UK-based Wrap it Up! opens 1st outlet in India at Gurugram

World's largest craft brewer BrewDog is making its entry into India. The Scottish brewer is looking at launching 35 pubs and introducing nearly a dozen bottled beer brands over the next four years.

BrewDog sees a clear opportunity in the warmest and tropical country with growing affluence and proliferation of craft beer.

Siddharth Rastogi, CEO of BrewDog, said, “We are looking to Invest across brewing bars, distribution and setting up the right kind of infrastructure to bring in certain discipline into the market in terms and hoping to create a big business.”

The brand will be opening its first door in Mumbai this month.

In the beginning, BrewDog will introduce 22 tap beers and three commercial ones, including its flagship brand Punk IPA and a wheat beer brewed specifically for India. These brands will be imported for the first few months; therefore, they will carry a 10% higher price tag than rival imported brands like Hoegaarden.

This India expansion is part of BrewDog’s strategy to grow its global network from 100 bars now to 750 bars by 2024.

Incorporated in 2007, BrewDog is partly owned by private equity firm TSG Consumer Partners. It is also the world's biggest crowdfunded firm.

Internationally, the brand provides fans and tipplers an opportunity to acquire shares in the company, and has 135,000 shareholders, or ‘Equity Punks’. The company will likely introduce this model in India too.

“India has a young population, low penetration of alcohol in terms of drinking population and you have the craft beer revolution which is starting to take shape. This is how craft beer scene exploded in the US two decades ago when there were only 300 breweries, which has expanded to 8,500 breweries now,” Rastogi added.

India had only two craft microbreweries about 10 years ago. It is now home to over 170 outlets, mostly located in Bengaluru, Gurgaon, Mumbai and Pune. This has triggered a wave of new craft beer brand launches from labels like Bira, White Rhino and Simba that count on a younger clientele seeking a more varied experience.

Little Caesars Pizza has forayed into the Indian market with the launch of two outlets in Ahmedabad. The US-headquartered company aims to unveil more outlets in Gujarat and across the country in the coming months.

In Ahmedabad, the brand’s first outlet has been opened near the Iskcon crossroads, while another one is inaugurated near LD College.

Little Caesars Pizza claims to be the third largest pizza chain in the world. It is operating in 26 countries, works on a franchisee-based model.

Ashok Lal, Regional Managing Director, Little Caesars Pizza, said, “Both these outlets will offer only vegetarian pizza as the market research exercise suggested keeping only vegetarian varieties and dropping chicken or any other non-vegetarian variety from the menu. However, non-vegetarian pizza varieties may be introduced in the future as per customer demands.”

“We have started with these two outlets and we have plans to open stores in other cities of Gujarat and India in the coming months. Affordable price is our main USP,” he added.

The newly launched outlets are owned and operated by franchisee firm Phoenix Enterprise Nexus India Pvt Ltd, managed by Nandish Patel, who also owns several Little Caesars Pizza restaurants in the US.

Paula Vissing, Senior Vice President (International), Little Caesar Enterprises, Inc, stated, “We believe in delivering value for affordable pizza to the customers. Our pizza varieties are cheaper than other players offering pizza in the city. We have been expanding internationally over the last several years and we will open more such outlets in the months to come.”

Growing Pizza Market

The Italian food format stood third in preference after Indian and Chinese five to six years ago. However, recent studies show that pizza is the biggest and the most profitable segment in the Quick Serve Restaurant (QSR) format.

The Indian pizza market is dominated by Jubilant Food Works and Yum Brands, who own the widely recognisable brands Domino’s and Pizza Hut, respectively. However, other brands such as Sbarro, Papa John’s and Marco’s Pizza are also competing to spread their base in India. Thus, with the increase in the number of players, the market is ripe for investors.

Serving pizza via franchise route

Global and domestic pizza brands in India are expanding their stores through the franchise route throwing many opportunities for entrepreneurs in the country. Be it Domino’s, Pizza Hut, Papa John’s,  Sbarro, Neopolitan Pizza or any other pizza brand, the majority of them are spreading their footprints via a franchise model in India. Domino’s Pizza has Jubilant FoodWorks Limited as it Master Franchisee.

