movies and cool healthy beverages go hand in hand especially for kids. Taking a cue from that, MTR Foods, known for its wide range of packaged meals, has launched a new range of kids drinks and also associated itself with the Hollywood movie franchise, Ice Age 4. The two drinks targeted towards young children include a Badam Drink mix and a Chocolate Badam Drink mix with 25 gms sachets of the two at a price of Rs. 10 and a 1 kg pack priced at Rs. 280. The new flavours will be available across India at all major outlets and beverage counters from July 2012. On the company's association with Fox Star Studios for the upcoming movie, Vikran Sabherwal, VP Marketing, MTR Food said, “Ice Age titles are a massive success, highly

entertaining and with lead characters that are so engaging and fun for kids that it offers MTR's Badam Drink Mix & Chocolate Badam Drink Mix the perfect platform for association.” “Ice Age is the most successful animated franchise in India, which is hugely anticipated in particular, amongst children and families. We are, therefore, delighted with the association between Ice Age 4: Continental Drift and MTR's new range of kid's drinks,” added Vijay Singh, CEO, Fox Star Studios. MTR has lined up a promotional campaign and customer engagement activities to leverage this association. These include Ice Age 4 co-branded packs, free Sippers with packs, an SMS based contest, Ice Age 4 branded movie merchandise as well as special movie screenings

Emami set to charge up glucose drink market

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et ready for a charged up battle in the Indian glucose drink market. Kolkata-based Emami is gearing up for a head-on clash with established players like Heinz and Dabur. After soft launching its glucose brand called Zandu Gluco Charge early this year, the FMCG major is looking for a phase-wise launch across the country, competing with brands like Glucon D of Heinz and Glucose D by Dabur. According to analysts, the Rs 550600 crore category is growing at 16 per cent per annum. The category, however, is dominated by Glucon D, which holds 55 per cent share, followed by Glucose D (25 per cent). The other players are GSKCH-Boost Glucose and Glaxose D. Emami has launched its brand in West Bengal, which has a high per capita consumption, and is on the lookout for new horizons. “The initial consumer and trade response from West Bengal has been quite encouraging. Apart from this, Uttar Pradesh, Maharashtra, Bihar, Andhra Pradesh and Tamil Nadu are also big in the consumption of glucose,” says Saroj Chakraborty, chief executive officer, Emami Biotech. But it may not be an easy ride for Emami, as other new entrants like Glaxo Smithkline and Rasna are also in the race. “Competition is very fierce in the segment. The emphasis still remains on distribution-and-push strategy rather than demand-generated pull strategy. The reason: consumers still prefer ready-to-drink over tobe-made. Also, Glucon-D is already generic in the industry and traditionally it has always been difficult to break the generic

product,” says Krunal Mehta, vice-president, brand management, Angel Broking. However, Emami through its products like Himani Sona Chandi Chyawanprash, Boroplus, Navratna, Fair and Handsome and Fast Relief had proved in the past that it is possible to take on generic products. Analysts say that the ready-to-drink concept could be one way of taking on the giants in a big way. The Emami brand variants “Classic, Orange and Pineapple” are also aggressively priced to beat competition. While Classic 100 gram is priced at Rs 21, the other two variants cost Rs 26. The brand is targeting the valueadded energy positioning even through its tag line, “Energy se bharpur, Bimariyon se rakkhey dur”, highlighting the vitamin C content in its brand. While accepting that it would be a tough battle ahead, Chakraborty says the focus for a new brand in an old category is to ensure a high degree of trials, for the consumers to feel the difference . As long as this is done well, market-share is a derivative.” Emami expects the category to grow 117 per cent to Rs 1,300 crore from the current Rs 600 crore in the next five years, where all the brands have space to grow. “With the deep pockets that Emami has, I am sure it will attack the distribution channel of Heinz and Dabur and try to establish a strong brand connection with Gluco charge. Emami's initial test marketing and product positioning gives the perception of a very healthy competition,” Mehta adds.


Beverages & Food Processing Times-Aug-II-2012

Packaging News

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Nichrome's New R&D Center and Microscan's C-Mount QX Hawk Imager Wins 2012 Ringier Technology Innovation Award for Packaging Industry office Building Inaugurated

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stablished in 1948 in Pune, Nichrome ventured into the world of packaging in1977 and since then has achieved a distinguished repute in the industry. With over 35 years of experience in

having capacity to house 150 persons , The new R&D center houses the complete Engineering and Design facility with hi-tech 3D modeling software, parametric design and product data

from L to R Mr. S.V.Joshi, Chairman, Nichrome India Ltd., Mr. E.K.Kumar, General Manager, Asia Pacific, Tata Global beverages Ltd .and Mr. Harish Joshi, M.D., Nichrome India Ltd.

Design, Development and Manufacturing, and 5000 installations across 40 countries, Nichrome has evolved as a premium brand for the packaging needs of the market. Nichrome has a state of the art, modern manufacturing infrastructure spread across 12 acres of land at 'Shrimal', near Shirwal, about 45 km south of Pune, with over 150 skilled work force for planning, engineering, automation, supply chain, machine assembly, product trials, testing , commissioning and service. Nichrome's new R&D Center and the office building was inaugurated by Mr. E.K.Kumar, General Manager, Asia Pacific, Tata Global beverages Ltd. Covering a total area of 12000 sqft ,

management facility. The new facility has a Training Center for conductingcustomer trainingprograms, a Pouch& Brand Gallery . The new facility is also equipped with a Product and Pouch Testing lab. While inaugurating the new office, Mr. E.K.kumar said “The association of Tata Global Beverages Ltd. goes back to 1985 when Tata Tea launched the 1st pouched tea in India using Nichrome machines.” Nichrome first developed an electronic weighing system on its packaging machines for Tata Tea back then. 17 yearson and more than 70 machines later , Nichrome is stilla preferred packaging partner of Tata Global Beverages.

