Chocolate prices are not likely to get cheaper as the prices of other ingredients like sugar, milk powder and dairy fat have gone up significantly, and some companies had accumulated stock when cocoa was more costly.
Cocoa prices have fallen 35% over the past year in global markets, but that's good news only for chocolate makers, not Indian consumers.
Cocoa prices have tumbled because of bumper crop in West Africa and partly due to the fall in pound after Brexit. Apart from a few major chocolate companies, the others in India depend on imports from West Africa or South East Asia for their requirements "Prices of almost all ingredients like sugar, milk powder and fats used as cocoa butter substitutes have increased. Sugar prices are up by 25-30% from last year. As a result, many small manufacturers have restricted production," said John Chavady, national sales manager of Lotus Chocolate Company in Hyderabad.
Another problem is that Indian cocoa prices have not tracked the global trend. While the global cocoa bean is available at around Rs.130kg, chocolate companies paid Rs.205-210kg to Indian cocoa farmers.
M Suresh Bhandary, Managing Director, Central Arecanut and Cocoa Marketing & processing Co-operative (Camco), said, "We are saddled with cocoa beans bought at higher prices since we buy in advance. Hence, we may not be able to immediately pass it on to the consumers. But if the downtrend in prices persists, we will be forced to do as we are competing with imported cocoa."
Companies like DP Cocoa Products has been importing chocolates from West Africa by paying duty .
Durga Prasad, Managing Partner of the company said, "By paying 35% duty, it is almost same as the Indian price. So, if government does not reduce duty then we may have to go for cheaper cocoa powder and butter from Indonesia."
Cargill's cocoa and chocolate business is set to buy Smet, a leading Belgium-based supplier of chocolate and sweets decorations to the food service and confectionery markets.
The two companies intend to bring together their global gourmet chocolate activities. The acquisition of Smet will provide Cargill the significant opportunities to accelerate growth in the gourmet category.
Inge Demeyere, Managing Director of Cargill’s chocolate activities in Europe, said, "The proposed acquisition emphasises Cargill’s commitment to its customers in the gourmet segment, building on the strengths of both organisations and enhancing complementary capabilities. We will broaden our product portfolio and services to artisans and chocolatiers, bakery, hospitality businesses and food service industries. Smet enjoys great market recognition. As their brand joins Cargill’s existing brand portfolio, their unique entrepreneurial capabilities will be leveraged to allow for a dedicated focus on gourmet customers."
Theo Graban, the Executive Member of the Board of Smet, added, "For over five decades, Smet is driven by a passion for chocolate and stands out with a relentless problem-solving attitude, innovative mindset and great flexibility."
Johan Smet, CEO of Smet, further stated, "Cargill provides us with a unique opportunity to serve our customers with a globally integrated cocoa and chocolate supply chain, a renowned sustainability approach and deep chocolate expertise."
Mars, the US-based chocolate maker, sees India as a key 'accelerate' market. It is ramping up its distribution network in the country to tap the high growth potential.
The company offers brands like Snickers, Mars, Bounty, M&M, Double Mint, Boomer, Orbit, Galaxy and Twix in India. It further looks to launch one more brand in the next six to eight weeks to enhance its presence in the country.
Andrew Leakey, Mars Wrigley Confectionery General Manager, India, said, "India is a key 'accelerate' market in Mars Wrigley Confectionery Asia, Australia, Middle East and Africa (AMEA)."
For expanding its reach beyond metros and some key cities, Mars is investing to strengthen its distribution network and is building a sustainable supply chain in the Indian market.
Mars Wrigley products are currently distributed through around 3,00,000 outlets. The company is looking to take the number to over 5,00,000.
Andrew said, "With our continued focus on growth in the India market through our expanding distribution network, flexibility to scale as per demand, ongoing efforts to build sustainable supply chain and strong market potential, we anticipate one-fourth of our growth contribution for AMEA region, coming from India, over the next few years."
