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Dr Oetker Case Study: the leading condiments brand in India

Dr August Oetker KG is the parent company of the Oetker Group of Companies, representing about 400 companies in five separate business fields. In 1891, in Bielefeld, pharmacist Dr August Oetker laid the foundation for his business. Dr Oetker India Pvt. Ltd. was established in 2007. In 2008, Dr Oetker India acquired Fun Foods, a leading purveyor of western cuisine in India. Although they have been more focused on the retail part of the business, they have acquired an understanding of institutional requirements and catered to them.

Dr August Oetker KG is the parent company of the Oetker Group of Companies, representing about 400 companies in five separate business fields. In 1891, in Bielefeld, pharmacist Dr August Oetker laid the foundation for his business. The Oetker Group is one of the largest family-run companies in Germany. Also, they have a history that stretches over 128 years.

Dr August Oetker KG controls the organizational processes. They also set the structure with specific obligations, plans budgets and taxes, and operate central service departments. Group-wide standards and values form the cultural framework for effective cooperation, thus building on a high level of business continuity.

It is a German multinational corporation that manufactures baking powder, cake mixes, frozen pizza, pudding, cake decoration, cornflakes, and also, many other products. The business is a wholly-owned branch of the Bielefeld-based Oetker Group.

The Advent of Dr Oetker in India

Dr Oetker India Pvt. Ltd. was established in 2007.  In 2008, Dr Oetker India acquired Fun Foods, a leading purveyor of western cuisine in India.

Dr Oetker in India functions as the parent brand. Also, it aims to have various sub-brands under its umbrella. The first and current sub-brand is Funfoods.

Fun Foods Pvt. Ltd. is an ISO 22000: 2005, an accredited organization having state of the art production facilities and countrywide distribution and marketing networks. It was founded in 1983.

Serving Quality, since inception

Their first product was flavoured and fruit yoghurts. Other products kept being introduced at regular intervals and today they have more than 60 products on retail shelves, and over 40 products strictly designed for individual customers in the Institutional Market.

These products comprise of distinct ranges, such as emulsions of various consistencies for Mayonnaise, Spreads & Dips Salad Dressings, Fruit syrups for Ice-creams, and Dessert Toppings. Other ranges include Pizza Sauces, the whole range of mustards, spices, Milk Shake Mixes, Cold Coffee Mix, Eggless Cake Mixes, chutneys and also our new range of Oriental Sauces. These distinct ranges have given them the ability and also, edge to develop specific products for institutional customers.

Funfoods is a leader in offering western cuisine in India. Thus, a perfect match. The product range includes mayonnaises, sauces, spreads, salad dressings, cakes, and also dessert toppings amongst others.

Dr Oetker believes in the motto: “Quality is the best recipe”

Products:

Mayonnaise:

  • Veg Mayonnaise Original
  • Veg Mayonnaise Garlic
  • Veg Mayonnaise for Burger
  • Mayonnaise Classic
  • Veg Mayonnaise Chilli
  • Veg Mayonnaise Tandoori
  • Veg Mayonnaise Green Mint
  • Veg Mayonnaise Olive Oil

Peanut Butter:

  • Creamy Peanut Butter
  • Peanut Butter Crunchy
  • Peanut Butter All Natural

Sandwich Spreads:

  • Cucumber & Carrot Spread
  • Sandwich Spread Cheese & Chilli
  • Thousand Island Spread
  • Chocolate Spread Fudge

Pizza and Pasta Sauces:

  • Pizza Topping
  • Pasta & Pizza Sauce
  • No Onion No Garlic- Pasta & Pizza Sauce
  • Pasta Alfredo with Cheese
  • Arrabbiata Spicy Pasta Sauce
  • Pesto Rosso Pasta Sauce
  • Pesto Verde Pasta Sauce

Chinese Sauces:

  • Manchurian Sauce
  • Schezwan Sauce
  • Red Chilli Sauce
  • Sweet Chilli Sauce
  • Green Chilli Sauce
  • Soya Sauce
  • Spicy Vinegar

Condiments:

