Detailed project report on fruit juice and smoothies

FRUIT JUICE AND SMOOTHIES

[CODE NO.4353]

Juice is a beverage made from the extraction or pressing out of the natural liquid contained in fruit and vegetables. It can also refer to liquids that are flavored with these or other biological food sources such as meat and seafood (e.g., clam juice). Juice is commonly consumed as a beverage or used as an ingredient or flavoring in foods or other beverages, such as smoothies. Juice emerged as a popular beverage choice after the development of pasteurization methods allowed for its preservation without using fermentation (the approach used with wine production). The Food and Agriculture Organization of the United Nations (FAO) estimated the total world production of citrus fruit juices to be 12,840,318 tones in 2012. The largest fruit juice consumers are New Zealand (nearly a cup, or 8 ounces, each day) and Colombia (more than three quarters of a cup each day). Fruit juice consumption on average increased with country income level. To the American food industry, fruit juice is more profitable than only fruit

Packaged juice market has charted a high growth trajectory, thanks to its easy availability, anytime-anywhere consumption, and convenience.

The packaged fruit juices market can be divided into three sub-categories: fruit drinks, juices and nectar drinks. Fruit drinks, which have a maximum of 30 percent fruit content, are the highest-selling category, with a 60 percent share of the market. Frooti, Jumpin, Maaza, etc. are the most popular products in this category. Fruit juices, on the other hand are 100 percent composed of fruit content and claim a 30 percent market share at present. In contrast, nectar drinks have between 25 and 90 percent fruit content, but account for only about 10 percent of the market.

The rising number of health-conscious consumers is giving a boost to fruit juices; it has been observed that consumers are shifting from fruit-based drinks to fruit juices as they consider the latter a healthier breakfast/snack option.

Dabur is the market leader in the Indian packaged juices market with its brands Real and Real Active. Other players include Parle, Fresh Gold, and Godrej. Some of the other brands of fruit juices and drinks include Frooti, Appy, Mazza, Minute Maid, Slice, Fresh Gold, and Del Monte. Considering the attractiveness of the segment, diversified consumer food companies such as ITC are working towards making a foray into packaged juices.

As per studies, the most preferred pack size is the individual (small) pack which is convenient, and easy to carry and consume. These are in great demand as out-of-home consumption is on the rise. Tetrapaks are most popular among manufacturers as well as consumers. Some companies are also offering their products in tins (eg Del Monte) and PET bottles (eg Mazza); however, they are more expensive than Tetrapaks, which adds to production costs and as a result, affects the market price.

Fruit juices have created a space for themselves in regular household menus, as a part of a family’s breakfast, social gatherings and evening snacks. As a result, consumers are picking up multiple family packs at one go, which is an emerging consumption trend.

There are several reasons behind the growth of the Indian packaged juices category: Changing consumer lifestyles, increased health awareness, hygiene concerns, growing category of informed buyers, rising disposable incomes, booming modern retail, habitual purchase and introduction to new flavours.

Among all challenges, it is difficult to control the cost of production at the price points of juices, primarily because of rising food inflation. The continuous, year-long supply of raw materials, and the non-stop production of juices for the full season, is another production-linked issue which needs to be managed carefully. Also of vital importance is controlling transportation and logistics costs.

Packaged juices are gradually cementing their place in the urban household in the metros and tier I cities; however, replicating the same success in tier II and III cities is still a struggle as residents in these regions still prefer fresh juices over packaged ones because they are comparatively cheaper, and also in sync with the traditional belief that juices are best consumed freshly pressed.

It is appropriate to say that the packaged juices market in India is still evolving. As there are many national and international brands on the verge of succeeding and expanding further into the field, new entrants can also cash in on this opportunity by positioning/promoting packaged and bottled fruit juices as part of the consumers’ daily diet. Simultaneously, it is critical to ensure affordability for consumers, while maintaining the hygienic aspects and quality of products throughout the year.

The commercial production of fruit juices began in Europe shortly after the term of the century when the Boehi process was developed for the storage of apple juices under Co2 and refrigeration. The bulk storage permitted distribution of juice in returnable bottles over an extended period. Prior to that time fruit juices were available for only short periods after harvest and before the onset of fermentation.

In the United States, the sale of bottled or canned juices-tomato, grape and citrus-started around 1929. During world war II, commercial Juice production was greatly increased and the market continued to expand in the postwar years through the application of new technologies.

A smoothie is a drink made from pureed raw fruit and/or vegetables, typically using a blender. A smoothie often has a liquid base such as water, fruit juice, plant milk, and sometimes dairy products, such as milk, yogurt, ice cream or cottage cheese. Smoothies may be made using other ingredients, such as crushed ice, sweeteners (honey or sugar), vinegar, whey powder, chocolate or nutritional supplements, among others by personal choice.

As products typically using raw fruits or vegetables, smoothies include dietary fiber (e.g. pulp, skin, and seeds) and so are thicker than fruit juice, often with a consistency similar to a milkshake. Smoothies, particularly "green smoothies" that include vegetables, may be marketed to health-conscious people for being healthier than milkshakes.

The healthfulness of a smoothie depends on its ingredients and their proportions. Many smoothies include large or multiple servings of fruits and vegetables, which are recommended in a healthy diet and intended to be a meal replacement. However, fruit juice containing high amounts of sugar can increase caloric intake and promote weight gain. Similarly, ingredients such as protein powders, sweeteners, or ice cream are often used in smoothie recipes, some of which contribute mostly to flavor and further caloric intake.

A green smoothie typically consists of 40–50% green vegetables (roughly half), usually raw green leafy vegetables, such as spinach, kale, swiss chard, collard greens, celery, parsley, or broccoli, with the remaining ingredients being mostly or entirely fruit. Wheatgrass and spirulina are also used as healthful ingredients. Most green leafy vegetables have a bitter flavor when served raw, but this can be ameliorated by choosing certain less-bitter vegetables (e.g. baby spinach) or combining with certain fruit (e.g. banana softens both the flavor and texture). Some blender manufacturers now specifically target their products towards making green smoothies and provide a booklet of recipes for them.

If the fruit ingredients and the green vegetable ingredients are both juiced ahead of time, the mixed juice doesn't even have to be blended like a smoothie, i.e. a green juice.

Many different smoothies are part of Indian, Mediterranean, and Middle Eastern cuisine. Fruit sharbat (a popular West and South Asian drink) sometimes include yogurt and honey, too. In India, the lassi is a smoothie or milkshake comprising crushed ice, yogurt, sugar and mango; in the south, pineapple smoothies made with crushed ice, sugar and no yogurt are common.

COST ESTIMATION

Plant Capacity 4000 Ltr./Day

Land & Building (1200 sq.mt.) On Lease

Plant & Machinery Rs. 70 Lac

Working Capital for 1 Month Rs. 55 Lac

Total Capital Investment Rs. 1.90 Cr

Rate of Return 23%

Break Even Point 62%

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)

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