Prospects in smaller cities

The Indian fast food market, which used to concentrate only in the metropolitan cities, has been witnessing a robust growth pan-India over the past few years. Tier-II and III cities are the focus of the leading pizza makers due to huge opportunities there.

In the pizza segment, competition is getting intense as franchisors are significantly ramping up their presence across tier-II and tier-III cities of India. There exists a tremendous growth opportunity for franchisors in these areas as an educated middle-class population is becoming more sophisticated with respect to standardised food consumption.

Little Caesars Pizza is venturing into the Indian market by launching its first two restaurants in Ahmedabad, Gujarat.

Paula Vissing, Senior Vice President of International, Little Caesar Enterprises, Inc, said, “As we continue to expand our global footprint, we are thrilled to bring Little Caesars Pizza's high quality, great-tasting pizza at an everyday value to India.”

US-based pizza brand will launch an all-Vegetarian menu in Ahmedabad, featuring a signature 10" HOT-N-READY Veggie Pizza for Rs 159 all day, every day, plus other delicious offerings. The HOT-N-READY concept permits customers to simply stop in and carry out a selection of freshly made, great-tasting pizza and side items without waiting or ordering ahead.

“India is an incredibly important new market for Little Caesars and we anticipate significant growth throughout the country in the next several years,” she added.

Founded in 1959, Little Caesars is headquartered in Detroit, Michigan. Currently, it is the third-largest pizza chain in the world in terms of the net number of stores in 2019. The brand has stores in each of the 50 states in the US and 26 countries and territories around the world.

Growing Pizza Market

The Italian food format stood third in preference after Indian and Chinese five to six years ago. However, recent studies show that pizza is the biggest and the most profitable segment in the Quick Serve Restaurant (QSR) format.

The Indian pizza market is dominated by Jubilant Food Works and Yum Brands, who own the widely recognisable brands Domino’s and Pizza Hut, respectively. However, other brands such as Sbarro, Papa John’s and Marco’s Pizza are also competing to spread their base in India. Thus, with the increase in the number of players, the market is ripe for investors.

Serving pizza via franchise route

Global and domestic pizza brands in India are expanding their stores through the franchise route throwing many opportunities for entrepreneurs in the country. Be it Domino’s, Pizza Hut, Papa John’s,  Sbarro, Neopolitan Pizza or any other pizza brand, the majority of them are spreading their footprints via a franchise model in India. Domino’s Pizza has Jubilant FoodWorks Limited as it Master Franchisee.

Prospects in smaller cities

The Indian fast food market, which used to concentrate only in the metropolitan cities, has been witnessing a robust growth pan-India over the past few years. Tier-II and III cities are the focus of the leading pizza makers due to huge opportunities there.

In the pizza segment, competition is getting intense as franchisors are significantly ramping up their presence across tier-II and tier-III cities of India. There exists a tremendous growth opportunity for franchisors in these areas as an educated middle-class population is becoming more sophisticated with respect to standardised food consumption.

Gloria Jean’s Coffee, the coffee cafe brand, is making a comeback to India with 100 new stores in the next five years.

Jay Jay Capital & Investments is the new master franchise company for Gloria Jean’s Coffee in the country. It is planning to invest up to Rs 150 crore for the expansion.

Gloria Jean’s Coffee is looking at launching 40 outlets across metros and mini-metros in India in the next three years. The brand will be targeting Bengaluru, Mumbai, Delhi NCR and Hyderabad for expansion.

Earlier, the Australian coffee brand had forayed into a master franchise agreement with Citymax Hospitality of the Landmark Group but had to shut shop after seven years of operations and a bleeding balance sheet.

In 2014, the company had annual revenue of about Rs 15 crore in the country, after seven years of operations.

