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Consumer Goods Newsletter - November 26 to November 30, 2012

India Infoline News Service | Mumbai |

Two growing shopper segments, low-income value explorers (LIVE) and first-time modern trade shoppers (FTMTS), will add US$3bn in fast-moving consumer goods (FMCG) sales in India by 2015, according to a new analysis released today by Nielsen, a leading global provider of insights and information into what consumers watch and buy.

Top Stories 

FMCG brand extensions more successful than new product launches: Nielsen

Extensions of existing fast moving consumer goods (FMCG) brands are five times more successful than launching a new brand in India, according to a new study released by Nielsen, a leading global provider of insights and information into what consumers watch and buy.
Nielsen’s study of top brands in 46 FMCG categories and 82 brand extensions in food and non-food categories shows that in addition to promoting brand equity, brand extensions can grow incremental sales up to 38% and contribute as much as 30 percent to parent brand sales.
“Innovations are driving FMCG growth in India,” said Arun Chogle, client business partner, Nielsen India. “Brand extensions, or stretching your existing brand, increase your chances of innovation success. Not only do brand extensions leverage the equity of the parent brand, but they also lead to faster adoption and deliver higher marketing efficiency.”
Read more…

Growing shopper segments provide US$3bn opportunity for Indian FMCG: Nielsen

Two growing shopper segments, low-income value explorers (LIVE) and first-time modern trade shoppers (FTMTS), will add US$3bn in fast-moving consumer goods (FMCG) sales in India by 2015, according to a new analysis released today by Nielsen, a leading global provider of insights and information into what consumers watch and buy.
“The Indian economic landscape is flourishing and so are the shopping habits of low-income value explorers,” said Adrian Terron, executive director, Nielsen India. “This is a growing shopper base upgrading to become first-time modern trade shoppers. FMCG manufacturers and retailers need to understand the unique characteristics of these massively developing shopper segments.”

Low-Income Value Explorers
Nielsen’s research shows that an estimated 10 mn LIVE households live in urban India, earning an income of less than Rs. 72,000 annually. Spending one-fifth of their household expenditures on FMCG (US$2.4bn), Nielsen expects this shopper segment to increase FMCG sales by 50% in the next three years to US$3.6bn. Read more…

Emami expects 20% growth with winter brands

Emami Ltd., India’s leading diversified FMCG player with an annual turnover of around Rs 1500 Cr anticipates a bullish performance from its portfolio of brands viz. Power Brand-Boroplus, Power Brands-Zandu Chawanyprash, Zandu Kesari Jivan and Sona Chandi Chawanyprash and Vasocare.  It expects these brands to push sales during winter in excess of over 20%. Emami is banking on a combination of heritage and contemporary brands to accelerate its winter sales which is driven by a preventive care consumer mindset – from skin protection to immunity booster. 

Leading the pack is the house of Boroplus brands, a long standing winner with a heritage of 30 years, which has achieved a significant growth over the years aided by brand extensions. Endorsed by Kareena Kapoor and Amitabh Bachchan the BoroPlus brand continues to hold a strong 75% market share in the antiseptic cream category. Read more…


Embedded consumer electronics device revenues to touch $6.4bn in 2014

Leading Hi-Tech analyst house Juniper Research has predicted that revenues from products and services delivered over embedded consumer electronics devices will reach $6.4bn in 2014, as the sector emerges as a key anchor for the M2M (Machine to Machine) industry.

According to the report, eBook sales and subscriptions will be by far the most important service offered over cellular connected consumer electronics devices; while others have emerged, such as digital photo frames and Sony’s PS Vita games console, the eReader will outweigh all other consumer electronic devices in its ability to bring in revenue: “Cellular connectivity is slow to reach the lucrative gaming market since WiFi is sufficient for most use cases,” notes the report author, Anthony Cox.

Embedded Consumer electronics will also be where 4G chipsets first reach the M2M and embedded chipset market, finds the report, although 4G chipset distribution is still at its very early stages. Read more…

IIFL Institutional Equities recommends 'Add' on Colgate Palmolive

IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends “Add” Colgate Palmolive.

According to IIFL Institutional Equities report, Colgate Palmolive India (Colgate) is among few FMCG companies to register healthy 10%+ volume growth over the past 16+ quarters despite continued price increases, driven by market leadership in the oral care segment. A strong brand and extensive distribution network should ensure that the market leadership sustains, powering healthy 16% earnings Cagr over FY12-15ii. 

While Colgate is unlikely to lose market share to P&G over the long term (Colgate’s experience in China and market share gains in toothbrush category, initially lost to P&G suggest otherwise), near term profitability could come under pressure. The stock trades at 31x one-year forward EPS (vs. 3-year average P/E of 26x). Reiterate ADD, the brokerage added.

