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The government expressed concern that the food processing industries

utilised only Rs 1,600 crore out of Rs 4,000 crore allocated during the 11th Five Year Plan period under various central schemes.Addressing a conference, Minister of State for Agriculture and Food Processing Industries Tariq Anwar said the government is giving great emphasis on this sector but the industry has

failed to utilise the incentives. He sought to know from the industry the reason behind the lukewarm response to the various schemes including setting up of mega food parks and cold storage.“I would like to point out that against a total

allocation of Rs 4,000 crore for the food processing sector in the 11th Plan, the industry could avail only around Rs 1,600 crore under the various schemes.“I would like to know from you (from the industry) as to why the industry could not uses these resources and if there is something that needs to be done at our end, we would be willing to do it,” Anwar said at a conference organised by Indo-American Chamber of Commerce.

Food processing industries utilises less than half fund in 11th Plan

The minister emphasised that the country has one of the most favourable fiscal incentive structures for promoting the food processing sector. He highlighted several tax incentives being offered by the government.Anwar noted that the food processing sector out-performed manufacturing in 2011-12 fiscal. “While food processing industry grew at 15.1 per cent, manufacturing growth was close to 3 per cent.”The minister said although the country is one of the largest producers in foodgrains, fruits and vegetables, but the processing level is less than 10 per cent.The growth in this sector would have a much larger impact on the economy as it would contribute in tackling various concerns such as disguised unemployment in agriculture, rural poverty, food security, food inflation, food wastages and improved nutrition, Tariq said.

Punjab minister Adesh Pratap Singh Kairon inaugurated the office

of the newly created State Directorate of Food Processing. The building is located in Mohali’s Phase 2.As, the department comes under the Ministry of Food & Civil Supplies, which is headed

Food processing office opened in

Mohaliby Kairon. The new directorate is intended to implement the state’s food and agro-processing policy and to give suggestions to prospective entrepreneurs on the schemes launched by National Mission on Food Processing (NMFP).The directorate of food

processing will act as a single window for prompt processing and clearance of proposals of mega-agri projects under the industrial policy. Addressing the gathering, Kairon stressed the need for adequate grain warehousing. He said that expanding storage capacity was one of the priorities of his ministry.

Beverages & Food Processing Times-April-I-2013 2News

Major snack makers like Haldiram, Bikaji and Lays (Pepsico) are in for

a stiff competition as Rajkot-based snack maker Balaji Wafers Private Limited plans to enter south and north Indian markets and set up manufacturing units there with estimated investment of Rs 200 crore in the next two years.“We are now planning to enter north and south India market within next two years and for that we are looking for strategic partnership with local players”, said Keyur Virani, director of Balaji Wafers. “We are searching land to set up our manufacturing plant in Uttaranchal and Madhya Pradesh. Moreover, company is also considering to set up production facility at Hyderabad in south India,” he said, adding that they would be investing Rs 200 crore to set up manufacturing units.According to Virani size of organised snacks market was about Rs 8,000 crore while unorganised market was around Rs 10,000-12,000 crore in India.Balaji Wafers is having about 65 percent market share in western Indian snack market. Company is present in Gujarat, Maharashtra, Goa, Rajasthan and some parts of Madhya Pradesh. It has turnover of over Rs 1,000 crore and is expecting 25-30 percent growth in 2013-14.“As Indian snack market is huge with major portion still unorganized, players like us have very good potential to grow in new areas. Our direct competition will be with Haldiram and Bikaji in north India while in south India we will have to compete with national players like Lays,” Virani saidThe company also recently doubled its production capacity at its Valsad plant in south Gujarat in line with its strategy to expand beyond west India.“We had invested about Rs 50 crore in Valsad plant and our production capacity has been doubled compare to Rajkot plant mainly for wafers. It is India’s largest production line,” claimed Virani.Rajkot plant produces 1,200 kg potato wafers per hour while in Valsad plant production capacity is around 2,500 kg per hours.

Balaji Wafers to set up manufacturing units in south,

north India

Electronics Devices Worldwide Pvt. Ltd.

Beverages & Food Processing Times-April-I-2013 3

Beverages & Food Processing Times-April-I-2013 4News

Marketing professionals, product managers, buy-ers, advertising agen-

cies, designers and engineering offices – all of them have a say when it comes to packaging. In thebeverage and liquid food in-dustry, too, the objective is to sell a product and make it appealing to the customers. But what´s the best way to achieve this? One place to look for answers is in the exhibition halls at drinktec 2013, between September 16 and 20, 2013. This event is not only about beverages technology, it is also a showcase for solutions in packaging design and container shapes, raw materials and addi-tives, labeling technology, mar-keting services and advertising. Over and above its function as a technology platform, drinktec is a forum for business, bringing together technology and market-ing to produce successful prod-ucts that sell.

Networking in the Innovation Flow LoungeBrand new at drinktec: The In-novation Flow Lounge, located at the West Entrance. This is aplace where marketing experts can come to talk to profession-als from the technology and research side – and vice versa. Organized here, under a differ-ent theme each day, are short presentations, informal round-table talks and panel discussions with a presenter – and, of course, there is plenty of time to unwind and chat with fellow profession-als at the BeverageWorld Bar after a busy day at the show. Making new contacts, discussing ideas and strategies, meeting up with like-minded people from technology and marketing – all of this is what

Technology show drinktec is also a marketing platform

you get at the Innovation Flow Lounge.

“What happens in Munich is truly unique”Just walking round the twelve exhibition halls and looking at the exhibitors’ presentations is very inspiring, prompting many new ideas and thoughts. Günther Nessel, Managing Director of taste! Food & Beverage ommu-nication/Offenbach, for example, has many answers to the question of just why drinktec should be of interest to a food agency: “Well, first of all, it´s an opportunity to get a unique overview of a truly international sector. Ofcourse there are many other trade shows, again and again, and at different intervals, but what hap-pens at drinktec in Munich, on this longer cycle, is truly unique. As a marketing professional with connections to these sectors, this event is a must. Here I can hone my own knowledge and gather inspiration. And a walk round the show reveals lots of pack-aging ideas I can apply in my own work, whether it be in the form of glass or PET contain-ers, cans, or whatever. Plus of course there are lots of things to learn about what´s happening in labeling technology, seeing just what can be done and what´s in the pipeline. In the supporting program you can find interesting forums with lectures and discus-sions, many featuring leading representatives from the sector, from whom you most certainly can pick up some useful hints and knowledge. Here and there you have the chance to engage in conversation with marketing colleagues. It´s always exciting to see just who you meet there,

and how easy it is to start talking to them about business.”

Packaging design follows trend researchWhat is critical in successful marketing today is to identify the diverse needs of the custom-ers and to incorporate the current key trends in the packaging de-sign. A report by the trend and future researchers Zukunftsin-stitut of Kelkheim, for example, highlights the customer´s desire to engage more closely with the producer. What he or she expects is a real exchange, and to have the feeling that his or her needs are being taken seriously. Future researcher Matthias Horx sees this as being not so much about meeting a short-term need, but about making the customer feel better. The product and its pack-aging design have therefore to appeal to the senses and the feel-ings, and be associated with a positive message. Communicat-ing a responsible use of resourc-es is another growing theme today, including on packaging. Demographic changes also need to be taken into account: an age-ing society, for example, calls formore practical packaging with easily readable text. Gaining insight into current and future trends is essential for the bever-ages industry and its suppliers, and drinktec 2013 is the ideal place to gear up for that future.

drinktec Forum: Packaging and marketingVisitors to drinktec 2013 can find out more about the ideal symbio-sis of packaging and marketing Thursday, September 19, in the drinktec Forum in Hall A2. Here the focus is entirely on packag-

ing and marketing. Jean Schrurs, consultant for packaging themes and customized business con-cepts in the beverage industry, is chairing a session on innovative ways to open up new markets via packaging diversity. In his lec-ture, Steve Lannon fromMiller Coors, will be talking about ‘Brewers like packaging – a core business for innovation.Beers differentiate through pack-aging’. Following this, the trends and their meaning for beverages packaging will be spotlighted by Dominic Cakebread and Ulrich Eisenblätter from Canadean, global market researchers in the beverage and food industry. Their lecture is entitled: ‘Global market zrends, Development & drivers in beverage packaging’. Another marketing approach will be presented in the same place on Tuesday, September 17, in theshape of the subject of ‘audio branding’. Here the question is how sound concepts can be used to draw consumers attention to products and to influence brands.

Digital meets packagingQR codes are the latest trend tool in product marketing. Experts believe there is still much poten-tial to exploit here. The rapid rise in the use of smartphones is mak-ing things much easier. But what people find when they make use of the QR code should not just be the standard website of the man-ufacturer. It is critical to offer the consumer real added value, for example, in the form of suitable uncomplicated offers with inter-activity potential. With today´s consumers looking for a closer dialog, there is tremendous po-tential here to tap into – and la-beling and packaging manufac-turers can meet this need, as will

be shown a t d r i n k t e c 2013.

It´s all in the mix – ‘multisen-sorics’Successfu l p a c k a g i n g c o n c e p t s – and mar-keting pro-f e s s i o n a l s know this very well – are a blend of wide variety of components. There are virtually no limits when it comes to creative and sophisticated decoration. A core func-

tion of packaging, however, is to engender in the consumer a de-sire to buy, through a design that is tuned specifically to the target group and the product. Of course, this is a highly complex under-taking, and one that requires great creativity. A tour round the exhibition halls at drinktec 2013 will deliver lots of input on how to achieve this. A whole host of exhibitors will be demonstrating just what is possible using the latest technologies. An optimum packaging solution should ap-peal to the consumer through as many of his senses as possible: sight, hearing, smell, taste and touch.Innovative ways to do this in-clude using gold foil to signify luxury, simulated water drops as a promise of freshness, and col-ors which the customer can rub to release the scent.Packaging that takes its cue from the product itself is also very much in vogue – the way it feels is a highly effective communica-tion tool in packaging marketing.

Social media – what are the customers saying?Companies these days will in-creasingly need to keep track of discussions on social media about their products. Here the consumers say directly and hon-estly just what they are thinking. By analyzing these comments, producers can gain valuable insights into how to make im-provements to their products. The next step would then be to actively engage in that commu-nication, by building up a direct dialog with customers. Taking part in drinktec 2013 will be pro-fessional suppliers who can help in this area. And, anyone want-ing to engage in discussion on this and other subjects ahead of the show, can do just that on the Facebook page of drinktec.

Packaging, and lots more…Packaging and labeling are not the only areas in which visitors to drinktec 2013 will be able to find optimum solutions and ex-citing new ideas. An absolute ‘must’ for marketing experts is also Hall B1, an 11,000 m² show-case of raw materials, agents and additives. The highlight here is the ‘Special Area New Beverage Concepts’, in which new sweet-ening, coloring and aroma strate-gies are presented and explained by the corresponding manufac-turers. Halls A1 (restaurant and catering equipment and adver-tising tools of all kinds) and A2 (packaging technology, ‘World of Labels’) will also be of great interest to trade visitors from the areas of marketing and commu-nication.

ITC’s entry into packaged namkeens may trigger another food war

Beverages & Food Processing Times-April-I-2013 5News

In a move that could make packaged namkeens the next big food fight, ITC is planning to enter

this segment, while Parle Products and CavinKare are relaunching their portfolios, and setting higher sales targets to give regional brands like Haldiram’s, Balaji and Bikaji stiff competition. According to four senior industry officials, ITC will launch a major foray in the next couple of months.It is likely to enter Gujarat, Maharasthra and Rajasthan first, before taking the portfolio national. An official of a competing branded namkeen maker said ITC has been picking up samples of rival brands for the last few months.“They have also sounded some of the top distributors and retailers about

their namkeen foray. The company may even enter the namkeen segment under a new brand and not Bingo!,” he said, requesting anonymity. When contacted, an ITC spokesperson declined to comment.ITC’s snacking brand Bingo! is the fastest growing brand in the packaged food business with a growth rate upwards of 30%, and it is currently the second-largest wafer brand in India after PepsiCo’s Lay’s. PepsiCo was the first big food company to take on the regional namkeen players with its Lehar brand, while its flagship Lay’s focuses more on the western snack space.Lehar is growing faster than Lay’s, which has encouraged PepsiCo to expand its portfolio of 50 SKUs and

distribution points. A PepsiCo India spokesperson said the company has adopted a different business model for Lehar including distributed manufacturing, a lean organisation and indirect distribution through wholesalers with higher incentives for retailers to keep price points affordable and enhance speed-to-market.India’s largest biscuit maker Parle Products has focused on improving the bottom line of its snacking business in the last year, and is now re-launching and expanding its portfolio with plans to make it the second-largest business after biscuits, ahead of confectionery.“We are aiming for 25% growth in namkeens, which will also help us to fight bleak consumer demand, since both biscuits and confectionery

Dressed in formal grey trousers and carrying a Samsung Galaxy phone,

Arvind Beniwal doesn’t look like a regular farmer. He isn’t. He is one of a small group of farmers who have reaped rich dividends from strawberries in a most unlikely area – the dry northern plains around Delhi and Hisar in Haryana.About two dozen farmers have devoted around 100 acres to growing the fruit, exotic to the area, which was once the preserve of hilly tracts with moderate climates such as Mahabaleshwar, Udhagamandalam and Himachal Pradesh.Beniwal first planted strawberries in 1998 on a part of his 30-acre farm on the banks of Yamuna, just before the river enters Delhi, with planting material imported from California. The risk taken by

Rich pickings as strawberries grown in unusual places

categories are growing at a tad smaller pace of 10%,” says Parle Products group product manager BK Rao.