Global Aseptic Packaging To Grow 24% In Next 5 Years

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he world market for aseptically packed products amounted to 123 billion litres in 269 billion packs during 2011, according to the new Global Aseptic Packaging report from leading food and drinks consultancy Zenith International and packaging experts Warrick Research. Volumes have grown by just over 5% a year since 2008, with South/South East Asia achieving the fastest rise at 22% a year. White drinking milk accounts for 39% of aseptically packed products, with beverages responsible for 37% and other dairy or food products making up the remainder. Aseptic filling has yet to make a significant impact in food markets, but there are some established niche applications sauces, tomato products and baby food are important new areas of development. “The market for aseptic packaging developed in Europe and the industry supplying it has been centred on Europe. This report shows the market shift to Asia in the past four years and raises the prospect of this continuing in the next few years,” commented David Warrick, Director of Warrick Research Ltd. “At a time of economic recession in much of the world, the aseptic packaging market has grown at over 5% a year in the past four years as the technology is well positioned to supply the needs of new

markets and applications,” added Esther Renfrew, Market Intelligence Director at Zenith International Ltd. Other findings of the 2012 Global Aseptic Packaging report include insights that: *There are over 13,000 operational aseptic filling systems worldwide and more than 40 companies supply aseptic filling systems. *The largest regional markets for aseptic packaging are set to be China and South/South East Asia both overtaking West Europe as the former largest region. *World use of aseptic packaging has reflected global economic trends. Usage has been static in much of Europe, while there has been rapid growth in many countries across Asia. *Value added dairy products will be a fast growing area of demand for aseptic filling systems. In some regions, fillers are used for both ambient and chilled products. By 2016, Zenith and Warrick estimate that the world market for aseptic packaging will reach 153 billion litres using 333 billion packs. The majority of additional demand will come from South/South East Asia and China, where growth is forecast at 11% a year and 3.5% a year respectively.

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icroscan, a global leader in technology for precision data acquisition and control solutions, announces that its C-mount design QX Hawk barcode imager has won a 2012 Ringier Technology Innovation Award in the Packaging Industry category. Microscan's Weijiang Song accepted the award during a ceremony in Shanghai. This event was co-organized by Ringier Trade Media and its magazine International Packaging News for China, together with ProPak China 2012. Following a strict selection process by an independent judge panel, with reference to online voting results, 21 winning companies were selected for their innovative products and technologies across 5 categories, including Package Converting, Packaging Application, Packaging Materials, Package Printing and Green Packaging. The overall aim of the award is to commend the contributions of companies promoting the development of packaging industry. At the beginning of this year, Microscan introduced a new C-

mount lens configuration for two of its products: the popular QX Hawk imager and the Vision HAWK smart camera. The QX Hawk imager is ideal for industrial track and trace applications, with powerful algorithms for reading virtually all linear and 2D barcodes. The rugged Vision HAWK smart camera combines the same decode capability with a complete vision toolset to enable a broad range of inspection and identification tasks. Both products can now be used with interchangeable lenses to address more application needs, such as high magnification and wide fields of view. “This new right angle C-mount lens design is an important addition to our Auto ID and Machine Vision product portfolio,” states Microscan Product Champion, Machine Vision, Dr. Jonathan Ludlow. “We can successfully address a wider variety of today's industrial barcode and vision applications. These are ideal cameras for applications requiring external lighting, right angle mounting in tight spaces, or fields of view that the integrated lens models don't address.”

For more information about the QX Hawk imager and the Vision HAWK smart camera, visit us online at www.microscan.com. About Microscan Microscan is a global leader in technology for precision data acquisition and control solutions serving a wide range of automation and OEM applications. Founded in 1982, Microscan has a strong history of technology innovation that includes the invention of the first laser diode barcode scanner and the 2D symbology, Data Matrix. Microscan remains a technology leader in automatic identification and machine vision with extensive solutions for ID tracking, traceability and inspection ranging from basic barcode reading up to complex machine vision inspection, identification, and measurement. As an ISO 9001:2008 certified company recognized for quality leadership in the U.S., Microscan is known and trusted by customers worldwide as a provider of quality, high precision products. Microscan is a Spectris company.

