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o open the gates of development and enhance the Indian food processing industry The Cabinet Committee on Economic Affairs sanctioned the centrally sponsored scheme titled "National TMission on Food Processing (NMFP)", and this has been done in co-operation with the state

governments in 2012-13.The NMFP schemehas a basic mission to help the states/union territories in maintaining requisite synergy between agriculture plans of states and development of food processing sector, which in turn would help increase farm productivity thereby boosting farmers' incomes. By bridging infrastructural and institutional gaps, this would also ensure an efficient supply chain.Thus 2012 can be denoted as a landmark year that brought the introduction of a mega scheme in the food processing sector which intends to provide much needed thrust to this sector in a big way. And also a National Food Processing Development Council (NFPDC) has been set up under the chairmanship of the minister of agriculture and food processing industry with representatives of state governments, industry associations and related government departments. this will provide guidance to all schemes of Ministry of Food Processing Industries (MOFPI) including the NMFP. The basic objective of NMFP is decentralization of implementation of ministry's schemes, which will lead to substantial participation of state governments/union territories. Beneficiaries of MOFPI schemes will also find it easier to deal with state governments. This would be a paradigm shift in the ministry's approach and is driven by the need to make food processing truly a national initiative. During 2012-13, schemes such as technology up-gradation, modernization of food processing industries, cold chain, and value addition and preservation infrastructure for non-horticultural products, among others, being implemented by the government directly will not be implemented through state governments under this scheme.The mega scheme caters to different aspects of this industry such as establishing of mega food parks, integrated cold chains and preservation and modernization of abattoir.Launching of National Mission on Food Processing (NMFP) is likely to have greater involvement of the State Governments and all stakeholders. NMFP focuses on food processing for enhancing farm productivity and farmer’s revenue. It facilitates in addressing both institutional and infrastructural gaps along the value chains. It also has provision for promoting skill development, training and entrepreneurship in post-harvest management. In the 11th Five year Plan a total allocation of Rs. 600 crores was provided for technology upgradation and modernization of food processing industries. The Ministry utilized almost the entire fund and has assisted over 3229 Food Processing Units so far. During the current financial year, an amount of Rs. 99.32 crorehas been released till 31.10.2012.Now for the year 2012-13, Rs. 250 crores has been allocated for NMFP for 2012-13, out of which an amount of Rs.179.39 crores has been released as 1st instalment of grant to the States/Uts. The funding pattern for NFMP is 75:25 by Govt. of India and States respectively, except for North Eastern States. For North Eastern States the ratio is 90:10 respectively. The UTs administered by Govt. of India are funded on 100% grant basis. Seventy Nine Cold Chain projects were approved to be taken up during the 11th plan, out of which 73 projects have been sanctioned by the Ministry in different parts of the country. 8 projects have already started commercial production.. Remaining projects are in various stages of implementation. During 11th Plan an amount of Rs.157.08 crores was released for the scheme and during the year 2012-13 (up to 30.11.2012) an amount of Rs.44.74 crores has been released.Government has recently approved to upscale the 11th Plan scheme to complete 8 approved on-going projects and to take up setting up of 25 new abattoirs and modernization of 25 existing abattoirs involving an estimated expenditure of Rs.330.84 crores. During the 11th Plan, an amount of Rs. 40.93 crores has been released. During the current financial year (upto 30.11.2012) an amount of Rs. 8.04 croreshas been released.The scheme for Human Resource Development envisages financial assistance by way of grant to Food Processing Training Centres (FPTCs), creation of infrastructure for running Degree/Diploma courses in Food Processing in Universities and Entrepreneurship Development Programmes (EDPs). During the 11th Plan an amount of Rs.23.92 crores was sanctioned for 34 infrastructure facilities, Rs.17 crores for 159 FPTCs and Rs.3.83 croresfor 994 EDPs.Under the scheme of strengthening of Institutions the Government in 2006 approved setting up of NIFTEM at an estimated cost of Rs. 244.60 crore including foreign exchange component of US $ 8.1 million. The National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) has been granted the Status of “Deemed to be University” under de-novo category by Ministry of Human Resource Development on 08.05.2012 and the academic session comments from 16.08.2012 for B. Tech (Food Technology and Management) and M. Tech courses.

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ContentsContents


Food processing ministry has approved 62 cold chain facility projects

Food processing sector fastest growing sub-sector last fiscal

How a transformed Mother Dairy is spreading its wings from Delhi to Dublin

38 cases of 'misguiding ads' on food items: Tewari

No tea trade without conforming to FSSAI parameters: Tea Board

Health foods Complan, Horlicks, Saffola's wrong claims exposed

Rabobank Report "Raj-accino" The Rise Of Coffee Culture In India

Baby food and child nutrition market in India

Vadilal enters flavoured milk market, looks at 5-7% share in three years

Indian ice cream market to grow of 17% during 2012-2017

Starbucks in India!

BY: Basma Husain

Companies Gear Up

As Health Canada Approves Stevia

As Additive For Food And Beverage Use

India and international year of cooperatives

The Implementation of

FDI In RetailA Debate of Blame,

Power And Triumph

SC seeks records of food safety panel on soft drinks

Our focus is to provide

better products & services and expanding into more markets

By Arif Fazlani

India's Retail SectorRipe for the Picking

Cadbury invents chocolate that 'doesn't melt'

by Freny Manecksha

Why lighting is important

in machine vision applications

Synthetic meat to be a new concept

Time for PPP model in food processing: Pranab

Tea Board steps to promote 'Indian Tea'

Vacuum frying reduces oil uptake & improves

the quality parameters of carrot crisps


News

like warehouses, storage facilities, schemes on technology upgradation and testing labs and fruit-ripening chambers, cold chains for non-horticultural crops, Rakesh Kacker, Secretary, Ministry of among others.

Emphasising the need to maintain Food Processing Industries, said.After inaugurating Mega Food Parks appropriate quality standards in the food Summit here, organised by the Ministry industry, Kacker said a newly created and Assocham, Kacker said the food body, Food Safety and Standards processing industry has consistently Authority, is playing the regulatory role registered growth rate faster than that in this regard.

"However, MoFPI was keen to start a registered by agricultural sector."Thus the industry was consistently process of self-regulation by industry. adding value to the agriculture sector," Towards this end, MoFPI was in touch he said. with apex industry organisations and On National Mission on Food trying to develop a system of self-Processing, Kacker said the mission was certification by food processing units. launched with the specific purpose of Quality Council of India has been tasked enhancing involvement of states in with drawing up a roadmap for this

ood processing sector has efforts to further the growth of the food purpose," he said.

emerged as the fastest growing processing industry. Initially, this will run parallel to statutory

sub-sector of the manufacturing F As a part of its promotional efforts to certification required to be obtained by sector during last financial year, a top push further the food processing sector units but eventually there could be official said. in potential states across India, Kacker blending of statutory and voluntary Food processing units, being set up in

said the Ministry of Food Processing certification, Kacker said.Mega Food Parks, would be provided

Industries has already finalised four with entire basic infrastructural facilities

After inaugurating Mega Food Parks among others.Emphasising the need to maintain Summit here, organised by the Ministry appropriate quality standards in the food and Assocham, Kacker said the food industry, Kacker said a newly created processing industry has consistently body, Food Safety and Standards registered growth rate faster than that Authority, is playing the regulatory role registered by agricultural sector.

"Thus the industry was consistently in this regard."However, MoFPI was keen to start a adding value to the agriculture sector," process of self-regulation by industry. he said.

On National Mission on Food Towards this end, MoFPI was in touch ood processing sector has Processing, Kacker said the mission was with apex industry organisations and emerged as the fastest growing launched with the specific purpose of trying to develop a system of self-Fsub-sector of the manufacturing enhancing involvement of states in certification by food processing units.

sector during last financial year, a top efforts to further the growth of the food Quality Council of India has been tasked official said. processing industry. with drawing up a roadmap for this Food processing units, being set up in As a part of its promotional efforts to purpose," he said.Mega Food Parks, would be provided push further the food processing sector Initially, this will run parallel to statutory with entire basic infrastructural facilities in potential states across India, Kacker certification required to be obtained by like warehouses, storage facilities, said the Ministry of Food Processing units but eventually there could be testing labs and fruit-ripening chambers, Industries has already finalised four blending of statutory and voluntary Rakesh Kacker, Secretary, Ministry of schemes on technology upgradation and certification, Kacker said.Food Processing Industries, said. cold chains for non-horticultural crops,

Food processing sector fastest growing sub-sector last fiscal

Food processing ministry has approved 62 cold chain facility projects


News

Mother Dairy has (NDDB). In 2000, Mother Dairy Fruit & been re-calibrating Vegetable Private Limited (MDFVPL) its Delhi-centric was incorporated as a wholly-owned approach over the subsidiary of NDDB to take over the years, expanding assets, functions and personnel of to other parts of the Mother Dairy Delhi and Fruit & country, and even V e g e t a b l e P r o j e c t . overseas. The top But it was in FY2007-08, on the m a n a g e m e n t recommendation of a study by today comprises Accenture, a corporate structure actually h i r e s f r o m started taking root. That year, Dhara m u l t i n a t i o n a l Vegetable Oil & Food Company companies who Limited, another wholly-owned bring in much subsidiary of NDDB, was amalgamated needed agility and i n t o t h e f o l d o f M D F V P L . leanness to an Soon after, taking cues from the study, organisation that three strategic business units (SBUs) - counts a million dairy, horticulture and oils - were created p e o p l e i n i t s and functional structures were designed. s u p p l y c h a i n Gradually, a fourth SBU, dairy products, ast month, a rep from the Irish

dispensing 30 lakh litres of milk a day. was incorporated. "The accountability Dairy Board dropped by at From selling commoditised milk to matrix was also fixed at that point of LMother Dairy's Patparganj plant exporting mangoes to Japanese time, implying each functional head was in East Delhi to shoot the breeze with customers or banana purees for sorbets accountable for everything in their Managing Director Siva Nagarajan. in the European market to identifying respective domains," says Saugata They met in the plush confines of the gherkins as an export item off Bangalore Mitra, Chief People Officer, MDFVPL, c o m p a n y ' s I n n o v a t i o n C e n t r e or even offering golgappa-flavoured who served Japanese consumer conference room and as the conversation kulfis at Rs 5 a pop to the domestic electronics majors Sony and Sharp progressed, Nagarajan --or Naga as he's consumer, Mother Dairy straddles an before taking up a position with Mother fondly called -- served up a pinkish cup enviable range. In its march to capture Dairy. All through the transition and of rice kheer to the Irishman. new markets and emerge as a leader beyond, the six-member board led by He devoured it in no time and asked for a across categories, the Rs 5,279 crore Chairperson Amrita Patel, has been second helping. Naga obliged and then company is hiring global consultants to more than supportive, says Naga. "This asked why he asked for another cup. It tweak its systems, keeping a mindful eye board has a sense of appreciation of what transpired that he had at the back of his on fair price to the farmer and value to the consumer wants and what the farmer mind rice pudding in Germany from a the consumer, the twin peaks that are has to go through. It understands fairness firm called Mulder. He wanted to do a embedded in the DNA of the company. and doesn't do anything with a short term mental comparison of the two products. T h e c o r p o r a t e m a k e o v e r point of view," says Naga, who has Naga made sure the meeting ended on a There's clearly a change in thinking from wide-ranging experience in theFMCG sweet note as the Irishman asked for tech a cooperative setup back in 1974 when space and worked with Philips before transfer for kheer and a bevy of other Mother Dairy was created as part of the signing on at Mother Dairy. He p r o d u c t s t h a t M o t h e r D a i r y 'Operation Flood' programme of the demonstrates with an example. m a n u f a c t u r e s . National Dairy Development Board

How a transformed Mother Dairy is spreading its wings

from Delhi to Dublin


38 cases of 'misguiding ads' on food items: Tewari

he Food Safety and Standards and Labelling) Regulations, 2011, Authority of India (FSSAI) has Tewari said.Tissued notices in 38 cases of Another matter that was filed pertained

dubious claims or misguiding to the Horlicks advertisement over the advertisements on food items and claim that the children consuming the prosecution has been launched in 19 product were "taller, stronger and cases, the Rajya Sabha was informed. sharper".In a written reply, Information and Another case was related to the Kellogs Broadcasting Minister Manish Tewari advertisement which claimed that also said that apart from these 38 cases, "research shows that people who eat low other instances that came before the fat breakfast like Kellogg's Special K, ministry were placed before an Inter- tend to be slimmer than those who Ministerial Committee. don't".According to details given by the According to Tewari, cases had also minister, complaints had been filed been filed against advertisements against advertisements of leading promoting many other brands.brands including one of Complan,

In response to another question, Tewari which claimed that one can grow two

said that the Press Council had times by using the product. The cases

registered 532 complaints on charges of have been filed for violation under the

baseless and provocative news reports Food Safety and Standards Act 2006 and

published in print media since April 1.Food Safety and Standards (Packing

release said here.n a bid to ensure quality and protect FSSAI was established under the Food the image of India tea globally, the Safety and Standards Act, 2006 as a Tea Board of India said no tea can be Istatutory body for laying down science-exported from or imported into the based standards for articles of food and country from February if it does not regulating manufacturing, processing, conform to the Food Safety and

distribution, sale and import of food so as to ensure safe and wholesome food for human consumption.Against the backdrop of various quality issues that have cropped up in recent years, the tea board has already taken firm steps to protect and enhance the image of Indian tea globally and to ensure that only tea worthy of the tagline 'Indian tea' is exported.Standards Authority of India's (FSSAI)

The board has recently established Tea parameters.Councils for both north and south India "Effective Feb 1, 2013, no teas can to put in place an online mandatory either be exported from or imported into mechanism to track all exports and India, without conforming to FSSAI imports of tea and ensure that quality parameters and teas would be subjected norms are enforced.to random testing," a Tea Board of India

No tea trade without conforming to FSSAI parameters: Tea Board

Health foods Complan, Horlicks, Saffola's wrong

claims exposed

ealth food products and cooking oil to biscuits are facing prosecution for Hwrong claims.

Think twice before you use a cooking oil that is good for heart and corn flakes that make you lose weight or a drink that makes your kids grow tall and have the memory of an elephant.

Food Safety and Standards Authority of India (FSSAI) under the Union health ministry probed the claims of leading food and cooking oil manufacturers. Based on the report, 19 brands now face prosecution proceedings.

It was found that the health value of a product in advertising and on the label were different. Food Safety and Standards Act (FSSA) says any nutrition value claims by visual or written as well as orally have to be backed by scientific data.

The FSSAI verified the labels on various food products, their advertisement in the media as well complaints from consumers. Based on this the companies were asked to come up with proofs to justify their claims.