Founded by Gloria Jean Kvetko in 1979 in the US, Gloria Jean’s Coffee launched its first outlet in Sydney, Australia. The brand now has a presence in over 50 markets.

Plans for India

Gloria Jean’s Coffee will be working on a cold kitchen concept and prepare fresh food. Its cafes will be about 800-1,500 sq ft with a per-store investment of about Rs 1 crore. The brand expects the return on investment to begin within two-and-a-half years of a store first being set up.

The company’s first set of stores is slated to launch in Mumbai and Bengaluru by June 2020.

Gloria Jean’s Coffee will also be revamped to provide fresh and live food at all outlets, which are to be a game-changer in the cafe industry. It will be positioned as a mid-segment brand.

The café brand is targeting to unveil outlets in shopping malls as well as selected high-street locations.

Offerings by Gloria Jean’s Coffee

Gloria Jean’s Coffee offers a variety of cold and hot coffees, chillers, quick bites, and muffins and pastries.

Rohit Malhotra, CEO of Jay Jay Capital & Investments Pvt Ltd, said, “At Gloria Jeans, we take our coffee very seriously, so not only does it taste great, but we also make sure we buy from suppliers that look after both their workers and the environment.”

“Our coffee beans are sourced from all over the world and from many different farms of all types and sizes large plantations, co-operative groups and tiny family farms,” he added.

Indian café chain market

In India, the café chain market, led by Café Coffee Day and Tata Starbucks, is one of the fastest-growing categories in the consumer food service industry. As per market research firm Euromonitor, this market is estimated to grow 6.9% a year to Rs 4,540 crore by 2023 in value sales at constant prices exclusive of inflation.

According to Euromonitor, India is now the world’s 10th fastest growing market for specialist coffee and tea retail chains, valued at Rs 2,570 crore in 2018.

Tonino Lamborghini has launched luxury beverages in India. Heinrich is the official distributor of Tonino Lamborghini luxury beverages products in the country.

Its product range includes Espresso, hot chocolate, an energy drink and vodka. The company was founded by Tonino Lamborghini, heir of the Lamborghini family, in Italy in 1981.

Tonino Lamborghini Beverage products are distributed in more than 40 countries. Its products are worldwide present in HoReCa (hotels, restaurants and cafes) and Super HoReCa, in selected clubs, in specialised retail channels and in branded hotels, lounges and cafeterias.

Ferruccio Lamborghini, Chief Executive Officer and Vice-President, Tonino Lamborghini Company, said, “I am glad to announce today the collaboration with HEINRICH for the distribution of Tonino Lamborghini beverages in this growing country. Since ’90, at the beginning of this challenge for my father Tonino in the field of beverages, the mission of our company is to spread worldwide the intrinsic energy of the brand also through a line of iconic Italian beverage products.”

“The goal of the brand is to accompany customers from breakfast to the evenings, representing a true Italian upscale lifestyle. Therefore, I would like to express our special thanks and appreciation for the efforts in representing our Italian brand style here in India through the distribution of our beverage products to Heinrich,” he added.

Thomas Manoj, Founder of Heinrich, stated, “It is my great honour and prestige to distribute Tonino Lamborghini Luxury Beverages in India. From now on, our customers will have the chance to taste the perfect cup of Italian coffee and Hot Chocolate, and will have the opportunity to add to their nights a touch of real Italian Style and energy tasting the Tonino Lamborghini Energy Drink and Tonino Lamborghini Vodka.  Thanks to this new collaboration we will bring to India a part of Ital. All our efforts will be to offer these high-quality products in all Indian HORECA and Super Ho.Re.Ca. Channels.”

Indonesian coffee chain, Wake Cup Coffee & Eatery, has been launched in the Indian market by Gobble Me Good (GMG), the dynamic food and beverage franchise management company.

The chain’s first outlet in India has been opened at High Street Phoenix, Lower Parel, Mumbai. This outlet marks Wake Cup’s first venture into the international market, following its success in Indonesia with 13 branches across the country.