Bosch Packaging Technology Bosch plans to acquire Ampack Ammann

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osch, the leading global supplier of technology and services, intends to acquire Ampack Ammann, located in Königsbrunn near Augsburg, Germany. Agreements to this effect

research in the field of aseptics and run a microbiology test laboratory since 2005. Extending technological leadership "Ampack Ammann is a technological leader in the area of

were signed on July 20, 2012. Ampack Ammann develops, manufactures, and sells filling and packaging machines for liquid and paste-like foodstuffs. Employing some 250 associates, the company has generated average sales of some 35 million euros over the past few years. The parties have agreed not to disclose the purchase price. The planned takeover is subject to approval by the antitrust authorities. Equipment developed and produced by Ampack Ammann includes cup and bottle filling machines as well as dosing systems and peripheral machinery. The equipment is mainly used to fill and pack highly sensitive food such as dairy products, baby food, and hospital food, but also dosable products such as cereals. Moreover, the company has conducted its own

low-germ and aseptic processing of pre-formed cups and bottles. With the acquisition of Ampack Ammann we will be able to complement our existing product portfolio in this

segment", said Friedbert Klefenz, president of the Bosch Packaging Technology division. Klefenz believes this will enable the Bosch division to extend its technological

leadership in the packaging of liquid and paste-like food products. Apart from manufacturing its own machines and equipment, Ampack Ammann offers an extensive range of after-sales services. These include the maintenance and overhaul of used machinery and the supply of spare parts. Ampack Ammann also acts as general contractor for complete filling and packing lines. Its customers include European dairies as well as producers of food and of nutritional products for hospitals and infants. Rainer Ammann, the executive director and son of the company founder Siegfried Ammann, regards the planned takeover by Bosch as an important milestone in the company's development: "Bosch Packaging Technology's global sales and service network will put us in an even better position to market our filling and packaging machines internationally." In Ammann's view, exploiting this additional market potential will

support the strong further development of this family business, which was established in 1973.


Beverages & Food Processing Times-Aug-II-2012

Snack Food

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Yummy Tummy: How hot chips grew in India

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mit Kumar's Prakash Snacks is one of the fastest growing companies in a space that's difficult to succeed in. His secret: Getting the flavour right Amit Kumat laughs: "That's not happening in the next decade." The subject of discussion is healthy potato chips. "All that the consumers care about is the taste; this health thing is just a fad," he says. All ye city slickers may look aghast and consider Kumat's utterances blasphemous. But think about this: The snack food market in India is worth Rs 10,000 crore with 12,000 tonnes being consumed every year. Ten years ago the consumption number was 1,000 tonnes. Kumat knows what we may not care to admit. That this stuff is sinful and no one can eat just one! In the last decade, Kumat and partners - brother Apurva and Arvind Mehta - have bootstrapped their way to becoming among the top five snack manufacturers in the country. In just nine years Kumat and company have built the fastest growing snack foods company in the country Prakash Snacks. Its Yellow Diamond brand has managed to clock a growth rate in excess of 50% every year since it started in 2003. "They have a strong brand with consistent positioning," says Abheek Singhi, a partner at the Boston Consulting Group, who has spent time studying regional snack food companies in India. Kumat had tapped Indore's informal business network to get capital to start his business. His brother Apurva had gone to school with Arvind Mehta who over the years emerged as a significant player in the city's real estate business. With this introduction, Kumat approached Mehta and got Rs 2.5 crore in startup capital. The company made Rs 260

crore in revenue last year and is on track to become a Rs 400 crore player this year. And this is a tough market. There is a host of unorganised players. There is a multinational giant Frito-Lay, traditional biggie Haldiram's and an entrepreneurial outfit out of Gujarat, Balaji Group. To enter this market is easy, as capital costs aren't much. But succeeding is very difficult. Parle, Perfetti Van Melle, ITC and CavinKare are all large players who found the market tough going. It is creditable then for Amit Kumat to create one of the largest snack food companies in the country. What sets Kumat apart is that he has managed to expand beyond his home base in Madhya Pradesh. His brand has strong market positions in leading snack markets like Maharashtra, Delhi and Haryana. Prakash Snacks' rapid expansion prompted Sequoia Capital to invest Rs 125 crore in April 2010 for an undisclosed stake in the company. Sequoia Capital's investment will allow the company to scale up faster. Turnover targets have been set and Prakash plans to clock Rs 600 crore by 2014. Earlier, Kumat had planned to expand slowly across the country and ramp up from 500,000 outlets to 2 million in five years. He now plans to do that in three years or so. Sequoia is also investing Rs 70 crore in a new manufacturing line. So what helped Kumat succeed? The ostensible factor is taste though hard to define, how a product tastes is perhaps the most important thing that decides consumer preference. "Mainae bahut paroducts launch kiyae hain jo sirf flavouring ke karan nahi chalae hain [I have launched many products that didn't succeed only because of flavour]," says Chandubhai

Virani, managing director of Balaji Wafers. Kumat spends a disproportionate amount of time experimenting with flavours. He's very cagey talking about this. His main testing ground: His family. The flavours are made at home by his wife and a few helpers and then brought to the factory in a concentrate form. "Even my employees don't know how it is done," is all he is willing to let on. RECEIPE FOR SUCCESS But there are two other factors falling equipment prices and clever distribution strategy - that have made Prakash Snacks succeed. First, consider the equipment prices: Kumat's first challenge was manufacturing. While touring small-town India, he'd seen that large consumer goods companies worked on margins of over 50%. There was enough room for a player who was willing to offer similar quality at a lower price. To get that quality he would need the best machines. He made sure he didn't go for an Indian line as the difference in quality would have shown up immediately. Japanese manufacturer Ishida was chosen. Kumat's facility in Indore works with fully automatic lines potatoes are cleaned, peeled, cut, washed, fried, flavoured and packed. They can churn out as many as 50,000 packets in a day. Along the way, Prakash has been aided by falling prices for equipment. A line now typically costs Rs 60 crore and pays itself off in four years. CLEVER DISTRIBUTION Once the flavouring and production were under control, things began to move fast for Prakash. His next challenge was distribution. This is where he says he took a strategic step. Retailers in SEC

