Kraft Heinz records significant growth in Q1, projects steady sales growth for the year

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May 5, 2023

Kraft Heinz, a multinational food and beverage conglomerate, reported a 7.3% increase in its net sales for the first quarter, reaching $6.49 billion. This is a remarkable improvement from the sales decline of 5.5% that the company faced during the same period in the previous year.

In terms of organic growth, Kraft Heinz’s net sales surged by 9.4% in the first quarter, with a notable rise in pricing by 14.7 percentage points. This represents a significant improvement over the same period last year when net sales grew by 6.8% and pricing increased by 9 percentage points.

With higher adjusted EBITDA compared to the previous year and lapping non-cash impairment losses in the same period, Kraft Heinz experienced a 7.1% increase in net income, which amounted to $837 million.

During the same period last year, volume/mix was comparatively better, declining only by 5.3 percentage points, as opposed to the current quarter. The decline in both segments was mainly driven by elasticity impacts from pricing actions.

The parent company of Heinz Baked Beans and Philadelphia has reiterated its projection of achieving organic net sales growth between 4% and 6% for the year 2023, as compared to 2022.

Miguel Patricio, Kraft Heinz CEO, commented, “We delivered strong results in the first quarter of 2023, with net sales growth across both our North America and International zones that continues to be fueled by Foodservice, Emerging Markets, and US Retail Grow platforms. I am very proud of the entire Kraft Heinz team as we continue to deliver on what we can control by unlocking efficiencies and reinvesting in our brands and capabilities.”

He continued, “We remain committed to advancing our business transformation, and we are confident we have the right strategy in place to win with customers and consumers, and to deliver profitable growth and create value for our stockholders”.

Michelle Obama ventures into child nutrition with Co-Founding of PLEZi Nutrition

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May 5, 2023

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Michelle Obama has made public her collaboration with a new company that aims to produce and market nutritious food and beverages for kids. These products are expected to have a reduced negative impact on children’s long-term health due to their lower sugar levels and higher nutrient content.

As a “Co-Founder and Strategic Partner” of PLEZi Nutrition, the former first lady continues her pursuit to enhance child nutrition, which she initially started during her White House tenure.

“I’ve learned that on this issue, if you want to change the game, you can’t just work from the outside,” she said during a keynote address in New York during a conference on the future sponsored by The Wall Street Journal. “You’ve got to get inside. You’ve got to find ways to change the food and beverage industry itself.”

“So today, I’m proud to announce the national launch of a company designed not just to provide better products, but to jumpstart what I hope will be a race to the top that will transform the entire food industry,” she added.

Ms. Obama’s aides have stated that she is a Co-Founder and Strategic Partner of PLEZi Nutrition, and will primarily work behind-the-scenes to support the company’s educational and philanthropic efforts. However, it has not been clarified whether she made any financial investment in the company or if she will receive a salary. It has also been emphasized that she will not be a spokesperson or public face of the company.

During her time as first lady, Ms. Obama championed the “Let’s Move” initiative at the White House to enhance the wellbeing of American children by encouraging them to adopt healthier eating habits and engage in physical activity. She also played a significant role in improving federal nutrition standards for school lunches and eliciting commitments from food companies and restaurant chains to reduce calories, salt, sugar, and trans fats in their meals.

Ms. Obama mentioned on Wednesday that despite previous efforts, children are still not meeting the recommended nutrient levels and are consuming excessive amounts of added sugar – an average of 53 pounds per year. According to her, sugary drinks remain the primary source of added sugar for youngsters, with almost two-thirds of them consuming such beverages every day.

PLEZi Nutrition, located in the District of Columbia, is a public benefit corporation. As a for-profit entity, the company was established with the aim of serving the public good, with a focus on enhancing child nutrition. The company is committed to balancing its financial goals with its mission to contribute to the betterment of child nutrition.

According to the former first lady, PLEZi Nutrition’s debut product is a drink designed for children aged six to twelve. The drink, available in four flavors – Tropical Punch, Orange Smash, Sour Apple, and Blueberry Blast – contains 75% less sugar compared to typical fruit juices. The drink can be bought at Target and Sprouts Farmers Market stores, as well as online at Walmart.

Notably, the PLEZi Nutrition website highlights that water is the healthiest drink option for children.