FSSAI's three-member committee went through the replies and gave the report and ways to stop these companies from indulging in such acts. It asked the regional officers empowered to start prosecution. These products targeted the kids and promised height increase, more stamina and increase in memory power. For the adults, the promise of lowering cholesterol, improving cardiac health and solving obesity related issue were the common claims.Complan, a health drink brand, could not produce any data to show that those drank this grow twice faster. Horlicks with claim to make children “taller, stronger and sharper” too had no evidence. Ironically both these products marketed in the West makes no such claim. Only in India, kids are used on the cover of the food product Complan and Horlicks. Complan Memory which has images of kids with books has been booked for wrongly giving the impression that this drink gives students more memory power.Kellogg's Special K cornflakes is marketed as the ideal breakfast for those wanting to lose weight since it is a low-fat food. There is no scientific study to back this claim. Saffola oil is good for cardiac care and Britannia Vita Marie biscuits reduce cholesterol were the claims. None of them are found to have any such health benefits.

News


percent of consumers in India preferring to drink on-site rather than to take away (compared to around 60 per cent in the U.S.). Competition for industry manpower is likely to continue to be a

abobank has published a new For a burgeoning segment of the Indian challenge due to high rates of staff research report on the rise of the population, coffee chains are also attrition. On top of this, the sourcing of Rcoffee culture inIndia, due to the offering a new snacking/leisure o t h e r b e v e r a g e s , f o o d a n d

efforts of a few specialist coffee chains experience. These coffee chains offer an merchandising – all an essential part of and instant coffee players. experience similar to that in developed the coffee shop experience – continues

markets. The opportunities for coffee In a new report titled "Raj-accino," to be a problem as players struggle to chain growth arise from the favorable Rabobank's Food & Agribusiness establish quality, reliable supplier demographics – low per capita Research and Advisory group says that relationships.consumption and increasing income coffee drinking has spread across the India remains a tea drinking country, levels, the rise of mid-sized cities, and a country and consumption has doubled. with sales of the traditional beverage high population density with its Specialist coffee shop chains, which still outperforming that of coffee. With associated potential for expansion of the have established themselves as a growth in coffee consumption outpacing coffee shop network.'hangout' for urban youth, are projected that of tea however, coffee culture is

to reach 4,000 in numbers by 2015 (21% "The impressive growth expected of expected to continue to flourish for the CAGR). This growth is a result of specialist coffee chains in India offers foreseeable future.favorable demographics, rising income numerous opportunities for both local

The Rabobank report on the growing levels, rise of mid-sized cities and high and international players, provided that Indian coffee culture is available to population density. High real estate they can overcome inherent obstacles," media upon request.costs , manpower a t t r i t ion and says Nitin Kalani, Rabobank beverage Rabobank Group is a global financial difficulties in managing the supply chain analyst and author of the report.services leader providing wholesale and will continue to be the key challenges. Sourcing coffee beans is not the key retail banking, asset management, Although specialist coffee chains' barrier for specialist coffee chains, with leasing, real estate services, and contribution to India's total coffee coffee beans accounting for an renewable energy project financing. consumption by volume may not be insignificant proportion of the total cost Founded over a century ago, Rabobank significant, these coffee shops have of a cup of coffee. For example, the cost is one of the largest banks in the world, added more visibility to the coffee of coffee beans in a cappuccino is about with nearly $1 trillion in assets and culture. The first specialist coffee shop 8 percent of the sale price. To be operations in more than 40 countries. In by Cafe Coffee Day opened up in 1996, successful, operational efficiency (e.g., North America, Rabobank is a premier and the company has since grown to a managing rent and labor costs) is more bank to the food, beverage and market leading position, with 1,350 important than focusing solely on raw agribusiness industry. Rabobank's Food coffee shops spread across India. At material costs.& Agribusiness Research and Advisory present, there are around 2,100 specialist Real estate overheads are a major team is comprised of more than 80 coffee shops in India, and given that concern, with coffee chains facing analysts around the world who provide there are multiple international coffee strong competition for acquiring prime expert analysis, insight and counsel to shop chains trying to expand their base premises. Furthermore, coffee shops Rabobank clients about trends, issues in this important market, consumers are must be big enough to accommodate a and developments in all sectors of likely to have even more options within large number of people, with around 95 agriculture. www.Rabobank.com the next three years.

The Rise Of Coffee Culture In India

Rabobank report

The Baby Food and Child Nutrition Indian baby food and child Market in India is growing rapidly nutrition market, highlighting owing to the increased awareness among the market size and its growth in parents regarding proper nutritional well the upcoming years. It also being of their child. In the recent years, provides information about the the country has also witnessed growth in major players in the Indian the number of young working mothers market with their respective who suffers from shortage of time and market shares. In addition to

taken by the Government of India to has to depend on processed child this, survey results about consumer

facilitate growth of this sector is nutrition products. In addition to this, preference for child nutrition products

mentioned which include modification some major corporate activities such as and major brands in different baby foods

in Packaged Commodities Rules 2011, joint ventures, mergers and acquisitions categories are also provided. The next

Milk and Milk Product Order (MMPO ) by some of the top multinationals has section elaborates on the value chain

and other initiatives taken in terms of also taken place in this sector, which a n a l y s i s o f t h e s e c t o r .

custom duty relaxation in different indicates prominent signs of prosperity A separate section on import and export

industries that are related to this sector of the baby food and child nutrition of baby food and child nutrition products

e i t h e r d i r e c t l y o r i n d i r e c t l y.ma rke t i n t he coming yea r s . is also provided, highlighting the growth

The major trends identified in the sector The report begins with the introduction in import and export values over the

include innovation in product variants, section which offers a brief description years. Then, details regarding major

inclination towards health and wellness about child nutrition, its various aspects importing and exporting nations are also

foods, collaborations and acquisitions and its role in the proper development of p r o v i d e d .

and innovative brand building activities.a child. After this, the various factors An analysis of the drivers explains the

The competition section offers a d e t e r m i n i n g t h e n u t r i t i o n a l factors for growth of the industry that

competitive landscape of the players by requirements of a child are mentioned include increase in disposable income,

providing their financials and key along with the breakup percentage of increase in number of new born babies,

financial ratios. It also provides energy spent by a child on different increasing working women population

elaborate information regarding the activities. It is then followed by the and increased reach and availability due

organizations. Key financial parameters classification of the child nutrition to growing retail and pharma outlets The

constitute the financial performances of p r o d u c t s b a s e d o n d i f f e r e n t key challenges include regulatory

the players which are followed by compositions. It then moves into the challenges, rise in ingredient price, high

business highlights. Porters Five Forces market overview section, which p r i c i n g a n d c u l t u r a l a s p e c t s .

Analysis has been incorporated for a provides an overview of the global baby The next section speaks about the

brief but effective understanding of the food and child nutrition market with Government regulations for baby food

m a r k e t s c e n a r i o .details about its current market scenario and child nutrition products which

The report concludes with a section on and growth. Apart from this, the section include the Infant Milk Substitutes

strategic recommendations which also highlights about the major global (IMS), Feeding bottles and Infant foods

comprises an analysis of the growth players of this market in the infant Amended Act 2003 and the various

strategies for the baby food and child formula category along with their regulations by the Food Safety and

nutrition market in India.respective market shares. The next Standards Authority of India (FSSAI).section provides an insight about the In the next section, different initiatives


Baby food and child nutrition market in India

News


Vadilal enters flavoured milk market, looks at 5-7% share in three years

ce-cream and frozen processed on making Power Sip available at tourist Mr. Rajesh Gandhi, Managing Director foods major Vadilal Industries places, railway stations, bus stands, of Vadilal Industries Ltd added, “After ILimited has entered the Indian airports, schools & college canteens, etc. establishing the company as the second

flavoured milk market with its new This brand targets people on the move largest ice cream player and a leading Power Sip under the Vadilal Quick Treat who seek quick, healthy and hygienic player in the frozen processed foods umbrella brand. way to refresh and re-energise. In today's market, we are now strategically looking This new initiative is part of Vadilal's changing and busy lifestyle, market for at those segments which offer us value long term strategy to offer a wider range beverages in India is growing fast. chain benefits and strong growth. The of frozen food products to consumers Flavoured milk has become an flavoured milk segment fits in well with and its first major product launch in the experience which is relished by one and our wide distribution network and a beverages market, a press release from all. It has a huge potential to become a strong projected growth rate of 20% per the company said. regular drink among various age annum in future. With an extensive According to it, the potential for growth groups," the release said. distribution network of over 50,000 in the Indian flavoured milk is very good Mr. Devanshu Gandhi, Managing retailers, 250 stockkeeping units with an estimated annual growth rate of Director of Vadilal Industries Ltd said, (SKUs), 550 distributors and 32 CNFs 15-20 per cent. “Power Sip is being launched in across India, we are well placed to make "Vadilal will utilise its strong ice cream Ahmedabad first and over the next six Power Sip a successful national brand.” retail distribution network to make this months it will be sold across Gujarat. The release said Vadilal has strong new product a popular brand across Thereafter, we will introduce this new backward linkages with the farmer India over the next few years," it said. product in Maharashtra, Madhya community for milk procurement for ice The release said Power Sip will come in Pradesh and Rajasthan. Rest of India creams at its plant near Ahmedabad. a 180 ml bottle priced at Rs 18 with three From a small outlet in Ahmedabad over will follow in the second and third years. flavours - rose, elaichi and kesar. More 80 years back, Vadilal Industries Ltd has Our target is to capture 5-7% market flavours like chocolate, badam and today emerged as India's second largest share over the next three years and make coffee will follow in a few months. No ice cream player. The company is also Power Sip a Rs 30 crore plus brand. This preservative are used in Power Sip and it one of the largest frozen processed food is our first major launch in the non-ice has a long shelf life of six months, it said. players in India with significant exports cream dairy sector and we plan to "Flavoured milk is largely an impulse of frozen vegetables and ready to eat introduce more products in this space in category product and Vadilal will focus snacks, curries and breads. future.”

ncreasing affluence, a large young small/cottage industry are popular. In small study, an updated and far more extensive and population, product innovation, growing towns and villages, there are thousands of analytical version of our popular 2011 study, Iinstitutional sales, etc. are expected to be small players who produce ice creams/kulfis provides and draws upon a comprehensive

the catalysts in driving the Indian Ice Cream and cater to the local demand. The market for analysis of every major dairy segment in market in the coming years. Research firm the organized sector is restricted to the large India. The study, which has been undertaken IMARC Group expects this market to grow cities in the country. In the coming years, using both desk research and two waves of at a CAGR of 17% during 2012 - 2017, however, the penetration of organized qualitative primary research, has analyzed according to its latest report titled “Indian players such as Amul and Kwality Walls are three aspects of the Indian dairy market. The Dairy Market Report & Forecast: 2012- expected to increase in the rural and semi first section quantifies the Indian dairy 2017”. The report which has done a u r b a n a r e a s a s w e l l ” . market into fourteen major segments and comprehensive analysis of the Indian dairy According to the report, a notable shift in the investigates the current and future market expects the share of the organized consumption pattern of ice creams in India opportunities in each of these segments. The sector to increase significantly in the coming has been from impulse purchase by second section provides an in-depth years. According to an analyst at IMARC youngsters as fun food to its regular use as a understanding of dairy consumption patterns Group, “Although, the unorganized sector dessert. Driven by this rising trend, the report among Indian consumers and the potential of currently accounts for a larger share of the found that the share of take-home sector over value added dairy products. The third section Indian ice cream market; it is shrinking the last five years has increased significantly investigates into the usage of natural considerably in the urban areas. In the rural and currently accounts for more than 60% of colouration in dairy products and evaluates areas, however, kulfis/ice creams made by the total ice cream market in India. This their current and future potential.

Indian ice cream market to grow of 17% during 2012-2017

News


Starbucks

Starbucks in India!

he unquenchably

ambitious coffee Tchain opens its

first store in the world's

second-most-populous

nation. It faces some

cultural challenges but at

the same time it senses

absolute acceptability

from the new generation.

This much-hyped Caffeine

r u s h i n I n d i a i s

unbelievably true! The

success story is brewing

perfectly as India's coffee

shop industry witnesses

an incredible growth rate

of 25 per cent per annum

in last few years!

BY: Basma Husain


Remember the 'Nukkad ka chai wala', local partner, as they did in China. And company's other stores? For one thing, who's used to be the real place to hang they actually saw the need being the coffee is made "from beans grown out for college guys and elderly alike? It fulfilled the day they met Tata. and roasted in the country," giving local

The company, at present is not willing to was the place for all gossips and sharing; customers a "distinct Indian blend, comment on expansion targets, a little rain made the corner all too according to the marketing guys of Starbucks' presence in other markets romantic. And the best was its budget starbucks.definitely implies that they are here to The company will have products U.S. appeal – 2 cups of tea and even pakora to achieve an interesting scale. There are consumers know, as well as some for the go along with – all this for less than 20 more than 700 outlets in mainland China Indian market. Starbucks says: The bucks.

And suddenly the scene changes to and 1,000 in Japan. While those numbers extensive product portfolio includes Starbucks culture! are dwarfed by the over 10,000 outlets in Starbucks signature espresso-based The 21st century Indian prefers to sit in a the United States, Asia has emerged as a beverages, as well as Starbucks VIA lavish coffee shop and enjoys observing key driver of growth. Ready Brew and Starbucks Reserves. the hottest and coolest crowd of their city Asia and the entire Pacific Rim present The store will also offer Tata Tazo and in that mesmerizing ambiance. The one of the most significant growth Himalayan mineral water, and its broad menu serves a range of coffees from opportunities within Starbucks Coffee food offering boasts a wide selection of mochas to lattes, iced coffees to Company and India is at the core, along 42 items; Western favorites and a menu espressos and many more which not with China. that is tailored to Indian tastes, featuring

The partnership with Tata has brought many can pronounce. Every beverage is items like Chicken Tikka Panini, Elaichi Starbucks access to some prime real highly priced, but no one seems to mind. Mawa Croissant, and Tamarind Peanut estate for its outlets. The Elphinstone And why would they? It's not just the Chicken Calzone, Tandoori Paneer Roll, Building, for example, is owned by Tata coffee that they are enjoying; it's the and the signature Star Club. "The Sons, the holding company that controls coveted moments of socialization trademark Chai Tea Latte is in the menu the Tata Group. The Taj Mahal hotel, site complemented with a lot of status although . . . to Indian ears, this of the second shop, is also a Tata appeal. (translates as) 'tea tea latte.

