The indian dairy industry series 3 -cheese


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Opportunities in the Cheese sector in India

  • A very good in depth study of the Indian Dairy market.Was reading about cheese What strategies would these giant companies follow? Product innovation/ expansion/ target emerging economies…. Any insights?
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  • Request viewers to provide some introduction of themselves with respect to their connection to the cheese industry ,and their feedback and opinion on how they see the prospect of cheese in the domestic and global markets .
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  • umesh you might find this link of some use,especially in the global context :
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  • can you provide me with the latest stats regarding cheese industry in indian and world scenario
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The indian dairy industry series 3 -cheese

  1. 1. CHEESE Series 3
  2. 2. Overview <ul><li>With the growing saturation of cheese consumption in the West and encouraging successes in other 'non-cheese' Asian countries like Japan and China; overseas cheese producers are eyeing the Indian market for its huge promise. </li></ul><ul><li>The organised cheese industry in India is at best in its nascent stage, accounting for under 1% of total dairy production and largely limited to urban consumption. Though cheese was first marketed under the brand name 'Amul', from the popular Amul butter stable in the late 1970s, it attained an identity of its own only as late as 1990s. </li></ul><ul><li>The organized cheese industry in the country as of 2006, is valued at Rs 250 crore (US$ 50 million), with a volume in excess of 8000 tonnes. The industry growth rate is estimated at about 10%-12% per year in terms of volume and 16%-17% per year in value terms. Current household cheese penetration is 5%, with about 50% of consumption being limited to cities. Mumbai and Delhi together capture half of the cheese market. Within cheese products, around 60% of the market is dominated by processed cheese, 30% by cheese spreads and the remaining 10% by flavoured and specialty cheese. </li></ul>
  3. 3. Players <ul><li>The Indian cheese market is dominated by Gujarat Cooperative Milk Marketing Federation that uses the brand name Amul and Britannia New Zealand Foods Pvt. Limited, using the brand name 'Britannia MilkMan'. Amul is way ahead of competition and owns about 60% of the market. Britannia has about a 25% share. </li></ul><ul><li>Other conspicuous players are Dabon International Private Limited, a wholly owned subsidiary of the French dairy company Bongrain S.A and other regional brands like Mother Dairy and Vijaya. These companies have a 10% market share. The remainder 5% of the market is taken by imported cheese brands, retailed in specialty stores. </li></ul>
  4. 4. The Indian Cheese Market <ul><li>Brand(s) </li></ul><ul><li>Estimated Share Market(%) </li></ul><ul><li>Amul 60 </li></ul><ul><li>Britannia MilkMan 25 </li></ul><ul><li>Le Bon, Regional brands e.g. </li></ul><ul><li>Mother Dairy, Vijaya 10 </li></ul><ul><li>Imported brands e.g. Kraft, Laughing Cow 5 </li></ul>
  5. 5. Cheese Market Growth Rates <ul><li>Market Growth Rates </li></ul><ul><li>1990-91 – 1996-97 18.5% </li></ul><ul><li>1996-97 – 2001-02 20.6% </li></ul><ul><li>2001-02 – 2006-07 11.7% </li></ul><ul><li>2004-05 – 2009-10 9.4% </li></ul><ul><li>2009-10 – 2014-15 7.4% </li></ul>
  6. 6. Amul <ul><li>Amul is the leading brand name for products produced and marketed by the Gujarat Cooperative Milk Marketing Federation (GCMMF). GCMMF is an apex body of milk co-operatives in Gujarat and heralded the 'white revolution' in India, that turned the country from having a milk-deficit to the largest milk producer in the world. GCMMF also markets milk powder and dairy whiteners under the Amulya and Sagar brand names. </li></ul><ul><li>Amul is the oldest and the most established dairy brand in the country, with its first product, Amul butter, being marketed since 1946. Today, the company has its roots deep in the dairy market and is increasingly focusing on the value added segment that includes health drinks, cheese and dairy based desserts. </li></ul><ul><li>Turnover in 2005-2006 was US$ 850 million with a year-on-year growth of 29%. </li></ul><ul><li>Cheese Perspective </li></ul><ul><li>Amul brands and markets itself as the largest vegetarian cheese producer in the world since all its cheese varieties are made from microbial rather than animal rennet. This immediately makes the brand's' cheese products favourable in a country with the most vegetarians in the world. Also, it sources its cheese form buffalo milk, which is popular in India. </li></ul>
  7. 7. Cheese Products by Amul <ul><li>Cheese ProductDescription </li></ul><ul><li>Maximum Retail Price </li></ul><ul><li>Amul Pasteurised Processed CheeseA cheddar cheese400g: Rs 86 1 kg: Rs 163Amul Cheese Spreads (in three flavours)Combination of Cheddar and soft cheese.200g: Rs 32Amul Emmental CheeseSpecialty Swiss cheese which is sweet, dry and has a hazelnut aroma400g: Rs120Amul Pizza Mozzarella CheeseFor use in pizzas200g: Rs 43Gouda CheeseSpecialty Dutch cheese.Manufactured under a Swiss technical collaboration in the North Eastern Himalayan state of Sikkim. Amul chipletsIndividually packed single serve cheese cubes200g: Rs 50Amul Malai PaneerIndian cottage cheese100g: Rs14200g: Rs 26 1kg: Rs 115Amul cheese slicesFor sandwiched and burgers100gRs27 200g:Rs52AmulPizzaFrozenpizzasRs30 </li></ul>
  8. 8. Amul <ul><li>GCMMF has a wide range of products in the processed cheese segment. It has also been a pioneer in the specialty cheese market in the country. Its cheese business grew at 18% in 2005-2006. GCMMF exports cheese to the tune of 600 tons, making it the largest cheese exporter in the country. The export market includes the Middle East, Singapore, Hong Kong, and the United States of America; countries that have a large Indian population, and the neighbouring countries of Sri Lanka, Bhutan and Nepal. </li></ul><ul><li>A very rewarding strategy for Amul has been to also enter the cheese dependent food product category. It produces over 300,000 frozen pizzas (using mozzarella cheese), priced at a mere Rs 30 a piece. This has provided strong competition to international brands in the market that traditionally only sell pizzas at their retail outlets and at much higher prices. </li></ul>
