Uber unleashes on-demand ice cream promotion in India [ Transfreez Mobile Refrigeration - India's Most Effective Refrigerated Trucks ]

BANGALORE: Uber's customers in India will be able to order ice-cream on Friday using the taxi hailing app on their smartphones.

The initiative, which is highly popular in countries where it was offered earlier, will be only for one day in the six cities, including Bangalore, Delhi and Mumbai, where the US-based company currently has operations.
"Amidst the heat wave, this kind of an offer seems very exciting," said Delhi-based Ankita Patnaik, who routinely uses the app to hail cabs. In Bangalore, Delhi, Mumbai, Pune and Chennai, the offer is priced at Rs 700. At Pune and Hyderabad, it's lower at Rs 450.

"Ice cream takes people back to their childhood and we want our users to enjoy that experience at the push of a button," said Bhavik Rathod, general manager at Uber Bangalore.

Globally, Uber is known for its promotional strategies like delivering kittens-on-demand. In India, the company has run several promotional campaigns, including on-demand rides with cricketers Brendon McCullum and Faf du Plessis in Delhi. Uber has tied with premium ice cream brand Haagen-Dazs for the initiative.

For their part, Indian taxi service providers are also coming up with their own promotions. Taxi aggregatorTaxiForSure has tied up with a Bangalore-based lounge to offer free drops to its customers who participate in its selfie campaign on Friday.

Uber is backed by cash-rich companies Goldman Sachs and Google Ventures, among others, and is reported to have clocked over $1 billion (Rs 6,000 crore) in gross bookings last year.

Thawing market prompts demand for ice cream to soar [ Transfreez Mobile Refrigeration - India's Most Effective Refrigerated Trucks ]

New data indicates that India’s ice cream market is the fastest growing in the world, as the product quickly becomes part of the country’s modern culture.
However, according to the report by Canadean, the rise of ice cream comes on the back of sheer weight of numbers, with per-capita consumption still the lowest across all major global markets in 2013.

Though this is set to quickly rise as more Indians visit the growing number of ice cream parlours and take a greater interest in packaged frozen goods from supermarkets and the increasing number of kirana stores with cold storage.

Changing perceptions

Traditionally, the Indian ice cream market has been dominated by the impulse category, with consumers seeing the product as an occasional treat for the hot summer season.

However, the growth of ice cream parlour culture in India is causing this perception to change, leading to a greater demand for take-home products as more Indians enjoy their ice cream throughout the year and not just during the summer.

Indian consumers prioritise the fun that ice cream products can offer above all else. As a result, the desire among Indian consumers to create fun sharing occasions will cause sales of take-home ice cream to rocket, growing at a compound annual growth rate of 15.5% from 2013-2018.

India also experiences an above-average need for ethical ice cream on account of the large vegetarian and Hindu population in the country, and its increasingly active internet users are creating new opportunities for brands.

According to Catherine O’Connor, senior analyst at Canadean: “Buoyed by rising disposable incomes, increasing home-freezer ownership, and the growing reach of cold-chain distribution pathways in the country, the time is now for the Indian ice cream market.”

Ice cream parlours are a booming business in India, and this popularity is making its way to retail. “Manufacturers of packaged ice cream can tap into the popularity of the parlour by presenting fun products for sharing occasions, as well as ice cream party kits that allow consumers to add their own toppings to products, creating a fun, novel experience for all the family to enjoy together,” added O’Connor.

Chains like Baskin Robbins and Mövenpick have recently extended their menus with cakes, coffee and sandwiches to capitalise on high footfall.

Baskin Robbins has also been devising a “celebration” category that will offer ice-cream cakes and rolls, while Mövenpick has been adding locally produced allied products, like waffles and sandwiches to its imported ices.

However, market potential and corporate optimism have yet to translate into soaring sales this summer with some ice cream chains reporting a poor season.

“Dust storms in Delhi were not conducive and have taken its toll on ice-cream sales. Sales did not live up to our expectations during May,” Nitin Arora, chief executive of Delhi-based Creambell, told The Hindu.