(socioeconomic classification) C and D class outlets had for years been neglected by Indian consumer goods companies. These are typically in lower class neighbourhoods and slums where the consumption is lesser. Consequently, few shops here are supplied by big company distributors and have to rely on the wholesale channel for supplies. Now imagine someone comes along agreeing to supply products that meet the needs of their customers and in exchange asks for immediate payment. Since the shop owners had been paying the wholesaler immediately anyway, they lapped up the offer. (Prakash, like Balaji, has more recently ventured into A and B class outlets where its products are being well received. The company has kept its terms of trade unaltered but Kumat acknowledges that once the company gets into the modern trade channel, that may well change.) This approach has also allowed Prakash to operate a very tight ship with its working capital. The company gets a 15-day credit for its raw materials. Kumat has made sure that there is no more than seven days of inventory in his system. The super stockist keeps another week of inventory, which he pays for upfront - again no credit is given. For any small FMCG company, stuffing the channel and achieving sales by offering credit to show growth is alluring, says VT Bharadwaj, managing director at Sequoia Capital. "We are wary of investing in such companies." At any given point of time Prakash's receivables are no more than Rs 5 crore. The super stockist makes sure his liabilities for the raw material are below this amount. Instead of solely focussing on profits, Kumat has sometimes chosen to lose money in the short term to make sure that the consumers get his chips at affordable prices. Take for instance the time when potato prices doubled to Rs 20 a kg two years ago. Kumat lost money for a quarter but did not raise prices. Consider distribution now. Initially, the company set up a network of super stockists who supply to distributors who in turn supply to shopkeepers. But as Mahesh Purohit, area sales manager at Prakash explains, they quickly realised there was a loss of margin and it was difficult for the company to justify a super stockists' return on investment. So, in a departure from what other snacks companies do, Prakash, in large cities like Mumbai, supplies directly to the distributor through a company-

owned warehouse. In the northern suburb of Malad, as many as 30 distributors show up every morning in their Piaggio Ape tempos, and take goods worth Rs 15,000 to sell every day. Each tempo owner makes Rs 9,000 a month after all expenses. NO ADS PLEASE Kumat has so far run a tight ship and used taste to succeed. His challenge now is to build a panIndia brand. Kumat doesn't believe in advertising - for a small brand like his, it is hard to justify the expense. According to him, packs of chips and namkeens strung on shops are the best advertising one can ask for. As he ramps up to Rs 400 crore in sales this year, he doesn't plan to change that. He's far more comfortable giving it back to the shopkeeper as additional incentive or to the customer in the form of a free tattoo or toy. Those, according to him, work much better in driving sales. But VT Bharadwaj of Sequoia, who is now an investor in Prakash Snacks, thinks that advertising support will be needed as Prakash grows in size. Kumat would do well to realise that the trade relationship he enjoys in the northern part of the country may be much more contested in the west and the south where brands such as Frito Lays and Balaji are very strong. Also, the taste preferences will change. To combat these challenges he will need a much stronger brand identity. It will be interesting to see how Kumat brings his frugal approach to brand building as well. Curtsey: Forbes India


Beverages & Food Processing Times-Aug-II-2012

Corporate News

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FMCG biggies HUL, Godrej, Dabur report higher sales growth numbers than estimated by Nielsen ITC plans to accelerate investments

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arket research firm Nielsen and India's consumer goods companies are in sharp disagreement over growth rates in the sector. In the April-June quarter of 2012, sales growth in value terms of some of India's biggest fast-moving consumer goods companies is higher than

Nielsen's growth estimate for the overall FMCGmarket, raising concerns over the world's largest research firm's accuracy in India. Seven listed domestic companies, which control over 70 per cent of the FMCG market, have posted an average value sales growth of 19.28 per cent in the first quarter of fiscal 2013. A Nielsen spokesperson says their figure for this period is 17.6 per cent. Even in categories such as soaps, juices, oral care and hair oils, leading players, which contribute between 60 per cent and 75 per cent to each segment, have posted much higher volume growth than what Nielsen's data suggests. When contacted, Nielsen did not validate the numbers that ET has obtained from the research firm's FMCG clients. For instance, Godrej Consumer Products Ltd saw a 24 per cent spurt in soap volumes even as Nielsen estimates growth for the overall segment at a sombre 5 per cent in the April-June quarter. "There is a bit of under-reporting by Nielsen. The issue lies with its statistical method," says Adi Godrej, chairman of Godrej Group.

"We generally use Nielsen's data for market share as there isn't any other option for us. However, for category growth, we rely on our sales numbers and listed companies' performance," adds Vineet Agrawal, president at Wipro Consumer Care & Lighting, which saw a 15 per cent jump in volume growth in

soaps in the first quarter of the fiscal year. It's a similar story in toothpastes, a category that grew 9 per cent in volumes according to Nielsen; however, this doesn't tally with internal sales data of Colgate and Hindustan Unilever Ltd (HUL), which together command roughly 80 per cent of the market. Colgate saw a 13 per cent rise in volume growth. No Stranger to Controversy For HUL also it was higher, said CFO R Sridhar at a recent financial results' presentation. In packaged juices, Nielsen says the category grew 18-19 per cent in the AprilJune quarter in value terms and that Dabur grew 24 per cent. But Dabur's quarterly sales numbers show its juice business grew 34 per cent. Dabur leads the packaged juices market with the Real brand, which accounts for more than half of all juices sold. Dabur CEO Sunil Duggal says: "Our quarterly growth numbers are generally ahead of what Nielsen reports. So we prefer to study Nielsen numbers as a longer-term