  9. 9. Strategy <ul><li>As its product lists, GCMMF has capitalized on the value added segment with a wide range of Amul cheeses. The Amul brand represents 'value for money' to the Indian consumer and its cheese portfolio is competitively priced and of assured quality. The company has been aggressively marketing its cheese products, to the extent of even moving away from its umbrella brand strategy and introducing a new mascot, the Amul Cheese Boy. </li></ul><ul><li>When low cost pizzas were introduced, GCMMF adopted an innovative and successful strategy of increasing sales of an elitist product (cheese) by reducing the price of another elitist product (pizzas). Especially since 2005, the company has focused on expanding its already strong distribution network to smaller cities as cheese demand has rapidly expanded beyond the large metros. </li></ul>
  10. 10. Britannia New Zealand Foods <ul><li>BNZF is a joint venture company founded in 2002 by Britannia Industries Limited (BIL) and Fonterra Co-operative Group of New Zealand. The company focuses entirely on the dairy business, with cheese being its flagship product. The other products it sells are dairy whiteners, butter, ghee (Indian clarified butter) and a malt drink- Anlene. All products are marketed under the 'Britannia MilkMan' brand. </li></ul><ul><li>BIL (known as Britannia Biscuit company until 1979) has essentially been a 'biscuit company', that had humble beginnings in Calcutta in 1892. Its big break came during World War II when the Indian Government contracted it to supply biscuits to the armed forces and since then it became a market leader in the biscuit segment. In 1954, the company also began producing and selling bread and it was as late as 1997, that it entered the dairy industry. In 2002, Forbes Global rated BIL as one of the top 200 small companies of the world and as a strong and trusted brand in India. The Wadia Group of India along with Groupe Danone of France, are equal shareholders in ABIL, UK which is a major shareholder in Britannia Industries Limited. </li></ul>
  11. 11. BNZF <ul><li>Fonterra Cooperative Group is New Zealand's largest company and amongst the ten largest dairy companies in the world. The dairy expertise and global experience for the Joint Venture comes from Fonterra Cooperative while Britannia's contribution is its brand name, large distribution network and the understanding of the Indian market. </li></ul><ul><li>Like BIL, BNZF also comes under the umbrella of the Wadia Group of companies. Its turnover in 2005-2006 is US$ 24 million with about 50% coming from processed cheese, 30% from the dairy whitener and the remaining 20% from butter and ghee sales. </li></ul>
  12. 12. Cheese Perspective -BNZF <ul><li>BNZF only sells in the processed cheese segment and has five variations of processed cheese in the market, besides a cheese dip product. Over half of the company's revenues come form the processed cheese segment. </li></ul><ul><li>BNZF cheese is priced at a premium in the market, one reason being that the cheese is sourced from cow's milk (unlike Amul, that sources its cheese from buffalo milk). </li></ul><ul><li>Cheese products:  Cheese cubes, Cheese singles (regular and Slim variants), Britannia Milkman Malai Chaska- a soft, fresh and creamy ‘dairy spread,’ which has a mild, tangy taste, Britannia cheese spread in different flavors like Masala Herbs, Spicy Cilantro, Peppy Pepper etc., and Pizza cheese. </li></ul><ul><li>Other products </li></ul><ul><li>Britannia Flavored Milk in tetrapaks are popular. Other products in the milk range include products like Sweet Lassi (buttermilk) and Cold Coffee in 200 ml tetrapaks. The Lasssi is priced at Rs. 10 while the Cold Coffee is priced at Rs. 12. </li></ul><ul><li>The firm has also entered the fresh pastuerised milk market, dominated by Government-owned milk marketers </li></ul><ul><li>The firm has started supplying dresh paneer (cottage cheese) in and around Delhi, the national capital. </li></ul><ul><li>The firm is also all set to test market its Daily Fresh Dahi (curd) in Bangalore. </li></ul>
  13. 13. Previous Strategy of BNZF <ul><li>Rather than focusing on competitive pricing, BNZF has adopted a three-pronged strategy of freshness (lower pipeline stock), availability (improve distribution network) and visibility (more shelf space at modern trade). At present, cheese products, contribute to around 50 % of the Rs 120 crore turnover of the dairy product company (which markets its products under the brand name Britannia Milkman) while its Diary whitener contributes to 30% and butter and ghee together account for 20 %. </li></ul>
  14. 14. Dabon <ul><li>Companyprofile Dabon International Private Limited is wholly owned by the French dairy major Bongrain SA. The company began as a joint venture with Dabur India in 1996, but in June 2005, Dabur exited from the business. The company said that they had decided to exit because cheese and milk products were a 'non core' business for them. Dabon is the only international cheese company to produce and sell cheese in the country, using the brand name Le Bon. It has a state of the art facility in Noida, near Delhi. Despite having made losses, the company has been in an expansion mode, offering a selection of processed cheese products. Adapting to Indian tastes, it has also recently introduced in Delhi and Mumbai, Indian cottage cheese with the brand name 'Le Paneer'. </li></ul><ul><li>Dabon markets its cheese to both the retail and institutional sector. </li></ul><ul><li>CheesePerpsective Dabon focuses on the processed cheese segment, catering to both the retail and institutional markets. In the former, it has been targeting families and children ( like the other brands) and in the latter category, it has standard and customized products for fast food chains, hotels, flight caterers and restaurants. Some of its institutional clients include Domino Pizza, Papa John’s Pizza, Oberoi Flight Services and the Ambassador. </li></ul><ul><li>Besides drawing on the international cheese portfolio of its parent Bongrain SA, Dabon has realized that to compete, it has to cater to ethnic tastes. 'Le Paneer', the Indian cottage cheese variety was recently introduced as a brand in Delhi and Mumbai. </li></ul>
