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Confectionery is the set of food items that are rich in sugar, any one or type of which is called a confection. Modern usage may include substances rich in artificial sweeteners as well. The word candy (North America), sweets (UK and Ireland) and lollies (Australia and New Zealand) are also used for the extensive variety of confectionery. Generally speaking, confections are somewhat low in micronutrients but rich in calories. Specially formulated chocolate has been manufactured in the past for military use as a high density food energy source. Confectionery is the general term applied to various varieties of sweets and chocolates. Organised market for sugar confectionery is estimated to be 1,39,000 tonnes per annum and is growing at the rate of 10 - 15% per annum. The confectionery market has undergone a metamorphosis in the last few years. From the commodity market controlled by local players, it has changed to a branded products market with strong presence of multinational companies. The confectionery market is highly fragmented with several players with strong regional presence.
Industry Snapshot:
Americans, and for that matter just about everybody else, have an insatiable appetite for candy. The U.S. population as a whole consumes more than 7 billion pounds of the stuff each year. Only about half of that is chocolate, with gummy bears and all sorts of other nonchocolate confections accounting for roughly 3.5 billion pounds. The U.S. candy industry was valued at $24 billion in the early 2000s by Euro monitor International. Market growth was exceptional through the late 1990s. In keeping with the growth of health conscious consumers, low-fat/low-calorie candies gained prominence in the industry. However, the level of new product introductions in the industry was low during the mid1990s. With sales of more than $22 billion, candy and other confections made the third biggest consumer-food category in late 1999, trailing only soft drinks and milk. As the new millennium started, the U.S. candy and confectionery industry continued slow but steady growth, although a weakened U.S. economy was expected to depress results somewhat. Analysts foresaw a number of challenges to be faced by the industry's equipment and ingredient suppliers. These challenges include the shift in technical knowledge from the manufacturer to the supplier, increased new product development, new distribution channels, continued plant and company consolidation, and the introduction of so-called nutraceuticals into confectionery products.
shipped large blocks of chocolate to army training camps, where the blocks were cut into smaller chunks for distribution. This task became too time-consuming for military personnel, and the manufacturers started wrapping individual chocolate bars before shipping them. After the war, the candy makers continued to sell candy commercially in this form, and this method of selling candy became popular and convenient. Many lines of candy bars were first sold for a dime, but sales did not catch on since consumers could buy a pound of loose candy for that same dime. Immediately after World War I, however, sugar and chocolate prices dropped and the price of most candy bars was dropped to a nickel. The price remained fairly constant until the late 1960s, when the price went back to a dime because of rising costs. Since then, prices have steadily climbed. The first part of the twentieth century marked an explosive period of growth for the industry. Dozens of new candy products were introduced during this period, and many have endured. Ferrara Pan, a candy company formed in 1919 in Illinois, produced Jaw Breakers, Atomic Fireballs, and Boston Baked Beans. In 1919 the Oh Henry! bar was first manufactured by the Williamson Candy Company of Chicago. Charleston Chews were first sold in 1922 by the Fox-Cross Candy Company near San Francisco. Goobers were first made by the Blumenthal Chocolate Company in 1925. Holloway Milk Duds were introduced in 1926 by the Holloway Company. During the 1920s and 1930s, the James O. Welch Company introduced several favorites that are still around today, including Sugar Daddy, Sugar Babies, Pom Poms, and Junior Mints. Heath Bars, manufactured by the L.S. Heath Company, went on the market in 1932. Chunky was developed in the mid-1930s by Philip Silverstein, a New York candy maker. In 1930 the most popular candy bar in America was createdSnickers. Snickers is one of the few candy bars still produced by its OriginatorMars, Inc., which today is one of the largest private companies in the United States. Mars introduced the Milky Way bar in 1923, 3 Musketeers and the Mars Bar in the 1930s, and M&M's in 1941. The candy industry has gone through a period of consolidation during the past 20 to 30 years. In the 1960s Hershey acquired Reese's, maker of Reese's Peanut Butter Cups since 1923; in 1977 Hershey acquired Y&S Candies, which had marketed licorice Twizzlers and Nibs since the 1920s. Hershey's acquisition of Cadbury Schweppes' U.S. division in 1988 propelled Hershey past Mars to become the leading U.S. candy maker. The purchase gave Hershey the rights to Peter Paul Almond Joy and Mounds, as well as Cadbury and Caramello products, to buttress its already impressive product line. The industry has grown steadily in the 1990s. By 1992, shipments were valued at $8.9 billion. Adjusted for inflation, the value of candy and confectionery shipments rose an estimated 3.2 percent in that year. Between 1987 and 1991, the inflation-adjusted value of industry shipments rose 2.2 percent annually. In the mid-1990s candy makers began to cash in on the holiday markets. The seasonal candy market posted overall respective dollar and unit volume gains of 10.4 percent and 9.7 percent in 1995, according to the Candy Industry overview of this industry. Mars, Hershey, and Nestle had traditionally stayed away from the holiday candy market, but when candy consumption and sales remained flat, the candy giants saw great opportunity to capture a major share of the holiday sales. The three companies repackaged many of their most famous goodies in pastel colors for Easter. Their entry into the holiday market shoved aside many of the usual holiday candy manufacturers.