Parle plans to expand its distribution from towns with population of over five lakh to towns with over one lakh population. Going by Nielsen data, branded namkeens accounted for 52% of the total salty snack sales market, which was worth about Rs 9,400 crore last June.As per recent Nielsen data, branded namkeens accounted for 52% of total salty snack sales of about Rs 9,400 crore in last June. The industry estimates the market is one of the fastest in the packaged food segment, growing at upwards of 15%.Industry officials said price points

are not so stringent in namkeens and companies can also adopt unconventional price points instead of Rs 5, 10 or 20 in categories like wafers and biscuits, hence allowing scope for higher margins.Retail major Future Group’s president (Food Bazaar) Devendra Chawla says the namkeen and regional snacks will be the next big bet for food companies in India. “Food is a culture in India where taste preference changes every 200 km, with the unbranded segment dominating the presence. This represents a huge untapped opportunity,” he says. The retailer too is expanding its traditional snack portfolio under the Ekta brand, which is growing in high double digit.

moving away from the traditional cereal and vegetable crops seemed to have paid off as Beniwal has been planting strawberry every year on at least 10 acres of his farm.“The demand is growing for the fresh fruit and about 90 per cent of the produce is consumed directly. The rest is processed into jams and jellies,” he says. Beniwal’s local bulk buyers include Mother Dairy, Reliance Fresh and Bharti Walmart. The buy about 100-150 kg each daily. Besides this he sends the produce to markets in Kolkata through vendors.“The biggest advantage is that our farm is near the banks of the River Yamuna which provides not just adequate moisture to grow the crop but also a temperate climate. And the sandy loamy soil is a perfect fit for strawberry cultivation,” he says, adding that transporting and

storing the delicate crop requires huge efforts as infrastructure bottlenecks are constrained.Beniwal, who grows strawberries by intercropping with watermelon and capsicum, says the cost of cultivation for the fruit is about Rs 5 lakh per acre, including the rising labour costs.Production ranges from 12-15 tonnes per acre and the best produce comes from November and goes on till mid-April. Beniwal, who has got ISO 9001 certification for his farm, has floated a brand in his name – Arvind to market packaged strawberries.Indian strawberry production has been increasing since 1992, boosting yields and fruit quality. The Panchgani-Mahabaleshwar region accounts for about 85 per cent of the country’s strawberries.

Beverages & Food Processing Times-April-I-2013 6News

Projecting high value agriculture and processed food as the catalysts for

the next wave of growth in the farm sector, McKinsey and CII in their latest report have pushed for a shift to “mission mode” from the current outlay of ministerial programmes and schemes.The report recommended setting up of an Agri Renewal Mission that will create an enabling environment for greater private and public partnerships.They want four to five world class food and agricultural universities and research laboratories to be set up by the government. For an integrated approach the government should establish a national agriculture technology mission, a national agricultural sustainability mission, a national agriculture and food export mission, a national farm gate to market infrastructure authority, mega demand servicing and export hubs and private participation in agriculture extension services. There should be agri-business focused venture capital funds as public-private partnership initiative between the Central and State governments and private capital providers “to lead the next wave of growth.”‘Enhance farmer-industry partnership’The farmer-industry partnership should be scaled up to encourage

High Value And Processed Food Will Drive Next Wave Of Farm Growth: Report

emerging models such as Farmers Producer Organisations, Farmers Producer Companies, the report says while adding that food processing growth should be through an emphasis on “branding.” Five key produce — mango, banana, potato, soya bean and poultry — are likely to drive the next wave of growth in the industry. India’s food exports are projected to grow from Rs. 1.4 lakh crore in 2011 to Rs. 7.72 lakh crore by 2030.Jointly releasing the Food and Agriculture Integrated Development Action (FAIDA) report, McKinsey-India chairman Adil Zainulbhai and CII’s Rakesh Bharati Mittal said India could become a “food hub in Asia,” but for this the government will have to change its policies and farmers will have to change their habitual farming methods.Legislation on stock limitsThey suggested that the government should revisit some of its current legislation related to stock limits, differential taxation across States and of course facilitate direct purchase by the private sector from farmers.When reminded about Food Minister K.V. Thomas’ lament that the private players in the foodgrains market normally pay farmers below the minimum support price, Mr. Mittal said if procurement, distribution and marketing of the

Public Distribution System were to be handed over to private parties it would become efficient. Although industry has not come forward to construct storage godowns, Mr. Mittal claimed that left to them the industry would take care of the foodgrains for the government.According to the report — which looks like it is laying the road map for the advent of FDI in multibrand retail — Indians are now spending more on high value foods as is evident from the 25 per cent drop in the ratio of cereals and pulses in the overall food budget of average consumer. Consumption is shifting from plant-based proteins such as pulses to animal-based protein such as milk and meat.Between 2000 to 2010, the contribution of cereals and pulses in the overall per capita food expenditure reduced from 40 to 28 per cent, while that of animal-based products, fruits and vegetables rose from 36 per cent to 42 per cent.“Driven by changing consumption pattern, the future of agriculture and food sector will lie in crop diversification to high value crops and higher value addition. Added to that the increase in agriculture sector’s share in the export pie will bring about a compelling business case for private participation,” Mr. Mittal said.

The Delhi government told the Delhi high court that it would issue directions to

schools in the Capital to ban sale of junk food and carbonated drinks after the Centre comes up with guidelines in three months.The Centre has told the court that all India guidelines in this regard will be in place by July 21. “The Lt Governor has the power to issue directions under the Delhi School Education Act to ban sale of junk food in schools”, the government lawyer told a bench of Chief Justice D Murugesan and Justice Jayant Nath.The court was hearing a PIL filed by Rahul Verma of NGO Uday Foundation seeking a ban on junk food in Capital’s schools. “It is time we change the way kids eat in schools. Such a ban will set new standards for healthy food. On one hand, children are taught in classrooms about good nutrition ... on the other hand, we continue to make junk food available to them.”, he said.Appearing for the centre additional solicitor general Rajeeve Mehra said private firm AC Nielsen QRG-MARG Pvt Ltd is in the process of framing norms in this regard after an all India survey He said that

So called Junk food may go off menus

in Delhi schoolsafter draft guidelines are prepared, the food processing companies will be consulted for their opinion and then the final guidelines will be prepared.“There are several reported incidents of food poisoning in the

schools due to unhygienic food served in schools. There is an increase in the quantity and variety of junk foods sold within the school premises that may have deleterious effect on child health both in short and long term. Incidents may be many more but they go unreported due to interior location and poor communication”, the health ministry told the court.

Danone India launched a series of TVCs for their product range in India.

The TVCs will feature bollywood celebrity Karisma Kapoor, who has been signed on as the new brand ambassador.Danone India has refreshed its marketing approach with “Only Good Gets In” creating a stronger emotional connect with its consumers. This strategy involved going back to the drawing board and reformulation of all the products. With its vast experience and expertise, all Danone products in India are now made with “Only Natural Ingredients” and no artificial colors, flavors or preservatives.Speaking on the release of the new campaign, Jochen Ebert, General Manager, Danone Food & Beverages India Pvt. Ltd. said, “At Danone, our mission is to bring health through food to the largest number of people. With our new mantra “Only Good Gets In”, we’ve relaunched our brands with only natural ingredients. Our new 360° campaign will bring the new message across to our consumers

and Karisma Kapoor, being a young mother and a successful working woman embodies the essence of our brand ethos.”With the relaunch of the brand, Danone has refreshed its product line, packaging and the positioning of the brand. This is being supported by a 360° campaign which is designed to cater to all consumer touch points. The marketing campaign will involve ATL initiatives like TVCs, Outdoors, Cinemas and extensive BTL initiatives like sampling across consumer touch points. This is one of the most elaborate campaigns till date in the Dairy Category in India.Karisma Kapoor, as the new brand ambassador of Danone India said, “I’ve known Danone over the years and have been a regular consumer of its product range. It’s exciting to be associated with a brand that emphasizes on health and natural products. And as the brand ambassador of Danone, I’m happy to be promoting products that are natural and refreshing.”Danone in India has presence in 5 major metros, namely Mumbai,

Pune, Bangalore, Hyderabad and most recently Delhi NCR. With a new state of the art facility at Rai (Sonepat) Danone has entered the Delhi NCR region as well. Danone plans to consolidate in these markets before expanding into newer markets.Danone’s series of TVCs were produced and directed by Shantanu Bagchi, Founder & Director, Illumination Productions. Speaking on the campaign, Bagchi said, “It was exciting to be part of such a huge global brand and we knew we have to live up to the international standards of Danone’s commercials. The idea was to focus on the natural ingredients and showcase the goodness of Danone’s range of products. One of the main challenges was that how all the films, though different in concept and approach can have a unified feel of the Danone campaign.”Danone’s product range includes Dahi, Low Fat Dahi, Flavored Yoghurts (Strawberry, Vanilla & Mango), Lassi (Mango Flavoured, Sweetened & Masala Chaas) and UHT Milk (Toned and Slim).

Danone India enters the hearts of its consumers with its new belief

“Only Good Gets In”Hindustan Coca-Cola Beverages Pvt Ltd (HCCBPL), a bottling partner

of Coca-Cola Company in India, will invest Rs 600 crore to set up a facility that will make carbonated beverages, juice and fruits-based drinks here.The company will invest Rs 600 crore in two phases on the project which will come up in 60 acres of land in Vikasnagar tehsil of Dehradun, Uttarakhand government said in a press note. An agreement regarding this was signed between company officials and State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (SIDCUL) in the presence of Uttrakhand Chief Minister Vijay Bahuguna.HCCBPL is the largest bottling partner of the Coca-Cola Company in India and responsible for the manufacture, package, sale and distribution of beverages under the trademarks of Coca-Cola Company, according to information on its website.HCCBPL Executive Director Shukla Wassan and SIDCUL Managing Director Rakesh Verma signed the agreement.The proposed unit would manufacture

Hindustan Coca-Cola to invest Rs 600 crore for

plant in Uttarakhandnon alcoholic carbonated beverages, juice, fruits based drinks, it said.It said the Uttrakhand government would provide 60 acres of land to the company at the rate of Rs 95 lakh per acre.The project is expected to provide direct and indirect employment to around 1,000 people, it added.Speaking on the occasion, Bahuguna said such an investment in the state would give a positive signal to other investors.Further, the press note said HCCBPL Senior Vice President Patrick George has deposited a cheque of Rs 1.60 crore to the state government as earnest money and processing charge.Expressing gratitude to the government, he said special preference would be given to local people for employment in the project.Beverages major Coca Cola Company has posted 8 per cent sales growth in volume terms in India for the first quarter ended March 29, 2013.The US-based company, which announced its global earnings for the first quarter, had said brand Coca Cola grew by 30 per cent in India during the first quarter.

Beverages & Food Processing Times-April-I-2013 7Dairy News

An Association of Dairy farms launched at Hyderabad on 23rd March. Dairy farm segment is one of the largest farming sectors after agriculture commodities. Andhra Pradesh is third largest dairy farming hub in the country. Indian has

thousands of dairy farms big and small anging from 5 animals to 1000+ animals. But profitability comes only when a farmer is connected with a cooperative or cluster for regular supply and income. The association is led by Sultan Bin Masqati Managing Partner of Masqati Dairy from Hyderabad. Masqati is the largest dairy product company in Hyderabad and one the leading dairy products company in India. Sultan has been advocating for promotion of organized cluster formation in the country, he is the one who initiated this culture in Andhra Pradesh and in one cluster he has enrolled hundreds of farmers within a radius of 20 Km. This has not only assured good income for farmers but also changed the economy of small dairies in the area. Now Sultan Masqati is looking for this experiment in the entire Andhra. This is the

Dairy Farm Association Launched

major reason behind launching this Association, Masqati informed. Sultan Masqati also informed that they have not yet appointed office bearers of the association yet. At present they are looking for more and more farmers joining this association. In the launching program of the association, they invited Dr Chandrakiran Sant one of the most known faces of the dairy farming community a veterinarian by Degree and an Advisor to every successful dairy farm in the country.Dr Sant informed the gathering that shortage of milk in India would continue for a long time because the product of milk is growing by 4 per cent and demand is growing with 7 per cent. The gap between demand and supply will provide unprecedented opportunities to the dairy farmers and processors. Firoz H Naqvi Secretary of AFTPAI and one of the founder members of the association informed that membership drive of the association is started and already there are 200 plus members joined it. All the big and small dairy farm owners, chilling centers, processors of milk and milk product companies can join the association.

Beverages & Food Processing Times-April-I-2013 8News

Cognex Expands Series of High Performance, Low-Cost

Barcode ReadersNew compact series targets raster and single-line scanner applications

Cognex Corporation (NASDAQ: CGNX), the world’s leading supplier of

industrial ID systems, announced that it has added two new modelsto the DataMan® 50series of compact barcode readers and a new DataMan® 60 series with three models that offer Ethernet connectivity. These new products round out Cognex’s line of high-performance, low-cost barcode readers and target applications

typically handled by single-line or raster laser scanners. The new DataMan readers feature a compact form factor as well as the same powerful, proprietary barcode reading technology, visualization for performance feedback, and solid state design found on Cognex premium readers. The DataMan 50/60 series barcode readers are available at a price equivalent to existing laser scanner products.

Advanced technology for laser scanner users“We’ve seen tremendous demand for the recently introduced DataMan 50L in 1-D oriented barcode scanning applications,” says Cognex Vice President and Business Unit Manager for ID Products, Carl Gerst. “Laser scanner users, tired of constant repair and replacement costs, were ready for a change to newer and better technology. The new models allow us to offer a complete product range of high- performance; low-cost barcode readers for all applications typically covered by raster and single-line laser scanners and complement our existing line of premier industrial barcode readers.” The DataMan 50 and DataMan 60 series of barcode readers are available in three models:• DataMan 50/60L: Fast, accurate

reading of 1-D oriented barcodes (either ladder or picket fence).

• DataMan 50/60QL: Best-in-class reading of 1-D omnidirectional barcodes.

• DataMan 50/60 S: For reading 1-D omnidirectional barcodes or 2-D matrix codes.

Exceptional read rate performance and reliability DataMan image-based barcode readers are superior to laser scanners in several ways;

they offer higher read rates, performance feedback, and better reliability.

All DataMan barcode readers feature:• Hotbars™, a proprietary technology that provides the

highest read rates of 1-D linear barcodes, including those that are damaged, distorted, blurred, scratched, low height or low contrast.

• IDQuick™, for fast, accurate reading of 2-D codes (S models).

