The ice cream industry already hit by eroding market
share following the emergence of frozen desserts sector in the country
during the last few years, is facing another major setback in recent
times following an amendment to the Food Safety & Standards
Regulations, 2011.
The amendment, introduced about two months ago, allows manufacturers of frozen desserts to mention “vegetable-based or non-dairy-based ice cream” on the packs thus blurring the fine line between ice cream and its similar but cheaper counterpart frozen dessert as far as labelling is concerned.
Suleman Hafizi, chairman, Pastonji Brands and Holdings Pvt. Ltd, observed, “ As the amendment requiring the frozen dessert manufacturers to mention vegetable oil-based ice cream or non-dairy-based ice cream, the manufacturers are following that rule. But in the process we the manufacturers of ice cream are losing business. Our company has incurred a loss of Rs 50 lakh in comparison with previous year due to more sale of frozen desserts.” Another source from the company stated that the impact of the recent amendment on the ice cream industry comes to 5-10 per cent.
Meanwhile, Rajesh Gandhi, managing director, Vadilal Industries Ltd, felt that the frozen desserts industry had impacted the ice cream industry by at least 30 per cent. “While there are no official estimates of the volumes of the two sectors, I think both are roughly the same size.”
However, he did not see any direct impact from the amendment. Gandhi stated, “Frozen desserts are in the country for the last 20 years, but the definition came two years back and the amendment was brought in force by FSSAI two months back.”
He explained, “The amendment states that frozen dessert manufacturers can mention on the packs that it is vegetable-based or non-dairy based ice cream. But milk is used in both the products. There is no impact on the ice cream industry after the amendment because the consumers who do not compromise on the price would go for ice cream and the consumers who look for affordability in prices would choose frozen desserts.”
R S Sodhi, managing director, Gujarat Cooperative Milk Marketing Federation (GCMMF), had a slightly different take, “They don't check the product's nutritious value. They just go for it because it is cheaper than ice cream. Frozen dessert has impacted the ice cream industry, but Amul is a big player in the ice cream sector, and has, therefore, not faced the heat.”
“The companies which are just focussing on frozen desserts are misguiding the consumers by calling it ice cream,” he felt.
While ice cream is made from milk fat, frozen dessert is made from vegetable oil fat and prior to the amendment, manufacturers of frozen desserts could not use the word ice cream but had to do by mentioning just “frozen dessert” and also needed to state that the product was made from “vegetable oils” somewhere on the pack.
Traditionally, the contention has been that though frozen desserts look and taste similar to ice creams, they have an advantage over the latter as they are cheaper and the buyer is not aware of the difference between the two.
Interestingly, even as the debate over impact of frozen dessert industry over ice cream sector continues, a report by Euromonitor International points out that in the five years ended December 31, 2012, Amul's share of India's frozen treats fell to 31 per cent from 35 per cent, while Unilever's rose to 21 per cent from 17 per cent.
“Unless there is greater awareness among consumers that frozen desserts do not contain milk fats, Unilever will continue to grow,” the report stated.
“The sales of all frozen treats more than doubled in India between 2007 and 2012, and are likely to do so again in the five years ending in 2017, reaching Rs 68.6 billion,” the report concluded.
Source:http://www.fnbnews.com
The amendment, introduced about two months ago, allows manufacturers of frozen desserts to mention “vegetable-based or non-dairy-based ice cream” on the packs thus blurring the fine line between ice cream and its similar but cheaper counterpart frozen dessert as far as labelling is concerned.
Suleman Hafizi, chairman, Pastonji Brands and Holdings Pvt. Ltd, observed, “ As the amendment requiring the frozen dessert manufacturers to mention vegetable oil-based ice cream or non-dairy-based ice cream, the manufacturers are following that rule. But in the process we the manufacturers of ice cream are losing business. Our company has incurred a loss of Rs 50 lakh in comparison with previous year due to more sale of frozen desserts.” Another source from the company stated that the impact of the recent amendment on the ice cream industry comes to 5-10 per cent.
Meanwhile, Rajesh Gandhi, managing director, Vadilal Industries Ltd, felt that the frozen desserts industry had impacted the ice cream industry by at least 30 per cent. “While there are no official estimates of the volumes of the two sectors, I think both are roughly the same size.”
However, he did not see any direct impact from the amendment. Gandhi stated, “Frozen desserts are in the country for the last 20 years, but the definition came two years back and the amendment was brought in force by FSSAI two months back.”
He explained, “The amendment states that frozen dessert manufacturers can mention on the packs that it is vegetable-based or non-dairy based ice cream. But milk is used in both the products. There is no impact on the ice cream industry after the amendment because the consumers who do not compromise on the price would go for ice cream and the consumers who look for affordability in prices would choose frozen desserts.”
R S Sodhi, managing director, Gujarat Cooperative Milk Marketing Federation (GCMMF), had a slightly different take, “They don't check the product's nutritious value. They just go for it because it is cheaper than ice cream. Frozen dessert has impacted the ice cream industry, but Amul is a big player in the ice cream sector, and has, therefore, not faced the heat.”
“The companies which are just focussing on frozen desserts are misguiding the consumers by calling it ice cream,” he felt.
While ice cream is made from milk fat, frozen dessert is made from vegetable oil fat and prior to the amendment, manufacturers of frozen desserts could not use the word ice cream but had to do by mentioning just “frozen dessert” and also needed to state that the product was made from “vegetable oils” somewhere on the pack.
Traditionally, the contention has been that though frozen desserts look and taste similar to ice creams, they have an advantage over the latter as they are cheaper and the buyer is not aware of the difference between the two.
Interestingly, even as the debate over impact of frozen dessert industry over ice cream sector continues, a report by Euromonitor International points out that in the five years ended December 31, 2012, Amul's share of India's frozen treats fell to 31 per cent from 35 per cent, while Unilever's rose to 21 per cent from 17 per cent.
“Unless there is greater awareness among consumers that frozen desserts do not contain milk fats, Unilever will continue to grow,” the report stated.
“The sales of all frozen treats more than doubled in India between 2007 and 2012, and are likely to do so again in the five years ending in 2017, reaching Rs 68.6 billion,” the report concluded.
Source:http://www.fnbnews.com
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