Wake Cup Coffee & Eatery offers various exquisite Flavour Lattes, Mochaccino and signature iced coffee such as Ice Pandan Coffee, Ice Cendol Coffee and Ice Robusta Coffee. The chain also features a unique menu of non-coffee lattes, including Blackforest Latte, Taro Latte and Matcha Latte. The offerings also consist of a delectable selection of side dishes with an Indian touch, like Veg Makhani sandwiches and Soya Kebabs.

With the launch of Wake Cup Coffee & Eatery in India, GMG has now ventured into the café space. This is in line with the brand’s strategy to bring unique flavours from across the globe to the Indian audience.

Saurabh Rathore, Founder, Gobble Me Good, said, “Gobble Me Good aims to bring international flavours to the Indian palette with a unique twist. Our first venture, London Bubble Co has witnessed a phenomenal growth in the country and we hope to see a similar trajectory with Wake Cup. With the richness of Indonesian Coffee and an array of the delectable and unique food menu, Wake Cup is sure to be a go-to spot for coffee lovers looking for an authentic and relaxed experience.”

CoCo Ichibanya, Japan's largest curry rice chain, is foraying into the Indian market. The brand will enter the country through a joint venture between Major trading house Mitsui & Co and Coco Ichibanya curry house operator Ichibanya Co.

The joint venture looks to launch its first restaurant in Delhi-NCR early next year. It is planning a combined investment of $3 million in the Indian market for establishing its network here.

This partnership marks Mitsui's, which is one of the largest and prominent global trading and investment companies of Japan, foray into the restaurant business in India. 

Ichibanya India is eyeing to open 10 directly owned outlets within five years after establishing its flagship store and 20 franchise outlets in the following five years.

Taku Morimoto, EVP and COO of the Asia Pacific Business Unit, Mitsui & Co, said, "With a population of over 1.3 billion and a rapidly growing middle-income class, we believe the time is right to launch the CoCoICHI brand and concept in India, one of the world's largest food and beverage markets."

"By investing in businesses with direct consumer touch points, we aim to create connections with our established portfolio of businesses, industrial expertise, and deep customer networks to stimulate further growth," he added. 

Currently, Ichibanya is operating 1,264 outlets of Coco Ichi in Japan and 180 restaurants globally across US, UK, China and South East Asia. 

US-based 800° Woodfired Kitchen is planning to enter the Indian market. The brand is seeking franchise partners for the expansion in the country.

800° offers a range of specialty pizzas and even allows the consumer to fully customize their favorite Neapolitan pizza from the base. The brand also provides rotisserie meats, salads, bowls, veggies and more. The reason why it's called eight degrees is that the temperature of the oven is 800 degrees Fahrenheit and hence the name began.

Manish Jeswani, Managing Director of Eaters, who has the franchise rights for 800° Woodfired Kitchen across many countries, said, “Eight degrees is a brand started from California in L.A. in Westwood, fairly young brand opened in 2012. It has been only seven years but the brand is going across the US. The brand has also expanded in Japan and into the Middle East and now we're looking for partners in India.”

“I can see a lot of innovation is going to come to India. People are going to adapt to new tastes and preferences. We will take into account the local consumers demands and requirements and adjust and adapt to local tastes but there is going to be a lot of development. There's going to be a lot of movement in the industry,” he further stated.

Coca-Cola, the local arm of American beverage maker, has launched its sports beverage Powerade in India. The new product will compete with rival PepsiCo’s Gatorade.

With this launch, the beverage maker has entered into the nascent sports hydration market. The company’s move comes at a time when increasingly consumers in urban India are seeking variety in both packaged foods and beverages.

Coca-Cola India has also signed Indian cricketer Mahendra Singh Dhoni to endorse Powerade. Priced at Rs 50 for 500 ml, the drink comes in two flavours, mountain blast and orange surge. The sports beverage contains no sugar.

Anoop Manohar, Director, emerging categories, Coca-Cola India, said, “A growing population of sports and fitness enthusiasts in India is looking for evolved hydration solutions. The launch reiterates our strategy to drive growth by expanding our category play and offering consumers more of the beverages they want for every occasion in their lives.”