The report was published by IIFL’s Institutional Equities Research desk.

Domestic News

Vadilal's youth connect through Freeze Moment Campaign-2012

In a unique consumer-outreach initiative, Vadilal Industries Limited, India’s second largest ice cream producer, has come out with an innovative strategy of selecting youngsters aged between 15 to 26 years for its 2013 calendar. 

The company through its ‘Freeze the Moment’ contest is inviting applications from youth across the country to be featured in its calendar for 2013. The winners of the contest would not only win prizes but also become celebrities with their photos being displayed across India. The shortlisted candidates may also get a fair chance to feature in television commercial of Vadilal Ice Cream.

Last year the company had come out with a similar contest for children aged between 5 to 10 years and it had received over 1000 entries. This year, Vadilal will be coming out with over 20,000 wall and table calendars for the year 2013 with 12 young faced to be selected from the ongoing contest. Read more…

Dairy Farmers Demonstrating in Brussels for Fairer Milk Prices

Yesterday and today, dairy farmers from Belgium and neighbour countries gathered in front of the European Parliament to demonstrate for fairer milk prices.

They came by tractors and gathered in Place du Luxembourg on November 26. The organiser of the event underlined the need of the dairy farmers to be supported politically to be able to reach fairer milk prices. 

As Erwin Schöpges, President of the Belgian dairy farmers Association highlighted it:

"We want a regulation of the dairy production, now and after 2015. We would like a monitoring agency where we, the dairy farmers, are represented to define the expense costs to produce a litre of milk, where the dairy industry is also represented to define the volumes that can be taken, and where the consumers must also be represented because otherwise we will create a cartel between us. And that is why we need a politician framework to help us put that system in place." Read more…

Enjoy exclusive benefits with Cocoberry Club Card!

Premium Frozen Yogurt chain Cocoberry launches a membership program which provides unprecedented rewards to customers. The new Cocoberry Club Card enables customers to earn rewards on every transaction and offers surprises like invitations to exclusive events. 

All you have to do is buy a Cocoberry Card, register online on Cocoberry’s website/facebook page and earn a bonus of upto an unprecedented 27% of your activation amount! . Enjoy your favourite desserts while paying for it with your Cocoberry Card, credit card or cash and earn rewards on your spend. You can also get the card reloaded to earn bonus awards. 

G. S. Bhalla, Founder & CEO, Cocoberry stated, "Our customers have time and again reinstilled their faith in us. Our research shows that over half our customers eat at our outlets at least once a week! We are committed towards serving them better through innovative strategies and rewarding them for their loyalty to our brand. The Cocoberry Club Card is one such initiative which offers us a chance to identify, indulge and pamper our customers everytime they visit our store.”

The Cocoberry Club Card also serves as an ideal giftable item for friends and family. So here’s your chance to truly associate with the brand you love and win some goodies along the way!

Everest Industries in Limca Book of Records

Everest Industries Limited, one of India’s fastest growing building solutions companies has found a place of pride in the Limca Book of Records. The company has been credited for bringing about a technological innovation in the field of building construction.

They received this award for completing a 60,000 sq ft campus in record 90 days using their revolutionary Smart Steel technology. Built in Lucknow for Ansal Institute of Technology & Management the project started in Feb 2011was completed on May 10, 2011. The three large modules with 40 rooms were built in 90 days, reducing the time up to 1/3rd of the traditional construction.'

There are about 43 halls covering the area of 60,000 sq ft of the campus has all facilities like workshops, laboratories, seminar halls, library, activity rooms, meeting rooms etc.

There are 40 rooms, each around 1400 sq ft available to students. When completed there will be about 200-240 students within the campus. There are 2 rooms of 14m x 14m x 4.5m on the two ends of the Module 3 and 1 each on the module 1 and 2 as elevational feature to add to the aesthetics. Read more…

Wrigley India appoints Deepak Iyer as Managing Director

Wrigley, a subsidiary of Mars Inc. announced the appointment of Deepak Iyer as the Managing Director of its India operations effective January 3, 2013. This appointment follows the departure of Gautam Sharma, the former Managing Director of Wrigley India who resigned from the company to pursue a new career.