  15. 15. Dabon Products for the Retail Sector <ul><li>Cheese ProductDescriptionMaximum Retail Price </li></ul><ul><li>Le Bon Creamy n Sancky Cheese PortionsA ready to eat snack, targeted at children.6 portion pack - 114g - Rs 36 Single portion - 19g - Rs 6Le Bon creamy Cheese spread (Bottled spread in two flavors: Plain and Black pepper)Marketed as a low fat butter substitute, with 60% less fat than butter.Both flavors: 200g-Rs 45Le Bon Tasty Cheese Slices ( Two flavors: Plain and Black pepper)A ready to eat snack, targeted at children </li></ul><ul><li>Plain: 170g- Rs 57 Black Pepper: 170g- Rs 59 </li></ul><ul><li>Le Bon Grate n Garnish Cheese A mild processed cheese for grating and garnishing.Comes in 4 different pack sizes: 100g - Rs 24, 200g - Rs 46, 400g - Rs 86, 1Kg - Rs 185Le Bon PaneerIndian Cottage cheese200g: Rs 26 400g: Rs 50 </li></ul>
  16. 16. Dabon for Institutional Sector <ul><li>Cheese ProductDescription </li></ul><ul><li>Creamy n Sancky Cheese PortionsSuitable for in-flight meals, mini-bars and breakfast buffets. Available in 19g portionsCreamy Cheese spread (Two flavors: Plain and Black pepper)Suitable for Italian food, baked dishes and dipsIndividually wrapped cheese Slices (Two flavors: Plain and Black pepper)For burgers and sandwiches. Available in 17g portionsGrate n Garnish CheeseAn all purpose mild processed cheese for grating and garnishing. Available in 1kg blocksCheddar Processed Cheese </li></ul><ul><li>All purpose cheddar processed cheese. Available in 1kg blocks Le Bon Paneer Indian Cottage cheese. Available in 200g and 400g packets </li></ul>
  17. 17. Dabon Strategy <ul><li>Dabon has played it safe in the Indian market so far, confining production and sales to the popular processed cheese and Paneer segment. It capitalizes on the fact that it uses international world class production techniques with a focus on quality and hygiene. Bongrain SA obviously believes in the potential for cheese in India, increasing its investment in the country despite having its joint venture partner Dabur pull out. </li></ul>
  18. 18. Cheese Importers <ul><li>When the Indian government removed quantitative restrictions on consumer products in 2001, it was expected that imported products would flood the market and pose a threat to local brands. Iinternational cheese companies have established agents to market their products and enter the Indian market. The three main importers are: </li></ul><ul><li>Bel Fromageries  which introduced its Laughing Cow brand in 2001 and more recently, Kiri cream cheese. </li></ul><ul><li>Kraft.  Presently, Kraft cheese is available only in specialty imported goods stores. However, The company is planning to enter the Indian market and its strategy is to have an extensive reach into small retail outlets in the country. The company also aims at a presence by introducing 'affordable products with the right attributes that meet local consumer needs'. </li></ul>
  19. 19. Cheese Importers <ul><li>Boursin.  A large French cheese maker, Boursin announced its entry as an importer of cheese into the Indian market in November 2006. Boursin will be traded in the country by RRO, which has a tie up with Unilever for marketing and distribution. RRO is an established importer of international branded consumer food items. </li></ul><ul><li>Boursin is a 100% Vegetarian Cheese since it is made without animal rennet. The product is available in four varieties in the country: Boursin Plain, Bourisn Garlic and Fine herbs, Boursin Pepper, and Boursin Shallot and Chives. Boursin Cheese is available at several leading food outlets in the country. </li></ul>
  20. 20. Cheese Importers <ul><li>French cheese major, Fromageries Bel, a 10-bn French franc outfit, has entered the Indian market with La Vache Kirit or what is worldwide known as The Laughing Cow. Its target market to start with were the two metros of Delhi and Mumbai with distribution entrusted to Delhi-based Rai & Sons, distributors for premium food brands, Ferraro Rocher and Ricola. </li></ul>
  21. 21. Importers <ul><li>The Bel product will be produced at Bel's facility in Poland exclusively for the Indian market. La Vache Kirit is a guaranteed vegetarian product. Fromageries Bel is expected to widen its product portfolio by launching laughing Kirit (creamy cheese in cube form) and Babybel (semi-hard with a wax coating appropriate for sandwiches). </li></ul>
  22. 22. Imported Cheese <ul><li>Laughing Cow was expected to be followed by an Austrian cheese brand, Happy Cow (owned by Woerle). Woerle has entered into a licensing arrangement with Veekay Foods & Beverages in Mumbai. Nestle and Kraft have been planning to make foray in the Indian market. </li></ul>
  23. 23. Foreign Brands <ul><li>Foreign brands in India include: Probolene, Colby, Mozzarella and Parmessan from Italy, Cheddar from Dutch, Gryueve. The new entrants will have to compete with well-established players such as Amul, Britannia's Milkman and Dabur’s Le Bon, enjoying substantial market shares in the overall Indian cheese market. The US-based Philip Morris, which brought in its Kraft cheese brand earlier, has gained a significant presence in the market. </li></ul>
  24. 24. Regional Players <ul><li>Encouraged by the success of Amul, many state dairy cooperatives have entered the cheese segment. These cooperatives have capitalized on their existing brand strengths to capture a sizeable market share in their region. Prominent regional players are: </li></ul><ul><li>Regional Players in the Indian Cheese Market </li></ul><ul><li>CompanyBrand & RegionsCheese ProdcutsOther Products </li></ul><ul><li>Mother Dairy India Limited (wholly owned by National Dairy Development Board)Mother Dairy(North India, Mumbai and CalcuttaIndividually wrapped slices, Cheese spread, Cheese cubes and PaneerLiquid Milk, Yogurt, Ice creams, Dairy Whiteners, Butter, Frozen vegetables, Fresh fruits and vegetables, Vegetable oils and Fruit juices </li></ul><ul><li>Milkfed (Punjab State Cooperative Milk Producers Federation)Verka (North India, Mumbai and Calcutta)Cheese spread, Processed cheddar cheese, Natural cheddar cheese, Cheese singles and PaneerFlavored milk, Lassi, Yogurt, Butter, Ghee, Milk powders, Malted drink, Icecreams, Milk based Indian sweets </li></ul><ul><li>Andhra Pradesh Dairy Development Cooperation Federation (APDDCF)Vijaya (Predominantly South India based)Processed cheeseSterilized Flavoured Milk, Panneer, Indian sweets and Buttermilk </li></ul>