Transfreez Mobile Refrigeration

India's Most Effective Refrigerated Trucks

Keeping Milk Fresh — With Frogs [ Transfreez Mobile Refrigeration - India's Most Effective Cold Plate Refrigerated Trucks ]

Before modern refrigeration, people dropped frogs in their milk to preserve it. 

Long before modern refrigeration, people in Russia and Finland reportedly placed living Russian brown frogs in milk to keep it fresh.

It turns out the curious practice has a basis in science: Recent research on the amphibians’ skin secretions led by Moscow State University organic chemist A.T. Lebedev shows they’re loaded with peptides, antimicrobial compounds as potent against Salmonella and Staphylococcus bacteria as prescription antibiotics.

To your health!

Transfreez Mobile Refrigeration - India's Most Effective Cold Plate Refrigerated Trucks

Source: Discover Magazine

Ice-cream sales will sizzle despite higher prices [ Transfreez Mobile Refrigeration - India's Most Effective Cold Plate Refrigerated Truck ]

With manufacturers such as Amul, Mother Dairy and Vadilal deciding to pass on the increase in cost to consumers, ice-cream prices have gone up 10-20 per cent.

Yet, ice-cream makers are betting on higher sales this year with the forecast of a prolonged summer due to El Nino. “We increased prices in January by 10-13 per cent due to rise in input prices, mainly milk,” said RS Sodhi, Managing Director of Gujarat Co-operative Milk Marketing Federation, which owns the Amul brand.

Sodhi said Amul uses fresh milk to make ice-creams and claimed a market share of 40 per cent across India.

The price of milk powder, a key ingredient, has almost doubled over last year to around ₹280 a kg, forcing ice-cream makers to hike prices, while other input costs have also risen.

Vadilal Industries has hiked prices by 7-9 per cent, said Managing Director, Rajesh Gandhi. For products on which prices cannot be raised, the company has tweaked its packs by reducing volume and size.

“The summer is expected to be normal and estimates are that the industry is expected to see 20 per cent growth, which will be good since last year the early monsoons had impacted the growth of the ice-cream industry,” Gandhi added.

Ice-cream consumption is much lower in India compared to developed countries. Indians, on an average, eat about 400 ml of ice-cream annually, while Americans consume 14 litres and the Chinese, 2.2 litres.

By Euromonitor estimates, the ice-cream market is expected to touch $1.1 billion (around ₹6,100 crore) by 2017. The current market size of the organised sector is estimated at ₹3,500 crore.

Subhasis Basu, Head of Dairy Products at Mother Dairy, said his company has hiked prices for some categories while it is considering increasing for others soon. “We have tried to absorb much of the input costs,” Basu said, adding that price hike was 15-20 per cent depending on products.

Creambell, owned by the Ravi Jaipuria promoted RJ Corp, also raised prices 8-10 per cent at the strat of the year. “If the weather patterns are not erratic, we expect the industry to grow at 15-20 per cent this year,” said Nitin Arora, CEO.

Transfreez Mobile Refrigeration - India's Most Effective Cold Plate Refrigerated Truck

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Source: The Hindu Business Line

Pabrai’s Fresh and Naturelle Ice cream now in spice-flavoured variants [ Transfreez mobile refrigeration - India's most effective Cold Plate Reefers ]

Pabrai’s Fresh and Naturelle Ice Cream has launched a range of spice ice creams in flavours such as ginger and honey; aniseed (saunf); cinnamon; Matcha green tea; Sichuan peppercorn; Wasabi and lemon grass.

Besides these, there are Five Spice and sandalwood ice cream. They are available in sugar-free variants at both outlets of Pabrai’s Fresh and Naturelle - Central Market, East Patel Nagar and Connaught Place Outer Circle (opposite Haldiram’s).

Transfreez mobile refrigeration - India's most effective Cold Plate Reefers

Source: fnbNews.com

Dhavalikar launches Goa Dairy's ice cream range [Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers]

PONDA: Urging Goa Dairy not to entirely depend on milk supply from local farmers, cooperation minister Pandurang 'Deepak' Dhavalikar has asked the dairy to be self-reliant by starting its own cattle farm to get uninterrupted milk supply to manufacture dairy products.