“First and foremost, we know kids should first drink water, and PLEZi isn’t intended to replace water!” the website reads. “PLEZi has 75 per cent less sugar than average leading 100 per cent fruit juices, no added sugar, plus fibre and nutrients to support kids’ growing bodies. So our recommendation is always water first, and replace the sugary drinks your child would drink normally with PLEZi.”

Ms Obama also announced that the company is donating $1m to an initiative by FoodCorps, a nonprofit organisation that is working to help all 50 million students in the US receive education about nutrition and free school meals by 2030. PLEZi Nutrition will also contribute 10 per cent of its profits to the broader movement to improve child nutrition.

Sharabi Kukkad expands its reach with the launch of its fifth outlet in Delhi, offering a fusion of North Indian and Chinese cuisine

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May 5, 2023

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Sharabi Kukkad, a renowned restaurant that offers a delightful fusion of North Indian and Chinese cuisine, has expanded its presence by launching its fifth outlet in Delhi’s Connaught Place. The newly opened restaurant has the capacity to seat up to 100 customers at a time.

With more than 25 years of experience in the culinary world, Chef Deep Chand Dobriyal is the creative force behind the restaurant. He has a strong passion for combining different cultural influences in his cooking.

Chef Deep Chand Dobriyal’s innovative menu seamlessly blends the robust and rich flavors of North Indian cuisine with the subtle and refined spices of Chinese dishes.

At Sharabi Kukkad, customers can savor a diverse menu featuring both classic North Indian delicacies like Butter Chicken and Rara Gosht, and popular Chinese favorites such as Kung Pao Chicken and Drunken Chicken.

Adding an exciting twist to their culinary offerings, the Chefs at Sharabi Kukkad have created alcohol-infused dishes such as Sharabi Dal and Sharabi Kukkad. These unique delicacies feature a blend of dry lentils and tender chicken infused with rum, showcasing the restaurant’s innovative approach to cooking.

Sharabi Kukkad is a versatile dining destination, perfect for various occasions, be it dine-in, takeout, or delivery.

Vineet Aggarwal, Co-Founder of Sharabi Kukkad, said, “We are thrilled to open our fifth outlet in the heart of Delhi’s Connaught Place,” said. “Our aim has always been to bring good food and a warm dining experience within reach of everyone, and we are excited to introduce our unique culinary offerings to even more people. At Sharabi Kukkad, we put people first, and we look forward to welcoming you to our new location.”

The newly opened outlet of Sharabi Kukkad in Connaught Place is now open for lunch and dinner every day of the week.

For added convenience, Sharabi Kukkad offers delivery and takeout services. The restaurant also provides catering options for special occasions and private events, making it a versatile option for any gathering.

United Breweries Q4 net profit drops by 94% to INR 9.87 crore; revenue sees 11.35% growth

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May 5, 2023

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ubl — UBL's net profit for the financial year ending in March 2023 declined by 15.97% to reach INR 308.10 crore, as compared to INR 366.68 crore in FY22.

United Breweries Ltd, a beer maker controlled by Dutch multinational brewing company Heineken NV, disclosed on Thursday a decline of 93.97% in its consolidated net profit for the March quarter, amounting to INR 9.87 crore. As per a regulatory filing by United Breweries Ltd (UBL), the company had reported a net profit of INR 163.78 crore in the January-March quarter of the previous year.

During the quarter under review, UBL’s revenue from operations increased by 11.35% to INR 4,081.01 crore. In the corresponding period of FY22, it had stood at INR 3,664.71 crore.

“Gross margin during the quarter was lower as compared to PY (previous year) due to continued inflationary pressures on our cost base, particularly on prices of barley and packaging materials,” said UBL in its earnings statement.

UBL’s premium segment outperformed its total portfolio, growing by 19% in the quarter and registering a robust YTD growth of 58%. This growth was fueled by popular brands like Heineken, Kingfisher Ultra, and Kingfisher Ultra Max.

“Price increases have been taken across multiple states with continued commitment in driving further revenue management initiatives,” it added.

In Q4FY23, UBL’s total expenses increased by 17.93% to reach INR 4,079.32 crore, up from INR 3,458.98 crore in the corresponding period a year ago.

UBL’s total income for the March quarter increased by 11.28% to reach INR 4,092.80 crore.

UBL’s net profit for the financial year ending in March 2023 declined by 15.97% to reach INR 308.10 crore, as compared to INR 366.68 crore in FY22.

Despite the decline in net profit, UBL’s consolidated revenue from operations for FY23 increased by 26.87% to reach INR 16,651.09 crore, up from INR 13,123.92 crore in the previous year.