Categories:
The entire sugar confectionery market can be divided into seven major categories, viz. hardboiled candies (HBCs), toffees, clairs, chewing gum, bubble gum, mints and lozenges. As shown in Figure below, HBCs form 52% of the entire market, 18% is formed by toffees and 18% by chewing gum and bubble gum collectively. clairs form just 5% of the entire market. Mints and lozenges form 4% and 3% of the market respectively.
Some of the categories and types of confectionery include the following: Hard sweets: Based on sugars cooked to the hard-crack stage: a 2:3 mixture of glucose syrup and sucrose in water is concentrated to a plastic state, amenable to coloring and flavoring. Upon further cooling and standing the material hardens. Examples include suckers (known as boiled sweets in British English), lollipops, lemon drops, peppermint drops and disks, candy canes etc. Taffy: These are related to hard candy that is folded many times above 50 C. This process incorporates air bubbles, reducing the density of the material and making it opaque. Often sorbitol, a sugar alcohol, is added to maintain moisture. Toffee, in British English, can also refer to a harder substance also made from cooked sugars which resembles toffee. Fudge: A confection of milk and sugar boiled to the soft-ball stage. In the US, it tends to be chocolate-flavored. Caramels: These are derived from mixtures of sucrose, glucose syrup, and milk products. The mixture does not crystallize, thus remains tacky.
Tablet: A crumbly milk-based soft and hard candy, based on sugars cooked to the soft-ball stage. Comes in several forms, such as wafers and heart shapes. Liquorice: Containing extract of the liquorice root. Chewier and more resilient than gum/gelatin candies, but still designed for swallowing. Chocolates: They are bite-sized confectioneries generally made with chocolate. People who create chocolates are called chocolatiers, and they create their confections with covertures chocolate. A chocolate maker, on the other hand, is the person who physically creates the covertures from cacao beans and other ingredients. Mithai: A generic term for confectionery in India typically made from dairy products and/or some form of flour. Sugar or molasses are used as sweeteners. Pastry: A baked confection whose dough is rich in butter, which was dispersed through the pastry prior to baking, resulting in a light, flaky texture; this dough might be used in pies and tarts. Chewing gum: Uniquely made to be chewed, not swallowed. However, some people believe that at least some types of chewing gum, such as certain bubble gums, are indeed candy. Ice cream: Frozen flavoured cream, often containing small chocolates and fruits.
World confectionery trade was $15.8 billion in 2003 according to Global Trade Atlas.2 Chocolate candy trade was $7.7 billion, sugar-type candy and gum trade was $4.9 billion and cocoa ingredients trade was $3.2 billion in 2003 (Figure 1). Cocoa ingredients represent a substantial portion of world confectionery trade despite the small world market for cocoa ingredients relative to sugar-type candy,
As seen from Figures 10 and 11 below, retail sales have shown healthy growth over the last several years. Indeed, over the 1998-2003 period overall sales have grown more than 55% in value terms and 46% in volume terms, at an average annual rate of 9.5% and 8%, respectively. There is a clear trend of faster sales growth in value terms, indicating that consumers are increasingly ready to pay a premium for higher value products. The chocolate segment is the fastest growing in value terms (9.8% average annual growth rate) closely followed by the gum segment (9.5%). In volume terms, gums grow at the fastest rate (8.5%), followed by chocolate and sugar confectionery (7.8% each). At the same time, to put these figures in some perspective, while retail sales for 2003 in India are estimated to have been US$562 million (Rs. 26,220 million), close to US$26 billion worth of confectionery products were sold in the US. In volume terms these figures were 127,000 MT in India and 3.3 million MT in the US. While growth rates in general look rather healthy, and all agree that there is still large potential for further growth of the confectionery sector in India, many individual players have experienced slower growth in their sales over the last few years. This trend is partly attributed to the economic slowdown that India experienced in 2000-2002 and resulting decline in consumer spending. Confectionery products are impulse purchases which would be among the first to be cut out. Companies are fighting this trend by broadening their consumer base from primarily children and teenagers, to adults as well.