• The ability to analyze “no reads” by letting the user see what the reader sees, either live on a monitor or through image archiving.

• Solid state design with no moving parts that can become worn out and require replacement.

• RS-232, USB, and Ethernet (DataMan 60 models) connectivity options.

• Enhanced speed reducescostperpick

• Plug and play approachand intuitiveHMI foreaseofuse

• Use of standardizedcomponents lowers therequirementforspareparts

Bosch Packaging Technology launches Gemini 4, a new Delta

robot hardware platform and software controller. With increased speed and lower changeover time resulting in higher productivity, the platform allows manufacturers to reduce the Total Cost of Ownership (TCO) of their automated production lines. The hardware component of Gemini 4 has a streamlined architecture and integrates standardized industry equipment from German automation specialists Bosch Rexroth and Beckhoff. Operators are now able to run up to eight Delta robots and sixteen conveyors through the simplified Gemini 4 controller for gains in efficiency. The streamlined design of the Gemini 4 controller and its software are optimized for the control of Delta robots, helping to increase acceleration and pick

New Delta robot controller reduces Total Cost of Ownership

Increased productivity thanks to redesign

rates. This enables manufacturers to enhance accuracy and raise their production line speeds by up to 25 percent (product dependent), while maintaining gentle product handling, process reliability and quality.In the past, manufacturers with Delta robots seeking to boost output would use a multi-picking technique with special picking heads to increase the number of products handled by the robots. This approach required lengthy changeovers whenever products or pack styles were changed, as a new head would have to be applied. With the new Gemini 4 controller and the gains in speed inherent to the new hardware, manufacturers now no longer need to use multi-picking heads to enhance performance. Regardless of the pack size or style, the same head is being used, eliminating the downtime for changeovers. These overall gains in productivity mean a reduction in the cost per pick. In addition, due to its higher pick density in comparison with previous versions, the new controller has a smaller footprint, leaving room for more robots.An additional benefit of the Gemini 4 is its ease of use,

both in set up and operation. Its Human Machine Interface (HMI) can store instructions for the production of multiple products, which speeds initial set up and reduces changeover time from twenty minutes to one minute (including gripper changeover). The software utilizes a user interface similar to previous Gemini iterations, ensuring operators familiar with the system can work with it needing only minimal training. This hardware platform is also used with other Bosch machines, allowing customers with more than one Bosch solution reduce their spare parts inventory as the same components can be used across multiple controllers. This results in lower fixed capital and shorter training periods, reducing TCO.“The Gemini 4 boosts standards in the field of Delta robot control,” said Roy Fraser, product manager Robotics, Bosch Packaging Technology. Innovations in the automation of the manufacturing process have driven down the TCO, allowing multinational brand owners and local enterprises alike to increase productivity and improve competitiveness.”

Ingersoll Rand (NYSE: IR),a $14.0 billion globally diversified industrial

technology company is focused on Corporate Social Value creation world over and has consistently worked towards streamlining its efforts in making a positive impact around the communities where it operates.The organization runs several social welfare projects in the country to promote Sustainability, Education, Healthcare and Livelihood creation. Volunteering and involvement of employees in these projects have always been a key focus. The organization launched “The Employee Giving Campaign” in partnership with United Way of India in 2011 and has made significant progress with the response received in the second year of the campaign in 2012. Under this campaign, the employees can voluntarily contribute a one-two days’ salary and pledge support to an NGO of their choice and location. The Employee Giving campaign gives the freedom to an employee to choose the cause they believe in and to choose the amount that they would like to donate towards their cause. The amount donated by the employees is then matched by the organization in India and by the Global Foundation in the US twice over, and then donated to the respective NGOs in each city.The initiative has been instrumental in engaging over 25% of its workforce in its second year of existence. The amount raised will be equally matched by Ingersoll Rand India and the Ingersoll RandGlobal Foundation to be donated to over 15 pre-selected NGO’s across cities towards empowerment of the marginalized sections of the society. In the past, the pledged funds raised by the campaign were donated to various NGOs that run projects in the area of Environment, Resource Conservation, Education, Healthcare and

Ingersoll Rand India employees pledge to make a difference with the Employee Giving Campaign

Improving Livelihoods. In 2012, this donation funded multiple projects that created an impact across these NGOs. Some key highlights include educating over 10,000 underprivileged children in Delhi and Bangalore, supporting destitute children in Bengaluru by providing Shelter, Education, Medical and Recreational support, restoration of eye sight and loss of vision prevention amongst children and adults through eye surgeries to name a few. As part of its environmental commitments, Ingersoll Rand is providing solar lighting to nearly 20 villages through TERI’s Light a Billion Lives Program and has an on-going maintenance and preservation drive for Lake Uttarahali in Bangalore among other initiatives.Commenting on this initiative, Swati Bhattacharya, Vice President – Corporate Relations and Public Affairssaid, “We have been running the ‘Employee Giving Campaign’ driven by our philosophy of sustainability and responsible corporate citizenship. This one of its kind campaignseeks to mobilize and enable employees to engage in meaningful community service activities.We have received overwhelming response for the campaign’s second edition making significant progress in terms of employee participation and expanding the reach of our social activities to tap and aid greater number ofsocial and environmental causes. We are happy to have raised sufficient funds with which we hope to lighten up the lives of many households in India.”With the Employee Giving Campaign, Ingersoll Rand has empowered its employees with an opportunity to inculcate and encourage a culture of extending a helping arm to the needy. With the combined effort, the company aims to provide a dignified life to underprivileged children and individuals through education andinfrastructure that play a vital role in their growth.

Beverages & Food Processing Times-April-I-2013 9News

Weigh modules for tank scales with fully digital load cells prevent loss

of material, bad batches and downtime. They compensate for environmental influences, offer predictive maintenance and allow for simple installation. METTLER TOLEDO is will showcase its PinMountTM weigh module, which features truly digital POWERCELL® PDX® load cells, at the POWTECH Fair in April 23 to 25 in Nuremberg, Germany, in Hall 1, boot 413. POWTECH is the premier international trade fair for mechanical processing technologies and instrumentation.The PinMountTM weigh module on display at POWTECH offers true predictive maintenance, simplified and reliable communication and watertight load cells that work even when submerged. The incorporated POWERCELL® PDX®

METTLER TOLEDO Exhibits Secure Tank Scale Performance at

POWTECHload cells host an on-board microprocessor to monitor internal and external influences that affect weighing accuracy. It compensates for temperature changes, vibrations, hysteresis and non-linearity, providing extraordinarily accurate results.A breach-detection system alerts users if the enclosure is damaged by accidental puncture or tampering. It also alerts users to replace a load cell before moisture causes weighing errors or scale failure, increasing uptime and preventing loss of raw material and bad batches.The load cells connect to each other in a simple network, eliminating junction boxes. Electronic components are protected inside hermetically sealed load-cell enclosures. The load cell, including all cables and connectors, is water-tight, effectively sealing the entire network against moisture according to IP68 standards.

The Centre’s Pink Revolution to promote meat production and

export has led to a 44% increase in meat consumption and export in four years, but it has failed to regulate the industry.According to data compiled by the animal husbandry departments of all states, meat from registered slaughterhouses increased from 5.57 lakh tonnes in 2008 to 8.05 lakh tonnes in 2011. Export earnings from bovine (beef and cattle) meat expected to touch Rs 18,000 crore in 2012-2013. India became the world’s top exporter of beef in 2012. Uttar Pradesh is the top buffalo meat-producing state with 3 lakh tonnes in 2011. At least 70% of the buffalo meat is exported. “Our meat is lean and cheaper. We supply halal meat, which is preferred in Gulf countries,” said Surendra Kumar Ranjan, director of Uttar Pradesh-based Hind Agro Industries.

Though meat meeting international standards reaches markets in the Europe, the Gulf and South-East Asia, most of the meat sold in India is substandard. The best quality meat is sent abroad while B-grade meat reaches the domestic market.Further, activists say the way animals are transported and slaughtered is cruel and far from international standards. “There is rampant abuse of animals in transport and slaughter of

meat whether for domestic consumption or export,” said Arpan Sharma, CEO of Federation of Indian Animal Protection Organisations.Meat sales up, hygiene dropsThe amount of beef consumed and exported from the country has gone up 44% in the last four years, according to data from the Union animal husbandry department. However, animal abuse while transporting and slaughtering is rampant, say activists.According to data compiled by the animal husbandry departments of all states, the meat produced in registered slaughterhouses has increased from 5.57 lakh tonnes in 2008 to 8.05 lakh tonnes in 2011. At least 70% of the buffalo meat is exported. Uttar Pradesh is the top buffalo meat-producing state with 3 lakh tonnes in 2011. According to the US Department of Agriculture, India became the largest exporter of beef edging out Australia and New Zealand in May 2012.Bovine (buffalo and cow) meat from India is popular in South-East Asian and Gulf countries, said Surendra Kumar Ranjan, director of Uttar Pradeshbased Hind Agro Industries.

Beef exports up 44% in 4 years, India is top seller

“Our meat is lean and cheaper. We supply halal meat, which is preferred in Gulf countries,” he said.Animal activists, however, kill this rosy picture. “There is rampant abuse of animals during transport and slaughter whether the meat is for domestic consumption or export,” said Arpan Sharma, CEO of Federation of Indian Animal Protection Organisations.Processed meat exports are expected to earn close to 18,000 crore in 2012-13. The increase is attributed to the Centre’s Pink Revolution to promote meat production and export with modernized abattoirs and storage facilities. The food processing ministry had announced subsidies of 15 crore to modernize abattoirs. The buffaloes killed went up from 49.46 lakh in 2008 to 69.6 lakh in 2011.There are 38 integrated abattoirs in the country which slaughter for export. Agricultural and Processed Food Exports Development Authority (Apeda) inspects them and renews licenses. “The BIS team does checks a few times a year,” said Ranjan.The government’s stringent rules on quality of meat have failed to extend to prevention of cruelty to animals. “Animals are overloaded in vehicles and transported without food and water,” said Sharma. “None of the meat exporters pay attention to the condition of animals,” he said. Most police officers let vehicles through without fining them for overloading as per the Prevention of Cruelty to Animals Act.The international practice of stunning an animal before slaughter is not followed in India, since Gulf countries want only halal cut meat. “Gulf countries specify that the animal should not be stunned. We stun animals supplied to countries that don’t insist on halal meat,” said Ranjan.Stunning animals is compulsory in Europe and Australia. “There are norms for veterinary care, feeding and watering during transport,” said Sharma.

Beverages & Food Processing Times-April-I-2013 10OPINION

Changing Food Safety Standards and Environment Standards and their impact on FMCG Companies

With every change in food laws,corporate managers feel veryirritatedbecausethesechangesareforcedonthem.Itforcesthemtore-thinkand re-workandonceagaindisturbsthewell-establishedsupplychain.Theargumentiswhyweneedit,wheneverythingwasfine?Howmany times in a life of companychanges labels for its products?Howmanytimescompaniesmodifyits label tolaunchascheme?Howmanytimesfoodlawsarechangedinalifeofcompany?It is human nature; we don’t want change when we are comfortable. Whether it is pollution, global warming, traffic diversion, change in accounting laws, change in phone number, home address, so same is with changes in food laws. Unfortunately, neither consumers’ expectations nor needs are static. At the same time, food safety is changing with new scientific findings; it is also no more static.That is why we need competent and qualified supply chain managers to manage and minimize risks including food safety risks. Good Supply chain managers can quickly fix the issues and move ahead.Why New Food Safety Laws are emerging?Initially we had food laws i.e. PFA Act, based on knowledge of 1954. There was no WTO. There was no internet. There was no Google. Global integration was negligible. Citizens were also not alert. Media was in very infant stage. Legal system was also taking shape. India was just 7 years old as independent country from British occupancy.When the Food Safety and Standards Act of India came in 2006, Indian successfully entered 21st century by becoming information technology hub for the world. There was no reason to expect that only industry voice will be heard and other stakeholders will have no role. If anyone thinks that only one group can move the things for the rest, it is nothing but day dreaming. Policy makers, Courts and NGOs are also equipped with same set of knowledge and information base which is used by various stakeholders. Now we are in the world which somehow ensures level playing field. Concept of lobbing is fading ways, concept of education and awareness is creeping in.Citizens are demanding their rightsThe availability of safe food

improves the health of people and is a basic human right. Safe food contributes to health and productivity and provides an effective platform for development and poverty alleviation. People are becoming increasingly concerned about the health risks posed by microbial pathogens and potentially hazardous chemicals in food.According to WHO and FAO studies, up to one-third of the populations of industrialized and developed countries are affected by food borne illness each year, and the problem is likely to be even more widespread in developing countries. The poor are the most susceptible to ill health. Food and waterborne diarrheal diseases, for example, are leading causes of illness and death in less developed countries, killing an estimated 2.2 million people annually, most of whom are children.Social and economic structures are changing:Due to globalization of trade, emerging trends in global food production, processing, distribution and preparation present new challenges to food safety. Food grown in one country can now be transported and consumed halfway across the world. People demand a wider variety of foods than in the past; they want foods that are not in season and often eat away from home. Institutionalizing children in schools and childcare facilities and a growing number of elderly persons in hospitals and nursing homes means that food for many is prepared by a few and can therefore be the source of major foodborne disease outbreaks. Greater life expectancy and increasing numbers of immune-compromised people mean a larger vulnerable population for whom unsafe food is often an even more serious threat.WTO and WHO and its Member States have responded to these new challenges by recognizing that protecting food safety is an essential public health function. Food safety must be addressed along the entire food chain by measures based on sound scientific information at both national and international levels.