In the last few years, the company has expanded its portfolio to include more hydration or functional beverages, and even milk-based drinks. The launches comprise of hydration beverages like Aquarius and Aquarius Glucocharge; Minute Maid smoothie and VIO flavoured milk.

Yellow Tie Hospitality, restaurant franchise management company, will launch the Taiwan-based beverage brand Chachago in India in January. The company is planning to open 100 Chachago outlets by 2021.

Apart from India, Yellow Tie Hospitality has also got the master franchise rights to develop Chachago in markets like Nepal, Sri Lanka, Bangladesh and West Asia.

Karan Tanna, Founder & CEO of Yellow Tie Hospitality said, "Our focus is on developing a strong portfolio of brands in the restaurant space that can be scaled up through efficient franchising management. We felt there was lack of a beverage-focused restaurant brand in our portfolio. Hence, we decided to acquire the franchise rights for Chachago, which is known as the 'House of Milk Tea'."

"This is also the first time that an Indian company has got franchise rights to develop a brand in mature markets in the West Asian region," he added.

Chachago is known for its milk teas, bubble teas, fruit-infused beverage, cheese-based beverages, milkshakes, and other speciality beverages and desserts. The brand has a presence in Taiwan, Canada, Australia, Hong Kong, Vietnam and the Philippines.

Tanna further stated, "We believe the brand has a huge potential in the Indian region. It will be positioned in the QSR segment with the average store size of 100-500 sq ft. Initially, we will open some flagship stores in metros on our own. Then we will look at roping in franchise territory partners for north, south, east and west and have plans to open 100 Chachago stores by 2021."

Gourmet Investments Pvt Ltd (GIPL), the representative of the popular pizza chain PizzaExpress, is planning to soon launch an international brand ‘Nihonbashi’ in India. The brand is targeting metropolitan cities like Mumbai, Delhi, Bangalore and Hyderabad for expansion.

In may, Gourmet Investment brought in Sri Lankan Seafood joint ‘Ministry of Crabs’ to India.

Deepinder Batth, COO, Gourmet Investments Pvt Ltd, said, “We pride in our assets, starting from our parent company – Bharti to our management team and our partners – from different brands to real estate companies.”

Promoted by Bharti Family Office, Gourmet Investment’s Runway Project has been a new concept altogether in the F&B space.

“‘The Project’ series came to existence due to the gap we see in the market. All the “Projects” (4 in number) are concept-based restaurants which are hyperlocal in nature and adapt not just in terms of menu and ambience, but to suit what our customer seeks during a particular day,” Batth added.

Morgan Beverages brings UK's favourite cider brand, Sheppy's, to India. Having established in UK since 1816, the cider brand has expanded its base further to India.

Morgan Beverages was founded with the pioneering idea to make Apple Cider the next big thing in India.

The cider at Sheppy's is 'Hero ciders' with 5.5% alcohol content & vegan in their make. They are also gluten-free and contain sulphites for freshness. Available in a 330ml bottle, Sheppy’s Classic Draught Cider is the first apple cider to be ever launched in India by Morgan Beverages.

Rohan Nihalani, the owner of Morgan Beverages, said, "As per the latest consumer trends, more people are shifting towards lighter and better-crafted beverages. With the introduction of Sheppy's Cider, we are sure to see the health-conscious consumers of alcohol beverages definitely give Cider the thumbs up."

David Sheppy, the 6th generation Master of Cider & Managing Director of Sheppy's Cider, stated, "In the United Kingdom we are well established with our premium traditional craft cider and we're excited to now bring our award-winning Classic Draught to India. Cider isn't very well known in India yet, but we know that our premium, traditional values and deep-rooted Somerset heritage will translate across cultures. We are delighted to be joining Morgan Beverages and Tudor Rose International at the Deputy High Commissioner's residence in December for a major launch night to introduce the brand to restaurateurs, bar managers, and journalists from across the region."

