Winni unveils irresistible premium chocolate line with healthier snacking options

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September 28, 2023

Winni, India’s second-largest online gifting platform renowned for its extensive selection of thoughtfully curated gift items, spanning cakes, flowers, and personalized presents suitable for various occasions and relationships, has introduced a premium line of chocolates. This new addition comes in response to the substantial surge in demand the company has observed over the past five years, particularly in tier-2 and tier-3 cities.

In the past five years, Winni has achieved chocolate sales totaling INR 75 crore, with tier-2 and tier-3 cities contributing significantly at 55% (40% from tier-2 and 15% from tier-3), surpassing the sales from tier-1 cities at 40%. Despite the Indian chocolate market growing at an 8-9% YoY rate, Winni has demonstrated exceptional growth, experiencing a 100% increase in chocolate sales over the last three years, both through its online platform and retail stores.

Winni is set to introduce a premium selection of healthier chocolate alternatives, distinguished by their use of natural and organic preservatives, and an enhanced flavor profile achieved through the infusion of spices, fruits, dry fruits, and Western-style confectionery. These premium Winni Chocolates will be exclusively accessible via Winni.in, as well as through more than 300 brand retail locations across 23 states and 5 Union Territories.

Winni’s Co-Founder & CEO Sujeet Kumar Mishra said, “With the rise in income level of the young aspirational class & the exposure to tier 1 cities lifestyle through social media, we have experienced a significant change in the buying behavior of our customers from tier 2 & tier 3 cities in the last few years. It’s pretty evident that cakes & and chocolates are replacing the traditional ‘Mithai’ (sweets) even in small cities during festivals and the rate of growth in demand is higher than in metros. That’s the reason we have decided to launch a premium range of chocolates that are still not available in tier-2 & and tier-3 cities despite the demand & and purchasing capacity.”

He added, “Currently we sell chocolates worth 2.5 Cr every month via our online platform, our network of 300+ retail outlets across the country and other e-retailers, which is 10-12% of our total sale. We are expecting to see reasonable growth in these numbers with the introduction of the new premium range of chocolates which are developed keeping various factors in mind such as the nutrition value, health first approach & the authentic taste. We are coming up with an extended product range where our consumers will have healthy snacking choices such as Protein bars, Yoga bars, seeds and dry fruits coated range of chocolates & and multiple variants of Sugar-Free chocolates.”

By introducing a premium range featuring healthier alternatives, Winni Cakes is strategically targeting a broader market share while addressing the changing preferences of its clientele. Their commitment to utilizing natural ingredients and crafting distinctive flavors has the potential to distinguish them from competitors, positioning Winni as the preferred choice for premium chocolates.

Distributors grapple with challenges as FMCG companies embrace smaller packs

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September 28, 2023

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FMCG companies’ widespread introduction of small-pack launches to stimulate demand is causing distributors significant distress as they grapple with limited shelf space for inventory management. Consequently, distributors are making appeals to the government to impose a limit of four pack sizes.

Packaged product companies have countered, arguing that such a restriction is impractical due to the distinct preferences and needs of both consumers and distribution channels.

New smaller packs are “placing extra burden on retailers as they have to keep on adding new packs, leading to inventory management challenges, and impacting distribution efficiency,” said Dhairyashil Patil, national president of All India Consumer Products Distributors Federation (AICPDF).

The federation, representing over 400,000 distributors and stockists, has sent a letter to the government proposing the adoption of only four pack sizes: entry, small, medium, and large.

Nestle, Hindustan Unilever, Britannia, Parle Products, Dabur, ITC, Coca-Cola, and numerous other companies have introduced numerous budget-friendly packaging options across various product categories, including noodles, toothpaste, soaps, soft drinks, and biscuits. This strategic move is aimed at mitigating the impact of consumption slowdown caused by inflation.

Additionally, they are employing smaller packaging sizes to combat heightened competition from local/regional brands.

Products at the entry level are now available in various price options, including INR 5, INR 7, INR 10, INR 14, INR 15, and INR 20, departing from the previous fixed pack prices such as INR 5, 10, and 20.

