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July 24, 2022
By Aishwarya Ramesh
Tata Consumer Products has rolled out ready-to-cook mock meat products under the brand name Simply Better.
Tata Consumer Products (TCPL) is the latest company to enter the plant-based meat segment in India. TCPL has launched a brand called Simply Better – which includes range of ready-to-cook (RTC) products, made of plant-based meat.
The RTC range is a mix of snacking dishes and traditional Indian dishes. It includes plant-based chicken nuggets, chicken fingers, chicken burger patties and Awadhi seekh kebabs. All these plant-based products are currently available on Amazon Prime and Flipkart.
TCPL’s Simply Better products as seen on Amazon.
When it comes to multinational companies, ITC has a play in this (RTC) category. Its Master Chef range includes a plant-based burger patty, priced at Rs 630 for 300 grams. The range has both vegetarian and non-vegetarian frozen snacks and kebabs. The Incredible range also has plant-based chicken nuggets, priced at Rs 475 for 300 grams.
ITC’s IncrEdible plant-based RTC range
Compared to ITC’s offering, Tata’s Simply Better line is priced slightly differently. 270 grams of plant-based chicken nuggets costs Rs 390 and the plant-based burger patty is priced at Rs 450 for 300 grams.
According to a report by Research and Markets, the Indian meat substitutes and mock meat market is estimated to reach over USD47.57 million in value terms by the end of FY2026 and is forecast to grow at CAGR of 7.48% during FY2021E-FY2026.
Devangshu Dutta, chief executive and founder at Third Eyesight, a specialist consulting firm, mentions that the presence of Tata Consumer Products and ITC could help in increasing adoption of the category over time, since both are large players intending to scale with mainstream customers.
“However, both companies will be advertising and targeting the same cohort of customers. Additionally, the two will also be competing against the multiple D2C brands in the category,” he added.
The plant-based meat market, or smart protein market, includes D2C brands. Some of these brands are also backed and endorsed by celebrities and athletes. The Good Dot is endorsed by Olympic athlete Neeraj Chopra, cricketer Virat Kohli and his wife and actress Anushka Sharma have invested in Blue Tribe and actor-couple Riteish Deshmukh and his wife Genelia Deshmukh have invested in plant-based meat startup Imagine Meats.
Anchit Chauhan, AVP – planning, Wunderman Thompson, mentions that the plant-based industry has been built by a set of startups, and now Tata has decided to enter the segment – somewhat late.
“If you look at the e-commerce segment too, Tata entered late with Tata CLiQ, almost 10-12 years after the e-commerce category had been built by the likes of Amazon and Flipkart. But the advantage Tata has is that the trust factor will always be associated with it. It will be able to leverage that brand equity and create success out of it.”
Dutta points out that for years, the most popular plant-based meat product had been Ruchi Soya’s product – Nutrela’s soya chunks and granules (soya chunks available at Rs 499 for 200 grams and granules at Rs 250 for a kilogram). Soya chunks have been available in India since the 1980s and Dutta calls it the ‘poor man’s meat replacement’.
He says that Indians already get protein in their diet through lentils, pulses and beans, and even those who consume non-vegetarian food don’t do so on a regular basis.
“They may eat it once or twice a week. Some people who convert from non-vegetarian to vegetarian, don’t miss the taste at all. Protein isn’t a huge selling point for these products either. So, this specific faux meat segment in India is a niche market.”
Both analysts (Dutta and Chauhan) opined that Tata’s entry into the segment would not have significant impact on the way the products are priced in this category.
According to Chauhan, India is mostly a vegetarian country and the consumers who may opt for plant-based products are ones who may do so out of concern for the environment, love for animals or an overall healthier diet.
Reasons for turning to plant-based meat
“Plant-based products are essentially for non-vegetarians, who have a certain taste but are willing to give it up because they feel for the environment or animals. But that’s a very urban niche right now. If you’re a ‘woke’ urban consumer, the price point of the products may not matter,” says Chauhan.
“One of the factors for this segment to grow in India is availability. Whether it is a startup or a company as big as Tata or ITC, it has to have financial muscle to sustain growth and must be easily available to consumers. Visibility and user trials are important, especially to attract consumers who wish to make a lifestyle switch in their diet. That’s why modern retail is an important channel for these products,” Dutta adds.
