From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address effective May 25, 2007 : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: II

May 25, 2007

Food and Beverages

Share Prices

 

BSE share prices as on May 15, 2007

 

Sales and Market Share

 

154. Hindustan Lever Q1 Net At Rs 393 Cr – April 30

Rs 393 Cr profit for HLL in Q1

FMCG major Hindustan Lever posted net profit of Rs 392.89 crores for the quarter ended March 31, 2007.  The company’s total income was Rs 3275.12 crores for the first quarter ended March 31. According to the company, the results for the quarter were not comparable to the 2006 corresponding quarter due to the amalgamation of Modern Foods (India) Ltd and its subsidiary with itself.

 

Source: Financial Express

 

 

155. Nestle India Q1 Net Up 22 Pc At Rs 108 Cr – April 30

Net profit for Nestle’s Q1 reaches Rs 108 Cr

Nestle India posted a net profit of Rs 108.45 crore for the first quarter ended March 31, 2007, a 22.39% increase compared to Rs 88.61 crore for the 2006 corresponding quarter. "The extensive work done in innovation and renovation in particulars in the area of nutrition, health and wellness and the setting of appropriate structures is now reflecting in our performance", said Martial Rolland, Nestle India Chairperson and Managing Director.

 

Source: The Economic Times

 

 

Trends, Marketing Initiatives and Others

 

156. Perfetti Plans Higher Priced Brands – May 14

Perfetti to launch higher priced brands

Perfetti van Melle India (PVMI) Pvt Ltd. has embarked on a new marketing strategy to manufacture and market relatively higher priced brands. According to Prakash Wakankar, Managing Director, Perfetti van Melle India Pvt Ltd., "We have decided to manufacture and market slightly higher priced brands in order to bring balance to our margins which are currently under a lot of pressure due to increasing prices of raw materials such as glucose, sugar and milk". According to the company, the price increase will be made keeping in mind the affordability factor as PVMI deals in mass products. It is also planning to launch new products. Wakankar said, "We have several new launches in the pipeline, with more focus on value-added products and variations. We will also introduce a few new categories that will be a part of the broad sweet confectionery market".

 

Source: The Hindu Business Line

 

 

157. Global Ad Norms For Unilever – May 12

Unilever announces new global guidelines for marketing and advertising to kids between 6 to 11 years

Unilever has announced new global guidelines for marketing and advertising its products to children between 6 to 11 years. The company has adopted a global guideline that will stop the future use of size zero models or actors in its advertising, and will be fully implemented by end-2008. Ralph Kugler, President Home and Personal Care, Unilever, said, "It's a response to growing societal concerns about the possible negative health effects that could occur should people pursue unhealthy or excessive slimness".

 

Source: The Times of India

 

 

158. Coca-Cola Launches ‘Coca-Cola Speed Jamming’ To Tap Youth Market – May 10

‘Coca-Cola Speed Jamming’ initiative to tap youth market

To target young consumers across the nation, Coca-Cola has launched an initiative called ‘Coca-Cola Speed Jamming’. This is a step ahead of its summer campaign ‘Sabka Thanda Ek’, by providing an interactive platform.  A 360-degree integrated communication campaign, including the use of digital platforms (such as mobile phones and the internet), is being used. The campaign is in association with the CDMA mobile companies and Jump Games. A nationwide ‘Mega Hunt’ for Coca-Cola’s ‘Coolest Couple’ is also being launched across five cities: Delhi, Mumbai, Bangalore, Chandigarh and Pune. 

 

Source: Exchange 4 Media

 

 

159. Costa Coffee To Expand Presence In India – May 09

Costa Coffee to expand in India

To expand its presence in India, Devyani International Ltd, the master franchisee in India for Britain's coffee chain Costa Coffee, will invest close to Rs 25 crores to establish 50 outlets across the country in 2007. Agra, Meerut, Amritsar, Chandigarh, Bangalore, Kolkotta and Mumbai are the respective destinations. Besides opening new stores, Costa will also introduce the concept of 'Cart and Kiosk'.

 

Source: The Economic Times

 

 

160. Milk-Based Beverages Waiting To Boil Over – May 05

Pepsi and Coca- Cola to enter flavoured milk market

 

The fragmented, but high-potential packaged flavoured-milk market, which includes players, such as Amul, Nestle and Britannia, is likely to face competition from the soft drink major Coca-Cola. According to a Coke official, "A milk-based product is in the offing. We are currently exploring the viability of introducing such a product in the domestic market”. According to PepsiCo India CEO, Sanjeev Chadha, to expand its product range in the Indian market, the company will soon introduce the range of localised milk beverages. The target group for these products is those consumers who want to include health and wellness in their foods in a convenient manner.