  25. 25. Regional Players <ul><li>Of the above listed players, Mother Dairy is the largest, with aggressive growth plans in the cheese business. The company's strategy is to focus on the large childrens segment, with two successful marketing campaigns in 2006 - aimed at the child consumer, and to have a better relationship with retailers. As part of its strategy to increase its national presence, Mother Dairy also plans to improve its distribution network and increase the shelf life of its cheese - so as to increase its reach in the country. </li></ul><ul><li>Two other state cooperatives that produce and market cheese are the southern states of Karnataka (Nandini brand) and Tamil Nadu (Aavin brand). These two brands though, essentially maintain a state presence rather than a regional one. </li></ul>
  26. 26. Consumption Pattern-Cheese <ul><li>There have been two significant changes in consumption patterns, affecting each end of the spectrum. In the mass consumption category, Indian consumers are more ready to buy off the shelf. Paneer, which all the major cheese producers are marketing as a branded product, was traditionally home made. </li></ul><ul><li>Secondly, with greater international exposure, rising incomes and brand affiliation; the demand for niche cheese products has increased. Amul was an early mover in capitalizing on the demand for specialized cheeses like Gouda and Emmental. </li></ul><ul><li>However, cheese consumption continues to be an urban phenomenon, with processed cheese and cheese spreads accounting for about 80% of the total cheese consumption. Also, cheese is mostly consumed by children and is yet to be part of the mainstream adult diet on a mass scale. </li></ul>
  27. 27. Production Pattern <ul><li>The state cooperatives that market cheese like Amul, Mother Dairy and Verka have their own production plants and source milk from their cooperatives. Among international cheese companies, only Dabon Private Limited also produces cheese in the country, having its own plant in Noida, near Delhi. The only significant private player, Britannia, does not make its own cheese but has it produced by the Maharashtra based private dairy company Dynamix Dairy Private Limited (which has a technical collaboration with Schreiber Cheese, USA). Bel Fromageries, the global French company that sells Laughing Cow and Kiri varieties of cheese in India, imports cheese into the country through its agent, Rai and Sons, Delhi. </li></ul>
  28. 28. Marketing <ul><li>In terms of market segmentation, all the Indian cheese brands cater primarily to the retail sector. On the other hand, Dabon International Private Limited and Bel Fromageries have a a retail and institutional client focus. The insitutional sector, comprising fast food chains, restaurants, in-flight caterers and hotels also source their cheese from private dairy companies like Dynamix Dairy. </li></ul><ul><li>Geographically, cheese is produced and marketed for domestic consumption. Amul Malai Paneer is only cheese product exported to the Middle East, Singapore and North America. Paneer is targeted at the large Non Resident Indian (NRI) population in these countries. </li></ul><ul><li>Importing cheese, especially for mass consumption faces two main stumbling blocks:  i) High costs: Added to the high cost of importing cheese, importers often also have to invest substantially in a distribution network due to the lack of cold chains. Indian consumers are price sensitive and importers find it difficult competing against local, better priced brands, which are also in synch with the local palate.  ii) Inordinate time lag in supplies: Due to logistics and the duration of the import process, replenshing stock takes atleast a couple of months, making it difficult for importers to cater rapidly to demand variations. </li></ul>
  29. 29. Distribution <ul><li>One of the biggest problems in the marketing of cheese is the lack of existing infrastructure, especially cold chains from the producer to the consumer. Existing players, especially Amul that also uses such facilities for its other dairy products like milk, already has a fairly well established national network. However, new entrants, including importers need to make extra infrastructural investments. This can be quite daunting for companies that are making a market entry into the dairy and cheese industry, particularly with limited existing knowledge of current distribution issues. </li></ul><ul><li>The lack of cold storage facilities cause the biggest problems to regional players who are trying to gain a national presence. They neither have existing infrastructure nor the financial muscle of international companies. To improve logistical issues, some regional players, like Mother Dairy are positioning their plants in different geographical regions. </li></ul>
  30. 30. Consolidation of Cheese Plants <ul><li>The explosion of retailing in India will probably have a significant inpact on the cheese industry. </li></ul><ul><li>Large chains of supermarkets that have entered the country, like Tesco, would follow their global policies of tightening supplier margins that could put small cheese prodcers out of business. The supplier end will likely be dominated by huge national producers who can achieve sufficient economies of scale to be able to afford low margins. There will be a few such national cheese factories, supplying to various cheese marketers and retail chains, who in turn brand cheese under their own labels. </li></ul><ul><li>There is also a high probability that cheese importers like Kraft and Bel Fromageries begin domestic production to lower prices and increase availablility of their products. </li></ul>
  31. 31. Increasing and Widespread Demand <ul><li>Based on a multi-year study of dairy consumption patterns in China, Mckinsey predicts a growth in the demand for Cheese by 40% by 2011. With India having similar consumer trends- namely, growing incomes, westernization and urbanization - Indian demand is likely to mirror Chinese patterns. Two conspicuous outcomes are: i) There is likely to be a 25%-30% increase in demand in the metros and ii) There is likely to be a 5%-10% growth in demand in tier 2 cities as urbanization and modern consumption patterns extend to these cities </li></ul>