Nestlé invests in India to boost production capacity and create jobs

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new Nestlé investment in India will increase the company's production capacity in one of the fastest growing emerging markets worldwide. The factory extension at Nestlé's existing site in Ponda, Goa – part of the company's 7 billion Indian Rupee (over CHF 121 million) investment in the state over the past three years – will produce brand favourites such as Kit Kat and Munch. It will create employment for nearly 250 people. “We have been in India for 100 years and have factories in eight locations across the country,” said Jean-Marc Duvoisin, Global Head of Human Resources at Nestlé. “India is important for us and we have deep roots here. “Our decision to invest in a new manufacturing facility in Ponda is a clear indication that we have confidence in the region and its

environment,” he added. Mr Duvoisin was joined by Shri Manohar Parrikar, Chief Minister of Goa, and Antonio Helio Waszyk, Chairman and Managing Director of Nestlé India, at the inauguration event. “The decision to invest in our chocolate and confectionery business in India will strengthen our competitive advantage and create value for everyone,” said Mr Waszyk.In recent years Nestlé has invested billions of Indian Rupees to increase capacity, set up new factories and modernise and expand existing ones in India. As Nestlé reported, this includes a new manufacturing site in Nanjangud in Karnataka producing Maggi sauces, noodles, bouillons and seasoning, and a new factory in Tahliwal, Himachal Pradesh, which will manufacture Maggi noodles as well as chocolate and confectionery products.

trend — over a 12-month period — because that evens out errors." Nielsen counters that the retail audit cannot be compared with sales numbers that companies report. Says a Nielsen spokesperson: "The retail audit is focused on sales offtake through a sample of retail stores that tracks sales to the end consumer. It is technically incorrect to compare it to the financial results of companies, which report sales to distribution channels." The research firm also said sales reported by companies may include those beyond retail stores from institutions such as army canteens, restaurants and transport hubs, which are outside the scope of its retail audit. An FMCG analyst points out on condition of anonymity that ignoring the Canteen Services Department (CSD), which caters to the Indian defence services, may be one explanation for the discrepancies. After all, CSD can easily qualify as India's largest retailer with some 3,500 outlets across the country. Nielsen is no stranger to controversy on the market share front. In May 2009, HUL disputed the researcher's data that showed a steady fall in the company's market share across segments, saying it contradicted internal estimates as well as data from household research firm IMRB. The issue snowballed into a crisis when Dabur, Godrej and Marico echoed similar doubts over Nielsen data. Dabur and Perfetti Van Melle even went so far as to cancel Nielsen's subscriptions in categories such as hair oils, juices, candies and confectionery. A year ago, Unilever CEO Paul Polman questioned the accuracy of Nielsen's data for India, underlining that the country's largest consumer product maker was still unhappy with the market researcher two years after first raising the issue. "I know you all like to write about it. But they (Nielsen) are not very accurate with what their numbers are," Polman had said while commenting on the performance of Unilever's Indian arm.

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TC Ltd, diversified consumer goods major, said it is looking to accelerate planned investments across sectors after a period of relative slack even as it blamed delay in regulatory clearances for the execution lag. “We had a problem in getting clearances. I am hoping our execution record will improve. It has already improved in the last year. In fact, we have created a central projects organisation whose job is only to execute projects. But sometimes it is beyond the control of our project people when we have to get permissions from regulatory authorities, but there is no dearth of finance from us and no dearth of ideas about where to invest,” YC Deveshwar, chairman, ITC, told reporters. The company plans to invest Rs25,000 crore in the next 5-7 years, Deveshwar earlier told shareholders at the annual general meeting. “At the current moment, over 40 projects, large and small, are at various stages of implementation across the country,” he said. These investments would be made into paper, hotels and foods and other sectors. ITC is foraying into branded dairy products business with a dairy farm in Bihar that is slated to

start operations soon. “The ground breaking of the Munger dairy project will take place shortly. As this CSR (corporate social responsibility) intervention achieves scale, it will enable the development of a competitive value chain which, in turn, can feed a packaged dairy products business and support the creation of vital Indian brands,” Deveshwar said. He said ITC's plan is to become a storehouse of brands overtime, following the success of consumer food brands like Bingo, Yipee and Ashirwad. “We would like people to refer to the company as Indian Trademark Corp, creating several winning brands. Maybe, we can take them to overseas markets after making them a success within the country,” Deveshwar said. Among its businesses, FMCG is the focus area where ITC plans to treble its topline. “It is your company's aspiration to be the No.1 FMCG player in the country. A recent Nielsen report has highlighted that ITC's new FMCG businesses are the fastest-growing among the top consumer goods companies operating in India.”The FMCG topline is expected to treble over the next 5-7 years to a level of Rs15,000 crore, Deveshwar said.