It all started with Bangalore-based Cafe property. Unlike Europe, where Starbucks has It has also enabled Starbucks to enter a Coffee Day, the coffee invasion foundered on entrenched cafe cultures, market with a locally grown and roasted continued with a few more chains like India is full of young people looking for espresso for the first time. The "Indian Barista Lavazza and Costa Coffee an unintimidating place to hang out, Espresso Roast" is sourced through an joining in, the local cafes also became away from the prying eyes and cramped agreement with Tata Coffee, a sister hotter than ever. The aromatic journey quarters of home.company to Tata Global Beverages.has just entered an intense phase as Retail consultancy Technopak Advisors Starbucks definitely did have big plans Starbucks, an American chain, opened predicted that in India's $230 million for India.Starbucks Tata Group, had its first outlet in Mumbai. With cafe market will swell to $410 million by announced ambitious plans to open 50 Mumbaikars lining outside the maiden 2017, with the number of cafes rising stores in the country by the end of the joint, one can safely assume it's more from 1,950 to 2,900 in the next five year and speculated that they could one than just Coffee that attracts people to a years. day have as many as 3,000 outlets here. Nation rightly labeled as tea-addict is Café! Starbucks opened its first outlet in However, those goals have been scaled suddenly going crazy over Coffee! India, a cavernous, two-story building in back, with current ones calling for two Simply because the world's favorite a swank Mumbai neighborhood. It is more Mumbai stores before the end of drink, Coffee, is fast emerging as the perhaps the most elegant, beautiful, this year and one in New Delhi, the best drink to sip together! dynamic store opened in the history. capital, by early 2013. Definitely, it is the experience! India's Perhaps part of that confidence comes The company is apparently just being coffee culture is now synonymous from the growing appetite for coffee in careful. India already has coffee chains, with socialization. Tea is something India. The store is part of the chain's which reportedly sell beverages for less we drink at home, but coffee, mocha broader push to expand its presence in than Starbucks. Plus Starbucks' profit or latte, has now become a status emerging markets -- seen as the most margins in India are smaller: It's selling symbol. promising areas for growth, given its products at a significant discount so That very much explains the recent trend Starbucks' super-saturation in the States prices are more in line with Indian of mushrooming cafes in almost all and Europe's entrenched cafe culture. standards. Starbucks does not shave cities of India. Coffee becomes the But breaking into new countries requires prices at its franchises in China, which is beverage meant to be sipped while a little more finesse than simply showing expected to become the company's meeting, discussing, dating and, yes, up.second-largest market in a matter of while chilling out! And what other place Starbucks had been trying to crack the years. then the daddy of coffee shops – the code in India for a while and decided So does India's Starbucks differ from the starbucks.early on they needed to enter India with a

Starbucks


Health Canada Approves

n November 30th Health Canada as a tabletop sweetener and a sweetener alternatives to sugar - this will be a huge approved the use of stevia as an in a variety of unstandardized foods. win for stevia producers. At this time

With Health Canada's approval stevia Oadditive in food and beverage stevia's largest market is the U.S, though continues its growth to be the worldwide products, which means new markets are sales in Europe, Mexico, China and natural zero calorie alternative to sugar, opening for growers, producers and Brazil are expanding. And now with high fructose cornsyrup and artificial manufacturers of stevia. It also means Canada's approval, companies should sweeteners, such as aspartame and that Canadians, especially the 9 million soon be clamoring to get its stevia-based Splenda. According to Elaine Watson at diabetics or pre-diabetics, can now products on grocers' shelves as quickly Food Navigator within the next few enjoy the benefits of stevia with its zero in 2013 as possible.months new markets will open for So how can an investor profit from calorie and zero glycemic index. Prior to stevia, such as India, Thailand and South stevia's popularity and growth? The November 30th stevia was only Africa as they are expecting regulatory major bottlers such as Coca-Cola (KO) or available in Canada in natural health approval. With the large populations of products. Health Canada received three PepsiCo (PEP) are already using stevia the new markets slated to open, and the separate food additive submissions for as a sugar substitute in a number of their growing consumer demand for healthy approval for the use of steviol glycosides products, and it appears they will

Companies Gear Up

As Health Canada Approves Stevia

As Additive For Food And Beverage Use


continue to add more to their low calorie industry sector average of 15.1. Monster Rebaudioside A (Reb A), and 500 metric or zero calorie pipelines. However, since tons of steviosin, a stevioside extract Beverage announced its net income rose the two bottlers control such a high used by the pharmaceutical industry. 5% in the third quarter, to $86.1 million, market share already, it probably won't Sunwin began its expansion project in or $0.47 per share, from $82.4 million, affect the stock price as it would smaller April anticipating an improvement in or $0.44 cents per share. Revenue, which companies. Following are some demand for stevia as a healthy low rose almost 30% in the last three companies that could see their stocks calorie sweetener and is now poised to quarters, increased to $541.9 million move upward. The list includes growers capitalize on the industry's upward from $474.7 million. Some analysts are and producers focusing on developing a trend. With Canada's approval of stevia, beginning to think that the worst may be sweeter stevia product, or food it becomes apparent that the company over for Monster, and on Dec. 6th manufacturers and bottlers adding stevia was correct as stevia continues to grow Consumer Edge Research upgraded to more of their product lines. in worldwide acceptance. Sunwin's new Monster from a neutral to an outperform. Monster Beverage Corporation (MNST) stevioside extraction line uses a state-of-It will be interesting to see if other is hardly considered a small company, the-art crystallization process that analysts follow suit, as the overall rating but it is in a great position to benefit from substantially reduces the production still remains neutral. Earlier this year the Canadian approval with its line of time while increasing product yield there was some talk about a takeover stevia-sweetened Blue Sky Sodas and leading to a substantial reduction in target by Coca-Cola, which helped the Hansen's low calorie juices, which are overall processing costs as utilization stock price to raise over $83.00 per already on the market. Monster is the rates increase. Sunwin has begun trial share. However, Coca-Cola quickly leading distributor of energy drinks with production of its new lines and squashed the rumors, perhaps due to its line of Monster Energy, Java Monster, anticipates its added production Monster's high multiple. Now with the X-Presso Monster, as well as soda and capabilities to be fully operational in the stock price down to $51.54 per share, its juices through its Hansen's, Blue Sky first quarter of 2013.

multiple lower, and its price-to-book In August Sunwin entered into a sodas, and Hubert's Lemonades.

valueat 9.94 being well below the worldwide stevia distribution agreement Monster carries a diet energy line, industry average of 25.1, it may be time with WILD Flavors, giving WILD a Monster Zero Ultra, Monster Low carb, for Coca-Cola to re-examine its interest non-exclusive worldwide right as a and Monster Absolutely Zero, all in the company. If so, I'd look for the distributor to market and resell all sweetened with the artificial sweetener stock to rise again. Sunwin stevia products. Sunwin is also Acesulfame - K. With the changing S u n w i n S t e v i a I n t e r n a t i o n a l

developing 6 new formulations in consumer demand for a healthier (SUWN.OB), based in Qufu, China, a

conjunction with WILD with the goal of alternative to sugar, Monster may want vertically-integrated manufacturer of

penetrating the $10.3 billion Chinese to look in its rear view mirror at stevia products and traditional Chinese

Starbucks'(SBUX) energy drink, bakery market by marketing to medicines, announced the installation of Refreshers, which is a natural product manufacturers to develop private label new high-tech production lines to and uses stevia as its sweetener. It may products - a move that the company sees expand its stevia production capacity to start catching up, as it becomes a more will bolster its domestic production base 1,300 metric tons, including 500 metric desirable choice for the new generation in China.tons of h igh-grade s tev ios ide of consumers. With countries approving stevia's use, it also gives Monster a golden opportunity to enhance its product line and attract new customers with a healthy alternative. Stevia is not new to Monster; it is already used it in many of its products. Time will tell if Monster will set itself apart from the rest of the field and develop more products, especially its diet Monster energy drinks, sweetened with stevia.Monster Beverage is an $8.84 billion market cap company. Even though the stock has been hammered over the past six months, down over 30%, partly due to the tragedy of the 14-year old girl who died after consuming two Monster Energy beverages, it still has a rather high P/E ratio of 28.4 compared to the



Sunwin, with a market cap of $45.1 It can also produce a consistent tasting Stevia First has a market cap of $21.27 million, has had an impressive 3-month stevia from batch to batch, plus the million, and its shares trade just below run, up 30% to $0.27 per share, but still process may have the ability to develop $0.40. The stock has been stagnant lately off its 52-week high of $0.35 per share. new characteristics in the strains of the due to the lack of news coming from the In the past week of trading, its volume Reb A that would be sweeter while company. However, Mr. Brooke did has risen to an average of 41,000 shares weeding out the less desirable present an overview of Stevia First's traded daily. I like the aggressiveness of characteristics, such as bitterness or the growth strategy at the 5th annual LD Sunwin, and its timing appears to be spot lingering aftertaste. This fermentation MICRO conference on December 5th in o n , e s p e c i a l l y w i t h C a n a d a ' s method, once operational on an Los Angeles. So hopefully there will be announcement last week. Given the industrial scale, should afford Stevia some news soon about how the company continued expansion of stevia globally, First to bring its stevia to market at a is advancing. What I find interesting Sunwin may well be one of those small much lower price than farm-grown about Stevia First is not that it plans on c o m p a n i e s t h a t m a y b e n e f i t stevia. That alone should interest being a vertically integrated stevia shareholders with impressive stock manufacturers and producers that could company, but the two methods it plans gains if its success continues. then manufacture their own stevia-based on developing the actual stevia. The Stevia First Corp. (STVF.OB), an early- products at a lower cost. reason I look favorably on its methods of stage agribusiness based in Yuba City, The question is, with stevia being a hot developing stevia is because, even if the CA, may be poised to benefit heavily commodity, why isn't Stevia First company ends up not being a vertically-from growth of worldwide stevia use integrated company and just focuses on even though it has not sold any product producing stevia and selling its product as of yet. Stevia First's goal is to develop to companies like PureCircle, Cargill or high-quality stevia at a highly Kraft (KRFT), that alone should could competitive price. It is developing its make Stevia First a successful company. stevia product using two completely However, if its fermentation process separate methods designed for two becomes successful, I think stevia First completely different customer bases. could be primed for a buyout by one of The first is an industrial-size organic the larger manufacturers. For those two stevia farm in the U.S. This can be very reasons alone, I see that stevia First has a lucrative considering that in 2010 lot of potential for growth with the organic food and beverage sales were at expanding stevia market, and this stock $26.7 billion, and in 2011 these sales is worth a look at.

With Canada's approval for the use of grew to $29.9 billion. And as of now stevia in food and beverage products, there is only one organic stevia farm for

rushing its production to get a crop in the and the outlook of other countries soon the industry, and that's in China. Stevia ground and take advantage of the approving the use of stevia, there are a First's other method of producing high-growing interest in stevia? The answer number of companies that should benefit grade steviol glycosides is through a can be found in an earlier interview with from the growth in stevia, including the yeast fermentation-based process it Stevia First's CEO Robert Brooke: "Our latter three discussed above. I think licensed from Canada's Vineland goals are not geared towards short-term Monster will continue to grow and could Research and Innovation Centre. Even crop production, but towards building a be a candidate for a takeover bid in the though stevia can be up to 300 times sustainable stevia industry in the U.S. future. I also think it is the least risky of sweeter than sugar, there is actually very We are working to create the plant and the companies mentioned. However, I little of the sweet components in the practices desirable for farm-based stevia think Stevia First has the potential to be stevia plant. The necessary extraction production, and also speed the biggest mover percentage-wise if, or and purification of the stevia account for emergence of fermentation-based when, it gets its production off the about 70% of the production costs. The production methods, since we see large ground. But, caution is advised: controlled fermentation process makes it markets for products derived from Microcap stocks can be volatile - they possible to convert low-cost plant each." Mr. Brooke went on to explain: offer huge upside potential and materials into sweet steviol glycosides, "So rather than focusing on small-scale corresponding downside risks. These and the process could bypass or commercial stevia leaf production to three companies offer good current-significantly diminish the need for stevia make a few bucks in the short-term, our level entries for various levels of risk. leaf production altogether. This process efforts are directed towards building Interested investors are advised to has great potential for the company sustainable competitive advantages that perform additional research to ascertain because, once operational, the will enable us to compete favorably in which, if any, of these fit their fermentation process can ensure a the long-term with overseas stevia investment criteria.consistent supply of stevia that is not growers and producers."dependent on weather or soil conditions.



India and international year of cooperatives

f a r m i n g .he United Nations has declared this Thanks to the late V Kurien, and the late year as the International Year of