Dhavalikar was speaking after launching Goa Dairy's ice cream range during a function held at Ponda on Tuesday evening.

The dairy has launched family packs, part packs, big and small cups, chocobars, dolly, kulfi, cones, cassattas in vanilla, strawberry, mango, butter scotch and pista flavours. "The dairy is producing about a tonne litre of ice cream per day and if the demand increases, the dairy has a plan to increase the production to two fold," dairy MD N C Sawant said.

Speaking further, Dhavalikar said, "Several private dairies may come in the state and take away milk from local farmers. In such a case Goa dairy should have its own animal farm with around 2,000 milk producing cattle like the dairies in other states," Dhavalikar said. Stating that although the government would be there to help the dairy, Dhavalikar said that the dairy authorities must not think that the government would always launch schemes and farmers would continuously supply milk to it. The dairy should think of how it would get continuous supply of milk throughout the year, the minister asserted.

Speaking on the occasion, Ponda MLA Lavoo Mamledar said that earlier people were reluctant to eat ice creams in winter, but now ice creams are widely eaten throughout the year, adding that the dairy must maintain standards and quality of the ice creams.

Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers

Source: Times of India

Strawberry welcome for tourists to Maharashtra [Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers]

Remember the Beatles hit ‘Strawberry Fields Forever’? Head for Maharashtra, where, after mangoes, grapes, oranges and chickoos, the western Indian state is now wooing tourists with another trademark fruit - luscious, juicy red and dark pink strawberries.

In a first, a nine-day Strawberry Festival got under way over the weekend across the state in select malls to promote it as a tourist destination through strawberries.

"We have selected five centrally located malls in Mumbai, Pune, Nagpur, Nashik and Aurangabad where the farmers will directly sell their produce to the customers during the festival," Nayna Bondarde, Maharashtra Tourism Development Corporation (MTDC) regional manager at Pune said.

The timing could not have been more apt - markets across the state are flooded with baskets of the fresh fruit which are lapped up by the people, though the prices are a bit on the higher side this year.

Restaurants and ice-cream parlours have joined the fray by adding fresh strawberry as a must item on fruit salads, ice-creams, crushes, juices and milkshakes on their regular menus.

Until now, the Strawberry Festival had been celebrated on a modest scale in the Mahabaleshwar-Panchgani twin hill-stations and Pune, but now, with MTDC backing, it has been catapulted on the state`s tourism map.

"After all, Maharashtra produces around 30,000 tonnes of strawberries annually worth more than Rs 100 crore ($16 million)," Strawberry Growers Association of India President Balasaheb Bhilare said.

This accounts for around 80 percent of the country`s total strawberry produce, with Mahabaleshwar-Panchgani topping in terms of size, taste and quality, he added.

Being a delicate, highly-perishable commodity, around 80 percent of the production makes to the dinner tables, Bhilare said.

The remaining around 20 percent is used for commercial foods production like jams, jellies, confectionery, squashes, juices, ice-creams, and the like, through some of the big players like MAPRO, Mala, Manama, Pure Berries and Madhusagar and smaller companies mostly based in and around Satara district.

Explaining the rationale behind the fest, MTDC General Manager Kishori Gadre said that strawberry needs to be promoted aggressively both among the people of the state and other domestic markets.

"Already the state is famous for its mangoes which are being savoured across the country and even globally. But strawberry being highly perishable needs faster consumption; What better way than tourists coming to Maharashtra to enjoy the fruit fresh?" Gadre said.

Accorded the Geographical Indication (GI) Tag since 2010 (akin to a patent), Bhilare said that strawberry needs a stable, cool but dry climate of 18-25 degrees C to thrive and this is available mostly in the Mahabaleshwar-Panchgani mountains in western Maharashtra.

As far as festivals go, strawberry joins the list of fruits like mango, orange, chickoo and grapes which are celebrated annually in the state. The grape festival has an added incentive - coinciding with wine production - which has successfully lured tourists.