Nestle’s basic Maggi noodles variant can now be found in packaging options of INR 7, 10, and 14, alongside various larger pack sizes.

“New pack sizes are introduced by companies on the basis of consumer convenience, pricing and need for smaller packs. We are in compliance with all regulations on pack sizes,” a Nestle India spokesperson said.

Distributors have expressed that these new packaging options impose an additional strain on the current infrastructure and resources within the distribution network, adversely impacting its efficiency.

They particularly highlighted the rapid introduction of new, lower-priced packaging options in rural markets.

They have submitted a letter to the Department of Food & Public Distribution, proposing the implementation of a standardized set of four packaging options.

Executives within FMCG companies have stated that imposing a limitation of four packaging sizes is not a practical proposition.

“Launching different packs for different markets is in response to consumer demand. We have to give consumers what they want, whether it’s kiranas where consumers top-up, modern trade where they look for large packs, or quick commerce which caters to mid-level sizes,” said Mayank Shah, senior category head at biscuits maker Parle Products.

Other executives argued that promoting larger packaging options in smaller grocery stores is counterproductive, and the diverse demand patterns in both rural and urban areas necessitate a range of packaging sizes.

Dabur has introduced packaging tailored for specific distribution channels across various products, including Vatika shampoo, Real juices, and Red toothpaste.

Coca-Cola and PepsiCo have been promoting 200-ml bottles and cans of their beverages across various distribution channels.

According to a report by NielsenIQ in August, volume growth in urban, rural, and modern trade sectors has surged by double digits, primarily driven by the popularity of smaller packaging sizes.

“At this stage, it is important to focus on the right assortment and pack sizes of products,” said Roosevelt D’Souza, lead, customer success at NielsenIQ.

Swiss firm SIG Group to invest INR 900 Crore in aseptic carton plant in Ahmedabad

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September 28, 2023

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The SIG Group, headquartered in Switzerland and recognized for providing integrated packaging solutions to renowned companies like Pepsi, Coca-Cola, and Amul, among others, is investing around €100 million (equivalent to INR 900 crore) in setting up its first aseptic (free from contamination) carton plant in Ahmedabad, Gujarat.

The facility will boast an annual production capacity of 4 billion carton packs, primarily designated for packaging non-carbonated products such as dairy, beverages, and food items (including soups and ingredients), serving the markets of India and Bangladesh.

“We, at present, supply our cartons and bag-in-box packaging products to companies such as Amul, Pepsi, Coca-Cola, Parle Agro, ITC, and Milk Mist, among others, in India,” shared Samuel Sigrist, CEO of SIG Group, during an interview.

“We expect our Indian business to grow at a compounded annual growth rate of 15-20% over the next few years, and if that happens, in the second and third phases, we will ramp up the manufacturing capacity to 10 billion carton packs,” Sigrist said.

He stated that the €3.1 billion company aims to commence production at the Ahmedabad plant within the coming 12 months.

In the initial phase of planned investments, €60 million will be allocated to the capex component, while an additional €40 million will be dedicated to securing a land lease for the Ahmedabad plant.

Initially, the company intends to focus on the Indian and Bangladesh markets, a strategy driven by Sigrist’s belief in their potential for growth. He anticipates that the expanding disposable income of the middle class and the increasing demand for hygienically safe packaged foods that have extended shelf lives without the need for refrigeration will be key drivers of this growth.

The company is confident that it won’t sacrifice profit margins due to smaller packaging and the competitive market environment in the country. Their strategy hinges on compensating for this potential margin impact by achieving greater sales volumes.

“India, unlike other developed economies, has a large middle class that is beginning to spend on quality and premium-packaged products. Also, the smaller packs like INR 5 pack will help our clients even penetrate rural areas,” Sigrist said. Hence it is going to be a game of volumes, he said.

SIG Group offers a comprehensive range of services, including cutting-edge system filling machines, packaging solutions like carton packs and large-gallon bag-in-boxes, as well as machine maintenance.

“That is our differentiation that stands us apart from competition. Our filling lines can fill large as well as small packs on the same platform and can achieve 100 million fillings on a single machine,” he said.

