EagleTree Capital acquires renowned sauce maker Summit Hill Foods

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December 1, 2023

EagleTree Capital, a private equity firm headquartered in the United States, has revealed its acquisition of Summit Hill Foods, a supplier specializing in cooking sauces and meal ingredients.

Established in 1941, Summit Hill Foods is a renowned food company recognized for its brands, including Better Than Bouillon, The Original Louisiana Brand Hot Sauce, and Better Than Gravy. Apart from its retail brand lineup, Summit Hill Foods functions as a solution provider with a focus on flavors and serves as an ingredient supplier to foodservice distributors, manufacturers, and restaurants.

Following EagleTree’s investment, the operational and management teams of Summit Hill Foods will remain unchanged. The firm notes that certain fund investors of EagleTree, including Misland Capital Limited, have also taken part in the investment.

Steve Goodyear, CEO of Summit Hill Foods, said, “Today, we embark on an exciting new chapter in the history of Summit Hill Foods and are absolutely delighted to join forces with EagleTree, whose vision and resources align seamlessly with our aspirations”.

“We see incredible opportunity for our brands Better Than Bouillon and The Original Louisiana Hot Sauce in addition to our custom bases and sauces business. EagleTree’s partnership will empower us to accelerate our growth and innovation, expand our market reach and continue providing high-quality products to our customers.”

Stuart Martin, partner at EagleTree, added, “We have been fans and customers of Summit Hill Foods’ products for a long time and are equally impressed by the company’s unique culture. Summit Hill Foods’ core values are trusting and valuing their employees, community involvement, a commitment to safety and the relentless pursuit of excellence – values we believe are key to the company’s strong performance. We are proud to be stewards of Summit Hill Foods’ special ethos and are very excited to be a part of the company’s next phase of growth.”

Terms of the transaction were not disclosed.

Reliance Retail’s Azorte opens its flagship store in Ahmedabad, plans massive expansion

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December 1, 2023

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Azorte, a high-end fashion and lifestyle store chain under Reliance Retail, has introduced its first store in Ahmedabad, according to a company official’s announcement on social media. The new standalone store, situated at Venus Stratum in Nehrunagar, Ahmedabad, spans an impressive 21,000 square feet of retail space.

“Azorte marks its entry into the ‘Manchester city of India’. Our first store at Stratum @ Venus Grounds, Nehrunagar, Ahmedabad is now open. This is the first of many more stores to come in Gujarat,” said Hari Krishnan, head of visual merchandising at Azorte in a LinkedIn post while sharing images of the new store.

The tech-enabled store, designed to meet the fashion and lifestyle needs of women, men, and kids, comes equipped with self-checkout kiosks, interactive screens, and mobile scan-and-pay functionality.

Reliance Retail launched Azorte in September 2022, debuting its initial brick-and-mortar store in Bengaluru. Currently, the brand boasts 10 retail stores across the country, with a presence in cities like Mumbai, Ahmedabad, Hyderabad, Gurugram, Bengaluru, and Pune.

The retail behemoth has ambitious plans to significantly broaden Azorte’s retail presence, targeting the opening of up to 250 stores within the next two to three years.

Reliance Retail, the retail division of Reliance Industries Ltd., manages a diverse array of fashion and lifestyle brands, encompassing Reliance Trends, Avantra by Trends, Azorte, Fashion Factory, and Centro. Additionally, the company boasts a portfolio featuring more than 50 international brands, including renowned names like Armani, Burberry, Diesel, Gas, Marks & Spencer, Superdry, Brooks Brothers, and Steve Madden.

Recently, the retail giant unveiled Swadesh, a fresh store format highlighting Indian arts and crafts. These establishments are poised to serve as platforms for the promotion of traditional artists and artisans.

Megastar Foods set to raise INR 42.38 Crore through preferential share issuance

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December 1, 2023

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Megastar Foods Ltd, a food processing company, intends to generate INR 42.38 crore by issuing preferential shares. The funds raised will be utilized to pre-pay existing debt and fulfill future financial needs.