Different brands in the segment right now
Dutta explains fundamental consumer behaviour and calls expansion in this market ‘tricky’, since it is difficult to get people to change their behaviour.
“This is even more the case in smaller cities and towns, where people may have a more traditional mindset. Take the example of Kelloggs – it has been in the country for almost 30 years and there hasn’t been a mass behaviour switch as far as breakfast meals are concerned.”
Chauhan adds that it is not just plant-based meat, there is now demand for alcohol-free products – which taste the same as alcohol but do not have any of the side effects that come with drinking alcohol.
Dutta mentions that people in Tier-II and III cities may not be aware of plant-based meats. This is a tricky category that requires a lot more development. “It’s possible that plant-based meats will remain an urban phenomenon for a long time.”
Source : afaqs.com
admin
June 30, 2022
Written By Aditya Kalra & Abhirup Roy
MUMBAI, June 30 (Reuters) – Reliance Industries (RELI.NS) said on Thursday it would open outlets of Pret A Manger in India under a franchise deal with the British sandwich and coffee chain, a first foray by the Indian firm in the country’s growing food and beverage industry.
Reliance Brands Ltd (RBL), a unit of the conglomerate that also runs India’s biggest retail chain, would start by opening branches of Pret, as the brand is known in Britain, in big Indian cities, both companies said.
RBL Chief Executive Darshan Mehta said in joint statement the partnership was “rooted in the strong growth potential” of the Pret brand, known for its organic coffee and upmarket sandwiches, and the Indian food and beverage industry.
The first outlet would open in Mumbai before March 2023 and India was expected to become one of Pret’s top three markets in three years, a source familiar with the matter told Reuters.
Pret A Manger, whose name means “ready to eat” in French, first opened in London in 1986. It now has 550 outlets globally, including in the United States and several European states. It is owned by investment group JAB and founder Sinclair Beecham.
In India, the brand will compete with Starbucks (SBUX.O), which has a joint venture with India’s Tata, and Costa Coffee, which is owned by Coca-Cola (KO.N).
Mukesh Ambani, one India’s richest men, runs Reliance, which has more than 2,000 supermarkets and grocery stores in India. Reliance also has partnerships with luxury brands, such as Burberry and Jimmy Choo.
“Reliance wants to look at retail in all its shapes and forms. Over time, they’ve realised partnerships are the way for business formats that may be difficult or slower to crack,” said Devangshu Dutta, head of retail consultancy firm Third Eyesight.
Source: reuters
admin
June 10, 2022
Devika Singh, Moneycontrol
June 10, 2022
As the threat of a plastic straw ban looms, dairy products giant Amul has written to the Prime Minister’s Office, urging a delay of its implementation by up to one year.
Amul makes products such as flavoured milk, lassi and spiced butter milk that come in small cartons packed with plastic straws for on-the-go consumption.
The letter to the PMO, sent ahead of the proposed July 1 start of the ban on single-use plastic products, said the move may have a “negative impact” on farmers and milk consumption.
“We agree it is a positive step to reduce plastic usage,” R.S. Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the Amul brand, told Moneycontrol.
“However, we have requested the government to delay the implementation by six months to a year so that we utilize this time to gradually shift from plastic straws to paper straws,” Sodhi said.
The government earlier this year issued a notification banning several single-use plastic products. The ban has the potential to affect the sales of beverages sold in small tetra packs.
Here’s a rundown on all the products that are proposed to be banned, why beverage makers are pushing for a delay in its implementation and how it will affect them.
What does the government notification say?
The Ministry of Environment, Forest and Climate Change released a notification in March banning single-use plastic items.
Such products include plastic plates, cups, glasses, forks, spoons, knives, straws, trays, swizzle sticks, wrapping or packing film, invitation cards, and cigarette packets and plastic or PVC banners of less than 100 microns from July 1.
Other products such as earbuds with plastic sticks, plastic sticks for balloons, plastic flags, wrappers for candy sticks and ice-cream sticks, and polystyrene (thermocol) for decoration also come under the ambit of the ban.