Deepak will be based in New Delhi and operate out of Wrigley India’s headquarters located in the National Capital Region (NCR). In his new role as the Managing Director of Wrigley India, Deepak would be responsible for developing the business strategy to drive growth across various functions and brands of Wrigley India.
Commenting on the appointment, Michael Yeung, President of Wrigley Asia Pacific, said, “India is one of the top 20 geographies of Wrigley globally and India has got a huge potential as an important growth engine to fuel the growth of our region. We are excited to have Deepak join Wrigley India. Given his extensive experience and solid track record, I am confident that our India business will achieve new heights under Deepak’s leadership.”
Read more…

RAYMOND WEIL unveils Classic time-piece Maestro Phase de Lune Semainier in India

Seven midnight blue hands travel across the heavenly dial of the maestro Phase de Lune Semainier. They give order to the universe, beating in time to the conductor and indicating the phases of the moon, the month, the week, the day, the date, the hours and the minutes. With this unique complication in its collection, and a design of refined elegance, RAYMOND WEIL offers watch making enthusiasts an exceptional timepiece.

Time has always enjoyed a privileged relationship with astronomy. In fact, observing the heavens over the centuries has made it possible to measure the passage of time. Astronomical complications were very much in vogue from the Renaissance, first of all in big clocks then in pocket watches with skillfully miniaturized mechanisms. Today, these complications are still just as fascinating, exhibiting the ultimate technical craft and 
know-how of the watchmaker. Read more…

Get lucky this festive season with meals at McDonald’s

This festive season, McDonald’s the world’s leading food service retailer, gives all its customers a chance to get lucky with the special Sab Lucky contest which will take place at all McDonald’s stores in West and South India from November 10th  to Dec 10th, 2012.

To participate in the contest, all you have to do is visit the nearest McDonald’s restaurant or call McDonald’s Delivery Service, place an order worth Rs 15 or more and you can get a chance to win. Almost everyone who makes a purchase at McDonald’s stands to win exciting prizes on an hourly, daily and weekly basis.

Lucky consumers can walk away with a Nokia Phone every hour, or a Nokia Lumina phone every day.  Lucky weekly winners stand to win a special holiday from yatra.com. One lucky winner will take home the grand bumper prize of a brand new Chevrolet Beat. Read more…

CavinKare and Ability Foundation call for nominations for the 11th CavinKare Ability awards

The prestigious, CavinKare Ability Awards, jointly instituted by  FMCG giant CavinKare and national cross disability NGO Ability Foundation, are awards celebrating the  spirit of achievement of  people with disabilities . The CavinKare Ability Awards, instituted in the year 2003, honour achievers with disability, who have defied conventional stereotypes to realize their chosen dreams.

Nominations are now invited for the 11th CavinKare Ability Awards. A person may nominate himself/herself or someone they know. The presentation of the awards will take place in March 2013 at Chennai.  The completed nomination forms must reach Ability Foundation on or before December 30th, 2012.
CavinKare Ability Awards include a total of four awards, which are given as an acknowledgement of personal triumphs and achievements despite hardship. The awards salute the extraordinary spirit of victory against all odds, a looking beyond one’s own self and one’s physical limitations and celebrate the universality of human rights.
Read more…

International News

Coca-Cola company expands 5by20 Women's economic empowerment initiative

The Coca-Cola Company announced strong progress toward its goal to enable the economic empowerment of 5 million women entrepreneurs across the Coca-Cola value chain by 2020. The initiative, known as 5by20, is expanding beyond its pilot programs in four countries to launch and scale programs across a total of 12 countries: Brazil, China, Costa Rica, Egypt, Haiti, India, Kenya, Mexico, Nigeria, the Philippines, South Africa and Thailand. 5by20 is on track to reach 300,000 women by the end of 2012.

By providing access to business skills, financial services, assets and support networks of peers and mentors, 5by20 is helping women succeed as entrepreneurs, while also creating thriving, sustainable communities.

“Working with and investing in women is one of the most powerful ways to spur sustainable economic growth and development,” said Muhtar Kent, Chairman and CEO of The Coca-Cola Company. “I’m excited by the progress we’re making toward our goal to empower 5mn women. We are transforming lives and communities, making a profound and lasting impact on global issues and also growing our business.”
Read more…

New Cadbury bars that don't melt even at 40 degree: reports

Cadbury reportedly developed chocolates that don’t melt even at 40 degrees Celsius. This new recipe will be available in hot countries like India and Brazil.

According to reports, the new Cadbury chocolate bars stay completely solid even when exposed to temperatures of 40 degree celsius for more than three hours, while standard chocolate has a melting point of 34 degree Celsius.

The recipe behind the new bars is a change in the so-called 'conching step' - where a container filled with metal beads grinds the ingredients, which usually include cocoa butter, vegetable oils, milk and sugar. Cadbury has developed a way of breaking down sugar particles into smaller pieces, reducing how much fat covers them and making the bar more resistant to heat, reports stated.

The new bars would not have the same melt-in-the-mouth quality as normal chocolates, reports added.



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