Blendhub Helps Global Dessert Manufacturer Crack Indian Market

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Blendhub and Frosty Boy crack the giant Indian market by partnering in multi-localised production, delivering exceptional quality while maintaining cost effectiveness and intellectual property

For some years now, global food manufacturers have regarded India as the “ultimate prize” of the food and beverage industry. As one of the fastest-growing markets in the world, India’s processed food industry is valued at US$ 50 billion today, expected to double by 2025 and reach US$ 200 billion in the next decade*.

India’s rapid economic development, improved infrastructure, stable power supplies, plus the growing consumer market enable this growth. Moreover, India’s young population is aware of the importance of safer and better nutrition and has led the industry to grow in specific segments. Today’s consumers are looking for branded and value-added food products often following healthier and functional trends.

However, food brands all over the world have found great difficulty in entering India, partly because of high tariffs and cultural difference.

So, how are food brands overcoming these challenges? Through #CloudBlending, Blendhub’s platform for multi-localised production of powder-based food and nutrition.

The #CloudBlending platform

As the demand for more affordable, safer and higher-quality food products increases, #CloudBlending enables food brands to reach the Indian market at minimum cost, based on a simple pay-per-use model and localised manufacturing.

As of today, Blendhub has two manufacturing plants in India: one in Chennai, dedicated to domestic production, and one in Sri City, aiming at exports to foreign markets. Each plant replicates Blendhub’s internationally certified processes for manufacturing, as do their other hubs in Europe and the Americas.

Within #CloudBlending, food brands keep their intellectual property safe, while benefitting from the highest quality control standards. That’s the case for Frosty Boy, Blendhub’s partner in India since early 2018. Frosty Boy is a global player in desserts and beverages.

 “Our strategic relationship with Blendhub has enabled us to enter the Indian market without compromising the high-quality food standards that we offer to our customers globally.  Blendhub’s replication model allows us to expand together beyond India and enter other markets worldwide while maintaining our intellectual property.” – says Dirk Pretorius, CEO of Frosty Boy.

Blendhub’s CEO Henrik Stamm Kristensen sees a bright future for food and nutrition brands in India: “We are witnessing a game change in India. Foreign brands are coming to us to enter the Indian market without having to invest in new assets. At the same time, local companies benefit from our services as a safe, cost-effective and viable way to export to other regions while profiting from favourable local sourcing.”

Scaling production, improving recipes with local raw materials and know-how, and optimising sourcing; those are the factors that lead to the best end price for food brands and products. By streamlining the end-to-end supply chain, #CloudBlending creates value for all kinds of players in the food industry, making product launchings ten times faster and cheaper than traditional deployments.

In this model, the company can support a start-up by developing an entirely new product from ideation and introduce it to local and international markets in just a few months. A bigger brand can use the platform to multi-localise production, manage production peaks or innovate with new products without committing their current production centres and capacities.

As Blendhub gives access to the “ultimate prize” to food brands all over the world, India can benefit exponentially from localising manufacturing for the global food and beverage industry and from the enhanced export capabilities. Expected growth must be accompanied by food safety, food quality and affordability. Blendhub can provide it all.

*Source: TechSci Research