Bhilare said that the main strawberry growing season is October-March on around 3,000-4,000 hectares in the region, engaging around 5,000 farmers.

"It starts after monsoon and ends as the temperature starts warming up. Though it takes around two months to grow and ripen, we can manage only a single crop per season," Bhilare said.

Efforts to increase the output by two or even three crops per season would entail heavy investments in technology and related aspects, which is not at present possible.

"We lack proper cold storage facilities at various points; so we are not able to exploit the export potential and earn forex for the country. But, now with FDI in retail, we are starting to deliver strawberries from the farms to homes directly with great benefits for the growers and consumers," Bhilare explained.

Efforts are also under way to identify other areas in the country for growing strawberry. Himachal Pradesh, Uttaranchal, Haryana, Rajasthan, Karnataka and Tamil Nadu are growing the fruit in small quantities, while experiments are under way to grow it in Arunachal Pradesh.

Globally, strawberries are grown in huge quantities in Australia, the US (California and Florida), Italy, Germany, Spain and France.

Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers

Movenpick opens ice cream boutique in Delhi [transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers]

Every success story begins with a dream. And what if that dream is all about ice creams? Well, it cannot get any better! 

When Ueli Prager, the son of a Swiss hotelier opened the first ice cream boutique in Zurich in 1948, he didn't know how far his empire of ice creams will take him. Today, the Movenpick Ice creams can be found in over 300 boutiques across Europe, Asia and Australia.

Now, the good news is Movenpick has launched some stunning dessert creations in Delhi. After expanding its retail presence in Kolkata and Chennai, the boutique featuring a range of 18 ice cream and sorbet flavours, has opened its doors to all ice cream lovers in the capital. At the launch party, Dennis Koorey, Country Business Manager- Movenpick, Australia talked about carrying forward Ueli's vision and assured Delhi-ites of the gastronomic delight that every ice cream scoop guarantees.

We spoke to Tarun Sikka, Managing Director, Star Foods Specialty (Partners and Distributors for Movenpick in India) about the launched flavours and what sets them apart. "All our ice creams are made using natural ingredients with no artificial colours, flavours or additives. Our mangosorbet, for instance, only uses Alfonso mangoes from India, the cocoa used in our swiss chocolate is sourced from a very special region of Venezuela renowned for the finest cocoa in the world," explains Tarun. Are there any new combinations of flavours that people have never tried and can look forward to? "Out of the various flavours- 'Blackcurrant & Cream' is a must-try. It consists of the smoothest swiss cream paired with a delicate velvet textured blackcurrant sorbet, enhanced with blackcurrant morsels for an extra touch of fresh fruit succulence. 'Double cream and Meringues' is another delectable variety one should not miss. This is made with a kind of swiss double cream sourced from a traditional producer of the dairy in the Gruyere region. The caramel coulis (thick sauce) adds a sweet note of contrast and fragments of meringues add a satisfying crunch," says Tarun.

Other flavours include:

Mango Sorbet Scoop: Juicy sun-ripped mango pieces make this sorbet a delicious offering.
Maple Walnut Scoop: Delicate caramelized walnuts and premium maple syrup make this ice cream a pure pleasure for all nut fans.
Swiss Chocolate Scoop: Swiss chocolate shavings blended in a creamy ice cream- a true tasty treat for chocolate lovers.

If, for some reason you do not find time to visit the boutique, you could try the following easy-to-make recipes at home and relish the goodness of each flavour with friends and family:

Recipe: Ice Coffee

Flavours: Espresso Croquant
Sauce: 20ml Coffee Sauce
Garnish: Coffee Beans/Wafer biscuit/Whipped Cream

Method:
-Add 15 ml coffee sauce in base of glass and roll the glass to make a nice coffee sauce base decoration
-Add whipped cream to half way mark of glass
-Add 2 scoops of Espresso Croquant ice cream into glass
-Add a wafer biscuit and whipped cream in between side of glass and ice cream scoop
-Drizzle with coffee sauce and garnish with coffee beans

Recipe: Romanoff

Ingredients
A scoop of vanilla ice cream
A scoop of strawberry ice cream
Sliced strawberries
Strawberry sauce
Whipped cream
Mint leaves
A tall glass

Method
Take a tall glass, put some strawberry slices and pour a little strawberry sauce. Add a scoop of vanilla and strawberry ice cream. Add some more strawberry syrup on top. Garnish with whipped cream, mint leaves and strawberry slices.

Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers
Source: The Times of India

Unorganised ice cream players’ issues - high taxation & poor logistics

The unorganised ice-cream sector in India - which is estimated to be worth Rs 3,200 crore - is grappling with four problems, namely the high rate of taxation levied upon them by the government; inadequate logistic support, the lack of electricity and the fact that there is a lack of control on this segment of the industry.

Vijay Vasant Gaitonde, proprietor, Jyot Dairy, Mumbai (which sells the sweet treat under the brand name Festival Ice Cream), stated that there are about fifteen organised players and at least 15,000 unorganised players in India. “It is growing at about 20% per annum,” he said. A small firm that started operations in 1994, Jyot Dairy plans to expand in the future.

However, Tarun Sikka, managing director, Star Foods Specialty - which brought the Swiss brand Movenpick (which was established in 1961) to India - said that about 60 per cent of India’s ice cream brands constitute the organised sector (which is estimated to be worth Rs 10,000 crore, and includes the likes of Amul, Unilever and Creambell). 

“The unorganised segment comprises regional players who cater to specific geographies - either a group of cities or states - through small stores,” he added.

Gaitonde said, “We do not export ice cream, but we have collaborated with Sweetheart Ice Cream, a brand based in the United Kingdom. We would also start our export division shortly.”

Problems the sector faces

Movenpick is in the super premium dessert segment, whose biggest cause for concern, according to Sikka, is the rising cost of real estate. “To have our presence in the most upmarket locations in major cities has become an expensive affair. But to sell a premium product, we need to be in the right space, and it is not easy to find a space that strikes a balance between location and rent,” he added.

Regulatory norms

Gaitonde and Sikka stated that as was the case with every category of food products, ice cream was also under the purview of the hygiene norms laid down by the Food Safety and Standards Authority of India (FSSAI), the country’s apex food regulator.

Flavours

Gaitonde said, “Festival Ice Cream is currently available in about 75 flavours, and additions are in the pipeline. To the best of my knowledge, we are perhaps the only company who do not only manufacture ice cream, but two Indian variants of the sweet treat - kulfi and sancha - under one roof.”

In India, Mövenpick range includes 18 flavours of ice cream and sorbet; ice cream dessert creations; gourmet selections; sundaes shakes and fat-free refreshments. “Some of the ice cream flavours served are Vanilla Dream; Swiss Chocolate; Strawberry; Maple Walnut; Cappuccino; Mint Chocolate; Hazelnut; White Chocolate; Banana; Pistachio; Mango; Raspberry and Strawberry; Coconut and Swiss Chocolate; Panna Cotta; Black Currant and Cream, Mango and Cream and Black Currant.

No Indianisation

When asked if Movenpick plans to alter their flavours to suit the Indian palate, Sikka stated, “I don't believe we need to. Indians are now looking for premium tastes with international quality and standards. Mövenpick has a unique Swiss offering that has been well-received in over 40 countries around the world. Our mission is not to try and offer an Indian version of our brand, but to simply showcase Mövenpick's unique brand and its uniformity. Indians have always been passionate about food, and we hope the response to our gastronomic delights would be good here.”

Product differentiation vis-a-vis the competition

“The ice cream variants of our company are unique and are not comparable to any rival product. What makes them stand out is their taste, coupled with a mixture of tradition and technology used to make them,” Gaitonde stated.

“There are three key dimensions to Mövenpick ice cream that differentiate it in the market,” said Sikka. 