 

Source: Food and Beverages

 

 

161. Britannia Is The Bread Winner -– May 01

Non-biscuit business accounts for 17 to 18% of Britannia’s top-line

According to company sources, Britannia has a market share of over 38% of the Indian biscuit consumption by value. The company’s gross annual revenue from its non-biscuit basket is in excess of Rs 200 crores. The non-biscuit category consists of bread, cakes and rusks. Currently, bread, which reaches to over 6-lakh households daily, is the mainstay of its non-biscuit business. Its non-biscuit portfolio accounts for approximately 17 to 18% of the company‘s top-line, which was approximately Rs 1,800-crore in FY’06. Britannia has emerged on the top of India’s bread market, reporting depletion of over 250 million loaves annually.

 

Source: The Economic Times

 

 

162. Dabur Foods Bets On Real Twist For Beverage Business Growth – May 01

Dabur Foods to improve beverage business

Dabur Foods is banking on Real Twist, the recently launched fruit drink, as the growth driver for its beverage business. "In the beverages business, with Real we have already captured the leadership position in the fruit juice segment with 57% market share. But having observed the current consumer trends towards value for money, and preference for fruits drinks that are relatively cheaper than juices, we have decided to position our new brand Real Twist in the category as the growth driver for our beverages business", said Sanjay Sharma, General Manager, Sales and Marketing, Dabur Foods.

 

Source: The Hindu Business Line

 

 

163. Confectionery Makers In A Spot Over New Food Law – April 27

Confectionery makers looking for amendments in the proposed integrated food law

Major confectionery makers, such as ITC, Godrej Beverages & Foods (Nutrine) and Perfetti van Melle, are expecting some amendments to the proposed Integrated Food Law, failing which they will have to increase their product package size.  This in turn, will result in higher prices.  The law is scheduled to come into effect from August 20, 2007.

 

Source: Business Standard

 

 

164. Liquid Fruit-Chilled And Refreshing – April 25 

Fruit beverage market all set for action this summer

The Rs 1,200-crore fruit beverages market is all set to target consumer taste buds afresh this summer. From new launches to re-launches and 360-degree marketing strategies, soft drinks companies are adopting all measures to attract consumers.  Coca-Cola India recently launched Minute Maid Pulpy Orange in India. PepsiCo's mango drink, Slice, released a new ad campaign with its ‘Pyaar Ho Jaayega’ line. The market trend is towards healthier alternatives, especially after the two pesticide controversies. Besides, consumers are also experimenting with newer beverage options, leading to a widening of product offerings.

 

Source: Yahoo News

 

 

165. Thums Up Partners With AXN For Action Awards – April 21

Thumps Up and AXN partner for Action Awards

Thumps Up and AXN have renewed their partnership for the AXN Action Awards of 2007.

 

Source: Exchange4Media

 

 

166. GFA Plans Doughnut Kiosks – April 20

GFA to introduce doughnut kiosks

The Indian subsidiary of Geneva-based Global Franchise Architects, Global Franchise Architects India Pvt Ltd (GFA), will introduce doughnut kiosks in India.  The company will first open three to four such kiosks in Bangalore and test the success of the product. The kiosks will be spread around an area of 300 to 400 sq.ft. and mostly opened in malls or multiplexes because of the impulsive buying behaviour. The portfolio of GFA India comprises four brands: Pizza Corner, Coffee World, New York Deli and The Cream & Fudge Factory.

 

Source: Business Standard

 

 

167. Food Labeling Notification Unimplementable: FICCI – April 18

According to FICCI, new food labelling rules have unimplementable clauses

According to the FICCI, the mandatory food labelling rules notified by the Ministry of Health and Family Welfare have not only some unimplementable clauses, but their implementation will involve high expenditure cost for the industry. The proposed labelling requirements disqualify the use of pictures of an item that have not been used in the manufacture of the food product. In addition, the mandatory labelling of food items requires their testing, which would be an add-on cost to the company.

