epages News [Bakeries, March 2003]

• Nestle may cut US ice cream exposure
• National roll-out of Georgia brand in 2004
• Indian tea exports seen hurt by Iraq war
• Kwality launches new chain ‘Bread & More’
• McDonald's to tie up with Coke for fruit-based drink
• Back to Bakeries Archives

Nestle may cut US ice cream exposure

Mar 05, 2003: Zurich: Nestle is seen willing to give up parts of its new US ice cream empire to win regulatory approval for its purchase of Dreyer's Grand Ice Cream, but disposals, if any, would be limited. Nestle would make disposals, to win Dreyer's, whose brands such as Dreamery and Godiva generate some $1.5bn in annual sales.

They noted the world's biggest food group had cut some of its pet food operations to win regulatory approval for its $10bn acquisition of Ralston Purina in 2001. Nestle declined comment and reiterated that a decision by US regulators was expected soon. It had originally hoped to win regulatory approval before the end of last year.

National roll-out of Georgia brand in 2004

Mar 21, 2003: Coca-Cola India plans a national roll-out of the Georgia brand of coffee and tea in 2004. The company has till date introduced the brand only in two metros - New Delhi and Kolkata. Coca-Cola India plans to fine-tune its strategy before a national roll-out. The company has installed 2,500 vending machines in the two cities. Coca-Cola's foray into the tea and coffee segments in India follows its success in the Japanese market where tea accounts for 26% of the company's turnover in the country. It would be first have to fine-tune its strategy to take into account differences in consumer preferences in various parts of the country.

Indian tea exports seen hurt by Iraq war

Mar 22, 2003: Calcutta: India’s tea exports face a big setback due to the war in Iraq, its fastest-growing market. India, the world's largest producer and consumer of tea, has been focusing on newer markets like Iraq and Afghanistan after purchases by traditional buyers such as Russia, Britain and Germany slackened. Exports rose six % from the year earlier to 193 million kg in 2002, but that was lower than targeted. Tea output in India, which has been facing stiff competition from nations like Vietnam and Bangladesh, fell three % to 826.2 million kg in 2002.

Kwality launches new chain ‘Bread & More’

Mar 26, 2003: The Rs 50-crore Kwality Group of companies has added a new chain of confectionery and bakery under the brand name ‘Bread & More’. Having snapped ties with Hot Breads, Kwality now plans to pump in Rs 4.5 crore to open 15 outlets in Delhi & the NCR region, Mumbai and Goa within the next 12 months. Positioned as ‘Bread & More’ the chain is being pitched as an authentic French Café, which promises a Pandora of recipes ranging from breads, buns and croissants to mini pizzas and chicken tikka buns. The chain’s beverage partner is Coca-Cola India and the bakery machines have been imported from France and Italy. The outlets were aimed at increasing the company’s turnover by 5-7% this fiscal over a topline of Rs 55 crore last year. The company has a strategic alliance with Hindustan Lever for which it manufactures ice-creams marketed under the ‘Kwality’ brand name.

McDonald's to tie up with Coke for fruit-based drink

Mar 29, 2003: McDonald’s India Pvt Ltd (MIPL), the wholly-owned subsidiary of the US-based fast-food giant McDonald's Corporation, along with Coca-Cola, is developing a fruit-based beverage, to be retailed exclusively at McDonald's outlets. The beverage will be made available under the Maaza brand name, but will be different from the regular Maaza brand. McDonald's has an international tie-up with Coca-Cola, which extends to the domestic market as well. Apart from Coca-Cola, in India, McDonald's has an existing tie-up with Cadbury India, for McSwirl ice-cream cones. McDonald's India is also running a promotion with foods major Nestle, specific to the KitKat chocolate brand.

McDonald's currently operates through 48 outlets in the country, and has set a target of 100 restaurants by 2005. Apart from adding outlets in cities where the chain already has a presence (Mumbai, Delhi, Jaipur, Ludhiana, Pune, Baroda and Ahmedabad, to be specific), McDonald's will set up operations in Chandigarh, Jallandhar, Amritsar, Lucknow and Bangalore in the months to come.