The company reported that it achieved “all-time high full-year volumes,” indicating sustained growth in the category.

UBL’s Capex spend was INR 156 crore and it said, “with volume growth expected to continue, Capex investments are needed to meet future growth”.

According to the company, it anticipates continued inflationary pressure on its cost base in the near future.

“The company will seek appropriate action to further mitigate the impact. UBL continues to remain optimistic on the long-term growth potential of the industry, driven by increasing disposable income, favourable demographics and premiumisation,” it said.

As per the filing, UBL’s board recommended a dividend of 750% or INR 7.50 per equity share of INR 1 each to the company’s shareholders for the financial year that ended on March 31, 2023.

On Thursday, United Breweries Ltd’s shares settled at INR 1,430 apiece on the BSE, reflecting a decrease of 0.28%.

Zomato leverages New Relic’s observability platform to ensure high performance and reliability

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May 5, 2023

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Zomato, a food delivery platform with around 17.4 million monthly transacting customers and 330,000 active restaurant partners spread across roughly 1,000 Indian cities, has adopted the observability platform New Relic to guarantee optimal performance and dependability. The two companies announced this partnership through a joint press release.

Shrey Sinha, head of site reliability engineering, Zomato, said, “The key value drivers for Zomato are uptime, performance and reliability; innovation and growth; and operational efficiency—all of which New Relic excels at delivering.”

New Relic enables Zomato’s engineering teams to take a proactive approach in promptly resolving issues that may arise in their infrastructure, applications, and services. By doing so, they can guarantee optimal performance and user experience.

“We are confident that New Relic’s data-driven approach will enable us to connect people with processes and technology performance across the entire organisation and improve business outcomes in the long term. We are excited to embark on the next phase of growth with New Relic,” added Sinha.

According to the release, the extended partnership with New Relic will further Zomato’s observability strategy, allowing them to maintain a high level of visibility as they continue to scale and manage a larger technology stack.

“Food tech platforms are rapidly growing segments globally. As a result, aggregators are increasingly working to maintain the stability of their platforms to scale their customer base exponentially. This is where New Relic can offer Zomato a competitive advantage through improved uptime and reliability,” said Vidhur Bhagat, General Manager enterprise business at New Relic.

Zomato is a restaurant aggregator and food delivery company that is headquartered in Gurugram, India. It was founded in 2008 by Deepinder Goyal and Pankaj Chaddah and has since become a multinational company.

D2C milk delivery firm Uzhavarbumi receives INR 7 crore funding boost from Anicut Capital

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May 5, 2023

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Uzhavarbumi, a start-up based in Chennai that offers direct-to-consumer (D2C) milk delivery services, has secured INR 7 crore in funding from Anicut Capital.

The funding secured from Anicut Capital will allow the start-up to strengthen its technological capabilities, upgrade its plant and machinery equipment, and bolster its marketing strategies. Uzhavarbumi also intends to improve its product packaging and expand its workforce with the funds received.

With the financial backing, Uzhavarbumi intends to expand its operations to Bengaluru and Hyderabad.

Vetrivel Palani established Uzhavarbumi in 2017 with a mission to connect rural and marginalized farmers with consumers in urban areas by sourcing farm-fresh milk from them at a fair market price. The start-up has been successful in bridging the gap between primary producers (farmers) and consumers in Chennai.

The business model of Uzhavarbumi ensures that farmers are able to generate a stable and consistent income.

Speaking on the funding, Vetrivel Palani said, “We are thrilled to have Anicut Capital as our investor and partner in the mission to create a more sustainable and equitable agri-food system. With Anicut’s support, we aim to expand our operations and bring farm-fresh milk to more customers across India.”

IAS Balamurugan, Managing Partner of Anicut Capital, said, “We are proud to associate with Uzhavarbumi in their mission to promote direct commerce between farmers and consumers. Their innovative approach towards supply chain management and focus on eco-friendly packaging aligns with our vision of promoting sustainable development. They have immense potential in transforming the agricultural sector of India and we are excited to support their growth plans and expansion into new markets.”

Anicut Capital is a financial institution that offers a range of debt and equity products. The company manages multiple investment funds, including two debt funds (GAF-1 and GAF-2), Anicut Angel Fund, and Grand Anicut Fund 3.