“The first is our passion for gastronomy. Mövenpick is an ice cream made by chefs for chefs. It was created for fine dining restaurants in Europe, and that region’s gastronomic heritage is at the heart of all our unique recipes. It is this that allows us to create flavours such as Tiramisu, Panna Cotta and Crème Brulee, to name a few,” he added. 

“The second dimension is our all-natural policy. All our ice cream is made only using 100 per cent natural ingredients with no artificial colours, flavours or additives. Only the finest ingredients, sourced from all over the globe, are used in our recipes,” Sikka stated.

“For instance, our mango sorbet only uses Alphonso mangoes from India, and the cocoa used in our Swiss Chocolate is sourced from a region in Venezuela renowned for the finest cocoa in the world,”.he pointed out. 

“Our third dimension, of course, is Swiss perfection - all our ice cream is made there. Only Swiss cream is used, and it adheres to an exacting standard,” Sikka said.

Packaging

Festival Ice Cream is packed in ITC board packs. Gaitonde said, “Ice cream is stored at a low temperatures in order to increase its shelf life.”

“Star Foods Speciality has invested heavily in the supply chain so as to ensure that there is always a cold chain for the ice cream, no matter what part of India we ship to,” Sikka added.

-Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Refrigerated Trucks

Akshay Kalbag, Mumbai

HUL launches Magnum ice-cream in two more cities [Transfreez Mobile Refrigeration- India's Most effective cold plate Reefer Trucks]

This is a bid by the company to expand its ice-cream portfolio, which has products under the Kwality Walls range

The country's largest consumer goods company, Hindustan Unilever (HUL), has begun the national rollout of Magnum ice-cream, the world's largest-selling stick variety. It was launched here and in Hyderabad last week, after an introduction in Chennai last April.

This is a bid by the company to expand its ice-cream portfolio, which has products under the Kwality Walls range. Magnum is expected to be taken to other metro markets, including Pune and Bangalore. It is positioned as a premium product, priced at Rs 85 a stick. In Mumbai, the product, made of Belgian chocolate and available in three flavours, is being pushed across retail outlets, in both modern and traditional trade.

In his first public address last week, HUL's new managing director and chief executive officer, Sanjiv Mehta, had said he expected Magnum to do well in this city. "For urban places, a brand such as Magnum should do well. Our whole idea is to see how we get our business model in place, so that we can expand at a faster pace."

HUL has appointed noted film actress Kareena Kapoor as brand ambassador for Magnum; it has begun radio spots promoting the brand in Mumbai. In the south, actress Trisha Krishnan endorses Magnum, having launched the product in both Chennai and Hyderabad. This strategy of using multiple celebrities to endorse Magnum, which gives Unilever (HUL's foreign parent) two per cent of its overall revenue, is something the former has been doing across markets.

In the US, for instance, Hollywood actresses Eva Longoria, Liv Tyler and Eva Mendes endorse the product. The company also has names such as Elizabeth Hurley on its list of endorsers. Despite coming well above the Rs 5-50 price band in which regular cones, bars and sticks are available, Magnum is said to have done well in Chennai, a market HUL used largely as a test ground to gauge consumer response.

Analysts, however, say the road ahead might not be easy, given the presence of entrenched and competitive entities such as Amul, Mother Dairy and Vadilal in the segment.

Unilever is the world's largest ice-cream maker, with products such as Cornetto, Breyers and Ben & Jerry's retailing under its Heartbrand range. In India, HUL's Kwality Walls competes with Amul (the leader), Mother Dairy and Vadilal, in a roughly Rs 2,000-crore market.

Amul has 40-45 per cent of the organised ice-cream market in India. It has kept a lead over rivals with aggressive pricing, distribution and launches. Analysts say the roll out of Magnum across markets is expected to trigger a spate of launches by rivals at the premium end of the category.