sustainability and survival of small-scale Tribhuvandas Pa tel, the cooperative sector Cooperatives. FAO chose for the Tdairy farming. Finally, the fact that women assumed a dominant role in our dairy World Food Day on October 16, the theme play a pivotal role in dairy farming should industry, particularly in Gujarat. The “Agricultural Cooperatives — Key to be kept in view, while developing support Gujarat Cooperative Milk Marketing Feeding the World”. According to FAO, systems. Gender specific needs, such as Federation is one of the largest cooperatives across all sections provide creches for infants and medical help for organisations of its kind, handling nearly over 100 million jobs around the world, 20 adults should be met. Among outstanding Rs12,000 crore worth of dairy produce. per cent more than multinational examples of the success of cooperatives, 'Amul' has become a household name. enterprises. In 2005, the Indian Dairy mention may be made of the Indian Farmers Kurien rightly diagnosed that a major Cooperatives, with 12.3 million members, Fertiliser Cooperative (IFFCO), which is a ailment of the cooperative sector is the accounted for 22 per cent of the milk unique venture with 39,824 cooperative absence of professional management. He produced in the country.societies as members. The Krishak Bharati Sixty per cent of members are landless or had difficulty in finding competent Cooperatives (KRIBHCO) has become the have very small plots of land. Women make managers for the new dairies set up under world's premiere fertiliser producing up 25 per cent of the the Operation Flood programme. This led to cooperative. membership.Cooperative credit societies the organisation of the Institute of Rural NCF has suggested that even where are performing a valuable role since they Management at Anand. He also set up a cooperative societies do not function well, extend credit to farmers at a low interest Vidya Dairy in the Anand Agricultural cooperation can be promoted among rate.They occupy 7.4 per cent of the University.farming families in a village based on shared financial space in the economy according to This is a unique training school imparting goals and enlightened self-interest. The self B Y e r r a m R a j u . practical experience from milking to help group model which is now helping Raju also points out in a recent article marketing. In our country, with a very large women to get the power of scale in small (Inclusion, July-Sept 2012) that there is an number of small and marginal farmers and scale enterprises could also be adopted in unfortunate fall in the share of cooperatives with the growing feminisation of farming. Farmers can form eco-societies, in the rural credit market from around 62 per agriculture, the cooperative pathway is the which will ensure that environmentally cent in 1992-93 to about 34 per cent in 2002- most beneficial one for enhancing rural benign technologies like integrated pest 2003. The Constitution (97th Amendment) livelihood and nutrition security. The management, integrated nutrient supply and Act 2011 enacted by Parliament is designed achievements of the dairy sector provide scientific water management are adopted. to aid the promotion, ownership, control and many lessons to policy makers such as the Contract farming is another pathway for management of cooperatives by members following: First, there is need for an end-to-providing the advantages of group and seeks to reduce state control in end approach for ensuring the success of the cooperation in production and marketing.partnership. It is to be hoped that all state dai ry or o ther farm enterpr ises . Section 25 companies can also be promoted governments wi l l formulate new Convergence in the provision of services where farmers are engaged in enterprises Cooperative Acts in line with the 97th relating to breeding, nutrition, healthcare such as hybrid seed production and the Amendment before too long. Yerram Raju and processing and marketing is an essential manufacture of the biological software also points out that while there are as many requirement for success. Second, a quality essential for sustainable agriculture.as 97,410 cooperative banks, of which more literacy movement should be launched to We have nearly 25 per cent of the world's than 98 per cent are rural cooperatives, spread knowledge of Codex alimentarius farmer population and poverty and barely 50 per cent of them are active in the standards of food safety as well as animal malnutrition are widely prevalent among rural credit system. The National hygiene and sanitation. Third, cooperatives marginal, small farm and landless labour Commission on Farmers called for the should be professionally managed and families. Farm size is diminishing and prime revitalisation of the cooperative credit authority and accountability should go farmland is being sold for nonfarm system and suggested that the rate of interest together at all levels. Fourth, human purposes. A socially viable method of should be 4 per cent for loans extended to resource development is important both at getting small scale producers together, f a r m e r s . the farmer and professional levels. Farmer either in the form of cooperatives or selfhelp Some state governments like Madhya level capacity building can be done in Krish groups is urgently needed to maintain young Pradesh are giving loans at interest rates Vigyan Kendras, Vidya Dairies, as well as in farmers' interest in farming. If farm even lower than 4 per cent. The rejuvenation the farms of outstanding dairy entrepreneurs economics or ecology go wrong, nothing of the cooperative credit system is essential (farmer to farmer learning). Fifth, public else will go right in agriculture.for achieving the goal of “financial policies in the fields of import and export of (M S Swaminathan is an agricultural inclusion”. In addition to the financial animal feed (concentrates), input and output scientist who led India's green revolution )sector, there is need for cooperatives both at pricing and investment and infrastructure

the production and post-harvest phases of d e v e l o p m e n t s h o u l d e n s u r e t h e

News


53


olitics and publicity run on the same track. BJP's top notch Pleader Sushma Swaraj in the

u t m o s t f o r a y t o i m p e d e t h e implementation of FDI in retail used her position to play blame game and tarnish certain Multinational companies that ac tua l ly benef i ted the Ind ian immensely. The issue of multinationals acting against the interests of the Indian farmers has been debated over the time in the wake of the government's proposal to introduce 51% foreign direct investment in multi-brand retail sector.BJP has been opposing the move to introduce FDI in multi-brand retail since the government had introduced the thought of FDI in retail. Whatsoever wasn't it the NDA who has cultivated the

FDI In Retail

The Implementation of

FDI In RetailA Debate of Blame,

Power And TriumphThe future is rarely a linear extrapolation of the past. Circumstances change and

new challenges arise. Hence it is important to identify challenges of the future

and start working now to meet them.


idea of FDI in this regime. Sushma a multinational refuting a politician, Peps iCo works wi th fa rmers Swaraj known for her orating ability McDonald's India (North and East) in a throughout the crop cycle — providing was put in the front by the opposition to press statement said: "We confidently quality seeds, technical expertise, foil of this investment. and proudly state that ingredients used facilitating loans from banks, Ms Swaraj, blamed and cited that in our products are sourced locally that harvesting expertise etc.”PepsiCo as an example of how PepsiCo has been operating in India includes the French fries.multinational companies short-change McDonald's India, said it was honoring since 1989, has significantly expanded Indian farmers on one pretext or the a prior investment commitment with its footprint in India and currently has other. She pointed out that PepsiCo the government that it would source its 38 beverage bottling plants and three sourced most of the potatoes needed for entire raw materials from the country. food plants. With several food and manufacturing chips from abroad, And import only on rare occasions beverage brands in the country, saying Indian potatoes were not large when local supplies ran out. Swaraj's PepsiCo is estimated to have about enough for the size of chips it produces. subsequent attack, while opposing the eight Rs1, 000 crore brands.In fact, the argument over potatoes Amid the controversy over the way government decision to allow foreign resulted in some hilarity in the House multinational food and beverage supermarket chains to open stores in when Congress MP D S Hooda claimed companies have been importing critical India, was on PepsiCo, commenting that farmers in his native Haryana were raw materials instead of procuring that, "Pepsi promised to buy potatoes ready to provide 24-inch-long potatoes them locally, PepsiCo, the soft drinks and tomatoes from farmers (in Punjab), for PepsiCo's chip-manufacturing and snacks giant, said it would double but backed out later." plants. Taking a swipe at the young In its defense, PepsiCo India, the the procurement of potatoes from parliamentarian, Swaraj had remarked: largest snacks player in the country, Indian farmers from the current 2.4 So excited is he at eliciting support for said that it sources all its potato lakh tonnes over the next five years.

This company has been working with the Congress's FDI proposal, he is requirement from within the country about 24,000 farmers and last year we ready to grow a two-foot potato! I hope and works with over 24,000 farmers procured about 2.4 lakh tonnes of he can tell the difference between a across nine states including West potatoes through contract farming. potato and a bottle gourd. Bengal , Punjab, Gujarat , UP,

M u l t i n a t i o n a l f o o d m a j o r s PepsiCo will continue this program and Maharashtra, Karnataka and Bihar.McDonald's, PepsiCo and KFC got a now trying to expand the programme in According to PepsiCo, they are the taste of real Indian politics when order to double the procurement over largest procurer of potato in India and Parliament started a debate on allowing the next five year. This company has procured 240,000 MT of potato from FDI in multi-brand retail where the contract farming arrangements in about Indian farmers in 2012, which is more ruling front and opposition traded seven states and is now said to be than double of had been procured five charges that left the US firms upset and focusing on expanding its procurement years ago. This giant company has set dumbfounded. process in the Indian agriculture sector.up a state-of-the-art potato seed facility The FDI debate left a sour taste for Before commenting on basis of certain in Punjab and all the seed is provided to McDonald's, Pepsi, KFC and many irrational facts, this opposition leader farmers across the country is grown by multinational companies. McDonald's of Lok Sabha should have made an Punjab and Haryana farmers.refuted Sushma Swaraj's allegation that the fast-food giant does not source even basic commodities such as potatoes from within India, while PepsiCo issued a clarification that it is the largest procurer of potato in the country.KFC, which is on an expansion spree in India, did not comment, but it must h a v e b e e n s h o c k e d t o h e a r communications and IT Minister Kapil Sibal say, "Many said KFC will drive the dhabas out of the market. Dhabas have driven out KFC.S u s h m a S w a r a j h a d a l l e g e d McDonald's about their fries, saying that they never buy potatoes from local Indian farmers, saying the potatoes are too small here. But in a rare instance of

FDI In Retail


effort to find and understand what 300% and the length of the tomato expanding furiously and has already PepsiCo has done in helping farmers season more than doubled, resulting in become Yum! Brands largest-selling improve yield and income: a substantial increase of farmer fast food chain, overtaking Pizza Hut. The company' has created a cost- incomes. Today, the success of contact Also, Yum! expects KFC to account for effective, localized agri-supply chain farming has spread and PepsiCo 60% of the $1 billion sales that the for its business by building a stature as a engages with over 22,000 farmers company is expected to generate by development partner by helping across the country to grow a variety of then.farmers grow more and earn more. It Ultimately the research done by crops. Through this partnership, introduced new high-yielding varieties opposition to stop FDI in the retail PepsiCo has transformed the lives of of potato and today PepsiCo India has sector, was not apt. Ms Swaraj did try to thousands of farmers by helping them introduced world-class, top-quality, blemish these companies and their refine their farming techniques and high-yielding potato varieties. High- effort t to directly benefit the farmers. raise farm productivity.yielding potato seeds have allowed KFC is now a prominent presence in Today we need capital and funds as farmers to produce world-class Indian cities and towns. The red and well as world class agri –businesses to potatoes and obtain higher returns. white signboard has become evidently compete. No doubt, the entry of FDI in Also by introducing sustainable even more visible. Yum! Brands, the this sector can definitely bountifully farming methods and practicing parent company that owns the KFC position the agri industry in the top contact farming this company has brand, has set in motion an expansion notch level. FDI would also be provided world-class agricultural plan to open 500 stores by 2015. It isn't benef i t ing the Ind ian fa rmer practices available to farmers and being over-ambitious. About 1,800 immensely without the intervention of helping them raise farm productivity. people visit each of the 190 existing the middlemen.In fact its biggest highlight is that this Alas the FDI has been passed in the restaurants every day. In December company believes in working closely parliament, what else is left to say! alone, there will be 40 new KFCs with farmers and state governments to Except, it is an important thing. It will popping up all over the country. improve agri-sustainability and crop boost the government's confidence to Despite the fact that there are less than diversification and also facilitating implement key economic reforms and 200 outlets now, India is expected to be financial and insurance services in would definitely help the government such an important market that Yum! order to de-risk farming. in passing the other important and Brands India reports directly to the PepsiCo pioneered contact farming in pending reform measures very quicklyheadquarters in Louisville, Kentucky.order to improve the performance of a Indian industry has welcomed the So Kapil Sibal's statement seemed tomato processing plant in Punjab; it approval accorded by Lok Sabha to quite contrary to the statistical figures. imported and tested high-yielding FDI in multi-brand retail, saying it will Though KFC declined comment on varieties that thrived best in India. send a strong signal to foreign investors Sibal's statement in the parliament, the Consequently, yield improved by over and enable the government to take up truth is that the chain has been

further economic reforms. FICCI – The association of associations has hailed this development and fully supports the government. The country needs to move forward and it's high time to send a strong signal to foreign investors.

FDI will introduce new technology and investment in marketing agricultural produce. India must take full advantage of modern technology and operational and management experience of big supply chains in the food retail business to make this happen. The future is rarely a linear extrapolation of the past. Circumstances change and new challenges arise. It is, therefore, important to identify challenges of the future and start working now to meet them.

FDI In Retail


"All cricketers are promoting soft drinks health hazard."he Supreme Court sought The order said Indian Beverage on television," he said.records of a Food Safety and

Assailing the order which was submitted Association had confirmed to the FSSAI Standards Authority of India's Tto the court, Bhushan said the order, that in India, benzoic and ascorbic acids (FSSAI) committee which said issued Sep 12 by FSSAI assistant were not present together in the carbonated beverages do not pose health

d i r e c t o r beverages.Seeking the minutes of the technical Kamal Kumar, committee which had a hearing for eight w a s l i k e days, Bhushan asked if the FSSAI had affixing the itself done any test to determine the a u t h o r i t y ' s presence of benzoic acid in carbonated stamp on a beverages.report by soft Bhushan told the court that the FSSAI d r i n k was not accepting the findings of its own manufacturerslab in Ghaziabad..Senior counsel K.K. Venugopal, who B h u s h a n , appeared for one of the respondents, told appearing for the court that all the prayers made by the p e t i t i o n e r petitioner NGO have been satisfied after C e n t r e f o r the union government enacted a law Public Interest comprehensively addressing the issues Litigation, told raised in the petition.the court that He told the court that it was nearly eight the order said years since the court was seized of the hazard and there were no benzene benzene residue in carbonated matter.residues in the soft drinks. beverages was formed only under Additional Solicitor General P.P. Justice K.S. Radhakrishnan and Justice certain conditions when agents like Malhotra, who appeared for the Dipak Misra called for the records of the benzoates and ascorbic acid were government, said the technical FSSAI's technical committee after present together with heat, ultraviolet committee was authorised to look into counsel Prashant Bhushan said the light and metallic ion mixture.the additives. He said Bhushan had authority's Sep 12 order was given by its "However, in the absence of benzoic appeared before the committee on five committee on advertisement and acid and ascorbic acid together, occasions but had never raised this labelling, not by the scientific panel on benezene residues are not generated (in objection.food additives. carbonated beverages)," the order said.However, Justice Radhakrishnan said As Bhushan focused on the health It said that according to studies by Indian the issue raised by Bhushan was serious hazards of carbonated beverages, Justice Council for Medical Research, the and called for the records of the meetings Radhakrishnan observed that the "best consumption pattern of the beverages of the committee.course is to educate people not to was only 500 ml per day in a "worst case

consume beverages." scenario which do not appear to pose any

SC seeks records of food safety panel on soft drinks

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opariwala Exports has been associated with the food Sindustry for more than 40 years.

The firm has a prominent range of un-manufactured and manufactured Tobacco, Oil seeds, spices and fresh cut flowers. The company has 6 world class processing and packing facilities spread over an area of half million sq. ft. The company ensures that all shipments are carefully packed in tamper-proof containers and shipped to various destinations. The agro produce itself is subjected to a series of rigorous quality tests before being sent out and constant innovations in production technology are adopted enabling them to cater to the demands from customers in more than 60 c o u n t r i e s s u c c e s s f u l l y .

In the tobacco space, Sopariwala Exports accounts for an average of 85% of the exports of sun-cured tobacco. Additionally the company is one of the leading manufacturers and exporters of Sesame Seeds (Hulled & Natural) & Spices from India. With several decades of expertise, they have managed to build a global network with committed assurance to deliver the finest value product to customers. To certify the credential stature Sopariwala Exports Pvt Ltd has already been honoured with several Certificates of Excellence & Awards from State and Central Government of India. Arif Fazlani, Vice Chairman & Managing Director, Fazlani Group, briefed our Editor Firoz H Naqvi about his company in the below interview.