CCI okays Nestle's acquisition of Pfizer nutrition biz

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he Competition Commission of India (CCI) has approved the proposed combination of global FMCG major, Nestle SA, with pharmaceutical major, Pfizer. The proposed combination relates to the acquisition of the global nutrition business of Pfizer by Nestle in April this year. Nestle had acquired the infant nutrition and nutritional supplement products, maternal supplements and adult nutrition products for USD 11.85 billion, a move that will enhance the Swiss food giant's position in emerging markets. Nestle, in a notice to the antimonopoly watchdog, said that none of the acquired corporate entities of Pfizer or their subsidiaries are located in India or have any nutrition-related turnover or assets that can be attributed to India. Since both parties to the

combination have subsidiaries in India and their respective turnover is more than the value of assets specified under Section 5 of the Competition Act, the proposed combination falls under Competition Act. The fairplay body had earlier asked Nestle to furnish additional information regarding the acquisition. Since the proposed acquisition pertains to Infant Milk Foods/Formula and the nutritional supplements businesses, which are regulated in India by the Food Safety and Standards Authority of India, CCI needs clear guidelines. In addition, the infant Milk Substitutes Feeding Bottles and Infant Foods Act is also applicable to the manufacture and sale of infant milk foods in India. Nestle, in its notice to CCI, said that in India Pfizer did not sell any of its nutrition products and no similar

products were offered by the parties to the combination. Nestle had filed its response on July 23, this year. “Considering that Pfizer is not engaged in the nutrition business in India and there is no horizontal overlap or vertical relationship between the parties to the combination, the proposed combination is not likely to give rise to adverse competition concerns in India”, CCI said. Pfizer has infant nutrition brands like SMA Gold, Promil Gold, Progress Gold and Promise Gold. None of these brands are present in India. Analysts tracking the sector say the baby food market in India is estimated at Rs 1,500 crore, growing at 10-15% annually. Nestle's baby food portfolio includes brands such as Lactogen, Nestum, Cerelac, Nan and it commands a 80% market share.


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Beverages & Food Processing Times-Aug-II-2012

MTR Foods Joins RTC race M

TR Foods, a wholly owned subsidiary of Norwegian food company Orkla Brands, and one of the top five processed foods manufacturers in India, is expanding its portfolio by foraying into ready-tocook (RTC) range. It has announced the launch of the Rasoi Magic brand of meal mixes, which had a limited presence in the markets of the west till now, on a national scale. MTR acquired Pune-based Rasoi Magic last year. Rasoi Magic is aimed at housewives who do not want to spend hours in the kitchen but want to serve freshly cooked food to their families and also offer variety. “Consumers prefer the powder format to paste. Rasoi Magic meal mixes are in a powder format and the consumer only has to add fresh ingredients such as vegetables, paneer, milk etc,” says Vikran Sabherwal, vice-president, marketing, MTR Foods. The Rasoi Magic range consists of 21 regular dishes under Rasoi Magic and nine that are devoid of onion and garlic and are called No Onion No Garlic. These packs serve four and are priced between Rs 36 and Rs 42. The meal mixes category in India stands at Rs 60 crore, and is growing at 40 per cent. The more well-established and aggressive brands in the category are Knorr and Parampara. “Meal mixes, unlike ready-to-eat (RTE), gives the consumer the joy and flexibility to make the final dish,” believes Sanjay Sharma, chief executive officer, MTR Foods. The overall market for RTE foods — of which RTC is a part — is primarily dominated by home-grown brands. Some of the key players here are Kitchens of India (ITC), Haldiram, Al Kabeer, Sumeru and Kohinoor. Rising incomes, increasing exposure, greater experimentation and more emphasis on convenience, are some of the factors contributing to the growth of the RTE/RTC market in the country. Most of the players in this category have wellestablished and extensive retail distribution networks, which allow them to roll out the new product range quickly.

MTR Foods Joins RTC race

Primarily, the offerings in the category are skewed towards Indian food and vegetarian meals such as rajmah, dal makhni, samosas, paranthas, aloo tikki etc. “The regional cuisine and non-vegetarian cuisine markets are relatively under-serviced with a concentration on the vegetarian north Indian meals. Among the non-Indian products, fries, a variety of nuggets, spring rolls, burger patties and potato-based options have heavy demand,” notes an observer. MTR is looking to build both the category and brand by advertising across TV and print nationally. It is also engaging customers through demonstrations across key modern trade and general outlets. The company will spend about 16 per cent of sales on marketing. Based in Bangalore, MTR has a considerable presence in the spices segment as well. At 46.5 per cent, the largest value share in its overall sales is generated by the RTE segment, according to a recent Nielsen report. The second position is held by breakfast mixes with 31.3 per cent. The company says it is aiming for a three-fold jump in its revenues to Rs 1,000 crore in the next three years. MTR reported sales of Rs 350 crore for the financial year 2011-12.

Domino's Pizza launches lip smacking side snacks Spicy Twistyz and Potato Smackers

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ubilant FoodWorks Ltd has launched amazingly tasty, hard-to-resist side snacks "Spicy Twistyz and Potato Smackers" priced at Rs.25 and Rs.49 respectively to enhance their Dine in offering. THese scrumptious snacks add a special zing and a yummy new dimension to a pizza-meal. Spicy Twistyz and Potato Smackers are already star attractions at Domino's Pizza outlets across India. Potato Smackers are hot potato wedges seasoned with red paprika and parsley to be enjoyed best with Cheesy Jalapeno dip. The new Spicy Twistyz has pizza bread sticks filled with a cheese blend and exotic Mexican seasoning. The just introduced tangy, spicy snacks are proving to be runaway hits with consumers. With this array of side dishes, Domino's Pizza now offers consumers a full range of main pizza and side dishes.