As per a regulatory filing on Thursday, the board of the company has sanctioned the creation, issuance, offering, and allotment of up to 1.3 million shares with a face value of INR 10 each on a preferential basis. These shares will be offered to promoters, non-promoters, and shareholders in the public category.

The company will seek shareholders’ approval during the extraordinary general meeting.

“The proceeds of the preferential issue will be utilised for prepayment of borrowings of the company, meeting future funding requirements, working capital and other general corporate purposes of the company,” the filing said.

The preferential issue of equity shares will be offered at a price of INR 326 per share, with the company aiming to raise INR 42.38 crore through this issuance.

Megastar Foods operates a wheat processing facility in Punjab, with a turnover of INR 304.40 crore in the preceding year.

CaratLane’s operating revenue soars by 73%, crossing INR 2,000 Cr milestone in FY23

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December 1, 2023

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CaratLane, a jewellery startup owned by Titan, witnessed a remarkable surge in its operating revenue, surpassing the INR 2,000 Cr milestone in the fiscal year 2022-23 (FY23). The new-age jewellery brand, headquartered in Tamil Nadu, experienced a significant 73% increase in operating revenue, reaching INR 2,169 Cr during FY23, compared to INR 1,255.6 Cr in the preceding fiscal year, driven by escalating demand.

Established in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane is a versatile brand with a presence in both India and the United States, specializing in the production and sale of jewellery items through various channels.

In FY23, the business revenue from the United States held steady at INR 8.68 Cr.

Taking into account additional income, the overall revenue surged by 73%, reaching INR 2,187.8 Cr in the fiscal year, compared to INR 1,264.6 Cr in the preceding year.

Despite the increase in revenue, CaratLane experienced an 8% decline in net profit, falling to INR 82 Cr in the current fiscal year from INR 89.2 Cr in the previous financial year.

Experiencing a 69% surge, the total expenditure reached INR 2,068.5 Cr in FY23, compared to INR 1,225.9 Cr in the previous fiscal year.

As a jewellery brand, CaratLane’s most significant expense was the cost of procurement, which includes the sourcing of gems. The procurement cost witnessed a 66% increase, reaching INR 1,404.5 Cr in FY23, compared to INR 845 Cr in the previous fiscal year.

Employee expenditures surged by 51%, reaching INR 135.4 Cr in the reviewed year, up from INR 89.6 Cr in FY22, signifying an expansion in the startup’s workforce.

Marketing and promotional expenditures for CaratLane experienced a 75% surge, reaching INR 172 Cr in FY23, as compared to INR 98 Cr in the preceding fiscal year.

The EBITDA margin grew to 9.75% in FY23, showing an expansion from 6.86% in the previous fiscal year.

In August this year, Titan, a Tata Group-owned company, augmented its stake in CaratLane by an additional 27.18%, bringing its total ownership in the jewellery brand to 98.28%. This strategic move, valuing CaratLane at over INR 17,000 Cr ($2 Bn), marked the startup’s entrance into the unicorn club.

Last month, the Competition Commission of India (CCI) gave its approval for Titan’s acquisition of an additional stake in CaratLane.

In 2016, Titan initially acquired a controlling stake in the jewellery brand.

In addition to contending with established jewelry brands like Senco Jewellers, Kalyan Jewellers, and Malabar, CaratLane faces competition from contemporary brands such as BlueStone and GIVA. Despite the competitive landscape, CaratLane holds a larger market share compared to its new-age counterparts, thanks to its early entry into the market.

Among its contemporary competitors, GIVA disclosed an operating revenue of INR 165 Cr in FY23, accompanied by a net loss of INR 45.2 Cr. In the same fiscal year, BlueStone reported sales amounting to INR 770 Cr, with a reduced loss of INR 167.2 Cr.

Nando’s set to expand UK presence with 14 new restaurants following sales surge

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December 1, 2023

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Following a surge in sales, Nando’s, the fast casual chain, is set to enhance its presence in the UK with the opening of 14 new restaurant venues in the 2023-2024 financial year.

