Continental Biscuits Limited (CBL) Exports | |||
Title Page
No
·
Corporate overview 03
·
Shares Division 04
·
Company Profile 05
·
Performance 06
·
Export Products 07
·
Industry overview 08
·
Exports detail 09
·
Exports Constraints 15
·
Government Role 22
·
Pricing 16
·
Distribution 19
·
Promotion 20
·
SWOT Analysis 21
·
Certifications 25
·
PTA (Mauritius) 27
·
Recommendations 28
·
Bibliography
29
·
Annexure 30
CORPORATE
OVERVIEW
Continental Biscuits Limited (CBL) was founded in 1984
following a Joint Venture between the family of Hasan Ali Khan and the Group
Danone, the French food giants. In the year 2007 Danone sold their biscuits
category to Kraft Foods of USA. Today the company has a joint venture with
Kraft Foods with a shareholding of 50.5% and 49.5% respectively.
For more than two decades CBL is engaged in the manufacturing
and marketing of the brand LU. They have an array of products which are
pre-eminent in the branded biscuit business both in Pakistan and abroad. Our
unrivalled portfolio of brands has been meeting consumer needs for well over
two decades and includes such favorites as TUC, Candi, Prince and Tiger. It produces
some of the best known crackers, cream variants, plain and ingredient-based
biscuits. Manufacturing location based in Sukkur is a centre of excellence
which provides employment to 2200 people in the region. Our marketing, sales,
finance, commercial, IT and the human resources functions are located in the
head office in Karachi employing a total of 180 employees. As a part of the
leading FMCG its head office has close links both with the Regional Offices of
Kraft in UAE and its manufacturing plant in Sukkur.
COMPANY PROFILE:
Incorporated in 1984, the success story of LU in Pakistan began with the initiative of Hasan Ali Khan (the founder of Continental Biscuits), who signed a joint venture agreement with Generale Biscuits, the global manufacturers of the LU range, which was subsequently acquired by the Danone Group. Expansive investments were made including the import of technology and professional expertise from abroad. The first undertaking was to set up a factory and establish distribution centers in the country with the ultimate objective of commencing operations and marketing our products in Pakistan. CBL thus started its' operations in the country since September 1986 with an initial strength of 200 employees.
The company first introduced its' innovative brands - TUC, Prince and Candi which proved to be an instant success. With global merger of Generale Biscuit and the Danone Group, a more comprehensive range of products and technical know-how became available to CBL. The company at present has an outstanding portfolio, under its power brands of TUC, Prince, Tiger and Candi. These brands have an array of products that falls into the category of plain biscuits, cream variants, crackers and ingredients based.
Incorporated in 1984, the success story of LU in Pakistan began with the initiative of Hasan Ali Khan (the founder of Continental Biscuits), who signed a joint venture agreement with Generale Biscuits, the global manufacturers of the LU range, which was subsequently acquired by the Danone Group. Expansive investments were made including the import of technology and professional expertise from abroad. The first undertaking was to set up a factory and establish distribution centers in the country with the ultimate objective of commencing operations and marketing our products in Pakistan. CBL thus started its' operations in the country since September 1986 with an initial strength of 200 employees.
The company first introduced its' innovative brands - TUC, Prince and Candi which proved to be an instant success. With global merger of Generale Biscuit and the Danone Group, a more comprehensive range of products and technical know-how became available to CBL. The company at present has an outstanding portfolio, under its power brands of TUC, Prince, Tiger and Candi. These brands have an array of products that falls into the category of plain biscuits, cream variants, crackers and ingredients based.