Swiggy doubles down on premium food delivery with Gourmet’s expansion to 31 cities

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May 5, 2023

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Swiggy, the food aggregator platform, announced on Thursday that it has extended its Swiggy Gourmet service, which offers premium food delivery, to 31 cities throughout India.

After being introduced in Bengaluru, Delhi, and Mumbai in February 2022, the service has now expanded to many other cities, such as Pune, Kolkata, Goa, Chandigarh, Surat, Vadodara, Jaipur, Ahmedabad, Coimbatore, and Kochi.

In addition, Swiggy is planning to launch the service in 16 additional cities, including Dehradun, Pondicherry, Ludhiana, Udaipur, and others. The expansion of Swiggy Gourmet, according to the company, indicates that the service has gained popularity among customers, particularly in smaller towns and cities throughout India.

Rohit Kapoor, CEO, Food Marketplace, Swiggy, said, “We are excited as we expand our Swiggy Gourmet to provide more premium experiences to consumers at their doorsteps. Our expansion reflects the strong demand for premium dining options and we are committed to partnering with more restaurants to provide unique and tempting offers exclusively available on our platform.”

A few days prior to this development, Swiggy shut down its premium grocery delivery service, Handpicked, only six months after piloting it in Bengaluru.

According to Swiggy, its Swiggy Gourmet platform has been instrumental in the expansion of various restaurants in Bangalore, Mumbai, and the National Capital Region. The platform, which currently features over 2,000 brands and 5,000 restaurants, has helped restaurants such as ITC Master Chef Creations, Smoke House Deli, Brik Oven, Pizza Bakery, Good Flipping Burgers, and Maiz Mexican Kitchen, among others, to grow their businesses.

Swiggy reports that these restaurants have experienced a 48% rise in order volume, on average, since collaborating with Swiggy Gourmet.

On average, Swiggy Gourmet’s restaurant partners have witnessed a 48% surge in their order volume, as per Swiggy’s report.

Swiggy has been implementing job cuts as it prepares for a public listing. In January, the food aggregator let go of 380 employees out of its 6,000-strong workforce, citing difficult macroeconomic circumstances and a deceleration in the expansion of its food delivery operations.

Apart from the job cuts, Swiggy also discontinued its meat marketplace due to a lack of proper “product fit.” Two months later, in March, the company divested its cloud kitchen venture, Swiggy Access, to Kitchens@ in a share-swap agreement. Swiggy Access provided rental kitchen facilities to restaurants.

UK’s food watchdog, FSA, vows to strengthen measures after meat fraud allegations

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May 5, 2023

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The UK’s Food Standards Agency (FSA) is a government body responsible for ensuring the safety and standards of food consumed in the country. In recent times, the FSA has been particularly concerned about preventing fraudulent activity in the food industry, especially in the meat sector. To this end, the agency has been exploring various approaches to tackle this issue and ensure that consumers are protected from harm.

Emily Miles, CEO of the FSA, has released an update regarding the meat fraud scandal, in which she stated several industry representative groups are set to work with the agency “to explore improvements to the current system”.

Following a recent “meeting with the food industry”, the FSA will review the “scope for a single telephone number or website” for whistle-blowers to contact, streamlining the process.

The agency will also try to “strengthen the role” that third-party audits can play in relaying information to regulators.

Finally, Miles stated the FSA will review the “best format and mechanism” for the agency to “share intelligence-based alerts to better warn businesses about problems in supply chains.”

In late March, it was reported that Loscoe Chilled Foods, a supplier of meat products in the UK, shut down after facing a criminal investigation over allegations of mislabeling their products.

Booths, a supermarket chain located in the north of England, reported that pre-packaged sliced meats and deli products they received were falsely labeled as British despite being sourced from South America and Europe. Following this, authorities arrested three individuals in connection to the incident.

Last month, the UK-based trade publication Farmers Weekly disclosed that a meat processor is under investigation for supposedly selling foreign pork as British and also for selling meat that has exceeded its shelf life.

The British Retail Consortium (BRC), the Food Industry Intelligence Network, the British Meat Processors Association, and several other industry groups have expressed their support for enhancing the approach to prevent fraudulent activity in the food industry. These groups are collaborating with the FSA to address the issue and ensure the safety and integrity of the food supply chain.

Andrew Opie, Director of food and sustainability at the British Retail Consortium, said, “Our members are fully committed to ensuring a high level of safety, quality, and integrity in the food chain. We support the Food Standard Agency’s review to look at improvements to the current system, including exploring a simpler, more refined hotline for whistleblowing, as well as ensuring information is shared as effectively and efficiently as possible to prevent and tackle food crime.”