In February, the government had notified guidelines on the extended producer responsibility for plastic packaging under the Plastic Waste Management Amendment Rules, 2022.
“Directions have been issued to e-commerce companies, leading single-use plastic sellers/users, and plastic raw material manufacturers with respect to phasing out of identified single-use plastic items,” the notification said.
Why are beverage makers worried?
Non-alcoholic beverage makers like Amul; Parle Agro, maker of Frooti; and Dabur, which sells a range of fruit-based drinks under the Real brand, have a significant share of their revenue coming from low-unit packs priced at Rs 10.
These packs, which come with a plastic straw for consumers to drink the beverages, are meant for on-the-consumption and are mainly sold in rural areas. According to industry estimates, packaged consumer goods makers derive 25-40 percent of sales from low-unit packs priced at Rs 2-Rs 15.
The only replacement to the plastic straws available in the market are paper straws that are produced in a very limited quantity in India.
Plastic vs. paper
Sample this. According to the industry, about 6 billion packs of paper-based beverage cartons with integrated plastic straws are sold annually in the country.
The capacity to produce paper straws is only 1.3 million straws per day against a requirement of 6 million/day.
Paper straws are also an expensive alternative to plastic straws given their limited availability.
According to Schauna Chauhan, CEO of Parle Agro, although the company started importing paper straws to adhere to the new rules by the given deadline, it is not a sustainable solution.
“The percentage increase in the cost for importing PLA straws and paper straws goes up by 259 percent and 278 percent respectively. The economics just does not match up for a Rs.10 product,” she said.
While a plastic straw costs 10 paise and accounts for 1 percent of a Rs 10 beverage carton, a paper straw costs 40-45 paise and would account for 4-4.5 percent of the cost.
Besides paper straws, beverage makers have found another alternative in PLA straws that are made of corn starch and biodegradable.
In-house production of paper straws
Beverage companies are urging the government to delay the ban so that they can build adequate capacity for producing paper straws in the country.
Amul plans to import paper straw-making machines and start production in-house. Parle Agro, too, has similar plans.
“We have already begun work on developing many local MSMEs {micro, small and medium enterprises} to be able to cater to our volume of biodegradable straws,” said Chauhan of Parle Agro.
“A six-month extension will help straw manufacturers in India build adequate capacity to manufacture and supply biodegradable straws to beverage companies in India,” she said.
These companies source plastic straws from third-party manufacturers.
Potential impact of the ban
The ban, if it comes into effect on July 1, will disrupt the supply chain of beverages sold in small tetra packs such as Frooti, Appy Fizz, Real Fruit Juice, Amul Lassi and similar products.
The companies are also expected to incur heavy import and logistics costs as they import paper straws to replace plastic straws.
“The companies have to look at alternative solutions, which may increase the costs. It will be challenging for the companies to pass on the increase in cost to the consumer as it may dampen demand, especially given the fact that these products are priced at low price points to target a certain consumer cohort,” said Devangshu Dutta, CEO of retail consulting firm Third Eyesight.
To tackle the challenge, Amul plans to sell its products without straws until the company builds the capacity to produce paper straws in India.
“However, this impacts the on-the-go consumption of our products,” said Sodhi.
Sales in the hinterland
A majority of the sales of these low-unit packs come from rural India, and could hurt the earnings of packaged consumer goods makers. Parle Agro, for instance, derives about 50 percent of its sales from rural India.
“The increase in the product cost will lead to a fall in demand and affect sales significantly. The hasty ban will negatively impact the industry and overall businesses of numerous players in the FMCG and beverage segment.,” said Chauhan.
Experts say growth in the non-alcoholic beverages segment has been driven by tetra packs, and while plastic packaging and straws do have an adverse impact on the environment, the switchover is set to disrupt the industry in the short and medium terms.
(Published in Moneycontrol)
admin
January 24, 2022
Written By Devika Singh
The entry of Jubilant FoodWorks will intensify competition in the fried chicken segment, where KFC so far has maintained its stronghold.
Popeyes, founded in 1972 in New Orleans, Louisiana, has over 3,400 restaurants in over 25 countries around the world. Popeyes (Wikimedia Commons)
Jubilant FoodWorks, the franchisee for Domino’s Pizza, will launch the iconic US-based fried chicken brand Popeyes, known for spicy New Orleans-style fried chicken and chicken sandwiches, in India on January 19 with the unveiling of the first outlet in Bengaluru.