  • Barbecue Sauce Smokey
  • Chillico-Red Pepper Sauce
  • Mexican Salsa
  • Cheesy Nacho Dip
  • Garlic Chilli Dip
  • Tartare Dip
  • Traditional English Mustard
  • American Mustard

Cakes, Waffles & Toppings:

CAKE

  • Marble Cake
  • Raisin & Fruit Cake
  • Belgian Cake
  • Stracciatella Cake
  • Royal Almond Cake

WAFFLES

  • Vanilla Waffle
  • Chocolate Waffle
  • Frosted Vanilla Soft waffle
  • Frosted Chocolate Waffle
  • Soft Waffle Cinnamon Sugar
  • Soft Waffle Tutti Frutti

CAKE MIXES:

  • Eggless Bake Mix 11 Cakes
  • Brownie Eggless Bake Mix
  • Eggless Bake Mix Chocolate
  • Eggless Bake Mix Choco Lava

DESSERT SAUCES:

  • Dessert Topping Chocolate
  • Butterscotch Dessert Topping
  • Dessert Topping Strawberry

MILK SHAKE MIXES

  • Vanilla
  • Chocolate
  • Strawberry
  • Butterscotch
  • Kesar Pista
  • Badam Elaichi
  • Cold Coffee Mix

Expansion

German packaged food company Dr. Oetker India, which acquired Fun Foods in 2008, aims to grow its turnover to ₹500 crore by 2020 by expanding the reach of its products, such as mayonnaise, Italian sauces, sandwich spreads and salad dressing.

When Oliver Mirza came to India in early 2008 as head of the India vertical of German food company Dr. Oetker, the idea was to sell products which the world’s biggest frozen pizza maker was globally known for—home baking, western desserts and food service.

So Mirza, loaded with tons of global insight, experimented with frozen pizza in Mumbai and enthusiastically launched muesli. But the idea bombed. Reason: the home baking division was not a huge market. Also, the concept of frozen pizza was far too early for the consumers and chilled dessert market was at a nascent stage in India.

“So we went for an acquisition to buy a small platform which you can mould and build,” recalls the managing director and CEO, adding that Dr. Oetker bought Delhi-based Fun Foods, makers of packaged food products such as Mayonnaise and sandwich spreads, in December 2008.

Current Situation:

The move seems to have paid off handsomely. From just Rs 28 crore in 2008, Dr. Oetker posted revenues of Rs 120 crore last year. But what’s more heartening for the largest mayonnaise player in India is the jump in the retail sales: from Rs 14 crore in 2008 to Rs 100 crore in 2015—a jump of over seven times. And the dressing on the cake came in August that year when it posted its highest-ever monthly sales of Rs 14 crore.

“Now we plan to be Rs 500-crore brand by 2020,” he said. Figures don’t suggest so. The mayonnaise market in India, which was estimated to be at Rs 225 crore in 2014 by consumer market research firm Canadian, is at an inflection point in the country. Further, it is likely to touch Rs 1,000 crore by 2020.

Conclusion

Although they have been more focused on the retail part of the business, they have acquired an understanding of institutional requirements and catered to them. With Indian Airlines, for example, it was an around the clock operation with yoghurt being supplied to the premises of all Flight Kitchens and at the airport for all flights emanating out of Delhi and serving breakfast, lunch, and dinner.

Today Fun Foods Pvt. Ltd. is synonymous with excellent quality and service in the Institutional food industry. They are supplying to some of the biggest names in the foodservice industry, for example, Yum Restaurants (Pizza Hut & KFC), Subway TM, Barista, Dominos Pizza, Pizza Corner, Java Green, Costa Coffee, Yo China!, Adlabs, Mother Diary, Taj Air Caterers. Prominent Hotels all over the country, standalone restaurants, and Restro Bars also depend upon Fun Foods Pvt. Ltd. Furthermore, Yum Restaurants have twice awarded them a trophy for being the supplier of the year in the year 2000 and 2005.

It is no wonder then, that Fun Foods Pvt. Ltd. is a trusted and reliable name in the food industry. They also enjoy an extremely loyal customer base.

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