Our focus is to provide

better products & services and expanding into more markets

Exclusive Interview

Sopariwala Exports has been in the health standards of different countries, in metros with our products and plan to business from couple of decades now, where one has always to be extra careful, market pan India in the next one or two how has been you journey so far? and where competition is tough. Our quarters. Our products have received I always believe in coming together is the exports have almost quadrupled in past good response in UK and New Zealand beginning – staying together is progress - five years & we are proud to be the only markets wherein these products were working together is success. It has been a approved vendor in India for the largest launched six months ago and we look to satisfying journey with excellent growth, b a k e r y i n U n i t e d K i n g d o m . e x p l o r e m o r e &s p i c e d w i t h c h a l l e n g e s t o Floriculture had been entirely new field more markets in days to come!overcome. Business must diversify as & we have been directly supplying our At the same time, we plan to double our times and markets demand and we are products to world largest retailers which capacity in our existing line of business now into Natural and Hulled Sesame by itself are no small achievement as such as flavoured molasses and chewing Seeds, Oil seeds, Spices, Pulses, these retailers have very high standards tobacco as well as in manufacturing of Floriculture, Seeshah (water-pipe), and not every company is able to meet Hulled Sesame Seeds wherein we are Ready-to-Eat consumer packed food them. Not only that the products must be seeing tremendous potential and products for the hardpressed-for-time excellent quality, one has always to be on wi tness ing s tupendous growth!new generation of the cities and towns. his toes for timely delivery due to the Commitment to excellence in all spheres perishable nature of these products. What are your focus regions for the has lead to gratifying growth in the last We also ventured out to others countries export of sesame seeds in the global three decades, and we crave for more. and we have our associates at Malaysia, market? And how much is your total Growth demands more growth, and that Singapore and UAE and they are doing export of this sesame & spices?must always be so; and we assure a d m i r a b l y a t t h o s e p l a c e s . Our major focus is Europe, Americas and ourselves that we shall never be satiated. Russia. We are also developing our reach

Recently you have been awarded in Australia and Japan. There is You have shifted you business from a Silver Trophy for Agricultural & substantial demand for peeled sesame core Tobacco Company to an agro Plantation Products by Federation of seeds which keep its original colour even produce processor cum exporter and Indian Export Organizations (FIEO), in higher temperature baking – we are in then in floriculture, can you please how do you feel after this? And how trial stages and hopefully should be able brief us about your each business in you company will prepare for next to commercially export this product by brief? level of awards? early next year which should help us to Consumer is the sovereign and his The work is a reward in itself for us yet increase our share of exports further.demand always changes with change in we are very excited & happy on receiving Since ours is a family managed time. Today's consumers demands the support and recognition from FIEO; organization, I cannot provide an exact products in different tastes and flavors, and we are now focussing to go higher number; however our exports is in excess apart from looks. So in tobacco itself we and higher! With many developed of USD 100 million.

have launched molasses in different nations experiencing a difficult period, How much is your total processing flavours which are witnessing 100% and several developing countries slowing capacity of agro products and growth in past five years and different down, I am aware that our journey will locations you have these units?items like chewing tobacco of different not be so easy. But there is demand for We have two units – one at Navi Mumbai tastes and types, and for herbals quality products with fast deliveries. We and the other at Gandhidham/Kandla in molasses, flavoured hand rolled tobacco look to increase our share of exports in Gujarat. These are state of the art plants which is called beedies for special the growing markets of Latin America as made by Buhler – Germany and equipped markets, smokeless tobacco, Sheeshahs well as to Australia and some other far-with latest Bio-chromatic Sortex Zand water pipes. east markets. Our focus would be towards

From tobacco, we ventured to Series. The capacity at Navi Mumbai is providing better products, reaching and agricultural products like natural sesame 10 Mts per hour and at Gandhidham is 5 expanding more markets along with seeds and hulled sesame seeds, spices, MTs per hour for sesame seeds and better services & we will hopefully reach pulses, etc. This is a market where the spices.our goal.product must be of hygiene and meeting

What are you future plans for further expansion and investment especially in India?Indian middle income class, who are busy, running and hard-pressed for time is large and expanding. They need hygienic food, which can be prepared in least possible time. We see large scope for ready to eat foods in India. We are already


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Retail

detergents. For centur ies , India ' s la rge ly unorganized and highly fragmented retail trade has consisted almost entirely of small, low-cost operations where people like Nanji fill local needs and support their families. These small store owners - together with a flourishing informal hawker sector that set up temporary stalls in alleys and street corners - have developed strong relationships with consumers to whom they can extend credit, or sell just half a loaf of bread, part of a biscuit packet, or a solitary cigarette. Then a decade ago, Indian retail corporations like D'Mart, Reliance and Big Bazar introduced hypermarkets and supermarkets that offered home furnishings, lifestyle, apparel, footwear; and most importantly groceries and anji, a slender man with a neat doles out sweets to small children food that form 70 percent of total retail moustache, stands behind the returning from school and sells small sales.counter of his kirana, a tubs of homemade yoghurt to local NThis evolution was almost inevitable neighborhood store grandly named home makers; he scoops rice, lentils, given India's fast-growing economy. A Ayappa Supermarket. It used to serve sugar, and cereals from open sacks that T Kearney, a U.S. management almost three-fourths of the lower middle customers can inspect; reaches for consultancy firm, recently projected class residents of the housing colony in suspended packets of branded and that India was destined to become a Thane, one of Mumbai's fastest growing unbranded biscuits and snacks; and high-potential market, with accelerated suburbs. As he has for 16 years, Nanji dispenses small sachets of toiletries and retail market growth of 15 to 20 per cent

India's Retail SectorRipe for the Picking

by Freny Manecksha


expected over the next five years. major impact on his business, but the 46 there is enough space for big and small But while domestic conglomerates have year old vendor believes that loyal to grow,” said the normally reticent seized the opportunity to move into clients like Saraswati Pachane will stick Manmohan Singh said in a speech in India's burgeoning cities, longstanding with him. “I know him, and can haggle,” September. “The fear that small retailers regulations limiting foreign direct says Pachane, a domestic worker who will be wiped out is completely investment have kept their international earns around $250 a month. “He allows baseless,” Singh added, predicting that counterparts out of the estimated $500 me to taste a grape or two to see if it is the growth of organized retailers would billion market in Indian retail sales. sweet.” benefit farmers and “create millions of Two months ago, after years of intense Yadav's biggest complaint is not the new good quality new jobs."lobbying, the Indian government finally hypermarkets but that he is vulnerable The U.S.-based giant Wal-Mart has caved and agreed to allow foreign direct to severe harassment and demands for been singled out for criticism for unfair investment in organized retail. "hafta" (bribes) by both police and the practices in India. In 2006 when Wal-The news has been welcomed by civic authorities because of an absence Mart entered India, it was limited to international supermarket chains of clear-cut policies to regulate his wholesale operations (through cash-waiting to enter India's largely untapped trade. “We are seen as illegal. Police and-carry outlets) with Bharti market like Carrefour (France) and harassment in particular is growing Enterprises as a 50-50 venture partner.Tesco (Britain) as well as the Swedish Indeed within days of the government's more intense. When they raid us, we home goods giant Ikea. announcement to allow foreign direct have to pay fines which amount to A few international conglomerates have investment, Raj Jain, managing director almost four days' earnings.”been preparing for this day: Wal-Mart and CEO of Bharti-Wal-Mart, said that has already taken advantage of the fact Fighting the Changes the company would be setting up its first that India had no restrictions on Nanji and Yadav reflect twin concerns multi-brand consumer retail store wholesale operations by investing $100 of an informal sector that has suddenly within 18 months. He tried to counter million in an Indian partner, Bharti become the focus of intense debate fears that kiranas would be impacted.Retail, which has 17 cash-and-carry leading up to the Indian government Complaints that Wal-Mart had stores. And the U.S.-based coffee shop decision this past September to allow 51 effectively circumvented the laws by chain Starbucks, in a joint venture with per cent foreign direct investment (FDI) making interest free loans to Bharti that the Tata group, opened three cafes in in retail operations that sell more than they could convert into an ownership Mumbai this October. one brand of products. (A clause does stake were quick in coming from a

allow state governments to reject the Communist Party of India (Marxist) Neighborhood Business Collapses majority-foreign funded multi-brand member of parliament. On October 17, When the domestic hypermarkets stores.) the Prime Minister's office announced a opened outlets near him, Nanji's Opposition parties and even political probe into the nature and manner of business collapsed by 50 percent. Now allies of the ruling coalition have investments in the deal between Wal-with the advent of foreign direct charged that the change sounds a death Mart and Bharti Enterprises.investment he fears that his shop's days knell for thousands of small, family- “We are in complete compliance with are numbered, as well as for the owned shops. India's FDI laws,” the Indian unit of thousands of small retailers around The outcry pressured the prime minister Wal-Mart protested to the New York India based in the "nukkad-bania" to respond. “In a growing economy Times. “All procedures and processes (neighborhood trade).A few hundred meters away, Lal Mohan Yadav's position is even more precarious. The roadside fruit vendor ingeniously displays his fruits on simple plastic trays and wooden planks and his pyramids of dark red pomegranates are offset by yellow bunches of bananas. With practiced skill, Yadav plucks a tender, green coconut from the heap at his feet, hacks off the top with a quick machete stroke and offers it with a straw to a customer who refreshes herself with safe and healthy coconut water.Yadav, who has worked as a hawker here for 20 years, earns around $6 a day. Reliance's new hypermarket has has a

Retail


have been duly followed and details filed with relevant Indian government authorities including the Reserve Bank of India (the country's central bank)."The charge that Wal-Mart is using unfair practices comes in the wake of a US investigation into allegations that the company's Mexican subsidiary bribed Mexican officials to gain market advantage.

It found that prices of basic food items such as pulses, rice, flour, vegetables, and fruits were 30 percent cheaper in organized retail stores than kiranas.This kind of aggressive pricing strategy is an attempt to carve out a special niche in the market, says Chetan Choitani in his “Entry of Corporate Retail: Impacts on Hawkers and Small Retailers--A Case Study from Mumbai” for Global South India, a policy research

Predatory Pricing organization. He notes that India's The experiences of small retailers and leading organized retailer, Future Value, mom-and-pop stores around the world branded itself with the slogan: “Isse have demonstrated that is hard to sasta aur kahan” (Where can you get survive in the shadow of retail giants goods cheaper?)that can afford price flexing (selling A 2007 report by the Indian Council for below cost), and other manipulations, as Research on International Economic well as the simple advantage of Relations (ICRIER) found that it was economy of scale. For example, a UK the magnitude of discounts and schemes government commission inquiry listed tha t posed a grave threa t to 27 practices by supermarkets that were neighborhood stores.deemed against public interest. Critics have decried these strategies as This has been the complaint against one predatory. But in addition to their ability of India's largest business houses, to price aggressively and weather Reliance Industries which had a temporary losses, the new retail formats somewhat rocky debut. In 2007, angry have also been aided by changes in vegetable vendors in the state of lifestyle and consumption habits.Jharkhand shut down early Reliance India's new generation of workers, grocery stores with violent protests and employed in call centers and corporate vandalizing. offices, are becoming attracted to Taken by surprise by the backlash, shopping in glitzy, air-conditioned Reliance now advocates “inclusive malls that sell Western products that growth and prosperity for farmers, they see in Hollywood films and vendor partners, small shopkeepers and international magazines. There has been consumers,” and has promised a spurt in sales of Western breakfast infrastructure to support 'farm-to-fork' foods, branded snacks, tissues, operations. packaged juices as well as milk and milk Small traders say that this is products even though fresh and low cost doublespeak for the fact that the traditional alternatives are available. (It company's deep pockets will allow it to goes without saying that accompanying weather the setbacks and undercut local this shift is an epidemic of high blood operations, noting that Reliance Retail pressure, diabetes and other diseases has suffered losses, according to its associated with Western diet and annual report. lifestyle.)“We are very small people who deal with distributors whilst they partner Transformative Changes Aheaddirectly with manufacturers for huge Competition with the modern retail discounts and offers,” says Nanji. “How chains has caused a 1.7 percent annual can we match up? We would be keen to decline in the sales and profits of participate in schemes with companies, unorganized retailers as well as the but no one bothers about small fry.” closure of many businesses within a His fear was born out by a 2008 case year.study jointly conducted by the The ICRIER report argued that this rate International Food Policy Research of decline is likely to be short-lived. But Institute and Michigan State University. organizations that work with small

I n d i a n R e t a i l C h a i n s

One of the earliest forays into multi-format retail by an Indian company was by Mumbai-based Pantaloon Retail in 1997. Its subsidiary, FutureValue is the country's largest listed retailer by market capitalization and revenue as of 2010. It operates in 93 cities and 60 rural locations, and employs 35,000 people. Future Value retail subsidiaries include Big Bazaar (set up in 2001) and Food Bazaar (2002), which sell provisions, household products, and groceries, as well as Home Solutions Retail, a furniture and electronics chain.Interestingly Food Bazaar, which has 200 stores, markets itself as combining a typical Indian bazaar with an international market by offering convenience of pre-packaged commodities along with “Indian values of see-touch-feel” -- displaying staples in huge bins much just like in the kiranas.Another notable business house with an arm in the retail business is the Aditya Birla group. It ventured into food and groceries in 2007, and has expanded with h y p e r m a r k e t s a n d supermarkets under the name More stores. It has a total of 483 stores and around 9,000 personnel.

Retail


traders and street hawkers dispute the assumption that the impact is temporary.In 2009, Youth for Unity and Voluntary Action (YUVA), which works with urban communities to promote the rights of the urban poor, presented its findings before a parliamentary committee. YUVA claimed that new retail formats were displacing labor, and that global retail chains with deep pockets can sustain losses for many years until they bankrupt immediate competitors. The parliamentary report on Foreign and

created heated competition for public coordinated the fight among residents spaces and land. Policies are now and business associations to ban heavily weighted in favor of the hawkers zones.

Another eviction tactic is beautification corporate sector, says Haidar Imam, drives, under which the phrase general secretary of the All India Trade “hawking menace” is freely bandied Union Congress' hawkers' union.

In 1998 the hawkers' unions presented about. Bhise argues that hawkers and M u m b a i ' s c i v i c b o d y , t h e kiranas provide an indispensable Brihanmumbai Municipal Corporation support system by serving marginalized (BMC), with a detailed proposal for construction workers, laborers, and developing local markets in specially others. “Even attendants in malls are reserved plots. dependent on street food. In the interests The plan, which aimed at providing of social justice, we must empower the employment to thousands of people, Domestic Investment in informal sector,” he says. was scuttled by the BMC officials to YUVA's Meckanzy Dabre, who works Retail Sector called for stringent whom it was presented, says Imam. “We with hawkers, says that if this legislation against predatory pricing.