“Popeyes was founded in 1972 and has been one of America’s most popular and fastest-growing chicken brands. Popeyes aims to delight Indian guests with the bold and delicious flavours of its Louisiana-style chicken,” the company said in a filing to stock exchanges.
“The success of the brand lies in its traditional and unique technique of hand breading, battering, and marinating its fresh chicken for 12 hours in bold Cajun seasonings,” the company added.
Popeyes runs over 3,400 restaurants in 25 countries.
With the entry of Jubilant FoodWorks, the competition is set to intensify in the fried chicken segment, where KFC has maintained leadership in the country so far.
“KFC has enjoyed a free run in the fried chicken market. There are some local players in this segment but no large QSR (quick service restaurant) player had a presence in it until now. With Popeyes as a competitor, now Jubilant FoodWorks is stepping into that opportunity,” said Devangshu Dutta, chief executive at consulting firm Third Eyesight.
While launching its initial public offering (IPO) last year, Devyani International, the largest franchisee of Yum! Brands (which owns KFC), had stressed the advantage it has over other QSRs in the country.
“We have no competition for KFC in India,” Ravi Kant Jaipuria, chairman, Devyani International, had said at the time. Devyani International runs 284 KFC India stores across 107 cities and the brand contributes more than half of its revenues. Sapphire Foods, which too launched its IPO last year, is another major franchise for KFC in India.
Both the companies already compete with Jubilant FoodWorks in the pizza segment as they also operate Yum! Brands-owned Pizza Hut in India. Jubilant FoodWorks with Domino’s Pizza, however, has clear leadership in the pizza market. Sample this: Pizza Hut currently has 500 stores in India, of which 317 are run by Devyani International; Jubilant FoodWorks, on the other hand, already has 1,335 outlets of Domino’s Pizza in India.
Now with the launch of Popeyes, Jubilant FoodWorks, it seems, wants a chunk of the fried chicken pie too.
Westlife Development, which holds the master franchise for McDonald’s in southern and western India, also has set its sight on the fried chicken segment in India. In an interview with Moneycontrol in September last year, Smita Jatia, managing director of Westlife Development, shared an ambitious plan to become a market leader in the segment. The company has already introduced fried chicken in its 125 stores in South India and plans to soon launch the food item in the western region too.
Clearly, the fried chicken market is certainly headed for interesting times as several new QSR players vie for a share of it. According to experts, the segment also offers the next avenue for growth for QSR players. “While fried chicken was the first to take off in Southeast Asia, in India, pizza and burgers found takers given the preference towards wheat-based cuisine in some parts of the country,” said Rajat Tuli, partner at global management consulting firm Kearney.
“However, as Indians become more experimental with food and trying out different cuisines, the fried chicken segment offers the next arena for growth to QSR companies,” he added.
Tuli also believes that the segment has enough space for a couple of players. “The QSR space is poised for over 20 percent growth in the next five-six years and hence there is enough headroom for multiple players to grow in it,” he said.
‘Veg options and no MSG’
The Popeyes India menu will feature the signature Cajun-flavoured Chicken Sandwich and Popeyes signature Chicken in Classic and Spicy flavours. The Indian menu will also feature an array of vegetarian options and will also have rice bowls and wraps. The entire India menu has no flavour enhancer monosodium glutamate (MSG), and the chicken is antibiotic-free, said Jubilant FoodWorks.
In a statement, Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant FoodWorks, said, “We are excited to introduce the Popeyes Louisiana Kitchen brand to chicken-loving Indian consumers. We are confident that Popeyes will not only delight guests but also strategically complement our portfolio and fortify JFL’s leadership in the QSR domain.”
Popeyes will start with its flagship store in Bengaluru’s Koramangala on January 19, followed by stores in New BEL Road and Kammanahalli soon thereafter. The brand will have its own app (Android and iOS) and mobile website.
To ensure a smooth and seamless delivery experience, Jubilant FoodWorks has built its in-house delivery fleet with e-bikes to enable zero-emission delivery. The company is also taking precautions given the pandemic situation.
