The Food Safety and Standards Act (FSSA), 2006, that has been drawing flak from different sections of the food & beverage industry, has not impacted the confectionery industry in a big way but according to B K Gurbani, chairman of the Andhra Pradesh-based confectionery maker Gurbani Group, “We do have minor objections to it.”
He goes on to add, “Since the Food Products Order (FPO), the predecessor to the existing Act, has been repealed, we have noticed one major flaw: all the guidelines of the FPO have not been incorporated in the FSSA.”
Further with regard to the contentious issue of licensing and registration, Gurbani states, “Yes, licensing and registration are indeed contentious issues. The new chapters on them in the Act are ambiguous.”
According to Gurbani, there was no clarity on proprietary or novel products. In fact, the definition of this term has been a bone of contention for quite some time.
As for the trends the confectionery industry is currently witnessing, Gurbani said, “Apart from its regular offerings, the confectionery industry has moved to high-value products in the past few years.”
“From a market perspective, it has not yet found favour, so that is a huge challenge for all of us. But we hope that in the years to come, a number of new and innovative products will be launched,” he said.
“As the population's buying capacity increases, there will be a more ready acceptance for these high-value products,” Gurbani remarked.
He also stated that a number of non-confectionery industries have made forays into the confectionery space.
The confectionery industry is facing a number of challenges, and Gurbani not only identified these, but also mentioned the steps it is taking to overcome the same.
“Firstly, our margins aren't very high. But we are trying to increase them to an extent by upgrading the prices of the products,” he said.
Gurbani added, “Sugar is the main raw material used to make confectionery products. Its price has sky-rocketed in the last few years, and consequently, the confectionery industry has taken a hit.”
“Thirdly, the prices of packaging materials have increased,” he said, adding that this has had an adverse impact on the confectionery industry. “But it can be overcome. In fact, a number of new packaging materials are now available in the market. These are cost-effective and innovative.”
“Advertising and merchandising perhaps has to play a bigger role now than it has ever played in the past. That is because we are all witnessing a drastic slump in the per capita consumption,” Gurbani said.
“And lastly, children have always been (and will continue to be) the main target group for confectionery products. But the onus is on the industry to constantly launch new and innovative products to catch adult consumers' fancy as well,” he said.
Before signing off, he was quizzed about whether Gurbani Group has any immediate plans to enter new geographies, to which he categorically said, “No, at least at this point, we are not, but in future, we may do so.”
He goes on to add, “Since the Food Products Order (FPO), the predecessor to the existing Act, has been repealed, we have noticed one major flaw: all the guidelines of the FPO have not been incorporated in the FSSA.”
Further with regard to the contentious issue of licensing and registration, Gurbani states, “Yes, licensing and registration are indeed contentious issues. The new chapters on them in the Act are ambiguous.”
According to Gurbani, there was no clarity on proprietary or novel products. In fact, the definition of this term has been a bone of contention for quite some time.
As for the trends the confectionery industry is currently witnessing, Gurbani said, “Apart from its regular offerings, the confectionery industry has moved to high-value products in the past few years.”
“From a market perspective, it has not yet found favour, so that is a huge challenge for all of us. But we hope that in the years to come, a number of new and innovative products will be launched,” he said.
“As the population's buying capacity increases, there will be a more ready acceptance for these high-value products,” Gurbani remarked.
He also stated that a number of non-confectionery industries have made forays into the confectionery space.
The confectionery industry is facing a number of challenges, and Gurbani not only identified these, but also mentioned the steps it is taking to overcome the same.
“Firstly, our margins aren't very high. But we are trying to increase them to an extent by upgrading the prices of the products,” he said.
Gurbani added, “Sugar is the main raw material used to make confectionery products. Its price has sky-rocketed in the last few years, and consequently, the confectionery industry has taken a hit.”
“Thirdly, the prices of packaging materials have increased,” he said, adding that this has had an adverse impact on the confectionery industry. “But it can be overcome. In fact, a number of new packaging materials are now available in the market. These are cost-effective and innovative.”
“Advertising and merchandising perhaps has to play a bigger role now than it has ever played in the past. That is because we are all witnessing a drastic slump in the per capita consumption,” Gurbani said.
“And lastly, children have always been (and will continue to be) the main target group for confectionery products. But the onus is on the industry to constantly launch new and innovative products to catch adult consumers' fancy as well,” he said.
Before signing off, he was quizzed about whether Gurbani Group has any immediate plans to enter new geographies, to which he categorically said, “No, at least at this point, we are not, but in future, we may do so.”
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