[Transfreez Mobile Refrigeration- India's Most effective cold plate Reefer Trucks]

Viveat Susan Pinto  |  Mumbai  

February 25, 2014

Source: Food Navigator Asia

Ice Cream Market in India: Opportunities & Challenges [Transfreez Mobile Refrigeration-Name stands for Refrigerated Trucks of India]

The ice cream market in India is estimated to be around INR 2,000 crores, of which over 40% belongs to the organized sector growing at about 15% Y-o-Y. Amul leads the pack with about 36-38% market share (5% of its total revenues), followed by Kwality Walls & Vadilal with about 12-14% share each. These players not only have to fight the small local and cottage industry players, but also the fact that the Indian cuisine itself offers a large variety of desserts which are still preferred by most Indians. Due to this reason, the per capita consumption of ice creams in India is about 300ml per annum, 1.4% of that in US, and 13% of the world average, which can be seen as a huge opportunity in this sector in India attracting new regional and national entrants. However, an issue is the seasonal nature of this industry in India, especially true for the northern parts of the country. Bulk of the sales happen during the summer months of April-July, while the sales witness a significant dip during winter months of November-February. Additionally, the seasonality of events like marriages affects sales in a big way, although institutional sales provide some cushion. But what makes the situation worse is low supply of electricity, especially during the high demand summer months that affects the ice cream stocks. Once the ice cream melts, it is non-saleable, and drives retailers not to carry enough stocks – not an optimal situation given the not so favourable situation of cold chain in India. With the latest mandate for HUL to increase its foods revenue, they might also be focussing on out-of-home footprint through ice cream parlours, ice creams being a high growth category for HUL growing at about 31% last year. On one hand where Amul is trying to increase its reach by adding retail outlets to the tune of 15k to its base of 70k outlets, on the other hand HUL is focussing on new product launches and television campaigns for consumer activation. Half the market is driven by impulse purchase, and rest by family consumption at home and in-parlour sales. There are niche players in the parlour business, with Nirula’s being an established player in the north, and Naturals in the west; and then there are premium players like Baskin Robbins. Location is key here like in any retail business, to ensure enough footfalls and an optimal rental profile for sustained outlet level profitability. Brands are coming out with pro-biotic and low fat ice creams targeting the health conscious consumers, and also new manufacturing processes which reduce air content in ice creams giving more value for money to the consumers; but the acceptance for such products is still to be put to a proper test in the market. Overall, the ice cream market is heating up. What is to be seen is that for whom this heat helps in increasing revenues & profitability of players, or melts the aspirations in the sector. 

- Anurag Garg, TradeBriefs

[Transfreez Mobile Refrigeration-Name stands for Refrigerated Trucks of India]

Cold war [Transfreez Mobile Refrigeration-Name stands for Refrigerated Trucks]

The frosty world of ice-creams is seeing a rank outsider gunning for the top ranking

It was only launched a decade ago. But serial-entrepreneur Ravi Jaipuria owned Cream Bell has been growing at a blistering pace. Among the youngest pan-India players, it has already broken into the league of the country’s top five organised ice-cream brands.

Nitin Arora, CEO of Cream Bell, says, “In early 2013, we made it to the No. 5 position in India as we completed ten years of inception.” In the quarter ending September 2013, Cream Bell’s share was around 14-15 per cent in the branded ice-cream market.

But it is craving for more. “Our vision is to be among the top three ice-cream brands by the end of financial year 2017,” says Arora. “We aim to increase our market share to about 18-20 per cent,” he adds.  At 30 per cent, the company is growing at a faster rate than the industry’s 20-25 per cent. It hopes to end the current financial year with a turnover of ₹400 crore.

Ice-cream song

Started in 2003 under a technical partnership with French company Candia, Cream Bell gradually gained core competence to develop its own brand. Having perfected the strategy of collaborating with international brands in other segments, RJ Corp — the biggest PepsiCo bottlers, which runs brand Costa Coffee and Pizza Hut in collaboration — chose to develop its own brand for ice creams.                                   

The estimated ₹3,500-crore branded ice-cream market is fairly fragmented with big national players such as Amul and Hindustan Unilever and fairly strong regional players. Cream Bell believes it has several aces up its sleeve to grow its market share.