Made from a variety of apples ranging from eating apples to cider apples which are classified as Sharp (like Crimson King), Bittersharp (like Kingston Black), Sweet (Sweet Coppin) and Bittersweet (like Yarlington Mill), traditional English Ciders can have an alcohol content varying from 1.2% to 8.5% ABV.

Homegrown luxury chocolate brand Fabelle from ITC Ltd has introduced India’s first ever Ruby Chocolate in the form of Fabelle's Ruby Gianduja.

The brand launched the chocolate in collaboration with Celebrity Chef Sarah Todd and Barry Callebaut, the world's leading manufacturer of application chocolates and cocoa products. Barry Callebaut is the partner of ITC Ltd to source the exotic ruby chocolate to craft Fabelle's Ruby Gianduja. 

In a bid to maintain the chocolate's exclusivity, Fabelle is launching Ruby Gianduja as a one-of-its-kind limited edition offering. It is introducing Ruby Chocolate in the form of Ruby Gianduja, which is made from a delicate balance of Ruby Chocolate and hazelnut paste.

Hemant Malik, Divisional Chief Executive (Foods), ITC Ltd, said "Fabelle was launched in India with the mission to redefine the chocolate segment in the country and I am extremely happy that the brand has already received unparalleled patronage from discerning customers. It is a proud moment for Fabelle Chocolates as we introduce the very first Ruby Chocolates to the Indian chocolate connoisseurs. It has been our continuous endeavour to provide unique chocolate experiences to the Indian consumers and today's launch is a firm step in that direction."

Ben De Schryver, President Asia Pacific, Barry Callebaut, stated, "Ruby chocolate is a big innovation in confectionery and we are very proud that ITC's home-grown luxury chocolate brand Fabelle is the first in India to feature this exciting new chocolate. As India is becoming one of the fastest growing chocolate markets in Asia, we see ruby chocolate presenting a huge opportunity and in being a key milestone in our growing partnership with ITC."

Hershey India Pvt Ltd, a part of The Hershey Company, has introduced its iconic 'Hershey's Kisses' chocolate brand in India

'Hershey's Kisses' Milk Chocolate will be available in 36 gram and 108 gram packs priced at Rs 50 and Rs 140, respectively.

In the beginning, Hershey's Kisses will be launched only in South India. It will be available in modern trade, large general trade and e-commerce in South India.

Herjit Bhalla, Managing Director, Hershey India, said, "We want to launch in South India because one-third of the chocolate market of India is in South. Then gradually we will take it to other parts of the country. "

"We have a manufacturing plant in Bhopal, Madhya Pradesh and the other two are run in Gujarat and Telangana (Hyderabad). We will look at more manufacturing facilities to grow our presence," Bhalla added.

The Hershey Company, the fourth-largest confectioner maker in the world, will be investing $50 million in India over the next five years. The investment will be made by the company to scale up its operations in the country.

Michele Buck, President and Chief Executive Officer, The Hershey Company, said, "We will be investing $50 million during the next five years as we focus on growing and expanding our presence in India and mainly because India is one of our key International focus markets and our investments are to build this important business."

Carl’s Jr, Californian burger chain which earlier announced its entry in India by opening first outlet in April 2015 reschedules its entry by June.

Carl’s Jr is known for offering authentic American and premium-quality charbroiled burgers and freshly prepared, flavorful menu.

CKE Restaurants Holdings parent company of Carl’s Jr with system wide sales of over 4 billion USD, which has signed a development agreement with India’s Cybiz BrightStar Restaurants Private Limited, owned by CybizCorp looks Delhi-NCR as its key strategic market.

However, the burger chain is very active on its Facebook page and is regularly posting photos and updates about its burger.

The burger chain has also developed a full line of fresh and flavorful premium vegetarian options that suites Indian taste and preferences.

Many of these new items that are unique to the India market will be launched in addition to several signatures Carl’s Jr menu items known and loved around the world.