Global laws on Food safety and Environment matters will be identical:Corporate are no more private properties. They are performing public duties but charging for it as profits from the willing citizens. Their action impact safety and health of the society. They have to accountable. Corporate managers will be forced to implement these changes in public interest. With passage of time, on the matters of food safety and environment, world will be almost flat. It means there will be minor difference between laws of different countries on these issues. With the passage of time, food and environment laws will

make various stakeholders more and more accountable for their actions and they will be forced to bear consequences by other stakeholders.Why is food safety an essential public health issue?Serious outbreaks of food borne disease have been documented on every continent in the past decade, illustrating both the public health and social significance of these diseases. Consumers everywhere view food borne disease outbreaks with ever-increasing concern. Outbreaks are likely, however, to be only the most visible aspect of a much broader, more persistent problem. Food borne diseases most seriously affect children, pregnant women, the elderly and people already affected by other diseases. Food borne diseases not only significantly affect people’s health and wellbeing, but they also have economic consequences for individuals, families, communities, businesses and countries. The experience of Dropsy cases due to Edible oil contamination and recent controversy of pesticide residues in carbonated soft drinks and its impact on sale of products are clear example of consumer concern about food safety. These diseases impose a substantial burden on health-care systems and markedly reduce economic productivity. Poor people tend to live from day to day, and loss of income due to food borne illness perpetuates the cycle of poverty.On the other side, these reasons provide enough grounds to impose non-tariff barriers for food trade to protect domestic markets as well. To challenge these new non-tariff barriers will also need equal amount of scientific studies and justification to prove otherwise.New Challenges to Public health and Food SafetyThe globalization of the food trade offers many benefits to consumers, as it results in a wider variety of high-quality foods that are accessible, affordable and safe, meeting consumer demand. A diversity of foods in a balanced diet improves nutritional status and health. The global food trade provides opportunities for food-exporting countries to earn foreign exchange, which is indispensable for the economic development of many countries and for improving the standard of living of many people.However, these changes also present new challenges to safe food production and distribution and have been shown to have widespread repercussions on health. Food safety programmes are increasingly focusing on a farm-to-table approach as an effective means of reducing foodborne hazards. This holistic approach to the control of food-related risks involves consideration of every step in the chain, from raw material to food consumption. Hazards can enter the food chain

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After getting the notification from the health ministry, the Food Safety and Standards Authority of India (FSSAI) has further extended the licensing and registration deadline for Food Business Operators (FBOs)

to February 4, 2014. This is the third time the country’s apex food regulator has granted an extension to FBOs.Even after a one-and-a-half-year time frame, which included a six-month extension, FSSAI was able to register 11 lakh out of the country’s five crore FBOs and gave license to only three lakh FBOs so far against the target of 50 lakh. Even though FSSAI was not in a mood to extend the deadline, the pressure from the health ministry compelled it to extend the deadline for registration and licensing for one more year.As per the new rules, anybody who was engaged in selling anything edible – roadside tea stalls, dhabas, fruit and vegetable hawkers, grocery shops, milk vendors, canteens, caterers, restaurants, hotels and food processors failing to get license or register by February 4, 2013, were to be penalized by the food regulator.The Act states that food business operators functioning without license can be imprisoned for six months and fined up to Rs. 5 lakh. Dealers found selling substandard products are liable to be fined up to Rs. 5 lakh and those selling misbranded products, up to Rs. 3 lakh. Obtaining these licenses will make the dealer conform to the stringent norms on storage, transporting, and distributing food products. The dealer must know the entire supply chain right up to the manufacturer.A couple of months back, a food item had to be recalled from a chain of pharmacy stores in Coimbatore and Erode because of fungus formation. Since the company had provided the batch number, FSSAI were able to recall the entire shipments quickly.Restaurants, supermarkets and manufacturing units are among 43 food-vending establishments whose licenses have been suspended this year for not complying with the new FSSAI regulations. While the restaurants did not conduct the mandatory periodic health checkup of workers, the food chains failed to label food correctly (not mentioning if it contained non-vegetarian ingredients or food items that could cause allergies). If hygiene checks are not conducted regularly, there are chances of infectious diseases spreading in the community. Many establishments have their licenses suspended as they didn’t conduct these checkups. Those manufacturers who have failed to conduct laboratory exams of the food items have also had their license suspended. This is the first time the Food and Drug Administration (FDA) has used the new FSSAI to suspended licenses of food-making and vending establishments. FDA has not revealed the names of the establishments that have been penalized for flouting food safety norms.Between April 2012 and March 2013, the FDA inspected 1,158 establishments and served improvement notices to 266 that flouted FSSAI norms. Until last year, the FDA would issue warning notices while the Brihan Mumbai Municipal Corporation (BMC) suspended licenses, making the process of food safety audit cumbersome. It was only in August 2012 that establishments selling or manufacturing foods were given licenses under the new act by the FDA. “Facilities flouting norms are given an improvement notice, after which a fresh inspection is carried out. If they have not improved, their licenses are suspended. The maximum punishment for violating the rules is a Rs. 10 lakh fine and three years’ imprisonment.Sources in the FDA said while around 45,000 facilities in the city are under the purview of the FSSAI, the shortage of manpower, makes it impossible to carry out regular inspections. Of the 66 posts of food inspectors sanctioned, only 20 are filled. Also all food outlets, from small dhabas to five-star hotels, will be graded according to their level of food hygiene and cleanliness. This will mean that a dhaba in your neighborhood could be rated as level-1, if cooking practices measure up to the minimum standards laid down by the authority, while a fine dining restaurant may end up getting the top billing. It is also possible for restaurants belonging to the same chain to get different ratings.FSSAI has also mandated all food outlets to register with their respective state authorities to keep a count of the number of eateries in every state. Besides food joints, the authority also plans to lay down basic norms of compliance for street vendors and hawkers, in collaboration with the housing and urban poverty alleviation ministry, to maintain food hygiene.Apart from cleanliness at the place of cooking, the authority will also lay down guidelines for clean storage and transport facilities. To ensure that consumers are aware of the hygiene practices being followed, outlets will also have to get, and display, a certificate issued by the authority displayed. Even as the large players have come out in support of the new norms, it is the small food businesses with limited resources that will pose trouble to ensure implementation.FSSAI has sought Rs 5,000 crore from the Government for setting up food safety labs across the country according to K Chandramouli, chairperson, FSSAI. The fund is proposed to be used during the in the 12th Five-Year Plan. It also plans to register and license 55 million food and beverage firms, manufacturers and vendors, including companies in the unorganized sector, by February 2014 to harmonize food safety standards.Chandramouli said that implementation of the FSSAI Act continues to remain a challenge as India does not have food and safety standards which deal with food products across the spectrum. For this, it has become mandatory to get the state governments and other stakeholders on board.At present, just one million licenses have been issued to food and beverage operators.Lastly, 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. It is important to ensure that imported food items are accepted thus there is a need to set standards that are internationally acceptable.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.

Beverages & Food Processing Times-April-I-2013 11OPINION

Changing Food Safety Standards and Environment Standards and their impact on FMCG Companies

on the farm and can continue to be introduced or exacerbated at any point in the chain until the food reaches the consumer.The integration and consolidation of agricultural and food industries and the globalization of the food trade are changing the patterns of food production and distribution. These conditions are creating an environment in which both known and new food borne diseases can become prevalent. Food and feed are distributed over far greater distances than before, creating the conditions necessary for widespread outbreaks of food borne illness.In a recent crisis, more than 1500 farms in Europe received dioxin-contaminated feed from a single source over a two-week period. Food produced from animals given this

contaminated fodder found its way onto every continent within weeks. The effects of exposure to dioxin from this source on public health may become known only after years of investigation. The international spread of meat and bone meal prepared from cattle affected by bovine spongiform encephalitis (BSE) needs no further description. The full economic consequences of such incidents and the anxiety raised among consumers are still being assessed.Other factors account for the emergence of food safety as a public health issue. Increasing urbanization leads to greater requirements for transport, storage and preparation of food. Increasing wealth, an urban lifestyle and sometimes a lack of facilities mean that people eat much of their food away from home. In developing countries, food is often prepared by street vendors. In developed countries, up to 50% of the food budget may be spent on food prepared outside the home. All these changes lead to situations in which a single source of contamination can have widespread, even global consequences. Developing countries in particular are experiencing rapid changes in their health and social environments, and the strains on their limited resources are compounded by expanding urbanization, increasing dependence on stored foods and

insufficient access to safe water and facilities for safe food preparation.Although significant progress has been made in many countries in making food safer, thousands of millions of people become ill each year from eating contaminated food. The emergence of increased antimicrobial resistance in bacteria causing disease is aggravating this picture. The public is increasingly aware of the risks posed by pathogenic microorganisms and chemical substances in the food supply. The introduction of new technologies, including genetic engineering and irradiation, in this climate of concern about food safety is posing a special challenge. Some new technologies will increase agricultural production and make food safer, but their usefulness and

safety must be demonstrated if they are to be accepted by consumers. Furthermore, the evaluation mustbe participatory, transparent andconducted using internationallyagreedmethods.Until recently, most systems for regulating food safety were based on legal definitions of unsafe food, enforcement programmes for the removal of unsafe food from the market and sanctions for the responsible parties after the event. These traditional systems cannot respond to existing and emerging challenges to food safety because they do not provide or stimulate a preventive approach. During the past decade, there was a transition to risk analysis based on better scientific knowledge of food borne illness and its causes. This provides a preventive basis for regulatory measures for food safety at both national and international levels. The risk-based approach must be backed by information on the most appropriate and effective means to control foodborne hazards.Food Hazards don’t respect borders and brands:Food borne disease is major cause of concern worldwide and it takes a major toll on health worldwide. Millions of people fall ill and many of them die as a result of eating unsafe food. Due the growing incidences of food borne illnesses,

the Fifty-third World HealthAssembly inMay 2000, adopted aresolution calling upon theWorldHealth Organization (WHO) andits Member States to recognizefood safety as an essential publichealthfunction. The resolution also called on WHO to develop a Global Strategy for reducing the burden of food borne disease.Major issues in food safetyFoodborne illness can be caused by microbiological, chemical or physical hazards. An increasing body of scientific data is highlighting the nature and extent of these risks, although several areas of information gathering, such as the surveillance of foodborne illness, need to be strengthened. There is also mounting concern about new technologies like the introduction of genetically modified organisms into the food supply.Food Safety and Food Marketing:Very often it is observed that many decision makers and managers, due to their own background and limited experience in food management system are not willing to appreciate the food safety concern. Very often senior management is only concerned about the turnover and profitability. It very clear that food safety is neither easy nor cheap. It needs skills and knowledge of the subject. Major corporate world over face food recalls. Clearly indicates things are not in control even at big corporate and big brand owners. Assuming that everything is fine in my company can be a disaster. Senior managers must audit food safety regularly and companies must be audited to find out what percentage of turnover is spent upon food safety related issues. Companies spend money to audit their financial health but rarely do they take similar interest in food safety matters.Cost estimates for foodborne illnesses in India:According to WHO, approximately 1.8 million children in developing countries (excluding China) died from diarrhoeal disease in 1998, caused by microbiological agents, mostly originating from food and water? One person in three in industrialized countries may be affected by foodborne illness each year. In the USA, some 76 million cases of foodborne illness, resulting in 3,25,000 hospitalizations and 5,000 deaths, are estimated to occur each year. There are only limited data on the economic consequences of food contamination and foodborne disease. In studies in the USA in 1995, it was estimated that the annual cost of the 3.3–12 million cases of foodborne illness caused by seven pathogens was US $6.5–35 billion. The medical costs and the value of the lives lost during just five foodborne outbreaks in England and Wales in 1996 were estimated at UK£ 300–700 million. The cost

of the estimated 11 500 daily cases of food poisoning in Australia was calculated at AU$ 2.6 billion annually.What is the cost of unsafe food to India?Why Parliament and courts have not ordered these cost estimation till date to calculate the damage to the national health and finances?Why CAG is not calculating this national loss?Food Safety Assurance: Challenge for India’s Food IndustryThe differentiation between “Product of Export Quality” and “Products for Domestic Market” in the name of food quality and safety itself exposes the concern and commitment about food safety in India by all-important stakeholders like producers, manufactures and government policies. This differentiation in food safety standards itself is a shameful admission that Indian manufactures cannot offer safe food to common man in India what they are offering to consumers outside India and this admission itself is a major hurdle for growth in food exports.Traditional food safety measures, employed by producers, processors and distributors have not been efficient in preventing foodborne disease over the last decades. This is clearly evident from the rejection of export consignments of food products in world market and also increasing imported food bill shows consumers desire for better quality.Where there is a trust, there is a turnover:India’s goal of improving exports of food products can only be met with success by reducing the public health burden of foodborne disease. This can best be achieved through systematic application of risk analysis and capacity building.Structures and systems must therefore be developed, in close coordination with international agencies at national, regional and international levels to survey foodborne disease, conduct risk assessments and implement risk management strategies.Capacity building and coordination of scientific effort are essential roles of international agencies and are important elements of Food Safety Strategy, but these must be combined with strong commitment and resources by Government of India and State governments in order to ensure food safety through targeted, risk-based prevention initiatives.Effective participation of all stakeholders, especially producers, processors, food distributors and research organizations is needed in setting standards as well as guides for food safety initiatives that are acceptable to buyers both in domestic as well as international markets.While the existing activities in food safety have focused primarily on hazards in food, the proposed

strategy should address the broader concept of risk along the entire food production chain. It will take into consideration the need for sustainable agricultural production systems in all regions and will redirect some of the existing approaches to ensure that they meet the emerging challenges of global food safety.The biggest hurdle and challenge to achieve food safety in India is not the money or technology. It is outdated mindset and ignorance about the ground reality among exporters and decisions makers at all levels both in private as well government organizations. Unfortunately money cannot bring the change it is the knowledge about changing markets that will play major role, role of money is limited to money will facilitate change.In globalized economy, consumers have the options but what about producers, processors and distributors. If consumers want safe or better food they may go for imported foods.Please note consumers have choice to change the suppliers and veto to say NO to your product and brand. Without assured food safety, what will happen to your brand and company in basic question?Role of FSSAI:To develop a system is simple and less time consuming. We are not asking relaxation in food safety but speedier decision making so that time and money can be saved. Safe Innovation should be supported.Parliament should provide enough resources to food safety and quarantine functions to protect national health. Accountability of field staff in case of food safety outbreak in their jurisdiction and functional area should also be looked at.The way forward:According to the author, in food business or any FMCG company, “Where there is a trust, thereis turnover.” Food Business is a recession proof industry. People are willing to pay premium provided they are sure of quality and safety. The best way to improve profitability is to improve food safety perception about your products among masses.