First it is looking to expand  production by 25 per cent. It has three plants at Baddi (Himachal Pradesh), Goa and one near Agra in Uttar Pradesh. “Our Goa plant caters to the West and the South. While our plants at Baddi and Kosi near Agra cater to the North. …we will look at a new production capacity to cater to the demand in the East,” he said. 

The product is available across most States. However, it has no presence in some markets such as Tamil Nadu and Kerala in the South and Gujarat in the West. Gujarat is a huge market for ice creams and Amul lords over it, while in Tamil Nadu Arun is still a dominant force.

Cream Bell executives say they will take the challenge to these markets at the right time. “For now we are looking to consolidate our position where we are present. But in the next 2-3 years, we are looking to enter these three States too,” says Arora.

Frosty relations

 Last year, the year-on-year growth of ice creams was lower owing to erratic weather trends and early monsoons. However, overall, ice-cream consumption in India lags global averages. According to industry estimates, each year Indians on average eat 200-300 ml of ice cream compared with 14 litres in the US and 2.2 litres in China. That’s one reason why most people vouch for the market’s potential. After nearly doubling in 2007-12, the market is expected to touch $1.1 billion by 2017, according to Euromonitor estimates in 2013.

 All the players believe that the summer of 2014 would shine brighter for them.  Subhashish Basu, Business Head — Dairy Products, Mother Dairy Fruit and Vegetable, said, “Our ice creams are present in the top 25 cities now, and this year we will be focusing on enhancing our market share.” The company is investing in cold-storage infrastructure and expanding in the 25 cities where it is present.

 Basu expects a higher CAGR this year compared to last. Euromonitor had noted that ice creams were the fastest growing category in packaged food in 2012, although it slowed in 2013 according to other industry estimates. But a lot depends on the warm summers, as ice creams are a seasonal product and an entirely impulse purchase, he added. Mother Dairy executives say they have an impressive line-up of innovative products for launch, but are understandably tight-lipped about the details.

 Similarly, HUL is reportedly planning to expand the presence of its premium ice-cream brand Magnum beyond Chennai. Other international brands such as London Dairy, Häagen-Dazs and Baskin Robbins are trying to make a dent in the ice-cream market.

Cream centre

 Ice-cream sales are largely driven by impulse buying, and a big chunk comes from out-of-home purchase.

 To tickle the imagination and taste buds of this set of consumers, Cream Bell executives are relying on new flavours, and innovative and premium products.

The company introduced more than 18 new products during the scorching 2013 summer. To appeal to the calorie-counting, health-conscious set, it introduced the Sach Much (means ‘genuine’ in Hindi) brand. On offer is fruit pulp, as opposed to flavoured ice, in an ice-cream candy format in mango, strawberry, litchi and raspberry variants.  Also on offer are ice-cream cakes and smoothies, besides a premium range sold under sub-brand Maxxum (not Magnum, sold by Hindustan Unilever).

 As the concept of frozen yoghurt is gaining ground, the company has launched pro-biotic products such as Zero Vanilla and Strawberry, which have no added sugar for the health-conscious. According to consultancy Technopak’s estimates, frozen yoghurts now constitute 10-12 per cent of frozen dessert sales, and this is expected to more than double in the next five years. 

 Cream Bell believes its products are in line with rapidly changing consumer preferences. It will invest about ₹275 crore during 2010-15. “We have already invested about ₹200 crore in capacity expansion and R&D,” says Arora, adding, “We believe having an in-house production facility as well as research and development gives us an edge and is our core competence.”

Beyond India, the company has international ambitions too. In Africa, it has a major interest in the dairy market and is using those credentials to introduce its ice cream in that continent. “We are gradually introducing brand Cream Bell in countries like Uganda, Kenya, Zambia and Tanzania,” he says.

Besides bigger packs and tubs in premium flavours, the company has set its sights on experimenting with the home delivery format in places like Gurgaon. “In Gurgaon, we have nearly 600 households which regularly order ice creams from us. We will focus on growing the model there before introducing it in other metros,” says Arora. 

From parlours to home deliveries, what will be the next step in selling ice creams? Cold calls? Pardon the pun.

-BusinessLine, 06 Feb 2014

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