Beverages & Food Processing Times-Aug-II-2012

Edible oil News

Government bans export of branded edible oil in small packs

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he government has banned export of edible oils in branded consumer pack of up to five kilos on concern that productivity of some oilseeds may take a hit on

General of Foreign Trade ( DGFT) said in a notification issued recently. Export of the consignments handed over to the customs up to August 1, 2012 will be

account of 20 per cent deficit rains so far. "Export of edible oils is permitted only in branded consumer packs of up to 5 Kgs, within a ceiling of 10,000 tonnes, for the period November 1, 2011 to October 31, 2012. Now, with immediate effect, even such export of edible oils is prohibited," the Directorate

permitted, it added. The country, which meets 50 per cent of edible oil demand through imports, exports small quantities of groundnut, sunflower and rapeseed oils to cater to expatriate demand. To ensure domestic supply and contain price rise, India banned export of unbranded edible oils in 2008 and extended it year

after the year till September 2012. Last year, exporters were however given relaxation on branded small consumer packs. Market experts said the ban on export of branded edible oil in small packs would be irrelevant as the country exports a meagre quantity. The government has taken this step fearing price rise in some of the edible oils in the wake of poor monsoonlikely to hit Kharif production including some of the oilseeds like groundnut, they said. Overall area sown under oilseeds stands at 13.83 million hectare till July 27 of the current Kharif season, which is close to last year's level. However, less acreage under groundnut is a cause of worry because of drought-like situation in key growing states - Gujarat, Karnataka and Rajasthan. Area sown under soyabean (which has less oil content) is, however, higher at 10.15 million hectare from 9.43 million hectare in the review period. The country imports about 9 million tonnes of edible oils.

Cooking-Oil Imports By India Set To Drop On Stockpiles

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ooking-oil purchases by India, the world's biggest consumer after China, probably fell for the second straight month in July after refiners slowed purchases to pare domestic stockpiles.

Shipments slid 4.2 percent to

chairman of Hyderabad-based Transgraph Consulting Pvt. “In the festival season, we might not see any considerable surge in demand as food inflation is very high and Indian rural consumption is likely to take a beating due to crop failure in many states.” Palm oil for September delivery rose 0.6 percent to 2,882 ringgit ($924) a ton on the Malaysia Derivatives Exchange on Aug. 10. The most-active contract rose to a 13-month high of 3,628 ringgit on April 10. Festival Demand

875,000 metric tons last month from 913,179 tons a year earlier, according to the median estimate in a Bloomberg survey of five processors and brokers. Imports of crude and refined palm oil declined to 600,000 tons from 619,322 tons, the survey showed. The Solvent Extractors' Association of India will publish shipment data this week. Reduced imports by India, the world's biggest palm oil buyer, may swell inventories in Malaysiathat climbed to a fivemonth high in July. Futures have slumped 21 percent from a 13month high in April on speculation that demand may wane due to a slowdown in China and theEuropean debt crisis. “The market is already over supplied,” said Nagaraj Meda,

“The time of stocking up for festivals is gone as palm oil is available round the year and international prices are also not too high,” Atul Chaturvedi, chief executive officer at Adani Wilmar Ltd., said by phone. Imports between August and October may be around 850,000 tons to 900,000 tons a month, said Sandeep Bajoria, chief executive officer of the Sunvin Group. The peak demand season in India is between August and November. A surge in imports this year lifted cooking-oil inventories including those at ports to a record 1.7 million tons in May, according to the extractors' association. Stockpiles may be about 1.6 million tons as of Aug. 1, Bajoria said. Shipments in the eight months through June jumped 25 percent to 6.4 million tons, according to the extractors' association. India bought 8.7 million tons in 20102011. Vegetable-oil purchases in

2012-2013 may exceed the 9.5 million tons estimated for this year as the worst monsoon since 2009 curb oilseed planting, B.V. Mehta, executive director at the Solvent Extractors Association, said on July 31. The area under oilseeds including soybeans and peanuts fell to 15.2 million hectares as of Aug. 9 from 15.8 million hectares a year earlier, according to the farm ministry. Crude soybean-oil imports probably fell to 125,000 tons in July from 163,650 tons a year earlier, while sunflower-oil purchases may be unchanged at 100,000 tons, the survey showed. Palm oil comprises almost 80 percent of India's cookingoil imports. The nation buys palm from Indonesia and Malaysia, and soybean oil from Brazil and Argentina.

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Cooking-oil purchases by India, the world'sbiggest consumer after China,probably dropped for the first time in 5 months in June.

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ooking-oil purchases by India, the world's biggest consumer after China, probably dropped for the first time in five months in June after a plunge in the rupee to a record low deterred importers. Futures in Malaysia tumbled. Shipments slid to 850,000 metric tons last month from 862,550 tons a year earlier, according to the median estimate in a Bloomberg survey of five processors and brokers. Imports of crude and refined palm oil declined 16 percent to 600,000 tons from 712,356 tons, the survey showed.Palm oil, used in candy and fuel, has slumped 17 percent from a 13-month high in April on concerns that a slowdown in China and the European debt crisis may curb demand. Lower Indian imports may boost inventories in Malaysia, second-largest palm oil supplier, as production enters the peak period.

The rupee sank to a low of 57.3275 to a dollar on June 22, raising the cost of commodities priced in the U.S. currency.“The rupee depreciation made imports expensive and kept importers away,” said Sandeep Bajoria, chief executive officer of Mumbai-based

brokerage Sunvin Group. “Buyers were also holding back purchases to take advantage of the lower Indonesian export tax in July.”Indonesia cut the tax rate for exports of crude palm oil in July to 15 percent, a level last seen in January, from 19.5 percent in June, Deddy Saleh, director general of foreign trade at the Trade Ministry, said June 25. The base price to calculate the levy was cut to $944 a ton from $1,098, he said.