In the initial stage, the company plans to import the raw materials, including paper, natural forest-based polymers, and aluminum. However, in the subsequent phase, they intend to transition to domestic sourcing, as he explained.

TeaFit: Brewing a Healthier Future for India, One Sip at a Time

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September 28, 2023

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In a world dominated by sugary concoctions and chemical-laden refreshments, TeaFit is setting a new standard for healthy beverages in India. This company is not just making waves; it’s creating ripples of health and wellness that are transforming the way we think about our everyday sips. From its inception to its remarkable appearance on Shark Tank India Season 2, the TeaFit journey is nothing short of awe-inspiring, proving the power of a single idea fueled by an indomitable spirit.

The Need for Change in India’s Beverage Scene

With India holding the dubious title of the “diabetes capital of the world,” the emergence of TeaFit is precisely what the nation needed. Jyoti Bharadwaj, the driving force behind TeaFit, recognized the urgent need for a healthier alternative, not only for diabetics but also for the growing community of health-conscious individuals awakened by the COVID-19 pandemic.

What Jyoti observed was that many popular beverages, including tea, were loaded with unhealthy levels of sugar, making them highly addictive. This revelation didn’t sit well with her.

Birth of TeaFit: A Sweet Revolution

In an interview with Snackfax, Jyoti revealed her passion for tea and her realization that the Indian market hadn’t seen any real innovation in tea products for nearly two decades. Most tea offerings were limited to powdered premixes or iced teas, which had become mundane to Indian consumers. This prompted her to introduce something entirely new to the market, giving birth to TeaFit.

TeaFit is more than just a brand; it’s a labor of love and a visionary concept that took root in 2021. Jyoti’s deep desire to combat India’s diabetes epidemic led to the creation of an unsweetened elixir infused with the goodness of 15 unique Ayurvedic herbs. The TeaFit portfolio includes black tea, green tea, barley tea, and innovative premixes, all meticulously crafted with a dedication to authenticity and quality.

What sets TeaFit apart is its commitment to being unsweetened, relying on real ingredients and a proprietary blend of herbs to provide a delicate, natural sweetness without adding a single calorie. Jyoti succinctly put it, “We are here to clean up the Indian beverage aisle, which is currently sickly sweet or extremely unhealthy with chemicals and sugars. So we’re hoping to disrupt the space with our clean line of beverages.”

Navigating the Market Landscape

When it comes to market visibility and channel selection, Jyoti’s mantra is clear: understand your product, its pricing, and your target audience. TeaFit believes that this understanding is pivotal in shaping their market approach. Interestingly, TeaFit refused to be confined solely to the online sphere, recognizing the importance of a balanced approach.

Drawing from her experience, she noted, “Historically, I’ve seen those businesses either transition to offline channels or, if they clung too tightly to the idea of remaining exclusively direct-to-consumer (D2C), they faced challenges and often faltered.” Surprisingly, TeaFit began as an offline brand before venturing into the digital landscape, showcasing its adaptability.

Challenges and Milestones

Discussing price segmentation, Jyoti mentioned, “At the INR 120 price point, I’m truly targeting only a fraction of the market, just 0.1%.” She acknowledged that, until TeaFit expands its product range to include more affordable options, their reach remains limited.

In a remarkable milestone, TeaFit recently secured $60.8K in its latest funding round, an Angel round held on January 10, 2023. This success underscores investor confidence in TeaFit’s mission to provide healthier beverage choices to a discerning consumer base.

TeaFit’s journey exemplifies that a blend of strategic insight, adaptability, and a commitment to consumer needs can indeed be a winning formula in the business world. As TeaFit continues to evolve, it paves the way for a healthier, more conscious approach to beverages in India and beyond. The sweet revolution is here to stay, and TeaFit is at the forefront, leading the charge toward a healthier future.

Kenangan Coffee makes its mark in Singapore with grand opening at Raffles City Shopping Centre

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September 28, 2023

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Kenangan Coffee, known as Kopi Kenangan in Indonesia, has opened its first coffee shop in Singapore.

