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indian fmcg makers face stagnant market
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indian makers of fast moving consumer goods (fmcg) posted mixed results for the past quarter, but all face a similarly daunting future: nearly stagnant demand for many products, with any rise in profit coming primarily from cost cutting, according to a reuters report. the sector, which makes products for daily use such as soaps, shampoos, toothpaste and food items, is rife with discounting.to cope, companies like giant hindustan lever, india's largest company by market value, itc, the nation's largest cigarette maker, and nestle india are spending heavily on advertising to stimulate sales, putting further pressure on bottom lines. "there is no single trigger for the demand for such goods to pick up in the urban markets," said p krishnan, country manager for skandia asset management asia. "in fact...consumers are economising on their household budgets." india's immense population of one billion-plus people offers tremendous market potential to companies selling products for everyday use. but its many languages, size and poor infrastructure can make it a difficult place to operate. widespread poverty and an extremely low per capita income of less than $500 (€574) a year also mean many indians are extremely price conscious, leading to cut-throat competition for virtually any product aimed at a mass market. the growth of grocery store chains selling lower-priced, private-label brands is adding to the pressure. "new retail chains like food world, health & glow, subhiksha, giant and others are not only catching the eye of the consumer in the staples segment like flour and rice but also in fmcg products like detergents," the economic times daily said in a recent article on the issue. "food world currently has 72 stores while shubhiksha has around 115 stores and both are predicting 30 per cent annual growth in the next few years." hindustan lever, though, believes it has devised a strategy to prosper even in the face of such brutal competition.last february the company, which is 51 per cent owned by anglo-dutch giant unilever, said it would focus most of its energy, and massive advertising budget, on marketing 30 'power brands' which generated 80 per cent of sales. its results for the past quarter and year indicated that so far the strategy is succeeding.hindustan lever reported its profit rose just 1.58 per cent last quarter from a year earlier. but excluding extraordinary items, profit rose by 16 per cent.
Source :Food Ingredients Food Science - Additives, Flavours, Starch
Date :
5
February
2002
Category :
Rest
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researchers in the united states have developed a chemical derived from sugar with the potential to replace bisphenol a (bpa) in a number of products, including the lining of food cans. the new jersey institute of technology (njit) said professor michael jaffe had received a us patent for an epoxy resin based on isosorbide diglycidyl ether that could make consumer products safer.
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bisphenol a (bpa) is living on borrowed time. and not just in the united states but now in europe too where mounting consumer hostility and scientific concern over its safety have combined to push the chemical towards the point of no return. just a few months ago, it seemed the storm of anxiety surrounding bpa was a north american phenomenon, with canada and a bevy of us states introducing bans on the substance used in polycarbonate bottles and epoxy food can linings.
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a raft of experts and charities have today urged the uk government to ban bisphenol a (bpa) in baby bottles because of “compelling scientific evidence” linking it to cancer and other chronic conditions. launching the campaign, breast cancer uk said the weight of research raised clear concerns about bpa. the call has been backed by a number of scientists and charities, including the nct (formerly national childbirth trust), the cancer prevention and education society and chem trust.
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there is no question that demand for healthy food is growing across most developed economies and a new survey has sought to find out just what consumers perceive to be healthy. the health and wellness boom, as it has been dubbed, has reportedly not been derailed by the global financial crisis, with opportunities still in high supply. according to the new international food information council (ific) functionalfoods/foods for health consumer trending survey, carried out in the us, eighty-nine per cent agree that certain foods have benefits that go beyond basic nutrition, and may reduce the risk of disease or other health concerns - a significant increase from just two years ago.
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while the recession bites in the uk, and consumers tighten their belts, food and drink retail sales were up 5.1 per cent, on a like-for-like basis from january 2008. according to a new report from the british retail consortium, non-food items are down on last year, but food has bucked the trend and recorded a year-on-year increase. joanne denney-finch, chief executive of market analyst igd, said: “food and drink is holding up well, suggesting an industry that is recession-resistant.
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the adoption of 44 new and amended food safety standards by the codex alimentarius commission signals the coming changes that member countries will make to their legislation over the next year. at a six-day meeting that ended last friday in rome, the international food safety body also established a comprehensive set of risk analysis principles to help governments establish their own standards, especially for food items that are not covered by codex.
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representatives from the uk organic sector have today urged the uk environment minister david miliband not to allow organic food to be contaminated by genetically modified organisms (gmos). a delegation representing 70 organic businesses urged miliband not to increase the current threshold for gm contamination of organic food from 0.1 per cent to 0.9 per cent.
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food manufacturers are being warned that they need to spend money on tracing where ingredients come from before the commercial release of genetically modified foods is allowed. dr lyn davies, a marketing specialist with agriquality new zealand, issued some strong warnings when she addressed food industry representatives at a gm summit in wellington. davies told representatives that a strict traceability systems for food items could be the key to ensuring there is always a market for new zealand food.
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Coca.Cola
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PEPSI
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Mcdonald
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Nestle
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Mars
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Baskin & Robins
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Nutrika
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Mumika
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Chika
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