  32. 32. Food Technology Improvements <ul><li>Many regional cheese brands are currently not able to retail nationwide because of the limited shelf life of their cheese products. For example, Mother Dairy, a subsidiary of the National Dairy Develepment Board and a hugeley successful retailer has confined most of its sales to the northern belt. Its reason- the shelf like of most of its dairy prodcuts including cheese is only about 10 days. . India being the second largest country in the world and a land of distances, most regional producers do not have the advanced packaging, processing and distribution technology for geographical expansion. Despite this hindrance, Mother Dairy's sales for cheese is increasing at about 30-40% a year. In the next 3 years, regional players will be forced to adopt new technologies that enable them to go national to survive. </li></ul>
  33. 33. Intense competition amongst sellers <ul><li>The two pronged strategy that sellers will follow in the next few years is i) to increase the size of the market through greater awareness, and ii) to increase availability of cheese products to the expanded market. </li></ul><ul><li>The Amul and Britannia brands have the strongest national dairy brand identity. To compete with these established brands and gain national presence, other cheese retailers will resort to heavy marketing. Cheese advertising budgets alone are likely to be around 2%-4% of total revenues. Advertising strategies could include, for e.g. cross selling with compementary food prodcuts and offering free cheese tasting sessions. </li></ul><ul><li>In the past couple of years, for example, Mother Dairy has already been pursuing aggressive advertising strategies. One successful promotion in Delhi and Mumbai was the &quot;Cheese khao superhero ban jao&quot; (Eat Cheese to become a Superhero) event, where kids buying cheese at retail outlets were invited for a photo- op - dressed as superheros with a framed photograph presented to them. Another, helped the company bond better with its retailers. In November 2005, retailers in Delhi displayed banners proclaiming, &quot;Cheese ke saath bees ki cheez&quot; (Buy Cheese and get Rs. 20 worth of freebies), a proposal where, if a consumer bought Mother Dairy cheese, the retailer would offer her free purchases worth Rs 20 from the store. Both these innovative campaigns were hugely successful in brand awareness and sales. </li></ul>
  34. 34. Indianisation of Processed Cheese <ul><li>Dabon, in acknowledgement of customer preferences for indegenous cheese, has customized their portfolio to include paneer. </li></ul><ul><li>The next three years will see new Indian flavours of cheese being introduced in the processed cheese and cheese spread market. The Indian consumer has unique tastes with variations even across regions. Both Indian and International brands are likely to 'Indianize' their cheese products with Indian flavours to attract a larger customer base. </li></ul>
  35. 35. Consumption Patterns <ul><li>The product mix and consumption pattern is unlikely to change drastically in the next few years. The largest demand will continue to be for processed cheese and cheese spreads. Children will continue to be the largest consumers of cheese. </li></ul><ul><li>Of the predicted increase in demand, children will contribute to the largest proportion in tier 2 cities while it will be adults in the metros. To cater to this increase, it is also likely that cheese producers introduce new varieties of specialty cheese in the metros. </li></ul>
  36. 36. Key Government Contacts <ul><li>Government DepartmentResponsibilityContact Information Ministry of Agriculture, Department of Animal husbandry, Dairying and Fisheries (DADF)The Department is responsible for matters relating to livestock production, preservation, protection from disease and improvement of stocks and dairy development, and also for matters relating to the Delhi Milk Scheme and the National Dairy Development Board.The Secretary,  Telephone:             +91 11 23382608       Email: [email_address] </li></ul><ul><li>National Dairy Development Board (NDDB)A government organization, NDDB is the apex body of State coperatives. Also provides training and consulting services.Head Office: P.B. No. 40  Anand - 388 001  Gujarat, INDIA Telephone: 91-2692-260148/260149/260159/260160 Fax: 91-2692-260159/260165 Email: [email_address] </li></ul><ul><li>Ministry of Food Processing IndustriesThe main central agency of the Government responsible for developing a strong and vibrant food processing sector; with a view to create increased job opportunities in rural areas, enable farmers to reap benefit from modern technology, create surplus for exports and stimulate demand for processed foodThe Joint Secretary,  Telephone: Ph: 011-26492476  Fax: 011-26493228  Email: </li></ul>
  37. 37. References-1 <ul><li>1. Overview:  'Mother Dairy to Foray into Processed Cheese Segment', Hindu Business Line, June 17, 2005 The Indian Dairy Factsheet  'Operation Flood & Beyond: India Emerges As A World Dairy Powerhouse', December 24 2001 </li></ul><ul><li>2. Player Profiles:,,,,,  Dabur India 'open' to exiting Dabon' Hindu Business Line April 29 2005 'Dabur decides to exit Dabon — We're in expansion mode, says Dabon CEO 'Hindu Business Line July 01, 2005 </li></ul>
  38. 38. Top Cheese Companies <ul><li>Nestle - Switzerland </li></ul><ul><li>Danone - France </li></ul><ul><li>Lactalis - France </li></ul><ul><li>Friesland Campina - Netherlands </li></ul><ul><li>Arla Foods - Denmark </li></ul><ul><li>Unilever -Netherlands / Great Britain </li></ul><ul><li>Parmelat - Italy </li></ul><ul><li>Bongrain – France </li></ul><ul><li>Bel – France </li></ul><ul><li>Tine – Norway </li></ul>
  39. 39. Types of Cheese <ul><li>Goat </li></ul><ul><li>Cheddar </li></ul><ul><li>Blue </li></ul><ul><li>Swiss </li></ul><ul><li>FETA </li></ul>