YUVA, which along with Tata institute elaborated on how to acquire the land, unorganized sector is to compete with of Social Sciences did the first survey of procedures to be followed by hawkers new retailers on an equal footing, the Mumbai's hawkers in 1996, says there is and the charges that could be levied on government must speedily pass the the a definite economic conflict of interests hawkers depending on the type of goods Street Vendors Bill that is pending in between the corporate retail sector and sold. We even got professional expertise Parliament. He advocates micro-the informal sector that make up 1.8 in designing the stalls and display of planning initiatives under a National percent of India's urban workforce. goods, but the report was never put up Street Vendors Policy that can facilitate Notably, the ICRIER report looks into for consideration, and the plots we hawkers thereby making cities more financial, but not social aspects of the earmarked were given over to private inclusive. shift in retailing. On the other hand, the “I am an honest person who is on the developers.” 2002 report of Second National Corporate clout is manifested in direct street because of the compulsions of Commission on Labour, which looked and invisible ways, says Raju Bhise rozi-rot i ( l ivel ihood and food at umbrella legislation for workers in general secretary of YUVA. Despite a security),” says Ram Sanheri, a the unorganized sector, has warned of 1985 court order directing civic vegetable vendor with a mild physical social unrest and law-and-order authorities to set up hawkers zones in disability. “Yet the police beat me up, problems if this vulnerable sector is not Mumbai, “citizen” groups have sprung and civic authorities threaten to protected. Significantly, many of up to demand evictions of the hawkers, confiscate our goods. Why can't the Mumbai's hawkers and vendors are food carts, and stalls from public spaces. government frame policies and give us textile workers who lost jobs after the In fact, Citispace, an organization space to carry out our trade? Is this a 1983 closure of the city's mills. backed by a powerful industrial house nation only for the rich and powerful?”

and various business associations, has A Need for Hawker's RightsHawkers unions have urged the government to acknowledge their right to livelihood through speedy legislation that recognizes street vending. They have also demanded a rethink in urban planning so that development plans include space for mobile vendors and the neighborhood markets. India has a historical tradition of accommodating street hawkers who congregate in spaces where mass movements of people take place. In Mumbai these markets include a flower market under the flyover at Dadar as well as Mirchi Galli (spice market) with flavors from all over India. But in recent years, population growth and the demands of real estate have

Retail


factory, or pilot plant, at the heart of the of Nestlé UK and Ireland, and Ciaran PTC, where new technologies are Sullivan, Managing Director of Nestlé developed and tested before being used Confectionery in the UK and Ireland.in its factories around the world. Nestlé's PTC in York employs about 185 “All Nestlé PTCs around the world people of more than 30 nationalities, provide a 'critical mass' of expertise in including a number of placement particular product categories.” Stefan s t u d e n t s a n d a p p r e n t i c e s .

adbury is producing chocolate Palzer, Director of PTC York. Their work is essential for the that does not melt and can survive The company has also enlarged the continuous improvement of the quality, h o t t e m p e r a t u r e s .C PTC's sensory testing facility, where t e x t u r e , n u t r i t i o n a l p r o f i l e ,

The confectionery company's scientists panels of experienced confectionery sustainability and affordability of Nestlé have invented a new Dairy Milk tasters evaluate prototypes and finished c o n f e c t i o n e r y p r o d u c t s . chocolate bar that can withstand up to products on a variety of factors Many employees who are recruited and 104 degrees Fahrenheit (40 degrees including smell, bitterness or sweetness, trained in York will be assigned to other C e l s i u s ) f o r t h r e e h o u r s . a n d t a s t e p r e f e r e n c e . Nestlé operations or research and The team of scientists figured out a way The investment is one of a number development centres in the future.to break down sugar particles into Nestlé has made in its global research The PTC in York currently offers 13 smaller pieces, which in turn reduces the and development capabilities recently. industrial Collaborative Awards in amount of fat covering them. Earlier this month the company opened Science and Engineering (CASE) This makes the Dairy Milk able to its first R&D centre in India and the studentships with universities in the UK.withstand significantly warmer Nestlé Institute of Health Sciences in These training grants, funded by the conditions. Switzerland, while in October it Biotechnology and Biological Sciences However, this chocolate will only be announced it would increase the number Research Council, provide students with available in tropical countries such as of R&D units it has in China from two to research training experience through India and Brazil. four. collaborations between academic Cadbury sa id : "Product ion of “All Nestlé PTCs around the world institutions and partner organisations.temperature-tolerant chocolate would provide a 'critical mass' of expertise in The PTC also has a variety of research allow production of chocolate- particular product categories,” said and development partnerships with containing product more suitable for hot Stefan Palzer, Director of PTC York, at o t h e r l o c a l a n d i n t e r n a t i o n a l c l ima te s , pa r t i cu l a r ly i n l e s s t h e o p e n i n g c e r e m o n y . universities, institutes and suppliers.economically developed countries “Here in York, our specialist teams It has recently been granted funding of where the supply chain is ill-equipped to develop breakthrough technologies for almost GBP 1 million from the UK handle temperature fluctuations." chocolate, wafer and fruit-based Technology Strategy Board for two Nestlé Strengthens Global Expertise in

confectionery, and chocolate ingredients projects to stimulate business-led Confectionery

and coatings for ice cream products. i n n o v a t i o n i n t h e c o u n t r y .The company's investment in its PTC in “The expansion will enable us to Nestlé's PTC in York is located on the the city of York will enable it to intensify product and packaging same site as its confectionery factory accelerate confectionery product prototyping using sustainable and high that produces popular brands including development for the UK and the rest of quality raw materials, innovative Kit Kat, Aero, and Milky Bar.i t s w o r l d w i d e b u s i n e s s . manufacturing processes and reliable The extension work on the PTC was At the PTC, teams of technologists, a n d e f f i c i e n t e q u i p m e n t . completed according to the principles of scientists, engineers, food chemists, “It means we will be able to develop 'lean construction', a global standard for confectioners, nutritionists and other ideas more rapidly from the initial designing and constructing more experts work on developing innovative concept to the finished product you see e ff i c i en t and env i ronmenta l ly ideas for confectionery, from new f o r a s a l e o n a s h e l f . ” sustainable buildings and systems.manufacturing, raw material processing Mr Palzer was joined at the event by The PTC is designed to minimise waste and packaging methods, to the David Heath MP, Minister of State for of materials such as water, carbon reformulation of existing products. Agriculture and Food; Fiona Kendrick, dioxide, and energy while maximising Nestlé has expanded the miniature Chairman and Chief Executive Officer output.

Cadbury invents chocolate that 'doesn't melt'

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mages are created by a machine contrast and uneven illumination require conclusions about edges, textures or vision system by analyzing the more effort for the imaging computer, as markings that are critical parameters in Ireflected light from an object and not it increasesprocessing time and number the inspection operation.

by analyzing the object itself. Hence it is of incorrect image analyses. Generally, necessaryto understand how light will high contrast images are the easiest to Types of lighting:reflect from a production part that one is process. Wavelength of light used is also an inspecting. For this, the material that the A good image processing system is important variable in inspection process. object is made from, its size, shape and capable of recognizing the plus signs in Illumination by light of a particular finish need to be understood. The both images. However repeatability of color, the contrasting colors are easier to object's color is also important; even if recognizing top image will be lower due separate as they will appear dark in the the inspection system is monochromatic to low contrast of this image as against image. This can be used to enhance the (a red part will reflect differently from a the one below. If illumination is properly date codes on jar lids, for example.pink part). All of these characteristics controlled, images should be handled by Infrared light can be used to highlight affect how light is reflected, and may the machine vision system easily and bruises on produce and ultra violet light pose challenges in creating a good w i t h a h i g h d e g r e e o f will cause ink or glue to fluoresce (note image. reliability/repeatability. that filters should be used on the camera

Bright images are created when light if infrared or ultraviolet light are being reflects off of an object and is reflected used so that the fluorescence of the towards the camera. If the object absorbs object the light, then the object is seen as dark. can be viewed but not the light itself).

Good image is the result of proper focus A machine vision system focuses on the Collimated light, where the light rays are and illumination. Images with poor differences between these areas to make aligned to be parallel, is good for

“The most sophisticated automated inspection system in the world cannot work without the proper lighting.” – quote from machinevisiononline.org

Why lighting is important

in machine vision applications

Application

40 Oil & Food Journal June 201247 Oil & Food Journal Dec 2012

source that highlights the features or known light pattern (normally a plane of defects can be focused and cancel out the light creatinga line) used to obtain unwanted elements of the image. dimensional information. Typically

highly- collimated light sources are Lighting techniques used, such as lasers or fiber optic line Correct lighting technique can help in lights. This is an inexpensive way to dealing with special issues of a measure depth and height of continuous particular application. There are five surfaces and is used when either, light basic techniques for lighting parts to be source or surface are moving. It can also inspected: Back lighting, direct lighting, show surface details on low-contrast structured lighting, and on- or off-axis parts. Light should not be absorbed by diffuse lighting. the as reflection is required for the

lighting's effect on the part to be Back lighting: It creates a silhouette to measured. show shape of a partand allow for its measurement, but totally obscures all Diffuse on-axis lighting: DOAL, surface detail. Maximum contrast is allows light to be shone directly at a part produced that is most part black on in line with the camera, without it getting white. Dimensional measurements can in the way of the camera. This is be done with this technique and is accomplished using a 50% silvered useless for surface inspection. Difficulty mirror to reflect light directly at the part. in fixturing is the challenge in this. Any The image is seen through the mirror by mechanical fixture that must hold the the camera and it is captured.part being inspected could obstruct the These applications include detecting backlight. flaws on shiny, flat surfaces or

inspecting insides of small cavities. Direct front lighting: The light is Since it loses intensity through the producing sharp images (Figure 2).illuminated from a slightly off-center silvered mirror, additional lighting angle. It is easy to set up and can create source maybe used to improve Diffused light, which can be produced excellent contrast. But it can also create illumination or the consistency of light by taking collimated light and shining it shadows, and may produce glare on the subject.through frosted glass, gives a softer, depending on the inspected part surface. more even illumination, which avoids Creating shadows may be desirable, to Cloudy day lighting or dome light causing glare or shadows at the cost of enhance contrast where low-contrast illumination: In this, the light is not reducing the light's intensity.images are a problem. And, direct reflected directly onto the part, but first When inspecting parts, speed of motion lighting may be used to freeze motion onto a diffuse surface and then of photographed part and exposure time with strobes. “bounced” onto the part.of camera needs to be considered. These If shadows are to be minimized, more The diffused off-axis technique negates factors also affect the choice of light than one direct light can be used. Some shadows as if one was looking at source. systems use a ring light, which totally something on a cloudy day. It avoids For inspection, definition of goals and surrounds the part being viewed. creating hot spots or glare, which can focus is more important. Once the goals Structured lighting: It makes use of a cause problems in parts inspection are understood, choosing the light

applications. When a dome light is used, there can be a dead spot in the center of the image. Therefore, when a reflector is used, it may be advantageous to add a DOAL source to fill in the dead spot.For applications that are space-constrained, flat dome lights are available to place between the camera and the part and which produce similar results to curved ones.

Always-on or strobedLighting in machine vision applications is either always-on or strobed. By strobing, a light one can get increased intensity and the light source may last longer. More useful is the ability to stop motion. But, strobes need to be controlled. Timing must be precisely

Consider the image below (Figure 1).

Application


coordinated with image acquisition, or three dimensions, but high accuracy lighting and power vision, systems with the images will vary in intensity. There might not be achieved. They are integrated lighting are easier to install is also the human factor to consider traditionally very expensive and require and use in hard-to-reach spaces on the when using strobe lighting. Flashing special safety precautions as they production line, and are cost effective.lights can cause seizures or headaches present potential safety hazards. Fiber when viewed by some people. optics may provide a safer option to SummaryIn designing machine vision systems, provide collimated light if one's There are many lighting options one should consider the effect of application requires it. available and different ways to construct ambient light in the area where the Many older strobing systems employ and orient the vision system. Choosing machine is to be installed. The Xenon lights. Xenon is ideal for strobing the right lighting can make a significant illuminated light should be bright to as it is capable of giving very high difference in the productivity of one's overwhelm any ambient light that shines intensity over a short period of time, thus machine. on it so that the intended effect of the creating the impression of stopped When planning a new automated inspection system's special illumination motion. But the intensity of Xenon inspection system, the part, surface is accomplished. Ambient light can strobes decreases over time and they are finish and color, that needs to be cause additional glare on parts. It can rarely used today. inspected has to be understood, as also also change depending on where the A better alternative is to use light the production environment. Then, operator may be standing, the time of emitting diodes (LEDs). These are the review the pros and cons of various light day, the weather, and season of the year. most common ones for machine vision sources. After selecting the right All these issues need to be considered applications today. They last a very long lighting, one has to position the light when selecting the inspection system's time, in excess of 10,000 hours, and can source for maximum effectiveness. This light source and designing the machine's be strobed or left on continuously combination of lighting source and physical layout. without heat issues. LEDs are also very placement with respect to the part and

safe to use, they are efficient, and can be the camera can negate or accentuate Lighting sources sourced in virtually any color. features as appropriate to ensure that Halogen light is good for applications good, consistent images are produced to where very bright lighting is required, Integrated lighting meet the inspection requirements of the but is limited as they cannot be strobed. Machine vision users can acquire a application. They tend to become hot and lose system that includes integrated lighting. While early LEDs had limited intensity, intensity over time. If this type has to be This simplifies the setup used to modern LEDs can be very bright used for an inspection application, it highlight particular parts or features (consider how many new cars are using should be run at 80% of its maximum without having to acquire, install and them for exterior lighting).power to extend its life, keeping the power additional lighting. Some vision The following chart compares the voltage constant to avoid color changes systems have integrated software to different light source alternatives as to and using fiber optics to enable control the intensity and strobing of the the i r su i t ab i l i t y fo r d i f f e ren t mounting the lamp remotely if the light without additional equipment. applicationsapplication is sensitive to the halogen Since there is no need for external heat produced.Incandescent lights can be used as they are inexpensive and readily available, but can't be strobed. They also generate heat and lose intensity slightly over time.Fluorescent lighting sources are relatively inexpensive and are available in different shapes and sizes, provide diffuse light and minimize glare. These also cannot be strobed and degrade over time and cannot be dimmed. These also flicker due to the frequency of the AC power source, which can affect the image quality of vision inspection applications. Using high frequency ballasts can help reduce the amount of flicker, but can't eliminate it entirely.Lasers are highly collimated light sources, which have high intensity, allowing them to be mounted at a distance from the object being inspected. A special type of laser, diode laser, can be strobed. They are often used to make distance measurements, sometimes in

.