Perfetti Van Melle India Ltd is a manufacturer and marketer of sugar based confectionery and is a leader in the candy and gum segments of the confectionery market. Parle Products Pvt Ltd is a manufacturer and marketer of cookies, sugar boiled confectionery, and cocoa and milk based toffees. Wrigley India Pvt Ltd is a manufacturer and marketer of chewing gum (Wrigley brands) and sugar based confectionery, bubble gum, chewing gum and candy (Joyco brands). Gujarat Cooperative Milk Marketing Federation is India's largest food products marketing organization and manufacturer of milk and milk products, ice creams, chocolate and confectionery, and ready to eat products. ITC Foods, a division of ITC Ltd made a foray in the confectionery market in year 2002. Hindustan Lever Ltd, Indias leading FMGC Company, has a presence in the confectionery market since 2001. In addition, India also has a large unorganized manufacturing sector, of small producers offering very low priced products. There are no statistics about the size of the unorganized sector, but according to some industry sources, the unorganized sector can account for up to 50% of the market.
tonnes. It is number two in both HBC and Toffee market with 30% and 21% market share respectively. Parry's has emerged as the third largest player in the market with 13% market share and a tonnage of 14500 tonnes.The company has brands like LactoKing, Coconut Punch, Madras Cafe, Coffy Bite etc. in its portfolio. Though in the over all confectionery market it is at number three, it is at par with Parle in toffees market with 21% share. Cadbury has been one of the leaders with Cadbury eclairs with chocolate inside. It was the most successful in 1972 when it was launched because of its initial introductory price of 25 paise and was instant hit. It continues to be one of the biggest brands. Cadbury made a foray into the sugar confectionery segment with Googly, a hardboiled sweet in late 1996.Googly the tangy, fizzy candy, Cadbury took the market by surprise and marked the entry of Trebor into the fast growing Indian market. The product is sold under license from Trebor Bassett, UK. Googly was extended nationally in early 1997. Cadbury has also launched Mocka, a coffee based sugar confectionery. Nestle is a major player in the growing confectionary market. The company has brands like Polo, Allen's Splash, Soothers, Toffo Butter, and Fruit Rings, Foxs etc. in its portfolio. In recent years there has been a tremendous increase in the consumption of Fox in India. It is easily available everywhere and its cool taste is popular among consumers. It has a share of 8% in the market. Ravalgaon too is a significant player in the confectionery market. It has a share of 7% in the market with tonnage of 8000 tonnes. Some of the leading brands in its portfolio are Pan Pasand, Mango Mood, Coffee Break etc. It is third largest player in the toffee market with 11% share. Joyco's Boomer has emerged as the leading brand in the bubblegum category. Joyco pioneered the soft chew category with launch of its Bonkers. However the soft chew category has a minuscule market in India. Other brand available in this segment is Van Melle's Mentos. Perfetti has become a significant player with the success of its bubble gum Big Babol and hard boiled confectionery Alpenliebe. . Alpenliebe has also been a huge success and has become a Rs600m brand within one year of launch. Candico India Ltd , the confectionery division of the erstwhile Bakeman's Industries has been aggressively launching new brands post spin off as a separate confectionery company in April 1997. While Mint-O is Candico's largest brand, its other brands#include Candy King, Americano. Mint-O Fresh, After Smoke, etc. Candico and Joyco both have same share of 42% each in the bubble gum market.Perfetti is way behind in this segment at 13% share. In the overall confectionery market however the company has 3% share. Wrigley's is the leading chewing gum brand in the world. In India the company operates through a 100% subsidiary. The company initially marked its brands through a distribution tie-up with Parry's which was later discontinued.
In the bubble gum segment, Perfetti has a 13% market share. Other Perfetti brands like Chlormint and Golia have not received encouraging response. The company has a 2% market share in the total confectionery market.
Lotte Confectionery is a South Korean company headquartered in Yangpyeongdong Yeongdeungpo-gu Seoul, Korea. It was established in 1967 and its plants are located in Seoul, Daejeon, Yangsan, Pyeongtaek and Siheung. It manufactures and sells more than 200 products to more than 70 countries. It is the No.3 chewing gum manufacturer in the world. It is a subsidiary company of Lotte Group. Lotte Confectionery produces Crunky candy bar and the Chic-Choc cookie (a chocolate chip cookie), one of the most famous brands in South Korea. Additionally, they produce other baked snacks, including the Margaret cookie. Lotte is also popular for their cookies called 'Kancho' (also known as Koala's March in Japan), which are small cream-filled cookies shaped like koala bears and packaged in a unique octagonal box. Through its wide distribution, Lotte Confectionery is able to stream products to grocery, convenience stores, mom-and-pop and warehouse clubs. Their products are also distributed worldwide, including the USA, China and Europe. It is a sister company of leading Polish confectionery company E Wedel after the parent Lotte group completed a takeover from Kraft Foods in June 2010.
