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Showing posts with label indian biscuit market. Show all posts
Showing posts with label indian biscuit market. Show all posts

Glucose Biscuits Looses Out To Cream Biscuits & Cookies

There  is a significant   shift in consumer buying habits  for   biscuits in India . Marketing  push for cream and cookies at  low price tags have paid  for , tier -2  cities and rural consumers have  now  shown interest in premium biscuit categories  like cream  and cookies .Parle -G  remains the largest glucose brands but with  low market share  as compared to previous years .We can see the biscuit manufacturers coming out with numerous  cream varieties. Britannia is aggressively marketing low cost  Tiger cream brand .Glucose biscuit market share  for entire biscuit segment  is  estimated to be 28% but is gradually losing out  to premium cream and cookies biscuit .


biscuit  market of india , Indian biscuit categories


We  can  place  following cream biscuits brands in three level  on price  comparison

Top premium cream biscuits

Pure  magic ( Britannia )   Dark Fantasy ( ITC )  Choco Kiss ( Unibic )


Middle  level cream biscuits

Oreo ( Kraft ) , Orange cream ( Mcvities ) , Bourbon ( Britannia ) , Bourbon ( Parle & ITC )

Bottom level

Kremes ( Parle )  , Treats (  Britannia ) , Tiger creams ( Britannia ) , Creams (ITC ) , Creams ( Priya gold )

With small packs  cream biscuits  are now available for rural markets  and people are buying out  these in large number instead of popular biscuits such as glucose biscuits .

This sales fig are  for  months  Apr -Sept  sales ( Nielsen data )  shows  the drop  in glucose biscuit sale
 
glucose biscuit market share
source - ET


Read  more on this
ET





PepsiCo Joins Kraft , UB & GSKB To Add Competiton In Indian Biscuit Market

"Decade of Biscuits " as rightly claimed  by  Nikhil Sen  , CEO  Unibic India and an old hand from Britannia  Industries ( Ex -COO) . Major Internatioal players are making beeline to untapped Indian biscuit segment  which have been dominated by two player  from long namely Britannia and Parle .  Kraft , United biscuits , GSKB ,Unibic and now Pepsi Co  have launched their product or planning to do so . Even Indian companies like  Shakti Bhog and now Marico  are planning to enter Rs 11,000 crore biscuit market  which is still dominated by unbranded products .Amul , India's  Dairy major  has  been news for its plan to explore  Indian biscuit segment . Consumers would see innovative products&packaging   as these companies would  try  to  lure  Indian consumers and garner market share .

A report
Forget cola war, PepsiCo now wants to battle it out in the Rs 11,000-crore Indian biscuits market that is getting chock-a-block with new entrants. The American food and beverages maker, which launched Aliva baked crackers in 2009, will start test-marketing oats-based premium cookies under its Quaker brand next month, two officials directly involved with the development said.

PepsiCo India is among a slew of domestic and international companies rushing to the fastest-growing processed food segment in the country, growing 20% a year, faster than noodles and potato chips. “The category will explode this decade,” says Nikhil Sen, biscuits industry veteran and MD of Bangalore-based biscuit maker Unibic India. American major Kraft Foods is expected to kick off its India foray with biscuits some time this year.


Source
The Economic Times

Parle Counters Competition With Plans To Increase Capacities

 Parle  have  taken on to competition  with  declaration  that it   would enhance its capacities in tune of 15 % . with  competitors planning for  expansions such as Britannia , ITC , Unibic  and new entrants  like Shakti Bhog and United Biscuits it has to be aggressive to protect its turf  . Parle has recently   being elevated itself to No-1  company   in  Indian biscuits  market  by volume of sales .

 

Article
Parle Products is extending its distribution network and increasing manufacturing capacity by a fifth to maintain its market share. The leading biscuit maker has been unable to meet the growing demand for its products through its distribution channels.

Praveen Kulkarnii, general manager (marketing) of Parle Products, said they had not been able to meet the demand due to supply issues. “We are increasing our capacity by 15-20 per cent. The franchisees for outsourced manufacturing would be making investment for capacity addition.”

