Table
of Contents
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.
Shares division
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
|
Exports
Products
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
|
|
2005
|
100%
|
|
2006
|
57%
|
|
2007
|
51%
|
|
2008
|
72%
|
|
2009
|
12%
|
|
2010
|
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:
- US FDA is imposing more complicated standards for restricting sub standardized imports
- Local biscuits manufactures are capturing price conscious customers
- Tiffany brand is competing in Afghanistan
- Gibbs produces copy products and affecting sales
- 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
- First WE should overlook the competitive advantage
- Select market
- Visit to market
- Cost of availability
- How to place that product
- Research to market
- Calculate tariff
- Port transportation cost
- Sea insurance
- Distribution cost
- Duty of export
- 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.itc.org
www.wto.org
www.commerce.gov.pk/?page_id=221
|
Bilateral trade between Pakistan and
Afghanistan
|
||
|
Product : 1905 Bread, biscuits, wafers, cakes and
pastries
|
|
|
|
|
|
Sources : ITC calculations based on Federal
Board of Revenue statistics. |
|
Bilateral trade data have been reported by Pakistan |
|
|
|
Pakistan's exports have been reported by Pakistan |
|
|
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