Company:
At the heart of the corporate purpose, which guides us in our approach to doing business, is the drive to serve consumers in a unique and effective way Its a story born in the age of British Raj. When children in India found confectionery hard to come by. It had to be imported from across the seas until the year 1914; When Parrys picked up the gauntlet and pioneered the manufacture of sweets - the first to do so in the country. Parrys sweets went on to become a household name- a name that people recollect with warmth and a smile. Ever since, the Parrys factory was set up in Nellikuppam, in the Cuddalore District of Tamilnadu in South India. Parrys has become synonymous with Sweets and Confectionery. With the penchant we Indians have for sweets is not surprising that this smooth, milky and irresistibly delicious confectionery is the best gift any child could get. And an obsession with quality ensured that children had a choice of nothing but the very best in confectionery.
In the nine decades since, the scenario has undergone a dramatic change. There are a number of offerings in the market today, each wooing children with a wide array of products. But Parrys still finds a prominent place in the heart of consumers. Parrys has always stayed at the top, having weathered the vicissitudes of change, with our ear close to the ground - and to the hearts of children, changing, adapting and growing with the times - But never losing sight of its values traditions and ethics. At the turn of this century, Parrys is poised on the threshold of greater challenges in a global village, where dynamism and innovation is the very law of survival. In the backdrop of India joining the WTO, and the global giants eyeing the Indian Market with enthusiasm, the company needed to strengthen itself and broaden its base to delight customers across the country and abroad. With this vision in the mind, Murugappa Group, promoters of Parrys Confectionery Limited entered in to an agreement with Lotte Confectionery Limited, South Korea, by which the, entire shares which Murugappa Group, the founders of Parrys Confectionery Limited, held was divested to Lotte Confectionery Limited -A South Korean Multinational giant. Lotte Confectionery is the first Company of the Lotte family of Companies founded by Mr. Shin Kyuk-ho. The three Ls in the Lotte Emblem stand for Love, Liberty and Life. The Corporate philosophy and idealism of Lotte is driven by dream of a world full of Love where people care for each other and respect each others thoughts. The Lotte Group has presence in Food & Beverages, Distribution, Tourism and Leisure business; Heavy Chemicals, Construction and Machinery; Information, Communication and Electronics, Trading and Services apart from Welfare Research and Support Services. The Lotte Confectionery Co. Ltd. is the Lotte Groups flagship Company in Foods and Beverages category. Lotte Confectionery, Korea, was established with 500 employees in 1967 and today it has more than 6000 Employees. It has over 500 products produced at 5 large-scale plants in Korea. Lotte has been actively working towards establishment of overseas branches, production facilities and has a presence in more than 70 countries. Lotte Confectionerys annual Sales are over USD 900 millions, Apart from Korea, Lotte has overseas investments in production facilities in China, Philippines and Vietnam. Lotte Confectionerys Main line products are Chewing Gum (Lotte Xylitol, Lotte Juicy & Fresh, Lotte Spearmint, Lotte Fresh Mint, Flavono, White & E, Spout Caf Coffee) Candy, Biscuits, Chocolates, Snacks, Ice cream, and health care product. If the decades past are any indication, theres little doubt that even in the coming cen tury, children grow up with the brands Parrys has established.
Brands:
Lotte India co. Ltd has several brands includes:
1. Gums
Booproo.
Spout.
2. Candy
Coffy Bite.
Lacto King.
Caramilk.
Eclairs.
3. Snacks
Choc Pie.
by planning to bring in new products and new offers to its strategy and by introducing innovative products in the existing category, our Company is poised for significant growth in the coming years. The Company plans to invest significantly in brand building and expand its distribution network substantially in the coming years. All these measures backed up by cost management initiatives will help the Company to achieve its revenue and profit targets in the competitive market in the years ahead.