  40. 40. Goat Cheese <ul><li>Goat cheese is a cheese that is made from  goat milk . It is sometimes called ‘chevre’. Goat cheese comes in a wide array of forms. It can either be made firm or semi-firm in texture.  It is usually a soft, smooth cheese which spreads easily and has a distinct flavour that is tangy like that of goat milk. The strong goat flavour is due to the hormones in the milk which can be reduced. Goat milk is highly influenced by what goats are eating as goats tend to eat more bitter plants which cows would not eat, hence the distinctive taste. </li></ul><ul><li>Goat cheese is a preferred dairy product as it is said to be less dense in calories like the cheese made from cow’s milk. Goat cheese is also easier to digest; therefore some persons who can not have other milk products will more likely be able to eat goat cheese. It is also said that goat cheese does not put any strain on the heart, which is great news. This is due to its low fat content and the cheese being able to be digested quite easily </li></ul>
  41. 41. Goat Cheese <ul><li>Goat cheese is often made in areas where  refrigeration  is limited so aged goat cheeses are frequently and heavily treated with salt for the prevention of decay. Due to this, salt has become a distinct flavour that is present in the taste of goat cheese. </li></ul><ul><li>Goat cheese is manufactured by warming goat milk and mixing it with rennet, which is an  enzyme  which allows the milk to curdle. The curds are then drained and pressed. Soft goat cheese is made by hanging bundles of cheesecloth filled with curds for a number of days to be drained and cured. </li></ul>
  42. 42. Cheddar Cheese <ul><li>Cheddar cheese originated from an  English village  called Cheddar. It is a firm cheese which originates from cow’s milk. This type of cheese is one of the most popular cheeses and varies in taste. It can be of a mild taste to a sharper taste. Because of the recognition of cheddar cheese, it is usually readily available and varies in quality as well. </li></ul><ul><li>Individuals tend to associate either off-white, pale yellow or even a pumpkin orange colour with cheddar cheese. This originates from dyes being added to the cheese for a change in colour. Cheddar cheese also has different flavours, which is dependent on the make of the cheese as well as the aging process. Mild tasting cheddars are usually processed for a shorter period of time while a sharper taste would come from cheese processed over a several months. </li></ul>
  43. 43. Cheddar Cheese <ul><li>There are several aspects that make cheddar different from other cheeses. Firstly, the bacteria that it is fermented with, yes, I said bacteria. Secondly, the process by which it is manufactured and thirdly, ‘cheddaring’ which is a process the cheese goes through to make the end result distinctive to taste. </li></ul><ul><li>Different Types of Cheddar Cheese </li></ul><ul><li>1. Mild Cheddar  - This cheese is considered young as it has only been aged for 3 months, hence its mild taste. </li></ul><ul><li>2. Semi-Matured Cheddar  -Aged for 3-6 months. </li></ul><ul><li>3. Matured Cheddar  - Aged for 6-12 months. </li></ul><ul><li>4. Vintage Cheddar  - Aged up to 18 months. </li></ul><ul><li>5. Flavored Cheddar  - This matured cheddar with an additional flavour, example: garlic, bacon or port wine. </li></ul><ul><li>6. Flavored Processed Cheddar  – Has an extra ingredient such as onion, garlic, curry or even pecan nut. </li></ul><ul><li>7. Processed Cheddar  – Has a mild flavour and a smooth texture. </li></ul><ul><li>8. Cheedam  – Combination of cheddar and edam cheeses. This cheese has a mild taste. </li></ul><ul><li>9. Steppen  – This is low-fat cheddar cheese. </li></ul><ul><li>10. Double Gloucester  – Has a high colour and a tangy flavour. </li></ul><ul><li>11. Cheshire  – A bit acidic yet mild. Depending on the aging process and may have a more prominent flavour. </li></ul><ul><li>12. Cotto  – Made from skimmed milk and has a fresh mild flavour. </li></ul><ul><li>13. Red Leicester  - Has a slightly lemony taste. This cheddar cheese’s colour originates from  vegetable dye . </li></ul>
  44. 44. Blue Cheese <ul><li>Blue cheese is a common categorization of cow's milk and/or goat's milk  cheeses with a blue or blue-green mold. The blue mold in these cheeses is due to mold spores from Penicillium roqueforti or Penicillium glaucum to name a few. Most blue cheeses (bleu cheese) today are either injected with the mold or the mold is mixed right in with the curds, to ensure an even distribution of the mold. Blue cheese was initially produced in caves, where there was a natural presence of mold. Most of these cheeses must still be matured or aged in the caves where they were originally developed. So the longer it ages, the more intense the flavour and smoother the texture. A combination of mold and other ingredients make up the colour, flavour and texture of the cheese. </li></ul>
  45. 45. Blue Cheese <ul><li>Many blue cheeses are made from whole  cow's milk , but there are also made with goat's milk. These complex blue cheeses are usually categorized as some of the best cheeses in the world. There flavour is usually strong, and have a tangy taste that differentiate these type of cheeses from others. </li></ul><ul><li>Types of Blue Cheese • Gorgonzola  - This blue cheese is from Italy and is made from cow's milk. • Stilton  - This cheese is considered to be the king English cheeses, it is manufactured from sheep or cow's milk. • Roquefort  – This is made from cow's milk and is one of France's national treasures. It is somewhat porous and has a green color rather than blue streaks. It has a soft, creamy texture and has a spicy taste. • Cabrales  - is one of the four most famous blue cheeses. It is a combination of cow, sheep and goat's milk. • Danablu - One of the most well-known blue cheeses originally from Denmark. • Benedictine Bleu  – This cheese is from Canada and has been famous since 1943. </li></ul>
  46. 46. Swiss Cheese <ul><li>Swiss cheese is the general name for numerous tpyes of cheese that were initially prepared in Switzerland. It is also known as Emmental. Swiss cheese is made from cow’s milk. It is lightly flavoured, sweet and nutty. Swiss cheese is known for being glossy, light or pale yellow, and having large holes in it which is a result of carbon dioxide released during the process of maturation. So basically the gas bubbles from the carbon dioxide produces the holes in the cheese. The holes in Swiss cheese are known as ‘eyes’. </li></ul>
