Submitted to:Dr.Sandhir Sharma

Submitted by:Arushi GuptaGaurav JainKomal SharmaAnkush(Group 7 )Adaptors

PRESENTATION OF MARKETING RESEARCH

FOOD AND BEVERAGES INDUSTRY

evolution

Food and Beverage Service is the service of Food made in the Kitchen and Drinks prepared in thebar to the Customers (Guest) at the Food Beverage premises, which can be: Restaurants, Bars, Hotels, Airlines, Cruise Ships, Trains, Companies, Schools, Colleges, Hospitals, Prisons, Takeaway etc 

Food & Beverage Outlets are divided in to the following categories:

 Restaurants: Restaurants are places where Food & Drink is served.

Lounge: Lounges can be found in different hotels. Their main purpose is to offer Food & Drinks in relaxed surroundings with comfortable and cozy seating in relaxed surroundings

Bar: Bar is a place where drinks are served. There is usually a small Snacks Menu too

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The Indian food industry comprises of food production and the food processing industry. The food processing industry is one of the largest in India – it is ranked fifth in terms of production, consumption, export and expected growth.

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The foods category is gaining popularity with a swing of launches by HUL, ITC, Godrej, and others. This category has 18 major brands aggregating Rs. 4,600 Cr. Nestle and Amul slug it out in the powders segment.

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The Indian beverage industry faces over supply in segments like coffee and tea. However, more than 50 per cent of the market share is in unpacked or loose form.

The major players in this segment are Nestlé, HUL and Tata Tea

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Market Size of FOOD and beverage industry

•India is second largest producer of food in the world.•Total food production is expected to double in next 10 years•Indian Food and Beverages market expanding at CAGR of 9% during 2009-13•Expected to reach $580 billion by 2013

India is set to witness the next revolution in the food processing industry, as per Mr Subodh Kant Sahai, the Union Minister for Food Processing Industries.

The Centre has set an investment target of Rs 100, 000 crore (US$ 18.90 billion) by 2015 in the sector. The sector is expected to grow by 20 per cent and value addition to increase by 35 per cent by 2015.

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Key players

Player Segment

Dabur India Limited Beverages and culinary

Godrej India Ltd. Snack food and dairy products

Haldiram Snack food

Parle agro Beverages and bottled water

MTR foods Ltd. Snack food and ice cream

HUL Beverages, snack fooods

Britannia Bakery products

Cadbury India Ltd. Chocolates, dairy products

Nestle Dairy products, snack food

Frito Lays (subsidiary of Pepsi Foods) is the market leader in the organized potato wafers market

United Breweries (UB) is the market leader of Indian brewery industry with around 40 % market share

While Dabur's Real is the biggest player in the juices market with about half of the market share

Market Share

PepsiCo's Tropicana brand enjoys about 35% of this market.

Other players include Parle Agro's Saint which has about 6-8 % besides a slew of regional players.

Nestle has shown a rise of 0.5% with market share of 15.6%

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Impact of global crisis in industry of food

and beverages

Due to strong growth fundamentals. Growing population, favorable

demographics and rising income levels are key drivers of growth in developing countries.

Rising health consciousness and increasing need for convenience foods are drivers of growth in developed countries.

Food products continue to be essential to consumers in spite of the slowdown.

Economic slowdown nibbled at food & beverage sector but the industry’s resilience remains steadfast

Rising food prices. Increasing transportation costs due to

a rise in oil prices. Decline in consumer spending

Major problems faced by the industry

Large companies with abundant cash reserves were able to continue expanding as well as acquire middle market companies that were struggling to raise funds for expansion due to crisis.

The economic slowdown led to consumers spending less on non-essential food items.

Private Labels :Retailers increased manufacturing products internally that are marketed as their in-house brands.

Frozen Food :Frozen food sales increased during the recession as most consumers choose eating at home over dining outside due to reduced household budgets.

Impact of global crisis

Climate change Global economic downturn Diet-related illnesses(Health issue) Food safety and consumer trust Simplicity trend

10 major challenges global players facing in industry of food and beverages

Trends in low-cost foods Private Labels   Labor issue   Rising food prices Social issues

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PepsiCo PepsiCo was formed in 1965 with the merger of

the pepsi-cola Company and Frito-Lay. Indra Krishnamurthy Nooyi h as been the chief executive of PepsiCo since 2006.

STARBUCKS—Peter Gibbons Title: Executive vice president, Global Supply

Chain Operations MCDONALDS— J.C. González – Méndez Title: Senior Vice President, North America

Supply Chain Management

Profiling of owners of top executives

Indian Advantage

India is the largest producer of milk in the world

Likely to become the second largest dairy products producer in the coming years.

It is the second largest producer of fruits and vegetables.

It is home to the largest number of livestock in the world.

It is the third largest producer food grains.It has the third largest output of fish.

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Indian Food and Beverages sector accounts for around 1.8 per cent of international food trade

The government plans to open 30 mega food parks by the end of the 11th Five Year Plan (2007-2012).

Food processing industries have been put in the list of priority sectors for bank lending.

Excise duty on aerated drinks has been reduced to 16 per cent from 24 per cent.

Excise duty on ready to eat packaged foods and instant food mixes has been brought down to 8 percent from 16 percent

Fruit and vegetable processing units have been completely exempted from paying excise duty.

POLICIES

Segment Size(output/value)

Projected growth

Processing level

Organized players

Diary products

US 62.67 billion

15% 37% 15%

Fruits and vegetables

2.33 million tonnes

20% 2% 48%

Meat and poultry

US 13 million

10% 1% 5%

Fisheries 6.4 million tonnes

20% 12% N/A

Packaged food

US 2 billion 85 3% 80%

Beverages 155 million 27% N/A 77%

KEY TRENDS AND DRIVERS( all key segments offer potential for investment and growth)

the organized food retail sector in India is at a very nascent stage but has great potential for future growth.

The food processing sector has reportedly emerged as one of the top ten sectors to attract foreign direct investment.

The hospitality industry was affected by the global economic recession and terrorist attacks during the past year. 

Trends

The biggest competition for imported foods in the Indian retail market is the local food industry which has an advantage of low-cost labour and easy availability of raw material at reasonable prices.

Indian retailers highly value in-store promotions to highlight international food products.

By the year 2014, the retail sales in the packaged food market in India is expected to reach US$25.8 billion