“Safety protocols like daily temperature screening for all employees and frequent sanitisation of the restaurant are being implemented and frequent sanitisation of bikes will be conducted. All delivery riders will be compulsorily wearing face masks and gloves while following the frequent hand sanitisation protocol,” it added.
Source: moneycontrol
admin
June 19, 2020
“The industry has no reserves. And now with all the constraints from the curfew to the liquor ban to the reduction in the capacity we are all going to lose money for a few months. On top of the losses during the lockdown, this is very hard to recover from and hence many are closing,” said AD Singh, the founder and Managing Director of the Olive Group of Restaurants.
New Delhi: The restaurant industry fears 30-40% eateries (from the organized sector) will shut down shutters soon out of the half a million present in the larger cities. Popular restaurants in Khan Market, New Delhi have already announced closure and many to follow suit, as shared by industry sources.
Some ground realities
“The industry has no reserves. And now with all the constraints from the curfew to the liquor ban to the reduction in the capacity we are all going to lose money for a few months. On top of the losses during the lockdown, this is very hard to recover from and hence many are closing,” said AD Singh, the founder and Managing Director of the Olive Group of Restaurants.
It takes no science to understand why the restaurant industry is the worst hit as opined by the industry experts. The industry which thrives on socializing and creating good times with family and friends is surely the worst hit where maintaining social distancing now is the norm. Besides, one of the primary reasons for the closing of restaurants is that it’s a capital intensive business wherein the daily churn is required to get going.
National Restaurants Association of India (NRAI) President Anurag Katriar said the sustainability cost is very high in the restaurant industry. There is no working capital and there is uncertainty in business volumes going forward. The volume is expected to be subdued as will need cash to fund losses that restaurants are unlikely to get. Further, the operational cost including the rentals is very high to afford.
Even if the restrictions are not there, customers at this time will not be in that state of mind to dine out. Economic factors as well as the fear of spending some good amount of time (40 minutes to one hour) in a closed environment where many strangers will come and go does not look feasible for consumers.
Also, high rental is another cascading factor in the operating cost. Moreover, with the kind of guidelines to operate a restaurant business these days, many would not have the capability to follow such guidelines of social distancing and fewer footfalls, no liquor, etc.
“Eating out at restaurants is not a necessity, by and large; it’s a part of discretionary spending when you go out, socialize ― it’s all part of that. If you are not in a secure mind-frame about your future income, you will be as conservative as possible, and these are the kinds of expenditures that get knocked out first,” said Devangshu Dutta, founder, Third Eyesight.
“The restaurant industry was always a high mortality rate industry but the effects of the pandemic has been devastating. Some estimates say that 25-40% of restaurants may never open and even those that open will have to deal with low sales for a few months,” said Zorawar Kalra, founder of Massive Restaurants.
“I see the cost to sustain closure is very high. Many don’t have any resources which will impact the industry in such a way that 30-40% of restaurants will not reopen,” Katriar said.
Maintaining the utmost care in health and hygiene measures may prove a double whammy for restaurateurs. Firstly, it will add to their operating costs but they won’t be able to do away with this measure-as this is the only way to bring back consumer confidence. Adopting digital menus and digital payment solutions is another area they will have to travel around.
What’s in the offing?
Maintaining the utmost care in health and hygiene measures may prove a double whammy for restaurateurs. Firstly, it will add to their operating costs but they won’t be able to do away with this measure-as this is the only way to bring back consumer confidence. Adopting digital menus and digital payment solutions is another area they will have to travel around.
Besides, working with 50 percent or less of total capacity to ensure social distancing, the restaurants will probably have to get on the apps that provide online reservations, pre-ordering, and waitlist management to help minimize the queue of people waiting to be served. Popular restaurants have already started with thermal scanning for employees as well as consumers.
So, in the post COVID era, thermal scanning will be the new metal detection initiative that the restaurants will have to partake.
“Restaurants will have to opt for digital menus, contactless food, and sanitization among others. And with 50 percent occupancy, no alcohol and reduced working hours-restaurants will not make any money,” said Riyaaz Amlani, MD of Impresario Handmade Restaurants and the former President of NRAI.
Source: etvbharat