  47. 47. Swiss Cheese <ul><li>Types of Swiss Cheese </li></ul><ul><li>1. Baby Swiss  – This type of swiss cheese is of light yellow colour, and has a soft, smooth texture with small holes, or eyes and is made from whole  cow's milk . The flavor is mild, buttery, creamy and a bit sweet. </li></ul><ul><li>2. Comte  – This Swiss cheese is a type of Gruyere cheese. The full name is really Gruyere de Comte. It is a circular cheese with small round holes; it is dark in colour with a tough texture and has a yellowish interior. The aging process is longer than that of the Swiss Gruyere cheese. Comte is a buttery, tangy cheese and has a sweet, fruit-like flavor. </li></ul><ul><li>3. Tete  de Moine  – This is made from enriched summer milk, the inside of the cheese is hard and creamy to yellow in colour and darkens depending on the aging process. It has a sweet and tangy flavour with a taste of nuts. It is also the strongest of the Swiss Cheeses. </li></ul><ul><li>4. Raclette  – this cheese is made from cow's milk that is heated under a hot grill. The heat intensifies the full, nutty and somewhat fruity aroma of Raclette. When grilled, the outer layer becomes crunchy and has a delightfully savory flavor. </li></ul><ul><li>5. Jarlsberg  – This type of cheese is from Norway. It is made from cow’s milk and is rich and creamy and a bit sweet. </li></ul><ul><li>6. Blarney  - Blarney Irish Castle Cheese is a natural, partially soft semi-skimmed cheese somewhat like young  Gouda . It is aged for at least 3 months. </li></ul>
  48. 48. FETA Cheese <ul><li>Feta cheese is one of the oldest cheeses in the world, and is said to be a genuine product from Greece. To be more specific, since October 14, 2002, feta cheese has been formally accepted as a Greek only, cheese. Feta is a  soft cheese , and is made from sheep milk  or a mixture of sheep and  goat milk . However, in more recent times it has been made by using cow’s milk. </li></ul><ul><li>Here is a description of feta cheese: It is white in colour, has a delightful flavour, a bit sour to taste and rich in aroma. It is also shaped in squares. Even though it is said to be a soft cheese, it is also manufactured with a partially hard texture. Due to its superior moisture content, soft feta is more of a sweet cheese with a small amount of saltiness; it is rich in aroma and not too spicy. On the other hand semi-hard feta is saltier and spicier, having a more pronounced taste and aroma. </li></ul>
  49. 49. FETA Cheese <ul><li>Feta goes through at least a two month maturation process, this being the stage of growth for the feta cheese to achieve all its quality characteristics which includes its flavour, aroma and texture. This allows the distinction from other soft cheeses of the same category. </li></ul><ul><li>Feta cheese is white in colour and is generally produced into square  cakes . It can also vary from soft to semi hard, with a more tangy, salty flavour which can be either mild or sharp in taste. Feta cheese can also be eaten natural with olive oil and oregano. It is also the ideal cheese that is more regularly used to fill pies. In Greek cooking feta cheese is often used mostly for gratins and pastries. Feta can also be crumbled over salads, such as their very classic Greek salad. </li></ul>
  50. 50. Top Speciality Cheese <ul><li>1. Fresh Mozzarella: soft, white cow’s milk cheese with a mild flavor </li></ul><ul><li>2. French Brie: a ripe cheese with an edible white rind and a cream-colored, buttery-soft </li></ul><ul><li>interior </li></ul><ul><li>3. Parmigiano-Reggiano: a hard, dry cheese made from skimmed or partially skimmed cow’s </li></ul><ul><li>milk. Has a rich, sharp flavor and is usually used for grating </li></ul><ul><li>4. Blue Cheese </li></ul><ul><li>5. Cheddar </li></ul><ul><li>6. Feta: a classic Greek cheese made with sheep’s or goat’s milk </li></ul><ul><li>7. Swiss Emmental: a hard cheese with a mellow, nutty flavor and marble sized holes </li></ul><ul><li>8. French Chevre: a goat’s milk cheese with a tart flavor and a texture ranging from moist and creamy to dry and semi firm </li></ul><ul><li>9. Mascarpone: a soft, buttery, rich double- or triple-cream cheese made from cow’s milk </li></ul><ul><li>10. Provolone </li></ul>
  51. 51. Top Cheese Varieties <ul><li>Parmigiano Reggiano ,Italy-nutritional ingenuity </li></ul><ul><li>English Farmhouse Cheddar ,England-meaty & salty cheddar </li></ul><ul><li>Roquefort ,France –richness of sheep’s milk </li></ul><ul><li>Brie de Melun,France-soft ,ripened cheese </li></ul><ul><li>Gruyère ,Switzerland-cooked curd alpine cheese </li></ul><ul><li>Roncal ,Spain-peak of ship’s milk </li></ul><ul><li>Lake’s Edge , USA –classic goat cheese </li></ul><ul><li>Époisses , France-mellow,fruity ,smelly </li></ul>
  52. 52. Top Cheese Varieties <ul><li>Stichelton , UK-protected blue cheese </li></ul><ul><li>Mahon , Spain –Simple cow milk…marvel after a year </li></ul><ul><li>Oregon Blue Vein , USA –best blue cheese </li></ul><ul><li>Hooligan , USA –small,washed rind cheese </li></ul><ul><li>Boerenkaas ,Holland-oily,nutty,sharp rent cheese </li></ul><ul><li>Tomme De Savoie ,France-simple mountain style cheese </li></ul>
  53. 53. Top Cheese Brands <ul><li>Gorgonzola , Italy-blue,super creamy sweet </li></ul><ul><li>Leonora , Spain –creamy goat cheese with tart note </li></ul><ul><li>Mozarella Di Bufala , Italy –fresh handmade mozzarella </li></ul><ul><li>Calcagno , Italy –sheep’s milk+parm treatment </li></ul><ul><li>Camembert de Normandie, France –soft ripened cheese </li></ul>
  54. 54. Top Cheese Brands <ul><li>Pleasant Ridge Reserve , USA-uncommonly aromatic cheese </li></ul><ul><li>Cabrales , Spain –classic Spanish blue cheese </li></ul><ul><li>Selles-sur-Cher , France –from the land of the goat </li></ul><ul><li>Taleggio , Italy –perfect cheese to add to risotto </li></ul><ul><li>Feta , Greece –pickled cheese made with sheep’s milk </li></ul>
  55. 55. Top Cheese Brands <ul><li>Montcabrer ,Spain-cheese for goat lovers </li></ul><ul><li>Folie Bergere ,USA – Creamy nutty sheepy </li></ul><ul><li>American Farmhouse – Cheddar </li></ul><ul><li>Robiola della Alta Langa,Italy-Cow’s+sheep’s milk </li></ul><ul><li>Teleme, USA – yeasty quality </li></ul><ul><li>San Joaquin Gold ,USA – well aged cheddar </li></ul>
