DHAKA: California-based food and beverages company Del Monte is evaluating options to enter Bangladesh and Sri Lanka markets through FieldFresh Foods, 50:50 joint venture between Sunil Mittal-led Bharti Enterprises and Del Monte Pacific.
Besides India, the JV would sell Del Monte branded products in the entire SAARC region. At present, FieldFresh Foods sells Del Monte branded products in India and Nepal directly to consumers, and in eight markets across Asia Pacific through the business-to-business (B2B) channel.
“Over the next two quarters, we would have potential local partners in Bangladesh and Sri Lanka,” Yogesh Bellani, chief operating officer, FieldFresh Foods.
Del Monte, which entered India in 2007, is planning to launch sauces and condiments that are consumed mainly with Chinese foods this week. “Initially, we would launch seven products in the Chinese category for direct consumer sales in 190 gramme bottles priced between Rs 40 and Rs 45,” said Bellani. These include sauces like red chilli, green chilli vinegar, schezwan, etc. It will also launch products like swandwitch spreads and cheesy snack dips soon.
The estimated Rs 1,000-crore Indian ketchup market, where Del Monte has a strong presence, is dominated by Nestle’s Maggi, HUL’s Kissan and Heinz.
Direct Consumer biz growing fast
Del Monte as a brand initially started pushing products in India through B2B (business-to-business) route, mainly selling to bakeries, hotels and eateries. At present, it sells about five crore ketchup sachets a month through touch points of our B2B clients.
Over the past few years, direct consumer sales has increased to about 50 per cent of its revenues “B2B is a good route to expand brand’s presence in new markets. But direct consumer sales is huge opportunity,” he added.
For direct consumer sales, the company banks on modern retail (about 40 per cent of revenue), rather than traditional general trade. “As far as our B2C (business-to-consumer) is concerned, we are present in 50-55 key cities across modern retail stores. We would cater to top 25 per cent of the general trade outlets in the top 50 cities in India, over the next few years,” he said.
It also has plans to expand its Italian range of pasta sauces, sauces, dips, salad dressing and spreads.
Extending the health snack range
Del Monte, which launched packaged fruit-based health snacks, primarily targeting ‘munching on-the-go’ youth early this year, is now planning to introduce smaller pack sizes like 25 gramme and 40 gramme.
In the Indian snack market, Del Monte takes on the likes of PepsiCo, ITC, Haldirams, Britannia and Parle. Currently, India’s health snack market accounts for only about five per cent of the estimated over Rs 10,000-crore snack food market. The average cost of health snacks is about Rs 15 for 12-15 gramme packs.
Del Monte’s health snack products would include packaged fruits (apricot, mango and papaya), dried fruits and dried fruit prunes. Bellani, who targets to double Del Monte’s business in India over next two year, declined to share revenue details of the company. “We are adding capacities every quarter and will need to add more. We may also have more third-party arrangements in future,” he added.
FieldFresh Foods has a production facility at Hosur (near Bangalore) and has third-party arrangements with local producers in the northern part of India.
More than 30 per cent of its products are sourced from the third-party partners.
FieldFresh sells fresh and canned fruit, penne pasta, snack dressing, mango pulp, tomato paste, jalapeno, fruit cocktail and whole corn kernels to more than 2,000 hotels, restaurants and bakeries in India.
Source: business-standard
BDST: 0912 HRS, SEP 25, 2013
RS/BSK