Application


Synthetic meat to be a new concept

The resulting cells can be harvested, seasoned, cooked, and consumed as a boneless, processed meat such as hamburger or chicken nuggets. Dr Post says cultured meat has its own advantages concern with animal welfare and public health. It has the potential to be healthier, safer, less polluting, and more humane than conventional meat.Founder of Sukrut Kanakrai Savadia believes that cultured meat production can be more efficient than conventional meat in its use of energy, land and water."More importantly, while making cultured meat it not necessary to kill an animal. Only a muscle biopsy from a live animal is to be collected and culture the ab-grown meat appearing on the Montreal in August. One of the topics isolated cells. In India, cultured meat supermarket shelves sounds like among a host of others included in vitro will be like a boon," Savadia feels.a science fiction? A city NGO meat, also known as synthetic or LSavadia adds it will also produce less Sukrut Nirman Charitable Trust cultured meat, by Dr Mark Post from waste and may prove vital, especially in (SNCT), fighting to curb cow slaughter University of Maastricht, Netherlands. countries like India, which is losing in the region, is in touch with Dutch Dr N N Zade, head of department of valuable livestock due to meat researchers who are working on veterinary public health, Nagpur production to satisfy export demand. developing synthetic or test-tube meat, Veterinary College, also attended the Savadia plans to meet Dutch scientists taking a small amount of cells from a meet.along with some local experts on the Cultured meat is an animal flesh product living animal and growing it into lumps issue soon.that has never been part of a complete of muscle tissue in the lab which can be As per the United Nations Food and living animal. It may be one of the eaten as meat for human consumption.Agriculture Organization (FAO), Scientists believe synthetic meat, several new technologies needed to 6.2mmt (million metrictonnes) of meat besides avoiding killing of animals, maintain food supplies. Zade says such is produced in India annually. The per could help reduce the environmental meat is produced in vitro, in a culture capita animal protein consumption in impact of meat production. The cell, rather than from an animal. It is India is 10.4 gram per day compared to technology to develop artificial meat has produced by taking number of cells from world consumption of 25 gram per day. been around since the turn of the century. a farm animal and proliferating them in a The FAO estimated that 18% of global National Aeronautics and Space nutrient-rich medium.greenhouse emissions are accounted for Dr Post claimed cells are capable of Administration ( NASA) once looked by the livestock sector, and demand for multiplying so many times in culture into developing for their astronauts - but meat is expected to double. To prevent that in theory, a single cell could be used making an edible and commercially further loss of animals, cultured meat to produce enough meat to feed global viable product has remained out of was the better solution.population for a year. After the cells are reach.Dr Post hopes to satisfy at least part of The issue was discussed at the 58th multiplied, they are attached to a the country's demand by making the International Congress of Meat Science spongelike scaffold and soaked with stuff in factories.and Technology (ICOMIST) at nutrients.

News

Vacuum Frying

Vacuum frying reduces oil uptake & improves

the quality parameters of carrot crisps

rying is a complex unit operation incompatible with recent consumer are the degradation of important that is widely used in the food trends towards healthier food and low fat nutrit ional compounds and the Findustry. During the process, products (Bouchon & Pyle, 2004). The generation of toxic molecules in the

food is immersed in an oil bath at a consumption of oil and saturated fat in foodstuff or the frying oil itself (Fillion temperature above the boiling point of particular is related to significant health & Henry, 1998). This information has water. This results in counter flow of problems, including coronary heart raised a red flag regarding human water vapour (bubbles) and oil at the disease , cancer, d iabetes , and consumption of fried food. As a result, surface of the product (Bouchon, hypertension (Saguy & Dana, 2003). healthy, low fat snack products have Aguilera, & Pyle, 2003). Oil uptake is Other undesirable effects derived from acquired a new level of importance in the one of the most important quality the high temperatures involved in the snack industry (Moreira, Castell-Perez, parameters of fried food, but this is frying process and exposure to oxygen & Barrufet, 1999). However, even



health-conscious consumers are valve. This results in a sudden increase frying of non-traditional fruits and unwilling to sacrifice organoleptic in the surrounding pressure, which may vegetables has great potential. In this properties, and intense full-flavour force respect, carrots are an interesting raw

the vapour inside of the pores to snacks continue to play an important material to be studied because they are condense, which means that oil role in the salty snack market (Mariscal the most important source of dietary absorption may precede cooling & Bouchon, 2008). carotenoids. In addition to acting as

Several processes have been developed (Garayo & Moreira, 2002). However, as natural pigments, these compounds have in order to allow companies to these authors explain, the low pressure been linked to the prevention of certain manufacture reduced-fat products that may allow air to diffuse faster into the types of cancer and degenerative and possess the desired quality attributes of porous structure, obstructing oil passage chronic diseases as well as pro-vitamin deep fat fried food whilst preserving and leading to lower oil absorption than A activity (Rodríguez-Amaya, 2001). their nutritional properties. These is observed in atmospheric frying. This The processing of foods may cause include alternative technologies such as hypothesis has been supported by the major carotenoid degradation due to the extrusion, drying, and baking, which results of experiments that suggest that isomerisation of trans-carotenoids, may be applied to raw food or vacuum fried potato crisps absorb less which represent almost 100% of total formulated products. Unfortunately, than half the oil of crisps fried under carotenoid content in raw carrots none of them has been as successful as atmospheric conditions. (Kopas-Lane & Warthesen, 1995), and

In order to compare vacuum and expected because they are still unable to oxidation, with a subsequent loss of atmospheric frying, Mariscal and impart the desired quality attributes of biological act ivi ty and colour Bouchon (2008) defined the term deep fat fried food, such as flavour, deterioration (Rodríguez-Amaya, 'equivalent thermal driving force', which texture, appearance, and mouthfeel. 2001). Trans–cis isomerisation affects

Vacuum frying is a promising is the difference between the oil pro-vitamin An activity, bioavailability, technology that may be an option for the temperature and the boiling point of and the antioxidant capacity of production of novel snacks such as fruit water at the working pressure. The carotenoids. Also, there is some and vegetable crisps that present the authors used several equivalent thermal evidence that all-trans-isomers are desired quality attributes and respond to driving forces (40 C, 50 C and 60 C) absorbed preferentially by humans as new health trends. This deep frying when frying apple slices under compared to cis isomers in the case of b-process is carried out in a closed system atmospheric or vacuum conditions (4.4 carotene. However, it should be noted under pressures well below atmospheric in. Hg). Their experiments showed that that isomerisation is only one of the levels, which makes it possible to vacuum fried apple slices absorbed factors that may determine their substantially reduce the boiling point of slightly less oil, and presented better b i o a v a i l a b i l i t y ; c a r o t e n o i d water and thus the frying temperature results for colour preservation than bioavailability may be enhanced by the (Garayo & Moreira, 2002). In fact, most atmospheric fried samples. food matrix, the interaction between

Scant information is available on this of the benefits of this technology are the carotenoids, the presence of dietary fat, topic because scientists are only just result of the low temperatures employed and processing conditions, particularly beginning to perform research in this and minimal exposure to oxygen. Said mechanical disruption and heat field. However, it is clear that vacuum benefits include: (i) the reduction of treatment (Schieber & Carle, 2005).

adverse effects on oil quality (Shyu, Hau, & Hwang, 1998), (ii) preservation of natural colour and flavours (Shyu & Hwang, 2001), ( i i i ) decreased acrylamide content (Granda, Moreira, & Tichy, 2004), and (iv) preservation of nutritional compounds (Da Silva & Moreira, 2008).The oil uptake mechanism of vacuum frying is still not fully understood. During a normal operation, the product is placed inside the frying basket once the oil reaches the target temperature. The lid is then closed and the chamber is depressurised. Subsequently, the basket is immersed in the oil bath, where it remains for the required amount of time. It is then lifted out and the vessel is pressurised using a pressure release

Vacuum Frying


The objective of this study is to compare Hg (which corresponds to a water then covered with a grid to prevent them oil content, moisture loss, trans a-and b- boiling point of approximately 38 C). In from floating. The vessel lid was carotene retention, and colour order to prevent water vapour from the fastened and the vessel depressurised. development in atmospheric and product from mixing with the oil of the When the pressure inside the vessel vacuum deep fat fried carrot crisps made vacuum pump and damaging it, a reached 1.92 in. Hg, the basket was using equivalent thermal driving forces condenser was installed between the immersed in the frying oil for increasing

frying times until it reached the bubble-in order to identify the technology's devices. (It consisted of a 4-m stainless end point. The time required to reach potential for producing novel snacks that steel pipe that was immersed in an said point varied depending on the present the desired quality attributes ice–water mixture at 0 C.) In frying temperature. After each frying whilst reflecting new health trends. atmospheric frying experiments, the time, the basket was lifted out and left to vessel lid was vented by opening a 2 in.

Materials and methods stand for 3 min and the vessel was metal piece. That piece was tightly af-1.1. Sample preparation pressurised. The samples were then fixed to the lid during the vacuum frying Carrots (Daucus carota cv. Abaco) were removed from the fryer and allowed to experiments.purchased from a local supermarket and cool to room temperature.stored at 7 C and 85–95% relative 1.3. Frying conditionshumidity. The carrots were washed and In both sets of experiments, the fryer 1 . 3 . 2 . A t m o s p h e r i c f r y i n g cut into 2 mm-thick slices using a vessel was filled with 3 l of high-oleic experimentsMandolin Slicer (Danesco International Once the oil reached the frying acid sunflower oil (Camilo Ferrón Chile Inc., USA) from which 3.8 cm discs temperature, ten carrot slices were S.A, Chile), which was preheated to 160 were extracted. placed in the frying basket and covered C for 1 h prior to frying and discarded

with a grid. The basket was immersed in after 3 h of frying. Equivalent thermal 1.2. Frying equipment the frying oil for increasing frying times driving forces were used in both Both atmospheric and vacuum frying until it reached the bubble-end point. processes.were carried out using an electrically The thermal driving force was defined The time required to reach said point heated, 10-l stainless steel (316L) vessel by Mariscal and Bouchon (2008) as the varied depending on the frying covered with a stainless steel (316L) lid, difference between the oil temperature temperature. The basket was lifted out which was thermostatically controlled to and the boiling point of water at the and left to stand for 3 min. The samples maintain the set frying temperature (±2 working pressure (that is, 100 C under were then removed from the fryer and C) using a temperature control system atmospheric conditions and 38 C for allowed to cool to room temperature.(Micro-controller X, model PXR4, Fuji vacuum frying). We used two driving Electric Instruments, Japan). The fryer 1.4. Experimental considerationsforces (60 C and 80 C), which resulted in basket rod was connected to a rotary In order to determine the total amount of frying temperatures of 160 C and 180 C system, which was used to stir the oil (40 oil absorbed by the samples, no de-oiling for atmospheric frying and 98 C and 118 rpm) before frying in order to minimise system was used in any experiment. C for vacuum frying.temperature gradients. Reported results correspond to the In vacuum frying experiments, the arithmetic mean of three batches ± 1.3.1. Vacuum frying experiments frying vessel was connected to a two- Once the oil reached frying temperature, standard deviation. All batches were stage high vacuum pump (model DVR- ten carrot slices (20 g) were placed in the handled independently and fresh oil was 140, Dosivac, Argentina) with the frying basket in order to minimise the used for each batch. All determinations capacity to generate a vacuum up to 1.92 drop in temperature. The slices were and measurements were carried out in in.

Vacuum Frying


triplicate on each batch unless otherwise specified.

2. Analytical methods2.1. Oil contentTotal oil content of ground carrot crisps was determined gravimetrically by Soxhlet extraction with petroleum ether (AOAC, 1995).

2.2. Solids contentEach extracted oil-free sample was placed in a Petri dish, dried in a forced air oven at 105 C to constant weight, and cooled in a desiccator (AOAC, 1995). Solid content of raw carrot slices was determined using the same procedure.

values using Adobe Photoshop 6.0 mixture was poured through a 3.3. Moisture lossMoisture loss was expressed on a dry software (Adobe Systems Inc., USA), separatory funnel and the carotenoid basis and calculated using the difference which were normalised to L*, a*, b* as solution was washed five times with between the original moisture content explained in Mariscal and Bouchon water to remove the alkali. It then was and the moisture content at time t. (2008). filtered through anhydrous sodium

sulphate. The same process was 2.4. Colour analysis using a computer 2.5. a and b carotene determination followed for the fresh sample extracts

2.5.1. Carotenoid extraction from raw vision system for HPLC analysis.A colour digital camera model carrot slices and carrot crisps

Carotenoid content was determined PowerShot A70 (Canon, USA) 2.5.2. Preparation of standard using the methodology described by connected to a computer via USB solutionsRobert, Carlsson, Romero, and Masson interface IFC-300PCU (Canon, USA) Both all-trans-a- and all-trans-b-(2003). Carotenoids were extracted was mounted on a stand inside a large carotene standards were obtained from from raw carrot slices by homogenizing opaque box with black interior surfaces. carrots (Daucus carota cv. Abaco). about 1 g of sample with Celite and cold The iris was operated using the manual Concentrations of standards in acetone with a mortar and pestle. The mode, with lens aperture at f = 8 and petroleum ether were determined by slurry was vacuum filtered and the solid speed 1/3(1/6) (no flash, no zoom) in spec t rophotomet ry us ing the i r residue was re-extracted with cold order to achieve high uniformity and respective A 1% 1cm (Rodríguez-acetone. Four extractions were made repeatability. The samples were Amaya, 2001). Calibration curves were until no orange colour remained in the illuminated using four CIE source D65 obtained for each carotenoid, diluting solid residue. The combined acetone lamps (60 cm length and 18 W; Model standard solutions and measuring extracts were transferred into petroleum TLD/965, Phillips, Singapore) at 45 associated peaks with HPLC.ether. The organic phase was washed angle in order to maximise diffuse

2.5.3. Chromatographic procedurewith distilled water to remove residual reflection, which is responsible for Carotenoid analysis was carried out by acetone and filtered through anhydrous colour.HPLC using a Waters symmetry column The angle between the camera lens axis sodium sulphate. Then, the solvent of an (C18, 5 lm particle size, 4.6 mm i.d 25 and the sample was set at around 90in an aliquot of 200 ll was evaporated to cm; Waters, USA). An isocratic mobile effort to reduce gloss. The camera was dryness under a nitrogen stream. phase of methanol:acetonitrile:ethyl grey balanced before each imaging Extracts were dissolved in 1000 ll of acetate (20:65:15 by vol) was used at a session with a Kodak grey card with acetone prior to analysis by HPLC.rate of 1 ml/ min. The HPLC system 18% reflectance (L* = 50). Afterwards, Carotenoids from fried carrot crisps consisted of a Merck-Hitachi L-6200 calibration samples were placed in the were extracted from about 1 g of ground pump and a Waters 996 Photodiode camera's view using a white card. A 1600 sample with petroleum ether for 4 h and Array detector, which were hooked up to 1200 pixel image was acquired and then vacuum filtered. The extract was a computer with Millennium 32 stored in high resolution and superfine made up to 100 ml with petroleum ether software. Carotenoids were detected at quality JEPG (Joint Photographic and an aliquot of 5 ml was saponified 450 nm and identified by comparing Experts Group) format in RGB colour overnight with an equal volume of 10% peak retention times with standards. Cis-coordinates. The RGB colour images potassium hydroxide in methanol b-carotene appeared as a peak following were converted to CIELAB or Lab solution at room temperature. The