Disclaimer: Views expressed in this article arepersonal.

VijaySardanaPGDM (IIM-A), M.Sc (Food Tech)(CFTRI)B.Sc.(Dairy Tech), PG Dipl. in Intl. Trade Laws & ADR

Member, Advisory Committee, Forward Market Commission, Govt. of IndiaHead – Food Security and Agribusinesses - Policy & Program,

Mobile : +91-98101.39470

Beverages & Food Processing Times-April-I-2013 12Foreign News

For as long as bees have been building hives, people have been drawn

to the taste of honey. And the attraction is growing, with honey popping up on product labels for everything from Greek yogurt to alcoholic beverages. As a flavor, honey appeals to consumers’ desire for something sweet; as an ingredient, it addresses nutrition demands — hence all the buzz.The National Honey Board, Firestone, Colo., cites many categories in which honey is excelling, including food/energy bars, alcohol and sports/energy drinks … and for good reason.“Honey’s popularity among food and beverage manufactures continues to increase, mainly being driven by consumer preferences for more natural, clean-label products that taste great,” says NHB Director of Marketing Catherine Barry. “Honey is the perfect sweetener, inclusion and flavor enhancer for consumers who want natural products but want them to taste like indulgent foods and beverages.”Many consumers are looking for all-natural products that don’t contain additives and preservatives, adds Lisa Hansel, assistant vice president of sales and marketing for Sue Bee Honey, Sioux City, Iowa. “One-hundred percent pure honey is also fat-, sodium- and cholesterol-free and contains healthful antioxidants and micronutrients. Second, a growing number of consumers are becoming aware of the importance of the American honey bee, which is responsible for pollinating hundreds of American crops, like almonds, oranges, apples, cherries and more. Third, honey is the perfect all-natural sweetener to replace sugar in recipes for both consumers and manufacturers. It

Honey Gaining in Sweetener Popularity for Many Food Manufacturers-US

provides a great flavor as well as a consistent texture and taste.”Honey Do’sWhen it comes to taste, no two honeys are alike.“What many people do not know is that honey varies incredibly by color and taste depending on what species of flower the bees collected the nectar from,” says Ted Dennard, president of Savannah Bee Co., Savannah, Ga. “So a sourwood honey [made from the blossoms of a sourwood tree] will be completely different from an orange blossom honey. Even the ratio of fructose and glucose sugars varies between honey varieties.“I believe what most people associate with a honey flavor is something drummed up by a flavor company many years ago that was based on a strong smelling blend of honeys, which is what most companies bottle,” Dennard continues. “They are blended to achieve a consistent color without regard to the taste.”Just ask the folks at Sue Bee, which “has a long and proud tradition of supplying 100 percent all-natural, product of U.S.A. honey,” Hansel says. Sue Bee’s floral sources include orange blossom and clover, and its varieties include Aunt Sue’s Strained Honey and Organic Honey, plus a spreadable clover spun honey.“We are consistently researching innovative ways to develop new recipe ideas and promote the delicious benefits of honey,” Hansel says. “We also partner with many companies throughout the U.S. who are fulfilling consumer demand for more honey-flavored products.”Private label is getting in on the action, with store brands such as President’s Choice selling items such as chocolate bars in Swiss dark or milk chocolate, both with

“honey almond nougat”; honey dijon (and honey dijon yogurt) salad dressings; and a Greek yogurt smoothie frozen novelty in honey flavor — the last a low-fat, probiotic novelty made from “100 percent Canadian milk” and Honibe honey from Island Abbey Foods Ltd.Meanwhile, Honibe has two new products: Honey Lozenges (“Nature’s Cough Drop”), in menthol and eucalyptus varieties, and Honey Vitamins (“Honey for Health”) in vitamin C and D with honey varieties. All are examples of how honey is “expanding beyond being a flavor into an active ingredient within the natural health product platform,” says Lindsay Mulligan, marketing manager for Honibe producer Island Abbey Foods Ltd., Charlottetown, Prince Edward Island.“The possibilities are endless,” Hansel says. “We are constantly providing consumers (via Sue Bee’s website) with new recipes and ways to use honey in their daily lives,” she says, as appetizers, main dishes, salads, soups, beverages, desserts and more. “Honey is not just for tea and toast anymore. An increasing number of consumers are preparing family meals at home with honey. Popular cooking shows are presenting creative ways to use honey as a substitute for sugar or an all-natural alternative to other sweeteners.”Honey as a flavor is more prevalent in breakfast cereals and granola bars, as well as healthy snacks and energy bars for athletes, Hansel adds, “due largely to its immediate absorption into the bloodstream, resulting in a quick initial boost of healthy energy, as well as a source of steady, longer-lasting energy.”Honey is making a name for itself as a flavor in alcoholic beverages, too.“One of the biggest whiskey producers (Jack Daniels) recently launched a honey line (Tennessee Honey), and competitors (including Wild Turkey) were quick to follow their lead,” Barry reports. “Several lines of honey-infused vodka, tequila and rum have made their way to the shelves, and are used to create new and unique cocktails.”Dennard agrees that “there seems to be a new honey whiskey popping up every month.” Meanwhile, Savannah Bee Co.’s flagship retail store is introducing people to mead, which Dennard describes as “wine made with honey rather than grape juice. There can be many variations on this with the addition of fruits, herbs, hops, etc. The Mayans had a mead made of honey, water, yeast and hot peppers.”Now that’s thinking outside the hive.

International Dairy & Juice Co., a joint venture between Saudi-based Almarai Co. (2280.

SA) and PepsiCo, has agreed to acquire the 25% stake it doesn’t already own in a Jordanian food processing company for 12 million Jordanian dinars ($17 million).IDJ signed an agreement to increase its stake in Teeba Investment for Developed Food Processing Co. from 75% to 100% through the purchase of Alsafa Co.’s minority shareholding of 25% in the Jordanian firm, Almarai

Saudi Almarai JV fully acquires Jordanian

Food Processing Company

said in a statement posted on the Saudi bourse website.The Gulf’s largest dairy producer owns a 52% stake in IDJ, while the balance is held by PepsiCo.“This simplified ownership structure will help the IDJ shareholders drive the Teeba investment forward,” the company said. Almarai earlier this week said that net profit in the first quarter rose 5.4% on year due to stronger revenue growth across all categories.

Agriculture is already one of central Delaware’s most important industries, and

local officials are looking to parlay that into a unique opportunity to make greater Dover a focal point for the food processing business.Kent County Economic Development Director James Waddington, Dover Economic Development Director Bill Neaton and Michael Casson, a member of Delaware State University’s economics faculty, spoke about further developing the county’s agricultural and food industry. The pitch came at Kent County Levy Court meeting, which was also attended by Dover City Council members.Kent County currently has 173,808 acres of farmland and in 2007 the value of farm products sold from Kent County was $188.3 million, officials said. Targeted efforts to

invest in the industry by attracting food-processing facilities could increase that bounty and lead to additional farmers markets and restaurants in the region.Casson said 3,838 Kent County jobs are directly linked to various agricultural sub-industries, while another 2,879 are indirectly related. If steps were taken to attract new food processors to the area, the number would only increase.“Those who weathered the recession well are mostly small food production facilities,”

Kent County eyes food processing industry

Agriculture is already one of central Delaware’s most important industries, and local officials are looking to parlay that into a unique opportunity to

make greater Dover a focal point for the food processing business.

Waddington said. “The facilities are just emerging and are beginning to look into new site selection, we want to be an area they look to.” According to Waddington, there are things that Kent County currently can offer to help attract food processors, namely existing water and wastewater capacity for new growth. He also suggested developing food innovation district incentives, which could mean tax incentives for food processing facilities within a specific geographic area.According to Casson, a large-scale food processing operation has the potential to provide a large number of jobs in one fell swoop, but several smaller-scale facilities has the potential to put Delaware on the map as a sort of Silicon Valley of food.“We’re looking at the potential for a food incubator or an accelerator

in which we look to stimulate agribusiness – small entrepreneurs who are looking at cutting-edge technologies, who are looking to be at the front of demand, using innovation and research to drive their products,” Casson said. “We could think about this area as being an agricultural innovation valley in which we have expertise through research, we have the training, the facilities and we’re supporting those businesses and we’re pumping out products and services that are leading the agri-food system.“

Beverages & Food Processing Times-April-I-2013 13Ingredients News

As a global producer, marketer and provider of technology-based

natural ingredients, ingredient systems and integrated solutions for the food and beverages industry, Doehler is presenting innovative products and product applications at the DJAZAGRO 2013 in Algiers. Doehler’s integrated approach and the broad product portfolio are the optimal basis for advanced and safe food & beverage applications. The product portfolio is ranging from flavours, colours, speciality & performance ingredients, cereal ingredients, dairy ingredients, fruit & vegetable ingredients to ingredient systems. Doehler will also be showcasing many new product applications which perfectly match the consumer demands for naturalness and new taste sensations. These product applications are ranging from still drinks with a higher juice content, nectars, juicy energy drinks as well as innovative fruity milk drinks. Following the company slogan “We Bring Ideas to Life.”, Doehler supports its customers

Doehler at DJAZAGRO 2013:WE BRING IDEAS TO LIFE

with an integrated approach for the introduction of new beverages and food products on the market.Full fruitiness with innovative still drinks and nectars50 billion litres of still drinks are consumed worldwide – and therefore still drinks are the biggest category within beverages containing fruit juice. Following this trend, Doehler will be showcasing still drinks with a juice-content of 20-30 % creating an authentic fruit taste and a full mouth feel. Moreover, at DJAZAGRO a range of nectars like mango and guava flavour will be presented.Energy drinks – a recipe for global successEnergy drinks are among the most dynamic and successful beverages in recent years. The energy market is set to diversify even further in the coming years, with the trend shifting towards new flavours. Based on extensive experience in energy drinks, Doehler will showcase classic energy drinks as well as juicy energy drinks geared for success. Fruity milk drinks – new taste

varietiesFruity milk drinks are very popular in the North African market. At DJAZAGRO, there will be milk drinks with innovative flavour profiles and milk drinks providing a authentic fruit taste by using 10-15 % juice available for tasting. Due to a wide range of Doehler flavours and juice concentrates there is no limit for creating unique product applications.Carbonated soft drinks – new sparkling impulsesDoehler has developed carbonated soft drinks with new taste varieties from exotic to traditional, to open market potentials and to differentiate them in a market dominated by classic taste profiles. Thanks to a broad portfolio of high quality flavours especially for CSDs, the beverages stand out thanks to their particular authentic and juicy taste. Alongside these product applications, Doehler will also be unveiling a wide range of ingredients and ingredients solutions for the beverage and food industry at the fair.

Avignon, 8th April 2013 – The nutritional benefits of fruits and vegetables are

well known, but these foods are largely absent from the average consumer’s daily diet. Naturex offers a simple and original way to incorporate more fruits and vegetables into products.Thanks to unique technology, Naturex is able to meet the expectations of the savory, sweet, and baby food industries by offering convenient and tasty fruit and vegetable powders. The group operates a 75 meter high structure known as the BIRS tower. This gigantic spray drying facility can create powders that offer clean label and maintain the organoleptic properties of original, freshly harvested fruits and vegetables. Exceptional properties in solutionThe powder is instantly soluble when poured into hot or cold water. Thanks to the size and shape of its particles, the powder shows complete texture recovery without sedimentation. In a comparative study, the hot spray dried tomato powder settled to the bottom of the container after 4 minutes, while the cold spray dried powder processed in the BIRS tower continued to show an excellent homogenous suspension in the solution.

At Naturex, fruits and vegetables take the plunge

into food & beverage productsOutstanding organoleptic propertiesThe organoleptic properties of the raw material are preserved and ready to delight gourmet palates. “Drying puree instead of juice makes the difference in terms of texture and mouthfeel. For example, the original fiber content of the apple is maintained throughout the process. When pouring into cold water, our apple powder can recreate unique and home-made style applesauce without the use of thickener,” explains Frédéric Randet, business manager. The powder also has a deeper color when compared to those created using hot drying methods. The taste is fresh, intense, and maintains the authentic taste of the fruit or vegetable. Clean label: a key advantageThe technology of the BIRS tower, with its unique dimensions and gentle process (< 50°C), guarantees a slow and cold drying of the puree that is poured into the top of the structure. As a result, Naturex offers pure 100% fruit or vegetable powders, free from any carriers or additives.To display these powders, Naturex is launching several informative videos and a dedicated page on its website.

The Ingredion group of companies, one of the world’s leading ingredient

solutions providers, held its first Clean Label seminar at Food Ingredients China 2013 in Shanghai on 27 March. The event demonstrated the company’s core capabilities in the clean label space, made possible by its insights on consumer behaviour and experience in food formulation. Well-received by the attendees present, the seminar addressed the topic of cleaner, safer food, where several Ingredion clean label specialists shared their insights about the hard trend with this targeted group of customers. Ms Chong Hui Cheng, Wholesome Marketing Manager for Asia Pacific, shared the key findings from a recent consumer research done in China across the three major cities of Beijing, Shanghai and Guangzhou. This research was conducted in two phases, and it systematically uncovered qualitative and quantitative results for further analyses. Some of the consumer insight that Ingredion revealed include: • Food quality is vital. As

a result, people are more willing to trust products from

Ingredion Reveals Clean Label Insights with FIC 2013 Attendees

well-established brands.• People tend to think that

foods with “natural” or “green” labels indicate high

quality, and they are more willing to buy such foods.

• About 85% of those surveyed said that they check the ingredient list before buying packaged food, while 86% of the surveyed consumers voiced their desire to see ingredient lists that are simpler and easier to understand.

• Natural ingredients are more likely to be accepted than chemical or synthesized ingredients. For this

reason, clean label foods are considered a safer and healthier choice. 70% of those surveyed are more willing to buy food with a simpler ingredient list.

• In the food categories surveyed, consumers pay more attention to the ingredient list for baby food and dairy products. They are

also willing to pay more for “cleaner products” in these two categories.