Excluding South Africa, the peri-peri chicken chain has achieved profitability for the first time since the onset of the Covid-19 pandemic.

Nando’s Group chief executive Rob Papps stated, “The macro-economic outlook for 2024 remains uncertain but we are continuing to invest for the future with further menu innovation, enhancements to our digital capabilities and new restaurant openings planned in all our markets, including 14 in the UK.”

Revenue saw a nearly 20% increase, rising from £1.06 billion in the previous year to £1.27 billion ($1.61 billion) in the current year.

The rise was credited to a robust rebound in consumer demand and the addition of more restaurant openings.

For the year ending on February 26, 2023, Nando’s Group Holdings disclosed an operating profit of £17 million, marking a significant improvement from the £1.2 million operating loss reported in the preceding year.

The group has successfully navigated the challenges posed by cost pressures, although it anticipates these pressures to persist as a substantial impediment throughout the remainder of 2023-2024.

Papps added, “The 2023 financial year saw Nando’s deliver a steady recovery to pre-pandemic sales and a return to operating profit driven by strong consumer demand for our flame-grilled peri-peri chicken supported by our brand and customer proposition.

“Despite the improved sales performance, cost pressures including higher energy, labour and food prices remained a challenge.”

During August 2023, Nando’s PERi-PERi introduced its fresh summer menu in the United States, showcasing an updated iteration of its PERi-charged bites.

The updated menu was introduced to all Nando’s establishments in Washington DC, Virginia Beach, Chicago, and Houston. Additionally, the chain has intentions to debut its new menu in Dallas, Texas.

The Nando’s PERi-PERi menu features offerings such as the spicy chicken kale caesar, PERi ranch crunch, a rainbow vegetarian bowl, and a PERi chicken rainbow bowl.

Festive season falls flat for FMCG sector, leaving distributors with surplus stocks

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December 1, 2023

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The national federation of fast-moving consumer goods distributors has reported that subdued demand during the festive season has resulted in distributors struggling with surplus stocks.

“Contrary to expectations, Diwali witnessed subdued enthusiasm for the FMCG sector. Post-Diwali sales have historically been low. Particularly hard-hit segments are chocolates, confectionery and biscuits, followed by beauty, and cosmetics,” said Dhairyashil Patil, national president of All India Consumer Products Distributors Federation (AICPDF).

The majority, accounting for 90%, of total FMCG sales is comprised of general trade.

The federation, representing over four hundred thousand distributors nationwide, stated that the supply chain is currently dealing with an abundance of surplus stocks, requiring distributors to make substantial investments.

“Managing these funds has become increasingly difficult, exacerbated by mounting pressure from companies for primary sales. Distributors, in turn, have stocked up the retail trade, but low offtake during the festive season has left retailers distressed,” Patil said.

Distributors noted that the gift pack segment within these categories has experienced the greatest impact, resulting in an excess inventory overflow among retailers.

The sales of soaps and detergents have also been subdued, and distributors report that the beauty and cosmetic sector is undergoing its most severe downturn.

This trend is causing a significant rise in the average closing stocks for distributors, reaching 25 to 30 days, in contrast to the previous average of 7 to 15 days, as reported by the distributors federation. Additionally, the average market credit period is expanding to a range of 15 to 25 days, compared to the earlier 7 to 15 days.

Patil mentioned that these factors have added to the complexity of the market situation during a period that is conventionally viewed as a profitable season.

Tata Consumer Products appoints Ashish Goenka as Group CFO

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December 1, 2023

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Tata Consumer Products (TCP), the conglomerate overseeing the primary food and beverage ventures within the Tata Group, has announced the appointment of Ashish Goenka as the Group Chief Financial Officer. This decision aligns with the company’s commitment to building a forward-looking organization and strengthening its overall capabilities.