NESTL KITKAT
NESTL MILKYBAR
clairs
POLO
Britannia:
Britannia Industries Limited is an Indian food-products corporation based in Kolkata, India. It is famous for its Britannia and Tiger brands of biscuit, which are popular throughout India. Britannia has an estimated 38% market share. The Company's principal activity is the manufacture and sale of biscuits, bread, Rusk, cakes and dairy products. The company was established in 1892, with an investment of Rs. 295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, and operated under the name of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a boost to the companys sales. The company name finally was changed to the current "Britannia Industries Limited" in 1979. In 1982 the American company Nabisco Brands, Inc. became a major foreign shareholder. Corporate History: Kerala businessman K. Rajan Pillai secured control of the group in the late 1980s, becoming known in India as the Biscuit King. In 1993, the Wadia Group acquired a stake in ABIL, UK and became an equal partner with Groupe Danone in Britannia Industries Limited. The company is growing at a steady rate, and is currently profitable. Between 1998 and 2001, the company's sales grew at a compound annual rate of 16% against the market, and operating profits reached 18%. More recently, the company has been growing at 27% a year, compared to the industry's growth rate of 20%. At present, 90% of Britannias annual revenue of Rs2,200 crore comes from biscuits. Britannia is one of India's 100 Most Trusted brands listed in The Brand Trust Report. Dairy products contribute close to 10 per cent to Britannia's revenue. Britannia trades and markets dairy products and its dairy portfolio grew to 47% in 2000-01 and by 30% in 200102. Britannia holds an equity stake in Dynamix Dairy and outsources the bulk of its dairy products from its associate. Its main competitors are Nestl India, the National Dairy Development Board (NDDB), and Amul (GCMMF). On 27 October 2001, Britannia announced a joint venture with Fonterra Co-operative Group of New Zealand, an integrated dairy company from procurement of milk to making value-added products such as cheese and buttermilk. Britannia planned to source most of the products from New Zealand, which they would market in India. The joint venture will allow technology transfer to Britannia. Britannia and New Zealand Dairy each holding 49% of the JV, and the remaining 2 per cent held by a strategic investor. Britannia has also tentatively announced that its dairy business would be transferred and run by the joint venture. The authorities' approval to the joint venture obliged the company to start manufacturing facilities of its own. It would not be allowed to trade, except at the wholesale level, thus pitching it in competition with DANONE, which had recently established its own dairy business.
Identify its most significant environmental impacts; Identify relevant legislative, regulatory and industry specific requirements; Set appropriate environmental objectives and targets; Establish programs to implement the environmental policy and achieve objectives and targets, and; Continuously improve the environmental performance through improvement of the EMS. Organizations can experience a number of benefits from implementing an effective environmental management system, such as: Prevention of pollution. Reduction of consumption of materials and energy. Limited liability by providing evidence of due diligence. Improve access to Capital. Improved industry/government relations. May reduce insurance costs. Improved public relations. Our Environmental Policy
We are committed to the society we live in and it is our endeavour to improve continually the environment around us by Ensuring Zero discharge of effluents and developing a green belt to improve our environment. Adhering to the emission norms to protect the quality of ambient air. Focusing on conservation of energy and seeking opportunities for using alternative and renewable energy sources. Imparting awareness on the need for environment protection to the people in the neighbourhood. Adhering to all statutory & regulatory requirements.
Technology Adopted:
South Koreas top confectionery manufacturer Lotte Confectionery recently partnered with global packaging company TNA to improve its production speeds. To meet current and future demand for chocolates, biscuits, candy, chewing gum, ice cream and snack foods, Lotte Confectionery installed four Robag 2Cis and two Robag 3 packaging machines. The result is that both its biscuit and chocolate lines have increased speeds to 80-90 bags/minute. We wanted a packaging system that was capable of high speeds, had minimal rejects, could pack a wide range of products and bag sizes, and one which would fit into the limited spaced we had, explains Mr SB Kim, technical managing director, Lotte Confectionery South Korea.
Strength:
It has the advantage that it is totally focused on chocolate, candy, chewing gum and thus has a unique understanding of consumers in these segments. Parent company is South Koreas No. 1 confectioner. A wide variety of products on offer. Parry confectionary Ltd. (now sold to Lotte corporation)was the first to introduce sweets in India. It has a strong distribution network.
Weakness:
The company is dependent on the confectionery and beverage market, whereas other competitors e.g. Nestle have a more diverse product portfolio. Other competitors like Cadbury. Nestle etc have greater international experience and have gained a foothold in India.
Opportunity:
Because of changes in consumer tastes and preferences - healthier snacks with lower calories need to be developed. R&D and product launches have led to sugar-free variants. The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to increase share through targeted acquisitions. Significant opportunities exist to expand into the emerging markets of China and Russia where populations are growing, consumer wealth is increasing and demand for confectionery products is increasing.
Threats:
Competitive pressures from other branded suppliers (national and global). Aggressive price and promotion activity by competitors. Social changes-Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand. Increasingly demanding cost environment, particularly for energy, transport, packaging and sugar.