Situated within Raffles City Shopping Centre, the debut was marked by the presence of Kenangan Coffee’s Co-Founders, Edward Tirtanata (Group CEO), and James Prananto (Co-CEO).

In addition to a variety of espresso-based beverages and non-caffeinated options, Kenangan Coffee will present a carefully crafted menu, led by its signature drink, the Kenangan Latte (priced from S$4.90). This exquisite blend combines espresso with Black Aren, a natural sweetener that brings out fruity, caramel-like, and subtly smoky flavor notes.

Patrons can enhance their coffee experience by selecting Bumi Flores Beans, sourced from farms in Bumi Flores, East Nusa Tenggara, Indonesia. These beans are known for their distinct notes of brown sugar, warming spice, and dried orange.

Kenangan Coffee provides its unique mobile application to enhance its customer service, delivering a seamless omni-channel experience. Customers can gain access to exclusive membership perks, including complimentary vouchers and priority access to new products, either by making in-app purchases or by conveniently scanning the QR code at the cashier.

The coffee brand has also introduced the Kenangan Academy, which provides comprehensive training to its baristas in preparation for the opening of its inaugural cafe in Singapore.

“Kenangan Coffee is grown, roasted, and served from Indonesia, to the world. We are ardently committed to spreading Indonesia’s rich coffee culture to every corner of the globe. The profound love that Singaporeans have for coffee, from kopitiams to contemporary cafés, inspired Kenangan Coffee’s leap into this vibrant market. The city’s diversity and its global F&B prominence make our expansion here a pivotal milestone, and we are thrilled to introduce our authentic Indonesian coffee flavors to Singapore,” Edward Tirtanata, Group CEO and Co-Founder of Kenangan Coffe said.

Eduardo Saverin, Co-Founder & Co-CEO of B Capital, one of Kenangan Coffee’s initial investors, noted the remarkable evolution of the business, which has grown from fewer than 200 cafes to over 800.

“The brand’s ambition goes beyond serving coffee—it aims to reposition Indonesian coffee on the world stage as a symbol of quality and heritage. Kopi has a top team. Edward is among the strongest founders in Indonesia. He has filled organizational roles as the company has grown attracting diverse talent from WeChat, Amazon, McKinsey, Burger King and Starbucks,” Saverin said.

Kenangan Coffee has plans to expand its footprint to other Southeast Asian countries before embarking on a global expansion.

Amul predicts price stability for the year amid beneficial conditions

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September 28, 2023

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Amul is not expecting any price increases this year due to favorable conditions. According to Jayen S Mehta, the Managing Director of the Gujarat Cooperative Milk Marketing Federation (GCMMF), timely monsoon rains in Gujarat and the commencement of a robust milk procurement season have contributed to a positive outlook. GCMMF markets its dairy products under the renowned Amul brand.

“The situation is pretty good this year because of timely monsoon in Gujarat at least which means the pressure on producers for the feed and fodder cost is not high, and we are entering the flush season of milk procurement, so we are not anticipating any hike,” Mehta said.

He made this statement in response to an inquiry regarding the possibility of price increases in the upcoming months.

Regarding their investment strategy, he mentioned that they are currently allocating approximately INR 3,000 crore annually, and this commitment is expected to continue for the foreseeable future.

“…with increase in milk procurement and processing facilities also need expansion, we will be announcing a new dairy plant at Rajkot…with a capacity of more than 20 lakh litres per day, and a new packaging and processing units also there,” Mehta said.

He also noted that they intend to allocate a minimum of INR 2,000 crore for the Rajkot project, with several additional projects simultaneously in progress.

In response to inquiries regarding specific trading partners such as the European Union (EU) seeking import duty concessions within the context of free trade agreements (FTAs), Mehta emphasized that milk serves as a livelihood for over 100 million families in the nation, with the majority of producers being small-scale and subsistence farmers.

“If the developed countries want to dump their surpluses into our country, it becomes a problem for our farmers and that’s what Amul has represented several times to the government,” he said adding the government also understood this the core issue and that is why the dairy sector has been kept out in all FTAs.