  56. 56. Top Cheese Varieties <ul><li>La Serena,Spain – sheep milk+cardoon thistle </li></ul><ul><li>Stanser Schafkäse  , Swiss-sheep cheese </li></ul><ul><li>Saint-Marcellin,France – acid curd cheese </li></ul><ul><li>Grayson, USA – Trappist style,big & beefy </li></ul><ul><li>Pecorino Di Pienza,Italy-nutty & light salty </li></ul><ul><li>Fium Orbu ,Corsica – sheep’s milk+strong washed rind </li></ul>
  57. 57. Top Cheese Brands <ul><li>Piave ,Italy – sharp ,fruity kick </li></ul><ul><li>Sally Jackson ,USA-sheep,goat –prssed cheese wrapped in leaves </li></ul><ul><li>Charolais,France –goat’s milk-flavour a little more dirt </li></ul><ul><li>Vermon Shepherd,US –Sheep cheese hearty & meaty </li></ul><ul><li>Pont-l'Évêque ,France – thick full bodied paste </li></ul>
  58. 58. Top Cheese Brands <ul><li>Caprino di Foglia Noce,Italy-flavoured with tasty goat cheese </li></ul><ul><li>Ibores ,Spain-round & olivey flavour </li></ul>
  59. 59. Profitability - Cheese <ul><li>A Dairy Management Inc. study on marketing of cheese, shows that butter and margarine are the highest gross margin items in the dairy case, with gross margins of 39.1%, while milk is the lowest at 29.4%: Willard Bishop Consulting (for Dairy Management Inc.) </li></ul>
  60. 60. Milk Margins <ul><li>The milk margins are interesting because consumers have long known that it was priced as a 'loss leader' to draw in customers. This report notes that milk has traditionally been among the lowest gross margin items on a grocer’s shelf, with gross margins in the 25% range: University of Connecticut (Prof. Ronald W. Cotterill’s page) &quot;Dairy Policy for New England&quot; (2003) </li></ul>
  61. 61. 14 Steps to Launch Speciality Cheese <ul><li>Paul Scharfman of Specialty Cheese Company has written a series of articles for the University of Wisconsin’s Dairy Pipeline entitled Inventing a New Niche Product. In one article, he presents 14 steps that are necessary to successfully launch a new niche product such as specialty cheese </li></ul><ul><li>1. Assemble the team: This team should include the following: an R&D person, a sales </li></ul><ul><li>person, a graphic designer (and, where possible, a local advertising agency </li></ul><ul><li>representative), a financial expert, and the general manager of your business. In some </li></ul><ul><li>cases, one person may fulfill all of these roles, but it’s important to recognize these </li></ul><ul><li>critical areas in launching a new niche product. </li></ul><ul><li>2. Know your strengths : Compare yourself to your competition: Look at your </li></ul><ul><li>competition’s product line and business practices. Discover opportunities to compete </li></ul><ul><li>with them—other than price. There is no benefit to merely duplicating another firm’s </li></ul><ul><li>niche cheese and trying to sell your product to his or her customer base by competing </li></ul><ul><li>on price. Whatever a firm’s strengths may be the new product development process </li></ul><ul><li>should build on them. </li></ul><ul><li>3. Pick a mega-trend and ride it: Look at a list of predictions about our society and ask </li></ul><ul><li>yourself what each prediction means for your product category. </li></ul>
  62. 62. Speciality Cheese <ul><li>4. Brainstorm idea s with your team that you think your firm could produce: see which </li></ul><ul><li>mega-trends fit with your firm. </li></ul><ul><li>5. Ask your team to take your list of ideas and put them in priority order according to </li></ul><ul><li>which ones have the best mix of these elements: 1) You can do it; 2) Your competition </li></ul><ul><li>Can’t do it as well; 3) You think there is a market for it. </li></ul><ul><li>6. Do your first market research study . Then, take your ideas to your potential customers </li></ul><ul><li>to determine whether there is a market for them. If not, ask them how they would </li></ul><ul><li>change your idea to make it suitable for them. </li></ul><ul><li>7. Go back to the drawing board . Create revised, “positioned” ideas: Gather your team </li></ul><ul><li>and refine your ideas and attempt to answer the following questions: who will buy it; </li></ul><ul><li>who will use it; what will it replace (compete with); why will they use it; and why </li></ul><ul><li>should users believe your product will deliver that benefit. </li></ul>
  63. 63. Speciality Cheese <ul><li>8. Try communicating your idea s in a persuasive way. For example, develop a test </li></ul><ul><li>advertisement. </li></ul><ul><li>9. Seek the opinions of your potential customers whom you do not know personally, show </li></ul><ul><li>them your ideas, including the test advertisement and see how they respond. </li></ul><ul><li>10. Repeat steps 7, 8, and 9 until you have some ideas that are greeted with enthusiasm by </li></ul><ul><li>consumers. </li></ul><ul><li>11. Create some prototypes of product, package and label . Refine them based on your </li></ul><ul><li>consumers’ reactions in the same way you revised and improved your concept </li></ul><ul><li>12. Take your concept, and prototypes to some distributors , store or restaurant owners and </li></ul><ul><li>get their opinions. Be willing to modify your product based on their reactions. </li></ul><ul><li>13. Go sell your product, but only a little bit at a time . Listen carefully to reactions from </li></ul><ul><li>the marketplace. </li></ul><ul><li>14. Celebrate . </li></ul>
  64. 64. References <ul><li>3. Trends and Outlook:  All websites listed above and  'French cheese Boursin to grace Indian palates soon', The Economic Times, September 13, 2006 'Mother Dairy steps up marketing promos for brands, relaunching Safal', , July 08, 2006  'Mother Dairy plans brand expansion'. Hindu Business Line, October 16 2006, 'Influx, yes, deluge no', the Hindu Business Line, August 01 2002, ,  'Food Processing Industry is Growing in Asia Pacific Region', 'Indian Food Processing Industry Opens its Doors to Foreign Investors', 'Indian Government to Pump Rs 500 billion in Food Processing Industry', 'Say Cheese - Amul is the World’s Largest Veggie Cheese Brand', November 10, 2005 'Laughing Cow upbeat on cheese market', Hindu Business Line April 16 2002  'French dairy major Lactalis enters Indian cheese market ' Hindu Business Line, January 09, 2004,;  'Mother Dairy's BIG India plans',, July 04 2006 </li></ul>
  65. 65. References <ul><li> </li></ul><ul><li> </li></ul>