In his new role, Ashish will take on the responsibility of leading the Integrated Finance function, which involves supervising group accounts and finance, managing investments, overseeing capital structuring, forecasting, and budgeting. Moreover, he will offer strategic guidance to the company, formulating and implementing annual, mid-term, and long-term growth plans for the organization. His scope of responsibility will extend to encompass Strategy and M&A, Legal, Secretarial and Compliance, Investor Relations and Communications, Internal Audit, as well as Risk Management functions. Based in Mumbai, he will directly report to Sunil D’Souza, the Managing Director and CEO of Tata Consumer Products.

Drawing upon more than twenty years of experience in the finance domain, Ashish is making a transition from his current position as President and CFO at Jubilant Foodworks Limited. His prior senior leadership roles encompass positions held at Hindustan Unilever and Bharti Airtel.

Sunil D’Souza, MD, and CEO of Tata Consumer Products said, “We are excited to welcome Ashish to the leadership team at Tata Consumer Products. A strong Integrated Finance function aligned with the company’s strategic objectives will be critical in enabling Tata Consumer’s journey to becoming a best in class FMCG company. Ashish’s expertise will help us further strengthen and build future capability for the function.”

The statement additionally recognized the retirement of L Krishnakumar from Tata Consumer Products on October 31st, 2023, expressing gratitude for his two-decade commitment to constructing and strengthening the Finance function. Krishnakumar played a crucial role in the company’s evolution from a single-category, single-country tea entity to its present status as a broad-ranging, multi-country, multi-category Fast-Moving Consumer Goods (FMCG) player. Krishnakumar will remain in the capacity of a Senior Advisor until March 31st, 2023, and Ashish will collaborate closely with him during this period to ensure a smooth transition.

Max Fashion celebrates 17 years and 480 stores in India, poised for further growth

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December 1, 2023

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Max Fashion, a renowned global value fashion brand, commemorates 17 years of its presence in India, boasting a network of over 480 stores. The brand’s success is deeply entrenched in its core values of affordability and trendsetting styles, democratizing fashion clothing accessibility. As Max continues to capture the share of mind in India’s value fashion sector, it adapts to the ever-changing needs of its target audience, which has grown to 35 million and beyond. Max Fashion is now poised to establish new benchmarks in the apparel market, cultivating a robust connection with the style-conscious youth demographic.

Pallavi Pandey, VP, and Head of Marketing at Max Fashion stated, “Max has always been driven by a vision to democratize fashion, and our growing position in the market is a testament to the trust and loyalty customers have shown towards the brand over the years. We are very excited about the evolving and rapidly transforming Indian market. The opportunities in our market are immense, and we continuously strive to deliver the latest fashion trends at affordable prices to everyone in the family.”

Pioneering innovation, Max Fashion consistently elevates its prowess in providing a cutting-edge shopping experience. Transitioning from brick-and-mortar to the digital realm through its e-commerce platform, maxfashion.com, and mobile application, the brand stands out with its extensive social presence, amassing a following of over 1 million youth on Facebook and Instagram. Embracing an omnichannel strategy, Max guarantees a smooth shopping journey, integrating features such as e-kiosks and convenient click ‘n’ collect services at its stores.

Leading the way in international fashion trends, Max consistently updates its clothing line, unveiling fresh styles every 45 days to cater to its diverse audience. Adapting to evolving trends and consumer preferences, the brand has introduced new fashion verticals, presenting a diverse range from the Shirt Shop to Lingerie and even baby clothes. A recent addition to Max Fashion’s offerings is its sustainable product line, known as “Max Cares.”

Witnessing a notable surge in customer loyalty and a continually expanding base of new shoppers each year, Max remains dedicated to responsible fashion. Actively participating in initiatives aimed at minimizing environmental impact, advocating for ethical sourcing, and contributing to community development, the brand stands out as a shining example of evolving and socially responsible fashion in the retail landscape.

Little Caesars expands presence with new state-of-the-art restaurant in Leesburg, Georgia

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December 1, 2023

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Little Caesars, a multinational pizza chain headquartered in the United States, has revealed the launch of a new establishment in Leesburg, Georgia.