Parle, which clocked a turnover of Rs 4,000 crore in 2009-10, markets products such as Parle G, Melody, Monaco and Krack Jack. The company is expecting its sales to grow by 15-20 per cent this financial year.

The company is looking at expanding the product portfolio by introducing newer categories. “Parle Top, which was launched recently, will be extended to other markets in a few weeks. We will be spending around Rs 5-10 crore for advertising,” said Kulkarnii.

The market is split between three major players — Parle, Britannia and ITC — and a clutch of regional players.

“We are aware of the increasing market share of our rivals. We are trying to plug in the gaps in distribution. We are beefing up our marketing strategies and promotions, advertising to woo consumers,” said Kulkarni


read more on 
http://www.mydigitalfc.com/news/parle-increase-capacity-strengthen-distribution-255

Parle Topples Britannia To Be No - 1 Biscuit Company

 News Report

Parle Vs Britannia - Parle Leads The Pack

Article in  TOI

MUMBAI: More consumers seem to be munching on Parle biscuits while sipping on their hot cuppa, which is probably why the company is said to have toppled Britannia Industries' numero uno position to become the largest selling biscuit company in India.

Last year, the Vijay and Sharad Chauhan-controlled Parle Products, which makes the ubiquitous ‘Parle-G' glucose biscuits, had attained volume leadership in the market. Now, with a total turnover of around Rs 4,000 crore coming from biscuits, Parle Products has emerged as the clear market leader, with a difference of almost Rs 1,000 crore. Britannia Industries reported a turnover of Rs 3,400 crore for the financial year 2009-10, with biscuits contributing around Rs 3,000 crore.

The Rs 5,000-crore Parle Products, which also makes confectionery products, draws 80% of its turnover from biscuits. Although Britannia Industries has disputed the fact that Parle has become the market leader, the cookie seems to be crumbling a bit for the Wadia-owned company. Going by the turnover numbers, Parle leads with a margin of Rs 1,000 crore over Britannia.

While the Chauhans did not respond to a TOI query, at least two people familiar with the matter confirmed the development. Parle Products' annual share (moving average total) in biscuits, sources told TOI, stands at around 45% as against Britannia's 38%. Historically, the biscuit pie was made up by one-third of Britannia, one-third of Parle Products and one-third of the balance share where other smaller brands lost or gained share.

In response to an email sent to Vinita Bali, MD, Britannia Industries, a company spokesperson said, "Britannia continues to lead the biscuit market in all categories except glucose, where it lost some share about a year ago and has partly recovered that. However, glucose as a category within the overall biscuit market has declined."

"Britannia has a large and diverse portfolio ranging from health & nutrition (e.g. NutriChoice Digestive, NutriChoice 5 Grain, etc.) on the one hand to delightful & indulgent products on the other (e.g. GoodDay, Treat, Bourbon, etc.), while Parle largely dominates the discounted glucose segment, whose share is declining in the overall biscuit market," the spokesperson said.

Britannia also said that The Nielsen Company, which tracks sales and market share numbers, does not cover all points of sale. "The growth rate it reflects for Britannia is, in fact, lower than the actual growth rate, by 3-4%. Relative position of Britannia and Parle, in terms of annual turnover, has remained constant over the last few years as per annual results declared by both the companies," the spokesperson said. 


Source : Times Of India 

Indian Biscuit Industry  Review 

United Biscuit buys SSFI in Himachal Pradesh


Finally UB ( United Biscuits ) ,UK has bought a SSFI unit in Himachal Pradesh to launch its product in India . Earlier in my blog I have reported news on United Biscuits moving into India and launching its product . It has been busy with building a team and time has come to translate into manufacturing .UB has got popular brands like McVities Hoola Hoops and Jacobs Cream Cracker .
United biscuit would test launch its product from this facility in first quarter of 2010 . The brands it would go in for world famous Digestive biscuit McVities . The Indian operations is headed by Jayant Kapare . For last year it has been scouting for manufacturing unit and now its has finally taken oven this biscuit manufacturing plant in Himachal Pradesh .
UB would have to face tough competition from already entrenched players like Britannia , Parle and ITC . UB has to work it out a recipe compatible with Indian taste and to market aggressively for brand recall.As history shows that Foreign brands could not make much headway in Indian biscuit market .
Product like Britannia Digestive , Marie Gold , Nutri Choice and ITC s Marie lite would give to tough competition . Indian biscuit market is worth Rs 6000.00 crore and fiercely competitive with dozens of local players apart from the BIG 3 ,namely Cremica , Priya gold , Dukes and Bisk farm.It would be interesting to see how Indian players respond to UB s McVities.