In addition, Mr Aaron Edwards,

Director for Global Wholesome Ingredients, informed attendees of the company’s experience on the global clean label movement, highlighting similarities between China, North America and Europe. He also shared a case study of clean label positioning as applied in yoghurt. In essence, clean label is a clear trend across global food markets and

new product launches in the clean label space have steadily increased in number over the last decade.The seminar rounded off with Ms Karen Yan, Applications Manager for China, sharing about opportunities and challenges in the formulation of clean label products, using case studies as examples, as well as prototype ‘clean label’ yoghurt as taste samples for attendees. With over 15 years of experience and expertise in clean label food formulation, Ingredion is a market leader with an unrivalled portfolio of over 35 functional native starch and flour solutions. Its patented technology of physically-modified starch allows manufacturers to market food formulations with simple-labelling of ingredients that consumers know and trust.As clean label pioneers, the company’s revolutionary portfolio of products is suitable for a wide range of applications, offering high process tolerance and excellent storage stability. Derived from various natural sources — maize, waxy maize, waxy rice, tapioca and potato — these starches offer clean label solutions without compromising on taste and quality.

Beverages & Food Processing Times-April-I-2013 14Ingredients News

Banning the use of trans fats in the preparation of foodstuffs is one of the

most effective ways to prevent some of the world’s biggest killer diseases, but many governments are not taking such action because they do not think these bans work, according to a University of Sydney study published in the Bulletin of the World Health Organization.Shauna Downs, lead author and researcher at the university’s Menzies Centre for Health Policy said trans fats policies in Brazil, Canada, Costa Rica, Denmark, the Netherlands, the Republic of Korea and the USA over the last two decades had proved effective in removing trans fats from the food supply.She said the study’s findings were particularly relevant for low- and middle-income countries where such measures have been identified as a ‘best-buy’ policy for health - one that is expected to provide a high return on investment in terms of health gains.“We found, for example, that a national ban in Denmark virtually

Banning trans fats the best policy, says WHO

eliminated trans fats from the food supply, while local bans in Canada and the USA were successful in removing trans fats from fried foods,” Downs said.“While some of the government policies we studied imposed voluntary self-regulation and others took mandatory measures, such as labelling, local and national bans on trans fats proved to be the most effective policies for removing trans fats.“Our findings show that these policies are not only feasible and achievable - they are also likely to improve public health.”Trans fats - also known as trans fatty acids - are naturally found in dairy and meat products but are also generated by industrial processes to produce hard fats from vegetable oils. The industrially produced trans fats are also known as partially hydrogenated vegetable oils.Consumption of trans fats is associated with an increased risk of non-communicable diseases, including cardiovascular disease, such as heart disease, as well as stroke and diabetes.

These partially hydrogenated vegetable oils are, however, widely used in the food industry and fast food outlets because they are cheap, have a long shelf life, are semisolid at room temperature - which makes them easier to use in baked products, and can withstand repeated heating.The World Health Organization (WHO) has called for the elimination of trans fats from the global food supply in response to the rise in the prevalence of non-communicable diseases and has identified it as a ‘best-buy’ public health intervention for low- and middle-income countries. This proposed policy measure was advocated in the Political Declaration of the High-level Meeting of the UN General Assembly on the Prevention and Control of Non-communicable Diseases in September 2011.A food innovation district could vary in size, officials said. One area that Waddington proposed for possible development is the Bay Road area.

Globetrotting Gujaratis may seek variety in travel and entertainment, but with

ice creams, their taste buds crave good old vanilla, chocolate and kaju-draksh.The people of the state may have grown fond of fusion food but it is plain Jane ice cream scoops - be they plain, nutty or fruity flavours - score over more unusual ones like garlic-chilli ice cream, vegetable ice cream or bubblegum ice cream, all of which are sweeping the metros. “Vanilla is definitely the most-selling flavour in Gujarat over the last two years and this is true for the entire industry,” said Rajesh Gandhi and Devanshu Gandhi, managing directors ofVadilal Industries.While Gujarat’s ice cream makers have introduced new flavours time and again, this Gujarati preference explains the lack of unusual combinations of ice creams gaining footholds in the state. For example, Amul’s new flavours are Moroccan Dry Fruit, Chocolate Brownie, Barfi, Kaju Katri, beside established flavours like Shahi Anjir, Fruit n Nut fantasy, cookies and cream, among others.Havmor, too, has launched its new flavours this summer - Pina Cherry,

Gujaratis don’t fancy bizarre ice cream flavours

Fresh Mango and Choco Tang, which largely include traditional ingredients.Pradeep Chona, chairman, Havmor Ice Cream, said, “There is a fixation among Gujaratis for some basic flavours, which cannot be experimented with much. So, we play with packaging and shapes of ice creams as it ultimately boils down to innovating on the same flavour.”While traditional flavours may be favourites with Gujaratis, this doesn’t deter home-grown companies from trying new combinations on Gujaratis before taking the products other markets. RS Sodhi, managing director, GCMMF (Amul), said, “We have observed that Gujaratis do prefer traditional and dry fruit flavours, but they are open to new ideas too. We take new products to the national level after we they have found acceptance in the Gujarat market.”A fairly new entrant, Vimal Ice Cream, is also opting for tried-and-tested flavours. “Gujaratis like to experiment but don’t remain loyal to these flavours. The preference for basic flavours remains strong,” said Jayesh Patel, managing director, Vimal Group.

Unilever will roll out its premium Magnum ice cream bars in the country

next month to cash in on the growing aspirations of India’s increasingly affluent consumers

this summer. The Anglo-Dutch multinational’s Indian unit, Hindustan Unilever, will launch Magnum bars — premium vanilla ice cream on a stick wrapped in thick Belgian chocolate shell — in Chennai at Rs 75 apiece in the second week of April, a company official said. Popular ice-cream candies and cones in the country are priced

Hindustan Unilever to roll out Magnum ice cream in India

much lower at Rs 5-40, but Unilever expects India’s increasingly aspirational consumers to readily pay a premium for a superior product. “India is ready for such a premium product,” Sapan Sharma,

general manager for ice cream at HUL, said.Magnum ice cream bars, tweaked to appeal Indian consumers’ taste buds, will be shipped from Unilever’s Thailand factory and will be sold through supermarkets, select general trade and its own ice-cream parlours and trikes (tricycles).Launched in the UK in 1987,

Magnum is the world’s biggest stick ice cream brand and accounts for almost 2% of the total revenues of Unilever, the largest ice cream maker in the world, accounting for almost onefifth of the $85-billion

global ice cream market t h r o u g h brands such as Breyers, Ben & Jerry’s and Cornetto.The largest ice cream brand in Europe, M a g n u m debuted in the US in 2011 and recorded sales of $100 million in its first year. It is now sold in more than 50 countries

and even in emerging markets such as Indonesia it is one of the best-selling ice creams despite its premium positioning.“Magnum has got good response, especially from developing and emerging markets,” Sharma said, adding that the company sees huge potential in India too.

Interest in banana cultivation is on the wane in Punjab, despite huge attempts at

diversification. The state farmer’s commission received almost no demand for the crop which, as a substitute for rice has been cultivated over 150ha across the state. Experts say that the growers are now going to attempt to cultivate bananas in the monsoon season instead of Spring as they are doing now. This is related to increased temperatures in the Spring that last few years, which has harmed the production and resulted in large losses.

Punjabi banana growers change

direction

Punjab Farmers’ Commission and coordinator of banana project in state, Dr Bhagwant Singh Chahal, said, “If there are no takers in this season, there would be many in the monsoon,” he said, adding “many farmers are now planting banana without placing any demand before commission.” He said growers’ mindsets needed to change as, currently, they will go to extremes to protect water devouring rice crops, but show no interest in the bananas, which use 40% less water and deliver 100% the profit.

Beverages & Food Processing Times-April-I-2013 15Beverages News

Coca-Cola India and PepsiCo India are introducing their beverages and snack brands

in new economy packs priced at R5 and R6 to woo cost-conscious consumers. For instance, PepsiCo India has introduced two new variants of its snack brand Lay’s in

mini packs (12.5 gm) at R5.The company is betting big on Lay’s economy packs called ‘Mini Magic’ to drive volumes both in rural and urban markets. On the other hand, Coca -Cola India has introduced its flagship brand Maaza (100 ml pack) at a price point R6 to reach out to rural consumers.On Pepsi’s new strategy, Vidur Vyas, marketing director-foods, PepsiCo India, said, ‘’Our emphasis on R5 price point will enable us to reach out to a larger consumer base and drive more consumption. Our aim is to

Coca-Cola, Pepsi Co rush to woo price-wary buyers

create consumer connect through engagement campaigns such as our new television campaign.”Cashing in on the popularity of the Indian Premier League Twenty20 tournament, PepsiCo has flooded the markets with Lay’s mini packs in new flavours.

To promote its new launch, PepsiCo has launched a new television campaign featuring MS Dhoni, Gautam Gambhir, Rohit Sharma, Shikhar Dhawan, Ravi Shastri and Billy Bowden.The race for volume growth continues as Coca-Cola India is in the process of launching Maaza’s mini packs in three districts of Uttar Pradesh. “This is a pilot project that we have undertaken to know the response to our new packs. This initiative is aimed at consumers who want packaged beverage at an affordable price specially in rural markets,” said a

company spokesperson.Incidentally, Coke’s new pack is going to be the lowest price for a Coke product in the non-returnable ready-to-drink category. At present, PepsiCo India with its joint venture with Tata Global Beverages (TGBL) sells its health beverage ‘Tata Gluco Plus’ at R6 .Like Pepsi, Coca-Cola India has launched new advertising campaigns for all its brands during the telecast of IPL matches this summer.While PepsiCo has roped in cricket stars to endorse its brand Lay’s, Coca-Cola is betting big on film stars such as Kareena Kapoor, Salman Khan , Parineeti Chopra and Imran Khan among others.“We are conducting product sampling and consumer engagement programme spanning hundreds of cities this summer to promote all our brands,” said the company spokesperson from Coke.In addition to its new Maaza mini packs, Coke is launching its sparkling drinks in 400 ml packs. “We are strengthening our OBPPC (Occasion, Brand, Pack, Price, and Channel) model by adding another pack to our portfolio. This new pack will saddle between the 200 ml and 300 ml glass bottles and the 500 ml and 600 ml PET packs,” said the company spokesperson.

Danone Narang Beverages, a joint venture between the French Group Danone

and Indian business house Narang Group, announced the national launch ofB’lue, a delicious new restoration drink that enlivens you in body, mind and mood. With the launch, this beverage opens a new segment in the Indian Ready to drink beverage segment.B’lue has been specially designed keeping in mind today’s Young India - the section of the Indian society who believe in designing their lives and living their passion. The I Generation of doers who live the change that most of us wish to see! A 24X7 generation who wants to be at their optimal best, anytime, anywhere. B’lue, with its distinctive taste is what every Young Indian ultimately aspires to be - Inventive, unique and Surprising.Formulated with unique taste and stimulating aroma, B’lue is an ideal drink for generation who wants to be at their optimal best, anytime, anywhere. B’lue helps them to feel at their best in body, mind and mood so that they are ready for all the opportunities in life. B’lue has been introduced in three delicious fruit flavors of Apple, Peach and Guava and is available in 500ml pet bottle priced at Rs. 30.What makes it so awesome!• No Carbonation, so no fizz.

• No Caffeine, so it’s light on you.• No Artificial Colours, so you

can see its true colours.• No Preservatives, so it’s more

concerned about your health.Talking on the launch, Tarun Arora, Country Head, Danone-Narang Beverages said, “As a pilot, we introduced B’lue to the city of Pune and received a tremendous feedback. The beverage was very well accepted in the market. We then rolled into the soft launch phase in Mumbai, once again with encouraging results. With the national launch now, we are confident that consumers across the country will experience the B’lue benefit in their very busy daily routine. B’lue has a unique proposition that enlivens one’s body, mind and mood, is ideal for this generation who wants to be at their best hamesha.”“We believe consumer knows it best. So we decided to co-create the B’lue proposition, including the brand name, with the Indian youth. And it’s heartening that the Youth also voted B’lue as Product of the Year, an Innovation award endorsed by consumers”, adds Tarun Arora“Youth icon, Vir Das, is the brand ambassador of B’lue who truly represents the aspirations of a young India who believes in living their passion and pursuing their dreams”, he added.

Danone Narang Beverages launches B’lue - A new

generation restoration drink

Sadananda Maiya, founder of MTR Foods Pvt. Ltd, is expanding aggressively into

beverages and packaged foods such as Indian snacks and ready-to-eat products, six years after sellingMTR to Norwegian food maker Orkla.Though Maiya’s non-compete agreement with MTR expired last April, he is unlikely to clash with his former company in a big way. His new firm, Maiya’s Beverages and Food Pvt. Ltd, is pushing into products where MTR has very little presence. Maiya’s Beverages and Food is likely to get a majority of its sales from traditional snacks, both south and north Indian, such asmurukku, chaklis and samosas.India’s packaged food industry, including snacks and ready-to-eat foods, is likely to touch $30 billion by 2015 from $15 billion last year, according to an April 2012 report by industry lobby group Associated Chambers of Commerce and Industry of India (Assocham).“It’s too early, but our likely (product) mix would be 50% from traditional Indian snacks, both south Indian and north Indian, and 50% from other things like beverages (lassis, milk shakes, fruit juices),

ready-to-eat, spices, etc.,” Maiya said in an interview. “We started our business selling 56 varieties (of snacks) in 2010-end; now we have 65.”MTR, on the other hand, gets a majority of its business from masala powders, spices and breakfast and meal mixes.