 

Source: The Economic Times

 

 

168. Mother Dairy To Revive Dhara, Expand Ice-Creams Basket – April 18

Dhara to make a comeback

In 2008, Mother Diary aims to become a Rs 3000 crore company. Part of its strategy includes the revival of its edible oil brand Dhara, expanding its beverages & ice-cream portfolio and catering better to organised retail. “There has not been much focus on Dhara for the last three/four years as we focused on oil seeds grown in India. We hope to correct that now with focus both on indigenous oil seeds and imported ones like soybean. Dhara would also get a new marketing push along with a new packaging and distribution focus”, Mother Dairy CEO Paul Thachil said.

 

Source: The Economic Times

 

 

169. Coke's Toll-Free Number For Consumers- April 17

Coke introduces toll-free number

To become more accessible to the consumers, Coca-Cola has launched a toll-free consumer feedback number in India. The launch of the national toll-free number is a first of its kind initiative by a beverage company in India. The initiative was designed to respond to consumer queries, provide the right information on the company, brands and also receive feedback.

 

Source: Business Standard

 

 

170. Parle Bisleri Firms Up Summer Strategy – April 17

New strategies for Parle Bisleri

Parle Bisleri, to maintain its leadership in the Rs 1,400-crore packaged water business, has framed new strategies for summers. The company is establishing eight manufacturing facilities, at a cost of Rs 30 crore, across the country. To reach out to a wider target audience, the company will extend its distribution network by 30% this summer. By end-2007, it is likely to enter the energy water segment.

 

Source: Financial Express

 

 

171. Nestle Bids For India's Himalayan Water – April 16

Nestle in race for Himalayan water

According to sources, Nestle Waters, a unit of Nestle SA, and India’s Tata Group have bid for India's Mount Everest Mineral Water Ltd.

 

Source: Financial Express
 

 

Product Launches

 

172. Safal Sings A Cool Tune Now – May 08

During the summers of 2007, Mother Dairy's Safal brand is likely to launch its natural lime drink, Nimbu Pani, in PET bottles.

 

 

173. Nestle's Munch Pop Choc – May 05

Nestlé has launched its new Munch Pop Choc consisting of little wafer cubes covered in chocolate. The wafer cubes is priced at Rs 10, and is available in major cities including Delhi, Mumbai, Kolkata, Bangalore, Chennai and Hyderabad.

 

 

174. KMF Homogenised Milk Proves Economical Per Pack – May 05

Karnataka Milk Federation (KMF) has introduced homogenised cow's pure milk with 3.5% fat. The new product, sold under its brand name 'Nandini', is uniformly creamy, and the fat globules are evenly distributed.

 

 

Advertising Campaigns

 

175. Chillz Brings Out Goodness Factor In Youth – May 11

Chillz’s new TV commercial targets youth by stressing on the goodness factor

Targeted at young adults, Mother Dairy has launched a new campaign for Chillz Ice Creams with the tagline “The Goodness Inside”. According to Nandu Narasimhan, Creative Director-North, Saatchi & Saatchi, “The tagline ‘The Goodness Inside’ captures the fact that Chillz Ice Creams are full of the goodness of Mother Dairy milk, and also links back to Saatchi & Saatchi’s learning on what today’s youth are about”. The ad features a basketball match played by youngsters in wheelchair. When the match concludes, one of the guys gets up from wheelchair and walks with his friend for some Chillz. The youth is caring and sensitive enough to play a fair game with his friends by sitting on a wheelchair even though he is not handicapped. The other commercial revolves around a student and his teacher, and his thoughtfulness to wish the teacher on her anniversary and celebrate with Chillz.

 

Source: Exchange 4 Media

 

 

176. Appy Fizz & Friends Capture The Nation’s Imagination – May 02

Appy Fizz and Friends launch ‘Welcome Back Indian Cricket Team’ TV commercial

Appy Fizz and Friends have created a commercial (jingle) titled ‘Welcome Back Indian Cricket Team’, which mocks the Indian cricket team. The jingle has already made its presence felt on radio and in the blogosphere, where it was launched before TV. According to Sajan Raj Kurup, “The idea behind the commercials was that, ‘Appy is a youth brand. Not just a brand, it’s actually an experience – the experience of freaking out with friends, having fun. So, it was important to capture the youth’s imagination through our commercials. We are all disappointed with the Indian team’s performance. We aren’t doing anything, but narrating the young mindset. Generally, as a nation, we are unhappy, that’s why the jingle has been so well received by all and sundry”.

 

Source: Agency Faqs

 

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