Company: BERRI LIMITED
State: Brisbane, Queensland
BERRI LIMITED IN INDIA
Berri Limited, Australia’s largest producer of fruit juices, began taking an interest in the Indian market in the late 1990s and started exporting packaged juices there in late 1999. Berri now holds a 5 per cent market share of the Indian packaged juice market and this is growing at around 30 per cent per annum. Major markets centre around the largest cities in the northern, western and southern regions.
After deciding to focus on overseas opportunities, further falls in tariffs on Indian manufactured foodstuffs aroused Berri’s interest in India. Berri is pleased with its progress so far, despite effective tariffs on fruit juices remaining over 40 per cent, complex state sales tax structures and poor local transport infrastructure and logistics. Berri stress patience is needed when developing relationships and warns against regarding these as simply ‘business partnerships’. Expertise in dealing with a complex bureaucracy, a willingness to tackle considerable paperwork and a good understanding of the market opportunities is crucial; it points out poor research and short term aims have caused even the largest multinational food corporations to fail in India.
Berri believes important structural shifts, including steadily rising incomes, a growing number of higher income individuals, developing supermarket chains and an increasing recognition of the benefits of packaged and processed foods mean its future in the Indian market is bright.
Source: Berri Limited, 2001.