Situated at 1385 US Highway 82W, the new establishment will feature Little Caesars’ cutting-edge retail technology, catering to high-output guest self-service takeout.

The Leesburg branch of Little Caesars will provide a menu featuring popular items such as Hot-N-Ready pizza, Crazy Bread, Caesar Wings, and the recently introduced Stuffed Crazy Bread.

Franchisee Anthony King from Nibble Nation will be overseeing the operations of the new restaurant.

King said, “Alongside the convenient Hot-N-Ready products our guests know and love, they will now find three state-of-the-art Pizza Portals. As a result, this store will extend the satisfying Hot-N-Ready experience to people like myself who love to use apps to order ahead.

“Guests will enjoy fully customisable pizzas prepared just for them, ensuring their orders are waiting in the portal as they step into the restaurant.”

In addition to managing the new restaurant in Leesburg, King will be overseeing his fifth Little Caesars establishment in the Albany metro region. This location will distinguish itself by showcasing the capabilities of a digitally advanced self-service strategy.

Little Caesars has a presence in the United States as well as 28 other countries and territories, with its restaurants strategically positioned.

During November 2023, the chain reintroduced its Stuffed Crust Pizza in celebration of the holiday season. The Stuffed Crazy Crust pizza is now presented to guests with a unique twist, blending various flavors and textures.

In a statement, the company said, “The Stuffed Crazy Crust Pizza takes Little Caesars classic Stuffed Crust pizza, oozing with melted cheesy goodness, and tops the crust with Little Caesars’ signature Crazy Crust topping – a mouth-watering blend of garlic-infused buttery richness adorned with a sprinkle of parmesan.”

Ukrainian pet-food giant Kormotech invests €60M to boost production in Lithuania

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December 1, 2023

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Kormotech, a pet-food producer headquartered in Ukraine, is dedicating €60 million ($65.4 million) to enhance and expand its manufacturing facility located in Lithuania.

The manufacturing plant situated in the city of Kėdainiai marked Kormotech’s inaugural facility beyond Ukraine, inaugurated in 2020 with a €15 million investment. The 4,500 square-meter site presently boasts an annual production capacity of 20,000 tons, set to rise to 25,000 tons upon the project’s fulfillment.

Kormotech, a provider of branded and private-label cat and dog food, outlined a four-stage expansion plan for the Kėdainiai facility, spanning from 2025 to 2028. During this period, the company anticipates hiring an additional 200 workers in Lithuania, augmenting the existing workforce of 70 over the next five years.

“We consider Lithuania our second home market. While we plan to build new production facilities in Ukraine once the war is over, Lithuania currently serves as our gateway to the world,” CEO Rostyslav Vovk said in a statement.

“The plant has proven to be a reliable support system, consistently operating at full capacity and bridging the gaps when our Ukrainian plants experience disruptions. We are committed to expanding our facilities in Lithuania further with the construction of four additional production stages by 2028.”

Situated in the Lviv region in the village of Prylbychi, Kormotech’s factory in south-west Ukraine specializes in the production of wet and dry pet foods, boasting an annual capacity of 20,000 tons.

Established in 2003, the company manufactures brands such as Optimeal, Club 4, My Love, and Master. Kormotech has a global reach, exporting its products to Europe and Asia, as well as select countries in South and North America, and the Middle East.

Andrii Berezyuk, the director for Kormotech in Lithuania, added, “Since the start of our Lithuanian operations, both our production and sales goals have been achieved and exceeded, and we hired twice the number of employees originally planned.

“This successful experience, along with the smooth construction of our factory, favourable conditions in the Free Economic Zone, support from Invest Lithuania, and our well-established network of partners and suppliers, has led us to the decision to expand the facility in Lithuania.”

Kormotech anticipates the inauguration of the initial production line at Kėdainiai in 2025, with three more lines scheduled to be integrated throughout the project, culminating in 2028.

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