Helen Sisson, Director and Co-chair of the Food Industry Intelligence Network, said, “We are fully committed to working with the FSA and our partners in the food industry to strengthen the system.

“It is imperative that the public has confidence in UK food and an important part of that is ensuring food crime in supply chains is identified and dealt with quickly,” she added.

Sigma Alimentos acquires controlling stake in US-based Hispanic dairy group Los Altos Food Products

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May 5, 2023

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Sigma Alimentos has announced its plan to acquire a controlling stake in Los Altos Food Products, a US-based manufacturer of Hispanic cheese and cream.

The financial details of the transaction were not revealed.

Los Altos Food Products specializes in producing genuine Mexican cheese products aimed at North American consumers who enjoy Mexican cuisine. The company runs a single plant near Los Angeles, California, and employs over 260 individuals who will be transferred to the new company as per Sigma’s statement.

The yearly revenue of Los Altos Food Products amounts to around $100 million.

“This transaction is aligned with Sigma’s strategy and will allow us to continue growing the core business by strengthening our position in a rapidly growing market that is gaining space in mainstream consumption,” said Rodrigo Fernandez, Sigma’s CEO. “I’m confident that the sum of Los Altos and Sigma will allow us to better satisfy the needs of our customers and consumers. This transaction also enhances our existing network with production capacity on the West Coast.”

Sigma, which is a division of the Mexican conglomerate Alfa, has a global presence and possesses over 100 food brands in the categories of meat, dairy, and plant-based foods.

With a global footprint that spans across 18 countries in the Americas and Europe, the company boasts of 65 manufacturing facilities and a workforce of 44,000 employees.

“Today, Sigma takes another step to expand its presence in the US and continue increasing capacity in the Hispanic dairy market. We are looking forward to welcoming all Los Altos employees to Sigma and embarking on a new journey, together,” Jesus Lobo, the CEO of Sigma’s US operations, said.

Sigma’s EBITDA fell 12% in to $652m in 2022 “as growth in the Americas was more than offset by a decline in Europe amid unprecedented cost pressure”. The company’s annual revenue increased 9% to $7.4bn.

RPSG Group’s Too Yumm eyes Indian snacks market with launch of Too Yumm Namkeen

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May 5, 2023

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Too Yumm!, a subsidiary of the RPSG group, has primarily focused on the western and healthy snacking sectors. However, the company is now expanding into the Indian snack market with the introduction of Too Yumm Namkeen. With the organized Indian snacks market valued at approximately INR 14,000-15,000 crore, the brand hopes to capture a portion of this lucrative market. Additionally, Too Yumm! is seeking to enhance its product range in the children’s category, an area where it recently made its debut.

According to Shashwat Goenka, the Head of the Retail and FMCG sector at RPSG group, the Indian snacks market has been experiencing a consistent CAGR of 14-15%. As a result, the company aims to achieve sales of around INR 100 crore in this segment over the next year. Additionally, RPSG group is considering venturing into adjacent markets beyond snacking to expand its food offerings within the next 12-18 months.

“We launched in 2017-18 and the idea was to get into healthy snacking market. We are well entrenched in the western snacks market and are now moving into the Indian ethnic snacks category,” Goenka said in a virtual press conference on Thursday.

As of December 31, 2022, Too Yumm achieved annual sales of approximately INR 480 crore. This translates to almost 7% of RPSG Ventures’ total turnover, which comes from its FMCG business.

Double-digit growth:

According to Shashwat Goenka, Too Yumm has been experiencing double-digit growth and intends to further strengthen its position in the western snacks and kids’ categories. The western snacks market is valued at approximately INR 26,000 crore, with unorganized players accounting for almost 45% of the segment.

The Indian snack products will first be offered at 100,000 touchpoints and will later be expanded to additional outlets.

At a consolidated level, the company already owns an Indian snacks business under the brand name of Evita. However, that is primarily targeted at the tier III, IV and beyond markets while Too Yumm is targeted at the tier I and II markets, he said. “For the next 12-18 months we will strongly focus on western and Indian snacks as there is lot of scope to grow; thereafter we will look at some adjacencies,” he said.

The company is also open to acquisitions and is exploring targets. However, any acquisition would be driven by long-term view and will be done only if it made a strategic fit, he said.

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