Beverages & Food Processing Times-Aug-II-2012

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Beverages & Food Processing Times-Aug-II-2012

Naturex unveils new health ingredients at Vitafoods Asia 2012

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aturex will display a variety of new ingredients at Vitafoods Asia that will help functional food, beverage and dietary supplement manufacturers bring fresh and innovative concepts to market. In addition, the group will be showcasing some of its bestselling ingredients in various applications. A flower to improve urinary health for women It is estimated that 50% of women at some point in their life will experience urinary discomfort, which is associated with a burning sensation. Naturex has developed Utirose™, its unique composition makes it the natural solution to relieve women from daily pains. Extracted from hibiscus flower, this ingredient helps to reduce the incidence of Urinary Tract Infections among women who are particularly susceptible to reoccurring episodes. This unique ingredient received the “Most Innovative Ingredient” Award at Vitafoods Europe 2012. The NAT activ® range extended with Iridoforce™, GrapePure™ and Maca roots

In an ever ageing world, painful joints and arthritis are becoming a major concern and offer huge market opportunities. Known to relieve rheumatism, Iridoforce™ is a devil's claw extract found in Southern Africa. This ingredient is the natural solution to help reduce pain and improve joint health, thanks to its very high content in harpagoside. Naturex harnesses the power of grape seeds in GrapePure™. Derived from polyphenols, the secret of this extract is its high content in flavanols and its unique antioxidant and antiinflammatory action. To provide its customers with a premium product, the group has carefully selected two of the world's most famous areas in grape cultivation: Champagne and Burgundy. Naturex is proud to offer Maca powder (Lepidium meyenii) which has recently been adopted into the Chinese functional food and food regulations. This treasure from the Peruvian region has proven benefits for enhancing strength, libido and fertility. Several studies have confirmed its efficacy and have highlighted the role of macamides and macaenes.

Events News

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BioFach India together with India Organic 2012 India to continue rapid expansion of organic sector *Dynamic development of exports *Innovative trade concepts boost domestic market India is also the last stop on BioFach's annual world voyage in 2012. BioFach India, the youngest daughter of the World Organic Trade Fair BioFach in Nürnberg, takes place together

with India Organic in the South Indian city of Bangalore from 29 November to 1 December. The exhibition duo attracts interested visitors from production, manufacturing, trade and services for the fourth time. The premiere at the new location in Bangalore in 2011 delighted 171 exhibitors and 7,529 highly interested international buyers, more than

50 % above the previous year's attendance. The positive development in the Indian organic market reflects the country's ambitious plans to continue the sector's rapid expansion and become established in the top group of international suppliers. The development of the domestic market is also being pushed with great commitment.


Beverages & Food Processing Times-Aug-II-2012

Back Page

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Asia-Pacific to overtake Western Europe in natural flavours

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ales of natural flavours in Western Europe are set to be overtaken by sales in the Asia-Pacific market within the next three years, according to market research firm RTS. This was just one of the findings to emerge from RTS's Flavours – Natural and Synthetic report, which focuses predominantly on industrial flavourings and excludes areas such as herbs, spices and seasonings. The report claims the global market in natural flavours is growing at a rate of 9.1% and was worth $3.3bn (€2.71bn) in 2010. The report also states that yoghurt and confectionery categories are clocking up the fastest growth in natural flavours globally. Soft drinks and ice cream are the largest categories for natural flavour use, according to RTS. Big difference Jamie Rice, RTS research and marketing director, told : “In terms of the markets offering most opportunity for natural, North America will be biggest in value and volume, but AsiaPacific is going to overtake Western Europe in terms of

natural flavours.“ China was a big market, with even a small shift towards natural flavours making a big difference, he added. The market shift indicates how swiftly the region is adapting to Western trends. Mexico was also “one to watch”, said Rice, with value growth of 5.4% predicted in natural flavours in the next three years.

sustainability of supply and stability under different processing conditions are preventing natural flavours from overtaking their synthetic counterparts, he said. “The sustainability time bomb is going to come soon. We can't grow all the natural ingredients to meet demand. One or two companies are even investing in synthetic flavours because of price and consistency of supply.”

However, despite the rapid growth in some regions, RTS said this was set to slow, not only in Europe and North America but also in the emerging markets of China, India, Mexico and Turkey. For example, it said China, which enjoyed 15% year-on-year growth in the past five years, will see this slow to 7.5% yearon-year over the next three years. “Things are going to get tougher as competition increases,” Rice, said.

The market for synthetic food and drink flavours still remains larger than natural variants, at 184,236 tonnes . “I don't think natural [flavours] will achieve parity with synthetics for another 10 years,” said Rice.

Sustainability time bomb

Referring to the swift growth in

In addition, major issues such as

Consulting Editor Basma Hussain

natural flavours for yoghurts and confectionery, he said in the past five years there had been value growth of 14.3% in confectionery and 7.9% for yoghurts and desserts. “People that buy in those categories seem to have a high awareness

of what they are eating.” In value terms, the global natural flavours market was worth about $200m (€163.9m) in confectionery, against $900m (€737.7m) for soft drinks, the biggest single market.


Beverages & Food Processing Times Aug'12 (II)