Indian dairies & aerated drink firms enter into milk-based beverages

Milk drinks

BY - Franchise India Team
Editor May 18, 2017/

131

/ 4 MIN READ.

Indian dairies & aerated drink firms enter into milk-based beverages

Indian dairies and aerated drink firms are increasingly entering into novel and Western-influenced milk-based beverages that offer significantly higher margins than traditional milk drinks.

Leading Indian dairies Amul and Parag Milk Foods are among the frontrunners in launching nutritional and fruit-based milk beverages, an area where global aerated drink giants PepsiCo and CocaCola also made their entry over the past few months.

Industry representatives and sector analysts estimate more players from diaries, aerated drinks and fast moving consumer goods entering the highly attractive and rapidly growing new segment of the market.

A report by the Tata Strategic Management Group said, dairy beverages as a segment is estimated to post sales of $1 billion (Rs 6,400 crore) in India by fiscal 2021, compared with Rs 1,280 crore in fiscal 2015.

According to Bharat Kedia, chief financial officer at Parag Milk Foods, the milk-based beverages segment has the second highest margin -from 25% to as much as 45% -among the value-added segments after powdered nutrition products like whey and infant food.

Pankaj Gupta, Senior Practice Head, consumer and retail practice at the Tata Strategic Management Group, said, "As dairies enjoy higher margins, they are focusing more on easy-to-consume form of beverages and are launching various products for every category of age."

Shiva Mudgil, Analyst, Rabobank, said, "The growing demand for milk-based beverages indicates a shift in consumer demand with rising purchasing power ... The market is still at a nascent stage in India, but is growing rapidly with newer players entering the fold and expanding rapidly."

Beverages are fast emerging as a big revenue generator for dairies, said Kedia of Parag Milk Foods. According to him, the share of the beverages segment to overall revenue at his company could reach double digits in the next five years from a low single digit now.

While innovations in new flavours are taking place, Gupta of the Tata Strategic Management Group believes that development of newer pack options for consumers will also result in attractive opportunities for packaging providers.

Currently, milk-based beverages are being sold in tetrapaks, metal cans, glass bottles, pet bottles and pouches.

Gupta said, "Dairies' next phase of growth would witness market expansion driven by newer consumption occasions or recruiting newer consumers through products and packaging."

Food and Beverages

Amul to roll-out haldi doodh with Irish mocktail

BY - Franchise India Team
Editor Mar 26, 2018 / 3 MIN READ

Amul to roll-out haldi doodh with Irish mocktail

The Gujarat Co-operative Milk Marketing Federation (GCMMF), the apex marketing body of all the district dairy unions of Gujarat that markets Asia’s largest milk brand ‘Amul’ has started to produce two variants of milk drinks of ‘Haldi doodh’ (turmeric milk) nationally. And to satiate the taste buds of generation next, ‘Haldi doodh’ will be rolled out across the country with an ‘Irish drink mocktail’ – both being introduced for the first time in the country.

The production of the two new varieties of milk has been started by Kaira District Co-operative Milk Producers Union Limited popularly known as Amul Dairy. The products will be available to consumers in easy to open end (EoE) cans.

Amul Dairy’s managing director Dr K Rathnam said, “We have capacity to manufacture 1.50 lakh units of each of this products, adding that the two new varieties are being manufactured at the Amul Dairy plant in Anand by utilising the milk union’s existing infrastructure.

“Haldi is already known as a superfood for its immunity boosting properties. Particularly with milk, it forms a centuries-old ayurvedic remedy for a host of ailments.Not just in India, ‘Haldi doodh’ is celebrated globally and is famously called ‘turmeric latte’. At times, with a host of medicinal properties, it acts as a household remedy,” GCMMF’s managing director R S Sodhi said.

The Irish drink mocktail (off course without its famous whiskey) on the other hand is inspired from the famous Irish coffee having its origins in Ireland.

With the launch of the new milk based beverages, the country’s largest co-operative is targeting Rs 100 crore – nearly 5% of the total milk based beverage market, said GCMMF officials.

“We are confident that Irish drink is bound to disrupt the beverage category and become the new high of 2018,” said the official.

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