“India allows import of dairy goods like European cheese at a marginal 30 per cent duty…Those countries do not reciprocate this. It is difficult to export dairy products to EU … The US has duties from 60-100 per cent…India is an open market but here we don’t want their surpluses to come at a cheaper rate and harm the livelihood of our small farmers,” he said.

Meatable set to debut cultivated pork products in Singapore by Q2 2024

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September 28, 2023

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Meatable, a Dutch food-tech company, plans to introduce its first line of cultured pork products in Singapore by the second quarter of 2024, pending the necessary regulatory approvals.

The company selected Singapore as its initial market because it was the first country to legalize and authorize the sale of cultured meat products.

Caroline Wilschut, Chief Commercial Officer at Meatable, acknowledged the support of the Economic Development Board of Singapore and the local food authorities during the company’s journey.

These intentions follow Meatable’s successful funding round of $35 million, which was secured in August.

Meatable is collaborating with contract manufacturer Esco Aster to produce cultivated pork in Singapore. Esco Aster secured a license from the Singapore Food Agency for the production of cultured animal cells in September 2021.

Utilizing its patented technology, the company can cultivate a product from pig stem cells in just eight days.

Meatable’s cultured pork offerings feature sausages comprising 33 percent cultivated meat, with the remaining ingredients sourced from plants.

The predominant flavor of pork is largely derived from the pork fat, constituting the major portion of the 33 percent cultivated meat.

The initial rollout in the second quarter of 2024 will be on a limited scale, with chosen restaurants and retailers offering the cultivated pork products. The transition to full-scale industrial operations is planned for sometime in 2025, when Meatable intends to make its products widely available throughout Singapore.

To cut production expenses, Meatable has opted for off-the-shelf bioreactors instead of creating and constructing custom ones, which sets it apart from its counterparts in the cultivated meat industry. This approach presents fewer challenges when it comes to expanding production capacity.

“Our process works in off-the-shelf bioreactors… It is very common in the pharmaceutical industry and we don’t expect any problems in scaling with them,” said Hans Huistra, chief operating officer, Meatable.

However, the most substantial expenses at present are related to the growth media and the initial capital investment required for establishing manufacturing facilities. Nonetheless, Meatable has managed to alleviate a portion of these costs through its collaboration with Esco Aster.

The price of the products will be similar to that of organic meats, said Wilschut.

“We are not adding a premium to what restaurants normally sell their dishes for,” she said.

Sausages are what Meatable will be selling at its launch, but other products may be added based on feedback from customers.

Cut+Dry breaks new ground with ‘Yes, Chef’ AI tool tailored for US food distributors

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September 28, 2023

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Cut+Dry, a leading provider of e-commerce solutions for the foodservice industry, has unveiled its latest artificial intelligence (AI) tool, ‘Yes, Chef,’ tailored specifically for the foodservice sector.

Exclusively crafted for foodservice distributors within the US, ‘Yes, Chef’ is aimed at assisting distributors in boosting revenue while reducing operational costs.

Cut+Dry co-founder and CEO Mani Kulasooriya said, “Artificial Intelligence is the natural next step to support distributors as they grow their business with Cut+Dry.

“We’re the first in the industry to combine an e-commerce platform with AI applications, providing a unique and applicable solution to challenges faced every day by foodservice distributors.”

‘Yes, Chef’ is the company’s first AI tool for foodservice distributors, meticulously designed to tackle customer support challenges.

According to the company, it will guarantee that each sales representative possesses the appropriate tools for enhanced marketing to restaurant operators.

Furthermore, the tool provides insights into customer behavior, order patterns, product catalogs, and marketing solutions. It also includes utilities for identifying underperforming SKUs.

Cut+Dry COO and Co-Founder Jim O’Connor said, “The foodservice industry is undergoing a big but long overdue transition of blending traditional operations with a digital-first customer experience mindset.

“Artificial Intelligence is an amazing opportunity for distributors of all sizes to catch up with the large broadliners who have a head start in developing digital customer experiences. The range of applications to the traditional distributors business is incredibly broad, from enhancing the customer experience to boosting their bottom lines.

“Going through a digital transformation is no longer optional and these new opportunities will allow you to catch up with your counterparts with lightning speed.”