PERFORMANCE
|
year
|
Sales in Rs
|
|
1986
|
20 millions
|
|
2003
|
2 billions
|
|
2010
|
5 billions
|
Industry Overview
Continental vs. Industry
Industry: 60 %
Continental:
40 %
Export Detail
Value (US
thousand $)
|
Year
|
Month
|
Congo
|
Somalia
|
S Africa
|
Afghanistan
|
Ethopia
|
Mauritius
|
S-arabia
|
Uganda
|
Liberia
|
Namibia
|
|
2010
|
09
|
0
|
10
|
27
|
470
|
0
|
112
|
50
|
0
|
0
|
0
|
|
10
|
0
|
0
|
0
|
493
|
0
|
108
|
34
|
0
|
0
|
0
|
|
|
11
|
0
|
0
|
10
|
492
|
0
|
119
|
0
|
0
|
0
|
0
|
|
|
12
|
0
|
0
|
0
|
348
|
0
|
49
|
33
|
0
|
0
|
0
|
|
|
2011
|
01
|
0
|
09
|
12
|
1316
|
0
|
0
|
39
|
07
|
0
|
0
|
|
02
|
0
|
21
|
0
|
601
|
0
|
56
|
85
|
0
|
0
|
0
|
|
|
03
|
0
|
0
|
20
|
814
|
0
|
21
|
03
|
0
|
24
|
0
|
|
|
04
|
0
|
0
|
10
|
1122
|
0
|
48
|
69
|
0
|
0
|
0
|
|
|
05
|
0
|
0
|
0
|
3039
|
0
|
0
|
100
|
0
|
0
|
0
|
|
|
06
|
0
|
22
|
54
|
6831
|
0
|
93
|
41
|
0
|
0
|
0
|
|
|
07
|
01
|
23
|
10
|
1351
|
0
|
83
|
17
|
0
|
0
|
0
|
|
|
08
|
0
|
09
|
0
|
2365
|
0
|
48
|
30
|
0
|
0
|
0
|
Source: See Annexure
Export Growth
|
Year
|
% growth
|
|
2022
|
100%
|
|
2021
|
57%
|
|
2020
|
51%
|
|
2019
|
72%
|
|
2018
|
12%
|
|
2017
|
28%
|
Source: Mr Rizwan Farooqui, Export Manager,
continental biscuits
Exports
Break outs
Export Areas
• Africa
• Mauritius
• Cameroon
• Dubai
• Nigeria
• Bahrain
• Madagascar
• Congo
• Yemen
• Guinea
• Saudi
Arabia
• Togo
• Oman
Export Vs local sale
SALES COMPARISON:
EXPORT: 10 %
LOCAL : 90 %
CONSTRAINTS IN EXPORT
— Image of Pakistan
• Remittance problem (trade credit )
GOVERNMENT ROLE IN PROMOTING EXPORT
·
No
duty on Biscuits export
·
Various
trade promoting government bodies are working for agri-based food products
PRICES FOR EXPORT:
— Prices are higher than local market.
— It uses mass market product quality and
charge premium prices.
DISTRIBUTION CHANNELS
FOR EXPORT
— Company appointed one distributor in Afghanistan
for controlling marketing functions there
— In other countries sales agents proceeds sale
to all channels including stores.
SHIPPING LINES:
•
MAERSK
•
SAF
MARINE
PROMOTION STRATEGY:
— Advertising
— Child activities in school
COMPETITIORS:
ENGLISH BISCUITS MANUFACTURER
HS CODE:
HS Code of
sweet biscuits
1905.31
SWOT ANALYSIS
Strength:
•
Quality
•
Innovation
•
Standards
•
leader
in the biscuits industry
•
long-term
sustainability
•
delivering
timely & consistently
•
minimizing
impact on the environment
•
Zero
rejections
•
High
Demand
WEAKNESS:
• Low production capacity of certain
brands
• Pak Image
• Not having state of the art
technology
OPPORTUNITIES:
Australia
Australian food and grocery council has said that operating profits of
Australia's food manufactures
are expected to fall by an average of 4.4 % in 2012-13 because Australian
government is imposing carbon tax.
China
China’s online super market
Director of data driven marketing Asia (DDMA) said:
•
China’s online super markets, a great entry
platform for internationals.
•
65% willing to buy
•
Age 25-35
•
White collar jobs
•
Not price sensitive
People are using Biscuits as substitute of
fast food now
THREATS:
v US FDA is imposing more complicated
standards for restricting sub standardized imports
v Local biscuits manufactures are
capturing price conscious customers
v Tiffany brand is competing in
Afghanistan
v Gibbs produces copy products and
affecting sales
v Credit sales by small companies to
retailers and distributors.
PAKISTAN MINISTRY OF COMMERCE AND
TDAP
Pakistan ministry
of commerce and trade development authority of Pakistan are showing keen
interest in export of food items and taken up this issue to state bank for increasing credit lines to farmers
and food exporters.
CERTIFICATIONS
•
OHSAS
18001
•
ISO
14001
•
ISO
9001
PREFERENTIAL
TRADE AGREEMENT (MAURITIUS)
Mauritius
Import duty reduced from 30 % to 06 % after this agreement which have great
impact on biscuits export.
Source: www.moc.pk
POINTS TO BE PONNDER
FOR EXPORTS
Ø First WE should overlook the
competitive advantage
Ø Select market
Ø Visit to market
Ø Cost of availability
Ø How to place that product
Ø Research to market
Ø Calculate tariff
Ø Port transportation cost
Ø Sea insurance
Ø Distribution cost
Ø Duty of export
Ø Freight charges
Recommendations:
•
Enhance
Exports in china and Australia
•
Increase
Production capacity
•
Avoid
American Markets until new standards achievement.
•
Launch
Diversified products which are difficult to copy. e.g. candy
•
On
line marketing
•
Asian
countries Biscuits manufacturers need
better regulation, harmonized safety standard
•
Third
party certification and audit will be appreciated for exports by biscuits
industry.
•
Government
Intervention is necessary for promotion of biscuits export.
Bibliography
Mr
Rizwan Farooqui Export manager CBL (Interview)
www.continentalbiscuits.com.pk
www. food navigator-asia
www.itc.org
www.wto.org
www.commerce.gov.pk/?page_id=221
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