“Snacks is a new area for us and we’re still building our presence there. We’re currently testing our products in Karnataka. We have internal benchmarks and standards and till the time we beat those, we will not want to expand (in snacks),” said Vikran Sabherwal,

After MTR sale, Maiya expands into snacks, beverages

vice-president, marketing, at MTR. “In beverages, we have a badam (almond) drink product, but we don’t see ourselves becoming a mainline beverage player. Our competence lies in packaged foods and we will put most of our efforts behind that,” he said.Maiya expects his new company to

triple sales to Rs.120 crore in the current financial year from Rs.30-40 crore last year. MTR expected to close the 2012 calendar year with sales of roughly Rs.430 crore, chief executive Sanjay Sharma said in an interview in October.While he was at MTR, Maiya

introduced new product categories in India on a large scale such as ready-to-eat foods and so-called softee ice-creams. He said he plans to do the same—open up new product categories—with his new company.“We’re coming out with frozen foods and fruit chips made from jackfruit, mango, apple, banana and pineapple. Another innovation is nanotechnology-based products. For example, buttermilk powder—you just add water and you get buttermilk. It’s taken me almost six years to do all this. After leaving MTR, this is all I’ve been doing,” he said.Maiya’s company is also significantly expanding its distribution network both within and outside India. The company already exports snacks and beverages to customers in six countries including the US, Germany, Japan and this year, it plans to sell in another 12 countries such as South Korea, China and Canada, Maiya said.“Packaged beverages, especially fruit juices, have a lot of potential over the next few years because of the health aspect. Within foods, ready-to-eat and ready-to-cook are likely to see attractive growth

because of the convenience factor,” said Anand Ramanathan, associate director at consulting firm KPMG. “Snacks is growing but it’s a highly competitive segment with a lot of unorganized players, so pricing is key.”Next year, the entrepreneur plans to hand over the reins to his son, Sudarshan Maiya, a software engineer. Maiya, who also owns three small eponymous restaurants in Bangalore, prepared his son for the business by enrolling him in an 18-month course on family-owned businesses at the Indian Institute of Management, Bangalore.“He’s (Sudarshan Maiya) currently looking after the restaurant business. Soon, he will join the company. I am going to move over to the role of executive chairman and he’ll be MD (managing director),” Maiya said.Maiya sold MTR to Orkla for Rs.350 crore in 2007. He owned 40% of the company at that time and he says he has pumped most of the sale proceeds into his new venture, including Rs.60 crore for a new factory. “Whatever I got (from the sale of MTR), I’ve invested,” he said. “But we’ll get it back, don’t worry.”

Beverages & Food Processing Times-April-I-2013 16Dairy News

Milk, snacks, poultry to drive packaged food industry growth

to 9% a year in 15 years’

The packaged food segment is likely to grow 9 per cent annually to become a Rs

6 lakh crore industry by 2030, dominated by milk, sweet and savoury snacks and processed poultry, among other products, says a new report.The CII-McKinsey report on

“India as an agriculture and high value food powerhouse by 2030” says the emphasis on branding could further enhance realisations of packaged foods by up to 30 per cent, besides driving the growth of the country’s processed food sector.Packaged milk, as a category, is projected to grow from $7.76 billion to $32.9 billion by 2030, registering an annual growth of 8 per cent. About 73 per cent of the milk sold by 2030 would be branded, against 31 per cent at present. Sweets and savoury snacks will be second largest category at an estimated $16.39 billion by 2030 from $1.28 billion in 2010, clocking a 13 per cent growth annually.Processed poultry products will clock the fastest growth of 17 per cent per a year to $8.34 billion by 2030, against $398 million in 2010. Similarly, biscuits will see an 8 per cent growth to touch $13.14 billion in 2030, followed by fruit beverages at $12.20

billion and vegetable and edible oils at $10.33 billion. Packaged atta (wheat flour) is expected to grow 13 per cent to $8.15 billion from $574 million in 2010.BRANDING“Branding could drive the next growth wave in the country’s food processing sector,” said

Adil Zainulbhai, Chairman, McKinsey & Company in India. The food processing sector is plagued by issues such as lack of appropriate infrastructure, safety standards and integrated policy and vision among others, he added.“Scaling up the front-end retail will drive investments in infrastructure and there comes the branding opportunity,” Zainulbhai said. Branding as a concept can be extended to fresh food as well, he said, citing the example of Mahagrapes – a branding initiative undertaken by the Maharashtra Government in collaboration with the grape growers co-operative in the State.Indians are now spending more on high-value foods and consumption was shifting from plant-based to animal-based protein, thanks to the rising disposable incomes. “We are in the early phase of this shift and the demand for high-value produce – including fruits and

vegetables – is expected to go up significantly over the next 20 years,” he said.The report – which has studied the potential for five crops – soyabean, mango, banana, potato and poultry in States such as Tamil Nadu, Gujarat, Maharashtra, Bihar and Punjab,

suggested 12 interventions that could transform and accelerate growth in the country’s food and agriculture sector to support consumption demand changes over the next 20 years.AGRI TECH MISSIONThese include creation of a National Agricultural Technology Mission, a National Farm Gate to Market Infrastructure Authority, on the lines of National Highways Authority of India, for developing pan-India agri-infrastructure to attract private investments in cold chain and storage among others.“Driven by the changing consumption pattern, the future of agriculture and food sectors will lie in crop diversification to high-value crops and higher value addition. Revisiting some of the current legislations and taking focussed policy initiatives could make India a food hub in Asia,” said Rakesh Bharti Mittal, Chairman, CII National Council on Agriculture.

India dairy major Tirumala Milk Products is to invest INR3bn (US$55.7m) in the

construction of three milk pro-cessing and packaging plants in the country.Tirumala’s executive director EN Rao confirmed the investments to just-food, adding the company is “expanding fast”. The first plant will be built at Melmaruvathur, 80km from Chennai in southern India, and will be operational by the end of the year. Tirumala is investing INR1bn in the facility.

Tirumala Milk to build three milk processing plants

Once completed, Rao said the plant will process 400,000 litres of milk per day to meet demand in the southern districts of Chen-nai city and in central parts of Tamil Nadu state.Rao told the company plans to build two additional milk pro-cessing plants, one near Coim-batore in Tamil Nadu and anoth-er in the north-central part of the neighbouring Karnataka state, as part of a separate INR2bn invest-ment. No further details of the two facilities have yet been dis-closed.

The Hyderabad-based company, established in 1998, is one of the fastest-growing private Indian milk products companies and sells ghee, butter, curd, ice cream and milk-based Indian sweets.US private-equity firm The Car-lyle Group owns a stake in Ti-rumala. However, there have been reports in recent months that Carlyle wants to sell its shares in the business. In Febru-ary, reports in India claimed talks withe Danone to invest in Tirum-ala were put on hold.

The dairy industry, led by the country’s largest milk cooperative that owns the

Amul brand, has opposed the proposed India-EU free trade agreement (FTA) on the ground that it would led to subsidised dairy products from Europe flooding India.“This will rob the domestic dairy industry and 80 million farmers that are connected to it, from their rightful access to a growing market within India,” said R.S. Sodhi, Managing Director, Gujarat Co-operative Milk Marketing Federation, in a press release.Sodhi argued that the Government had encouraged the co-operative model in the dairy sector with active policy protection. “It does not make sense that now dairy trade will be opened up to unfair competition from subsidised European exports under this FTA, just when it shows potential to grow into a vibrant industry,” he said.Farmer body Bharatiya Kisan Union (BKU) is also opposed to the proposed trade pact which, it claimed, would benefit the EU more as more than 60 per cent of Indian farm exports already go to the EU duty free.So far, India has protected the dairy sector in all the free trade pacts signed including ones with the Asean countries, Japan and South Korea. Pressure is, however, mounting on it to open up the sector in the FTAs India is negotiating with Australia and New Zealand. These countries are keeping a keen watch on the India-EU FTA negotiations to see how much access they could push for in their own trade deals with India.Amul model for dairy project expansion

Jharkhand Dairy Project has mooted a proposal before the state administration to expand operations in all districts, an ambitious plan that includes a bid to restructure it as a corporation and bring all milk unions under it following its divorce from a national board.The project, which functions under the state animal husbandry department, made the proposals after the collapse of its five-year partnership with the National Dairy Development Board (NDDB) following an ugly spat

Dairy sector opposed India-EU FTA

on December 6, 2012.NDDB was roped in to boost the prospect of dairy industry in the state.According to an MoU signed in 2007, the board had to focus in five districts — Ramgarh, Hazaribagh, Khunti, Lohardaga and Ranchi — for milk procurement that could directly benefit 41,500 local farmers.The board had cited an uncooperative stance of both the state project and the government as reasons for its decision to pull out from Jharkhand.Jharkhand Dairy Project’s fresh proposal includes creating a milk chain to meet the gap between demand and supply in the districts by forming cooperatives on the lines of Amul.It has added 16 more milk procurement points in January and February in Ranchi and Lohardaga to keep the fledgling industry alive.“We have chalked out a plan and are expecting its approval. Right now, our activities are mainly limited to 12 districts. We want to cover all 24 districts,” project director Mukul Prasad Singh told.Significantly, the project has scrapped the methods of milk procurement, New Generation Co-operative System (under which producers were directly paid instead of via co-operatives), and marketing strategies adopted by the NDDB.It is now returning to Amul-inspired co-operative framework.“We have been assessing shortcomings in the procurement and marketing pattern adopted by the NDDB. It did not work here. They (NDDB) initially assured us an increase in procurement by 65,000 litres per day in Ranchi and Lohardaga. But their activities remained limited in Ranchi and Lohardaga where they could collect only 8,000 litres by the time they left the project,” Singh said.Statistics available with The Telegraph suggest that the Jharkhand Dairy Project has minimally increased milk procurement in Ranchi and Lohardaga (10,670 litres per day).It has also increased the number of retail counters, which also remained a sore point during its partnership with the NDDB.

Beverages & Food Processing Times-April-I-2013 17Dairy News

Indian yogurt industry to touch Rs 1,200 cr by 2015: Assocham

What was virtually an unknown product till few years ago is soon set

to be a Rs 1,200 crore industry. Growing at a compound annual growth rate (CAGR) of about 40-45 per cent annually, organized yogurt industry is likely to touch the mark by 2015 from the current level of Rs 750 crore as a low-fat – even no-fat – alternative, said Associated Chamber of Commerce and Industry of India (ASSOCHAM).“A three year old unknown product ‘yogurt’ has taken over the decade over ‘dahi’ in metros, semi metros due to health consciousness, rising disposable incomes, quality dependence and more awareness about the product and has given tremendous boost to food processing sector,” the latest report by ASSOCHAM stated.Titled ‘Yogurt Market in India’, the ASSOCHAM paper stated that factors like wide availability of raw material (milk), a growing willingness among consumers to experiment and increasing

Three-year-oldunknownproduct‘yogurt’hastakenoverdecade-old‘dahi’inmetros,semimetrosduetohealthconsciousness

disposable income have fuelled this industry’s growth.While releasing the paper DS Rawat, Secretary General ASSOCHAM said, “In India, yogurt has positioned as the healthy dessert option so the increasing health and wellness

awareness will help yogurt to gain popularity with same momentum. Consumers becoming increasingly concerned about hygiene and fat and nutritional content, demand for packaged yogurt is expected to rise robustly in coming years.”Types of yogurt such as drinking yogurt may compete with flavoured milk drinks and fruit/vegetable juice, while fruit-based spoonable yogurt may emerge as

competition for ice cream as a dessert.According to ASSOCHAM, companies are also tying up with corporates to target office employee which will also help in increasing consumption by making it a quick, convenient and healthy substitute for meals.“The demand of frozen yogurt market sees growth of 70 to 80 per cent each year over the next three years. Several health-conscious mothers and youngsters are switching to frozen/flavoured yogurt from drinks or ice cream. Consumption in India still stands at a nascent 0.3 kg per capita every year as compared to 17.8 kg in France,” the ASSOCHAM paper added.The frozen yogurt segment is being eyed by big players like Amul, Mother Dairy and Nestle in the price segment of Rs 18-20 for a 100 ml cup of yogurt. Further, premium brands like Red Mango and Cocoberry are also trying to capture the growing market.

Talking about its expansion plans in and outside the state, Gujarat Cooperative

Milk Marketing Federation (GCMMF), the maker of Amul brand, its managing director R S Sodhi said it will increase the capacity of milk production in Gujarat from 148 lakh litre per

day to 160 lakh litre per day in six months.With the new dairy farms in Amreli, Surendranagar Kutch, Junagadh and Bhavnagar, the state would see an overall increase of around 12 lakh litre in milk production in six months, Sodhi said.GCMMF is planning to invest Rs 3,000 crore in doubling its processing capacity for milk products in the next six years.

Speaking on the sidelines of the annual Gujarat SME Manufacturing Summit held in Ahmedabad, he said, “All these new dairies will produce around two lakh litre of milk each on a daily basis, while the Bhavnagar dairy will add three lakh litre. The total capacity will

be increased by 10 to 12 lakh litres in six months with a total investment of Rs 3,000 crore. GCMMF has also invested close to Rs 400 crore in Mother Dairy, another dairy brand.”“Currently, GCMMF has a capacity of producing milk to the tune of 50 lakh litres per day in Delhi, 15 lakh litre in Mumbai, 8 lakh litre in Kolkata, 5 lakh litre in Kanpur and 5 lakh litres in Lucknow.

Speaking about the 10 drought-affected districts in Gujarat, Sodhi said, “The drought and scarcity of water in the state has not affected the demand for milk which is soaring every day. So we will producing as per the demand and are currently not looking at any product diversification

and will focus on expanding our footprint and increasing capacity.”.Speaking about the much debated Free Trade Agreement (FTA) issue, wherein India and European Union (EU) are still negotiating, Sodhi said Indian Government should not surrender the farmers’ fate and dairy producers in foreign hands.