United Biscuits is owned by private global investment firm Blackstone and European private equity firm PAI .

Source ET
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Indian Biscuit Industry Review

India is the third largest biscuit manufacturing country after USA and CHINA .Estimated annual turnover of Indian biscuit industry is around INR 65.0 billion .Biscuit Industry in India is entering into competitive phase from period of two major players dominating the industry to number of player making mark on national scene and getting share of the market which is good for the industry.

Apart from Big 3( Britannia , Parle , ITC ) there are around 150 medium to small biscuit factory in India . These Industry are now facing problem from increase of raw material price. With Govt VAT upto 12.5% has added to their woes .
indian  biscuit  brands , indian biscuit industry , indian biscuit companies
Biscuit consumption per capita in India has grown to 2.1kg per capita in comparison to 10kg per capita consumption in USA ,UK and Europe . GCC has consumption upto 6 kg per capita .


According to IBMA, the biscuit industry in India witnessed annual growth as 15% in 2003-04, 14% in 2004-05 and 2005-06, 13% in 2006-07, 15% in 2007-08 and 17% in 2008-09. While the growth rate has been stagnating during last 4 years, it has picked up momentum during the 2007-08 and the first quarter of 2008-09 mainly on account of exemption from Central Excise Duty on biscuits with MRP up to INR 100 per kg, as per Union Budget for 2007-08.

The organized biscuit manufacturing industry‘s annual production were around 1.1 million tons in 2003-04, 1.25 million tons in 2004-05, 1.4 million tons in 2005-06, 1.6 million tons in 2006-07 and 1.7 tons in 2007-08.

Rural -Urban market penetration for biscuits has been 75%/85% for urban market and 55% /65% for rural market .

Branded /Organised to Unbranded/Un organised market share of biscuit has been 60% for Organised sector and 40% for Unorganised sector .

Biscuit consumption pattern in the country are Northern India 25%, Western India 23%, Southern India 24% and Eastern India 28%.

Export share is around 15% of total production .

Major types of biscuit popular in Indian market are Glucose , Marie , Cream, Crackers ,Digestive ,Cookies and Milk .

Major manufacturers are Britannia, Parle, ITC , Priyagold, Anmol, Sunfeast, Biskfarm, Dukes, Cremica, Priya, Veeramani, Bonn, Bhagwati, Raja, Champion, Sobisco, Madhabi, Nezone, Windsor, Cookieman, Ankit, Shangrila, Nalanda, Unibic , Cookie Man ,RajaBiscuit

Major  Multinationals  have  started  entering  into these lucrative market   major  names  are  Kraft , United Biscuits , Pepsi , Unibic , GSKB, Ceylon Biscuits  and  other new domestic  entrant  has been  Shakti  Bhog

Frontier biscuits - popular home made biscuits


Frontier biscuits factory pvt Ltd have adopted a unique selling preposition for itself .It has established itself as eggless home made biscuits and cookies .you can find its showroom in all major areas of capital,Delhi and Haryana . I have visited one of these exclusive show room it displays various cookies either in Jars or gift packs you can buy in both the options . Wide variety of products are available and it caters for indian palate . you can find kaju , ajwain , mango , coconut ,butter ,soya , besan ,milk , chocolate and other varieties .It has tried to brand the home made cookies market which is still popular in many part of our country


Established in 1921 it has grown in size and have created a niche for itself ,even today you can find people enjoying home made cookies .Showroom called as Frontier shopping zone is similar to Bikaneriwala or Haldiram showrooms except for the owner ship .Frontier shopping zone owners are like authorised dealers who have exclusive rights to sell frontier products in that area .They also produce eggless cakes , nan khatai , bhujia , rusk

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