भारत के प्रतिस्पर्धा आयोग (सीसीआई) ने कैडबरी चॉकलेट निर्माता मोंडेलेज़ इंडिया के खिलाफ दायर शिकायत को खारिज कर दिया है। एक समझौते को समाप्त करने के संबंध में शिकायतकर्ता ने कन्फेक्शनरी विशाल मोंडेलेज़ इंडिया फूड्स द्वारा अनुचित व्यावसायिक प्रथाओं का आरोप लगाया।
निष्पक्ष व्यापार नियामक ने यह देखते हुए मामले को खारिज कर दिया है कि मोंडेलेज़ के खिलाफ (प्रतियोगिता) अधिनियम की धारा 3 या धारा 4 का कोई उल्लंघन नहीं किया गया है। धारा 3 विरोधी प्रतिस्पर्धी समझौतों से संबंधित है और धारा 4 प्रमुख बाजार स्थिति के दुरुपयोग के साथ सौदा करता है।
शिकायत महाराष्ट्र के पूर्ववर्ती स्टॉकिस्ट और मोंडेज़ के उत्पादों के वितरक द्वारा दायर की गई थी। शिकायतकर्ता ने दलील दी कि कन्फेक्शनरी विशालकाय द्वारा प्रभुत्व और विरोधी प्रतिस्पर्धी प्रथाओं के दुरुपयोग के मुद्दों को उठाए जाने के बाद, मोंडेलेज़ ने दो इकाइयों के बीच निर्विवाद और झूठे आधार पर वितरण समझौते को समाप्त कर दिया।
नियामक ने कहा, "अन्य आरोपों के बारे में मोंडेलेज़ (विपरीत पार्टी) द्वारा पुनर्विक्रय मूल्य रखरखाव और वितरकों पर अपनी छूट योजनाओं के साथ आने के लिए प्रतिबंध, शिकायतकर्ता द्वारा उन्हें प्रमाणित करने के लिए कोई सहायक सबूत या संचार नहीं रहा है।"
"सीसीआई ने आगे कहा कि इसके अलावा, पुनर्विक्रय मूल्य रखरखाव अधिनियम के प्रावधानों का प्रति उल्लंघन नहीं है और सुझाव देने के लिए कुछ भी नहीं है कि आरोपी (विपरीत पार्टी) के आचरण के बाजार में प्रतिस्पर्धा पर एक प्रतिकूल प्रभाव पड़ता है। इसलिए, कोई पहला पक्ष नहीं है अधिनियम की धारा 3 के प्रावधानों का उल्लंघन करने का मामला इस गिनती पर भी किया गया है ।"
Competition Commission of India (CCI) has rejected a complained filed against Cadbury Chocolates Maker Mondelez India. The complainant alleged unfair business practices by confectionery giant Mondelez India Foods with regard to termination of a distribution agreement.
The fair trade regulator has dismissed the case after observing that no contravention of either Section 3 or Section 4 of the (Competition) Act is made out against Mondelez. Section 3 pertains to anti-competitive agreements and Section 4 deals with abuse of dominant market position.
The complaint was filed by a Maharashtra-based erstwhile stockist and distributor of products of Mondelez. The complainant contended that after it had raised the issues of abuse of dominance and anti-competitive practices by the confectionery giant, Mondelez terminated the distribution agreement between the two entities on frivolous and false grounds.
The regulator said, "Regarding the other allegations such as resale price maintenance by Mondelez (Opposite Party) and restriction on distributors to come up with their own discount schemes, there has been no supporting evidence or communication by the complainant to substantiate them."
"Further, resale price maintenance is not a per se violation of the provisions of the Act and there is nothing to suggest that the conduct of the OP (Opposite Party) has an appreciable adverse effect on competition in the market. Therefore, no prima facie case of violation of the provisions of Section 3 of the Act is made out on this count also," CCI further added.
Mars International which makes M&M, Snickers and Dove chocolates is planning to launch world's biggest confectionery brand M&M's in India.
M&M is Mars top selling brand with sales of over a billion dollars. Other brands under the portfolio include Mars, Snickers, Galaxy and Bounty.
"We believe there is huge opportunity for the nascent, bite-size, shareable snack category,” said Andrew Leakey, GM, Mars Chocolate, adding that Snickers is now manufactured locally, is Mars' biggest selling in India.
M&M's are being imported but the company would consider local manufacturing in the medium term, the statement adds.
Headquartered in Mount Olive, New Jersey, US, Mars Chocolate is one of the world's leading chocolate manufacturers and employs more than 16,000 people.
Nestle has lost a long-running court battle to trademark the four-finger shape of its KitKat chocolate bar in Britain.
The food giant first tried to register the trademark in 2010, but the application was opposed by rival chocolate maker Cadbury U.K. Ltd, reported AP.
The case was previously dismissed by other courts including the European Court of Justice. Britain's High Court on Wednesday upheld those decisions, ruling that the shape of a KitKat bar has not ``acquired a distinctive character'' enough to satisfy trademark requirements.
Nestle said Wednesday it is disappointed by the ruling and plans to appeal the decision.
It argues that the four-finger snack has been used in Britain for more than 80 years, is well-known to consumers and that its shape deserves to be protected in the UK.
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