With new dairies, Amul set to Hike Milk Production

Milk business is growing in Noida with big names such as, Gopaljee, Paras,

Mother Dairy and D S Group concentrating their business operations from Noida.“In metros, the dairy and milk pouch business is growing at 10 percent,” said Radheshyam Dixit, CMD, Gopaljee Dairy India. “Indian market will reach Rs 5 lakh crore by 2015 and NCR market is growing at 20 percent. In Delhi and NCR, due to growing population with higher disposable income and greater health awareness, unorganised sector (in milk business) is fading fast,” he said. Rajiv Kumar, vice-chairman of DS Group echoed the same, “Nearly 45 percent of the total dairy business comes from sale of liquid milk. Reports say that Delhi-NCR has the highest share of branded pouched milk in the country. Daily sales of pouched milk in Delhi-NCR is approx 5 million litre and expected to grow robustly.”Gopaljee Dairy has been in the business for over two decades now. Started with milk production and procurement to sell pouched milk it has gone up the value chain by manufacturing and selling of various quality dairy products. Existing product portfolio consists of milk and milk powder, paneer, chaach, kheer, flavoured and butter milk, ghee, curd, lassi, fresh cream and juices.“Metropolitan cities consume bulk of generic products like pouch milk, dahi, paneer etc. and also witness frequent buying of high end products like fruit & flavoured yogurt, variety of cheeses. Tier II & III cities are witnessing consumption of generic products and gradual conversion to products from unorganised to organised sector, due to communication and awareness about food safety guidelines,” said Radheshyam.According to the company, in NCR they have employed 1,000 people directly or indirectly. The existing units have a capacity of 6.5 lakh litres per day. The company is planning to establish the third manufacturing unit in NCR in next one year with an investment of Rs 25 crore. The manufacturing unit would have a capacity of 6 lakh litre per day expandable to 10 lakh litre per day. The new unit will produce ice creams, cheese, bakery and other breakfast products.“With this move, the group is expecting the number of distributors to increase from 125 to around 400 and will meet the ever-increasing demand of milk in Delhi and NCR. The company has also engaged over 500 people to procure milk from UP, Haryana and Rajasthan. We

Noida is the milch cow for NCR Dairy Inc

plan to come up with own cattle farm in NCR by end 2013,” said Radheshyam.Dharampal-Satyapal (DS) Group, Noida-based conglomerate, after a successful stint in salt and spices and pan masala has last year entered the dairy business. “The Group has very ambitious plans for the dairy business. Currently DSMPL (DS Milk Product Ltd.) is starting out with longer shelf-life products like bulk packs of ghee, skimmed milk powder, whole milk powder and white butter for wholesale and institutional consumers, under the brand name Dairy Max,” says Rajiv Kumar, vice-chairman of DS Group.Currently the company’s maiden manufacturing facility is at Reengus, Rajasthan. “With a strong distribution and sales channel in place, we will be soon having a dedicated channel for milk and milk products for Delhi-NCR. We plan to enter the market with premium range of products,” revealed Rajiv.DSMPL’s current capacity is about 4 lakh litres per day, which is planned to increase by 50 percent by next year with the addition of production lines for various value added fresh dairy products. “Indian dairy products are now well accepted in many countries. Therefore, there is immense scope to create global business channel,” says Rajiv.For Gopaljee Dairy, key milk markets are Delhi-NCR, UP, Uttaranchal and Haryana. “Our share is 5 to 8 percent and our target growth rate is 20 percent.” G + is the retail chain of the brand. The company currently owns 15 brand shops and intends to take it to 1500 brand shops in next five years by investing Rs 200 crore.Gopaljee’s target market includes retail consumers, corporates and SMEs. “80 percent of our clients are consumers and rest is corporate / SME. Profit margins vary as corporate / SME’s have bulk consumption though less in number whereas retail consumption has different patterns,” said Radheshyam. At present we are definitely into manufacturing, procurement and retailing. “A part of our business is also B2B, as institutional suppliers of bulk packs to other businesses. However, our main focus is upon B2C business,” said Rajiv of DS Group.Over the years Gopaljee Dairy has diversified into providing dairy and other dairy related products and in the process has established two factories and a network of more than three lakh farmers, 3000 villages and 30 chilling centers. But challenges still remain.

Beverages & Food Processing Times-April-I-2013 18Ingredients News

Progress through innovation

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The latest technology for distribution, accumulation, conveying and on-machine seasoning (OMS) systems for all types of snack products including potato chips, popcorn, extruded snacks, Namkeen and nuts. Offering the industry’s most accurate seasoning coverage and product quality as well as smart and efficient product handling, Heat and Control has over 60 years of process expertise, equipment design and technical support services.

In spacious stark white laboratories, with sophisticated equipment and an investment

of about Rs 21 crore (3.7 million Swiss francs), Swiss flavour and fragrance company Givaudan recently began tweaking exotic flavours like blueberry cheesecake and black currant to suit the Indian palate, hoping to benefit from the fast-growing processed food market in the country.Companies in segments such as bakery, confectionery, snack food and beverages that have been ramping up in India, expect their flavour partners to also roll up their sleeves and work alongside.

Flavour companies taste growth in Indiain Bangalore and a manufacturing facility in Daman. It was happy to expand, says Jain, because “as our clients in various segments grow, we will automatically grow.”More urbanization, higher disposable incomes and the resulting lifestyle changes have made India an attractive playing field for many global players, who are looking away from the saturated United States and Europe. About 50% of India’s population being under the age of 25 and an increase in the number of nuclear families further boost opportunities for food companies. The Indian processed food market, which was worth about $80 billion in 2012, is expected to double by 2020, according to consulting firm Frost & Sullivan.Givaudan, which supplies scents and flavours to food and beverage makers and personal care companies, is not alone in its pursuit. Rival flavour companies including US-based International Flavours and Fragrances (IFF) as well as Germany’s Symrise have also been tasting growth and stepping up operations in the country.IFF, which had invested Rs 20 crore to set up a technical and creative center in Mumbai in 2005, opened another facility in Gurgaon last June to innovate flavours for the Indian market. Customer intimacy prompted IFF to start the new facility in the region as several of its existing and potential clients are near Delhi, says Sridhar Balakrishnan, managing director of IFF India.Improvisation has become necessary to win over the Indian consumer who wants to try new things. Other than the indulgent

global flavours, there is high demand for traditional and regional Indian tastes, says Givaudan’s Jain. The company’s innovation center houses an industrial kitchen to prepare popular dishes such as pav bhaji or biryani that are later broken down in the analytics section. The flavours created in the labs are then tested on consumers in a sensory science area. Givaudan plans to open a new manufacturing facility in Pune over the next three to five years.While exotic flavours are made “bolder” to woo local buyers, presenting ethnic flavours in new formats like nimbu pani in packaged format or masala oats is another trend in the space. “Indians do not want to compromise on taste even for health and wellness products and that is one of the challenges that we are working on to make healthy products tastier as well,” says Balakrishnan of IFF.The bulk of growth for flavour companies is coming from emerging markets. Givaudan’s sales in these markets rose 13.2% and accounted for 44% of the total in 2012. Its sales in India grew in the high-single digits. The sales contribution

from developing regions is targeted to hit 50% by 2015. Asia is also the largest region for the flavours of IFF, which reported sales growth of 8% there in the last fiscal.Frost & Sullivan analyst Chaitra Narayan pegs the value of the Indian food flavor market at around $230 million and expects it to grow at a rate of 8 to 9% over the next three to five years. International companies account for about 80 to 90% of the market, she says.The flavour and fragrance industry in India is fragmented, with top global players and local players of various sizes competing in the same marketplace, notes Anand Jhunjhunwala, president of Fragrance and Flavour Association of India. “(But) most of the global corporates have their own set-up in India now and there are not many with local partners.”The Indian companies, which are mostly family-run, are now trying to become technologically advanced to compete in this space, he observes.Global flavour makers, it seems, want a bigger bite of India.

Sensient Colors has introduced DustPro NXT natural color

Sensient Colors Introduces DustPro NXT

powders, a product line that extends Sensient’s natural color portfolio. DustPro NXT

significantly reduces dust levels while improving color solubility compared to traditional natural

color powders. Sensient’s research and development team created new DustPro NXT natural colors to prevent color particulates from sticking together, improve pouring capabilities and minimize dust accumulation. When added to water, it dissolves rapidly and reduces mixing time. DustPro NXT also has a greater shelf life and lower shipping costs than liquid natural colors. DustPro NXT natural colors are suitable for beverage, dairy, baking, and processed food applications. A vivid, full color spectrum is available including customized colors to meet specific shade requirements.

“Speed is very important to this market. Customers don’t want to miss out on any trends so they expect us to come out with the right support in terms of concepts, ideas and products,” says Tansukh Jain, Givaudan’s country head for flavours, seated in the plush conference room of the innovation center in Andheri.Founded as a perfumery in 1895 in Zurich, Givaudan is the world’s largest flavour and fragrance maker. It has been operating in India since 1994 with manufacturing capabilities but did not test and create flavours locally until March. The company has a fragrance facility

Beverages & Food Processing Times-April-I-2013 19Dairy News

V S INTERNATIONALParag Milk Foods, the manufacturer of Go cheese, Gowardhan

Milk, Yoghurt, Ghee, Paneer, Dahi among others has forayed

Parag Topp-Ups portfolio with flavoured milk

into the beverage segment targeting its new product ‘Topp-Up’ towards heal th-conscious people. Topp Up will be available in four flavours and is being pegged as a product for fitness-freaks who want to get ‘energy and nutrition, on the move’. The company claims that the product’s shelf life is about six

months, which is achieved by the ‘retort sterilisation technology’ and innovative packaging.Devendra Shah, Chairman, Parag Milk Foods says that with the launch Parag has officially enter the health beverage segment and Topp-Up will be face of Parag Milk Foods in the segment. “While we have started with flavoured milk, we would be launching a slew of innovative and attractive beverages for different set of consumer segments, over few months,” he adds. Mahesh Israni, CMO, Parag Milk Foods, says that, the beverage is equipped with a ring pull cap making it convenient for the

consumers on the go. “It is also competitively priced at Rs. 20 for 200 ml. currently the drink is available in Mumbai, Pune & Goa. Soon we plan to expand our distribution PAN India through our existing strong network,” he adds.According to ASSOCHAM the dairy industry is expected to reach Rs. 5,00,000 crore by 2015 with the milk production rate expected to reach about 19 crore tonne in comparison to the 12.3 crore tonne. According to USDA (United States Department of Agriculture) India holds a 17 per cent share in dairy production globally.Shah says that the key objective

in entering the beverage segment is to cater to the growing needs of young and on the move consumers, who seek safety, nutrition and convenience. “With consumers becoming diet freaks, health conscious and turning away from junk food and aerated drinks, Topp-Up is an ideal energy drink to replace the aerated drinks this summer,” he opines.Parag Milk Foods established in 1992 has its plants located in Manchar, Maharashtra and Palamner, Andhra Pradesh. It also to have its own dairy farm called Bhagyalaxmi where it hosts 3,000 specially bred Holstein Freisens cows.

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EDITORFiroz H Naqvi

CONSULTING EDITORBasma Husain

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CIRCULATION MANAGERSeema Shaikh

Beverages & Food Processing Times-April-I-2013 20Back Page

BASF presented NewtritionTM Asia Research Grants to eight

scientists to recognize their work in advancing heart health research. The program provides a scientific platform for researchers to connect, collaborate and promote the awareness of food ingredients throughout Asia.The 2013 BASF grant program targets China, Indonesia, Singapore and India. Consumers in these emerging countries are experiencing rapidly changing lifestyles, for example due to technology replacing labor and westernizing diets. These changes are resulting in an increasing cardiovascular disease rate, causing a growing public health risk.Plant sterols are one option to meet this growing health risk: These phytosterols can be found naturally in vegetable oils, legumes, nuts and grains. They lower LDL cholesterol levels and help to block the absorption of dietary cholesterol into the bloodstream. An intake of 1-3 grams of plant sterols and sterol esters per day can substantially and consistently lower blood levels of total cholesterol by 6-10% and LDL-cholesterol by 8-15%.1

BASF addresses rising heart health issues in Asia with grants advancing plant sterols research

“While plant sterols have been used extensively in Europe and the United States, awareness and research in Asia is still very limited,” said Tina Low, Director, BASF Human Nutrition, Asia Pacific. “By focusing this year’s grant on Asian countries, BASF hopes to generate more research on the health benefits of plant sterols.”BASF is proud to announce the recipients of the 2013 NewtritionTM Asia Research Grants:• Dr. Stephen F. Burns, Nanyang

Technological University, Singapore, “Combined effects of dietary plant sterol supplementation and exercise

on postprandial triglyceride responses”

• Dr. Wai Mun Loke, Nanyang Polytechnic, Singapore, “Effects of pure dietary phytosterols on inflammation and lipid peroxidation in vivo”

• Prof. Seeram Ramakrishna, National University of Singapore, Singapore, “Encapsulation of plant sterols/stanols in starch and protein matrix”

• Dr. Nancy Dewi Yuliana, Bogor Agricultural University, Indonesia, “Anticancer activity of sterols- rich artificial rice in Balb/c mice”

• Dr. Sandhya Narasimhan, Kallam Anji Reddy Centre,

India, “Dietary phytosterol supplementation and their effects on inflammatory status: an intervention trial study among overweight obese south Indians”

• Dr. Lihua Song, Shanghai Jiaotong University, China, “The effects of phytosterol on high diet induced non-alcoholic fatty liver disease (NAFLD)”

• Ruirong Pan, Affiliated Hospital of Jiangsu University, China, “A survey on intake of plant sterols by patients of type 2 diabetes and its complications”, Young Investigator Grant

• Dr. Shuang Rong, Chinese Center for Disease Control and Prevention, China, “Study

on the protective effect of PS-ALA on age associated memory impairment in rats”, Young Investigator Grant

The researchers’ winning proposals were selected based on review for scientific merit conducted by BASF’s Scientific Advisory Committee. The committee is composed of scientists from academia, government and industry. Each researcher received a grant of €25,000 in local currency to fund a 12-month study. Researchers will present their findings at the 2014 grant program ceremony.“The Asia NewtritionTM Research Grant Program shows how an industry leader like BASF can work together with the scientific community to advance public health throughout Asia and beyond,” said David Cai, PhD, Scientific and Regulatory Affairs, BASF Human Nutrition, Asia Pacific. “Through these new research initiatives, we aim to lower cholesterol levels and thus foster heart healthy lifestyles. We know that many Asians are not getting enough plant sterols in their diets, so we hope to support research into supplementation.”