Liquor revenue surges despite efforts to reduce consumption in Andhra Pradesh

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September 28, 2023

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On Tuesday, the state government conveyed to the assembly that the revenue generated from liquor sales in Andhra Pradesh has consistently increased over the last five years.

Revenue has seen a substantial growth of almost 36 percent since 2019. Nonetheless, Deputy Chief Minister (Excise) K. Narayana Swamy emphasized the government’s unwavering commitment to a policy aimed at reducing alcohol consumption levels in the state, affirming its continuity in the future.

He mentioned that the state government has undertaken various initiatives to curtail alcohol consumption. This includes the closure of approximately 43,000 belt shops and a reduction in the number of retail outlets from 4,380 to 2,934. In response to questions from TDP members Adireddy Bhavani, Anagani Satyaprasad, Dola Balaveeranjaneya Swamy, Nimmala Ramanaidu, Bendalam Ashok, and K Atchannaidu during the question hour on Tuesday, the Deputy Chief Minister also noted that the government has eliminated permit rooms, which were facilities for consuming liquor adjacent to retail shops.

He mentioned that they have additionally reduced the operating hours of retail liquor outlets, which were previously exclusively managed by the state beverages corporation.

He stated that the government had increased penalties for excise violations in order to deter illegal sales.

“We are committed by an owed policy to reduce alcohol consumption and are taking all possible measures to bring down consumption,” said Narayana Swamy.

Nevertheless, the Deputy Chief Minister pointed out that revenue from liquor sales has shown an upward trend over the past five years. Specifically, he mentioned that in 2019, revenues stood at approximately INR 17,473 crore, which increased to INR 17,890 crore in 2020. Furthermore, the figures climbed to INR 21,432 crore in 2021 and reached a remarkable INR 23,785 crore in 2022.

He indicated that the state government had accumulated INR 10,764 crore up to August 2023, covering the first five months of the current fiscal year. This translates to an average of approximately INR 2,152 crore per month. If this ongoing pattern persists, it is anticipated that the total revenue from liquor sales for the fiscal year 2023-24 could surpass the INR 25,000 crore milestone.

Lotte invests INR 185 Crore to ramp up Choco Pie production at Chennai factory

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September 28, 2023

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LOTTE India, a prominent chocolate manufacturer and supplier, has significantly boosted its production capacity at its Tamil Nadu factory through a substantial investment of INR 185 crore. Situated on an expansive 85,562 sq ft parcel of land in the vicinity of Nemam, this facility is poised to significantly augment the production of LOTTE’s esteemed Choco Pie range.

“The investment will play a key role in strengthening LOTTE India’s strong leadership in the Indian confectionery market,” a company statement here said. The facility would generate 200 jobs in the region.

“This expansion builds on LOTTE India’s rich history in India and comes at an exciting time for our overall investment and growth in the country.” said company managing director Milan Wahi.

The facility has undergone significant expansion, adding an extra 85,562 sq ft, resulting in a substantial growth from 18 to 32 percent. This transformation solidifies its position as one of India’s largest factories, now encompassing a total area of 516,398 sq ft for LOTTE India, as stated by Wahi.

“Our state-of-the-art factory in Nemam has been accoladed for maintaining the highest safety and hygiene standards since its inception in 2010. With a 99 per cent retention rate at the factory, Lotte India is now set to warmly welcome 200 workmen in its expanded factory,” he said.

With the enhanced production capacity now reaching 1,420 tonnes per month, this substantial increase positions LOTTE India to effectively address the growing demand for its products within the domestic market. Moreover, it opens up potential opportunities for future exports, as mentioned by Wahi.

In addition to its advanced Choco Pie manufacturing plants in Chennai and Rohtak (Haryana), LOTTE India operates its own confectionery production facility in Nellikuppam, near Puducherry. The company also collaborates with seven other manufacturing units located across the country to outsource the production of confectionery products, as outlined in the statement.

NewsHub

The Need for Change in India’s Beverage Scene

Birth of TeaFit: A Sweet Revolution

Navigating the Market Landscape

Challenges and Milestones