Vacuum Frying


its trans-isomer. content). Then, the coefficient of vacuum conditions needed 3 min.Something similar was observed when determination (r 2 ) for the linear

2.5.4. a and b carotene retention the samples were fried using a thermal regression model was calculated.The absolute retention factor of each driving force of 60 C. Samples fried carotenoid was expressed according to 3. Results and discussion under atmospheric and vacuum Fillion and Henry (1998) on a dry- 3.1. Moisture loss conditions needed 3 and 5 min,

Fig. 1 shows moisture loss for each weight fat free basis as follows: respectively, to achieve bubble-end point. The differences are thought to be mainly associated with micro-structural changes. Though the same thermal driving force is used in both processes, samples fried under vacuum conditions are exposed to lower temperatures. As a

2.6. Water activity (aw) determination frying time during vacuum and result, micro-structural changes/damage The aw of vacuum and atmospheric fried atmospheric frying of carrot slices using are impaired. (This is one of the main carrot crisps was measured using a Lufft thermal driving forces of 60 C and 80 C. advantages of vacuum technology.) aw-wert-Messer (Durotherm, Germany) The loss of moisture during vacuum and Also, during the initial depressurisation at 20 C. atmospheric frying presented a classical step of vacuum frying, micro-structural

drying profile. There was an initial rapid surface changes may occur, which may 2.7. Texture decrease in water content, which was p reven t wate r f rom escap ing . The texture of the fried carrot crisps was mainly due to the loss of surface and Furthermore, even though dehydration analysed using the procedure described unbound inner water, followed by a is mainly limited by heat transfer, by Da Silva and Moreira (2008), which gradually decreasing gradient due to diffusion may play a role. Diffusion consists of a three-point bending test. crust formation. slows down at lower temperatures, a The sample was supported using two All samples were dried to the same final factor that may preclude moisture loss.parallel edges in order to apply the load moisture content (bubble-end point, 2% Similar results were found by Mariscal centrally. The system was mounted in a w.b.) The frying temperature and and Bouchon (2008) when frying apple TA.XT2 Texture Analyser (Texture technology (pressure) significantly slices.Technologies Corp., USA) using a affected the rate of moisture loss and the support span of 16 mm. A 2.5 mm-thick 3.2. Oil absorptiontime required to achieve the desired steel blade with flat edge was used to Fig. 2 shows the evolution of the oil level of dehydration (see Fig. 1). fracture the sample at a constant rate of uptake of carrot crisps for increasing Samples fried under atmospheric speed of 10 mm s1 atmospheric and vacuum frying times conditions using a thermal driving force The force (N) at the fracture point. using thermal driving forces of 60 C and of 80 C achieved bubble-end point after (highest value in the plot) was used as 80 C. The general pattern of oil uptake 2 min, whilst samples fried under the resistance to breakage.

2.8. Statistical analysisStatistical analysis was executed using Statgraphics 5.0 software (Manugistic Inc., USA). One-way variance analysis was carried out in order to confirm that there were no significant differences amongst fried sample measurements under specific conditions. Disparities between samples fried under different conditions were determined through confidence interval analysis using the Bonferroni test. All significant differences were determined with a confidence level of 95%. Linear correlation of colour parameters and carotenoid content was also examined by carrying out a linear regression between a specific colour parameter and carotenoid content (total carotenoids, trans a-carotene, or trans bcarotene

Vacuum Frying


frying, as determined by Mariscal and Bouchon (2008). Statistical analysis showed that both the frying method and the thermal driving force had a significant effect (p < 0.05) on oil uptake (g oil/g dry solids) for the same dehydration level. In fact, vacuum fried carrot slices absorbed 47% and 50.5% (d.b.) less oil than atmospheric fried ones at bubbled-end point when using thermal driving forces of 60 C and 80 C, respectively. When comparing vacuum fried carrot crisps, those fried using a thermal driving force of 60 C absorbed a significantly lower amount of oil compared to those fried using a thermal driving force of 80 C. These results concur with those obtained by Garayo and Moreira (2002), who determined that the oil content of vacuum fried potato crisps (37% d.b.) was signifi-cantly lower than that of potato crisps fried under atmospheric conditions (66% d.b.) The authors explained that during a normalvacuum frying operation, the product is removed from the oil bath and the vessel is vented before cooling takes place. This results in a sudden increase in the surrounding pressure at a constant temperature, which may force the vapour inside of the pore to condense, decreasing Ppore and therefore initiating oil absorption before cooling begins (that is, Psurroundings Ppore > 0). They further explain that, because of the low pressure, air may diffuse faster into the porous space, obstructing oil passage and therefore leading to a reduction in oil uptake in vacuum fried snacks as compared to atmospheric fried ones. Mariscal and Bouchon (2008) also observed lower oil uptake in vacuum fried apple crisps than shows an initial rapid increase followed Gamble, Rice, & Selman, 1987; in atmospheric fried ones.by a gradually decreasing Moreira, Sun, & Chen, 1997). They attributed this to the lower vapour-gradient, with a considerable amount Consequently, oil absorption is heavily pressure of water during vacuum frying absorbed during the initial period. There linked to moisture loss since it and to the higher temperatures reached were great differences between samples determines the extent of crust formation during atmospheric frying, which fried under atmospheric and vacuum and therefore the volume that is induce added structural changes conditions and between those fried using available for oil infiltration. Fig. 3 shows liketissue/constituents degradation. different thermal driving forces. Oil oil uptake versus moisture loss during However, the decrease was less absorption has long been claimed to be a vacuum and atmospheric frying of carrot pronounced in apples than in carrot surface-related phenomenon resulting slices. The strong relationship between slices. This is probably due to the high from the competition between drainage them suggests that the water vapour porosity of apples.and suction into the porous crust once replacement mechanism, which is said

the food is removed from the oil bath and to occur during atmospheric frying, 3.3. Carotenoid content

begins to cool (Bouchon et al., 2003; would also take place during vacuum

Vacuum Frying


The most abundant carotenoid found in = 80 C), absolute retention was about much as 29% of total b-carotene content fresh and fried carrot samples was trans 60%, which is still much higher than the in processed sweet potatoes. Trans–cis b-carotene, which represents about 60% absolute retention found in atmospheric isomerisation affectspro-vitamin A of total carotenoid content. The second- fried crisps. activity and the antioxidant capacity of

Thermal processing may result in losses most abundant was trans a-carotene, carotenoids.of all-trans-carotenes and the formation In addition, b-carotene all-trans-isomer which accounts for nearly 40%. These of cis isomers. In fact, a reduction in the is absorbed preferentially by humans results are in agreement with the percentage of all-trans-b-carotene with compared to cis isomer (Schieber & literature that has reported that trans b-the concomitant increase of 13-cis and Carle, 2005).carotene content ranges from 60% to

Our results suggest that trans b-carotene 9-cis isomers has been observed during 80%, whereas trans a-carotene content degradation is faster than trans a-processing (Chandler & Schwartz, ranges from 10% to 40% (Chen, Peng, & carotene degradation in all frying 1988). Losses of all-trans-a- and all-Chen, 1995).conditions. The degradation rate of Table 1 shows absolute retention of trans trans-b-carotene were greater during carotenoids depends on their structure. a- and trans b-carotene after vacuum and atmospheric frying, probably as a result Key aspects are the number of double atmospheric frying of carrot slices using of their isomerisation at elevated bonds and the maximum overlap of thermal driving forces of 60 C and 80 C. temperatures. In fact, formation of 13-carbon–carbon double bond molecular A thermal driving force of 60 C during cis-b-carotene was observed in carrot orbitals, which give the highest vacuum frying results in minor crisps fried at 160 C and 180 C, susceptibility (Miller, Sampson, degradation of both trans a- and trans b- representing 12.5 ± 1.1% and 28.6 ± Candeias, Bramley, & Rice-Evans, carotene (only 10.5% and 13.6% 1.4% of total carotenes, respectively. 1996). Both trans a- and trans b-carotene degradation, respectively). When the Chandler and Schwartz (1988) noted have 11 double bonds. Their structural thermal driving force was increased (DT that cis isomers could account for as

Vacuum Frying


difference lies in the cyclisation of their trans a-carotene only has 10. mainly associated with non-enzymatic ends: trans b-carotene has one b-ring on browning reactions.

3.4. Colour development As shown in Table 2, L* value decreased each side of the molecule whereas trans Carrots' colour is largely related to the significantly during atmospheric frying a-carotene has one b-ring and a e-ring. presence of carotenes. As reported by for both thermal driving forces. For Steric hindrance reduces the orbital Sulaeman et al. (2001), the orange instance, L* value diminished from L *0 overlap between the chain double bonds colour of carrots and carrot crisps can be = 65.2 to L* = 34.2 at bubble-end point and the b-ring double bonds in the described by lightness (L*), redness (much darker) when frying at 180 C. On molecules of trans a- and trans b-(a*), yellowness (b*), and Hue the other hand L* remained nearly carotene. This leaves trans b-carotene parameters. Table 2 shows changes in constant during vacuum frying, only with 9 fully overlapping double bonds L*, a* and b* values of carrot crisps for decreasing to L* = 58.4 and L* = 55.9 plus 2 b-ring double bonds with reduced increasing frying times during when using thermal driving forces of 60 overlap, and trans a-carotene with 9 fully atmospheric and vacuum frying. Hue C and 80 C, respectively.overlapping double bonds plus only one values are not included since we did not The degradation of trans a- and trans b-b-ring conjugated double bond, as the find a significant relationship between carotene had a big impact on a* and b* double bond of the e-ring is not part of this parameter and processing values, as shown in Table 2. Crisps fried the conjugated double bond system conditions. under vacuum conditions using a (Anguelova & Warthesen, 2000). Thus, L* is a critical parameter in the frying thermal driving force of 60 C maintained t rans b-carotene has a higher industry as it is usually the first quality their orange-yellow chromaticity, susceptibility to oxidation and attribute evaluated by consumers when showing a slight decrease in their colour isomerisation because it has 11 determining product acceptance. Low coordinates, which varied from a *0 = conjugated double bounds, whereas L* values indicate a dark colour and are 49.9 to a* = 45.4 and from b *0 = 65.4 to

b* = 65.1. Carrot slices fried under atmospheric conditions showed a significant decrease in their colour coordinates, reaching final values of a* = 15.3 and b* = 25.3, when frying at 180 C. Our results correspond to those of Shyu,

Hau, and Hwang (2005), who reported that the values of a* and b*decrease significantly as the frying temperature increases above 100 C because of carotenoids' instability. In fact, we found good linear correlations between a* and trans b-carotene content (r2= 0.95), b* and trans a-carotene content (r2= 0.78) and hue and total carotenoids content (r2= 0.91) when comparing values of fried crisps at bubble-end point.4.5. W a t e r a c t i v i t y ( a w )As shown in Table 1, samples reached a

Vacuum Frying


water activity (aw) average value of changes in their microstructure, which in The final maximum force (MF) of fried approximately 0.44. This value matches turn determine their final physical and carrot crisps was not affected by the the results obtained by Katz and Labuza sensory properties. The most important frying technology and the thermal (1981), who found that potato crisps' textural attribute of crisps and chips is driving force used. All samples reached sensory acceptability decreases crispness, which denotes freshness and final values of between 5.01 and 5.68 N. markedly above a critical value of 0.47. high quality. A crisp should be firm and Nevertheless, the frying technology Furthermore, no significant differences snap easily when bent, emitting a significantly affected the rate of were found amongst the samples. crunchy sound (Krokida, Oreopoulou, softening and hardening. For instance, Water activity affects the stability of Maroulis, & Marinos-Kouris, 2001). when using a thermal driving force of 60 dehydrated foods because it determines During frying, vegetable tissues show an C, ks values were 1.8582 and 3.5218 both chemical reaction rates and initial softening that is followed by s1and kh values were 0.0441 and 0.1322 m i c r o b i a l a c t i v i t y . hardening due to the progressive s2when frying under vacuum and The limiting value of aw for the growth development of a dehydrated crust. In atmospheric conditions, respectively.

Also, higher frying temperatures resulted in faster softening of the tissue and subsequent hardening (see Table 1 and Fig. 4).4. ConclusionsVacuum-fried carrots may be a promising snack category due to the fact that carrots are the most important source of dietary carotenoids, and this technology makes it possible to overcome major carotenoid degradation pathways due to isomerisation and oxidation and thus preserve biological activity. The results showed that vacuum fried crisps (driving force of 60 C) may reduce the oil content of carrot crisps by nearly 50% (d.b.) compared to atmospheric fried crisps produced using the same driving force. Furthermore, they preserve around 90% of trans a-carotene and 86% transb-carotene, which leads to the preservation of the colour of raw carrots. This is reflected by L*, a*, b* colour coordinate analyses, excellent linear of any microorganism is around 0.6. order to incorporate both phenomena, correlations between a* and trans b-Below this value, food spoilage is Pedreschi and Moyano (2005) modelled carotene content (r2= 0.95), b* and trans mainly due to enzymatic and chemical textural changes (normalized maximum a-carotene content (r2= 0.78), and hue reactions, such as oxidation (Adams & force) during frying by means of two and total carotenoids content (r2= 0.91) Moss, 1995). The rate of oxidation may terms (see Eq. (2)). The first describes when comparing values of fried crisps at rise as water content increases since the softening of the tissue for short bubble-end point. As a result, vacuum water can enhance reactant mobility and frying times (fast phase) and the second frying may be a useful process in the bring catalysts into solution. In relation describes a hardening dependent production of novel snacks that present to carotenoid stability. Lavelli, Zanoni, component (slow phase), which is a desired quality attributes and respond to and Zaniboni (2007) showed that both function of the square of the frying time new health trends.trans a- and b-carotene from dehydrated and gains relevance at longer frying V. Dueik & P. Bouchon, Department of carrots present their maximum stability times. MF¼ eks Chemical and Bioprocess Engineering, at aw values between 0.34 and 0.54. Pontificia Universidad Católica de These results confirm previous findings where MF* = normalised maximum Chile, P.O. Box 306, Santiago 6904411, by other authors (Baloch, Buckle, & force; ks = kinetic constant for softening Chile Edwards, 1977). of carrot tissue during frying (s1); kh = P. Robert, Department of Food Science

kinetic constant for the crust hardening and Chemical Technology, Universidad 3.6. Texture process during frying (s2) and t = frying de Chile, P.O. Box 223, ChileFrying of raw vegetables induces major time (min).

Vacuum Frying

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