Glenwalk Whisky targets INR 200 Cr turnover, Maharashtra to get ‘small’ surprise

June 3, 2024

Jitin Merani, Co-Founder of The Glenwalk and director at Cartel Bros

Cartel Bros, the maker of Glenwalk Whisky, is setting ambitious targets for the financial year with a projected turnover of INR 200 crore. SnackFax caught up with Jitin Merani, co-founder of Cartel Bros, to discuss the brand’s growth, new product launches, and expansion strategies.

Glenwalk Whisky, launched in June 2023, has already made significant strides in the market. “We initially launched Glenwalk in Mumbai, Thane, and Pune with 120,000 bottles, expecting it to last ten months. However, it sold out in just three months,” Jitin explained. “We restocked in March and sold 90,000 bottles in the first month alone.”

Jitin emphasized the importance of strategic market entry and the impact of celebrity endorsements. “Having Sanjay Dutt as a brand ambassador boosted our media coverage and organic reach. In just eight days, we were featured in 19 publications,” he stated.

The brand has ambitious sales targets for the current quarter. Jitin anticipates selling around 25,000 cases in the next three months. “We lost April due to restocking, but we aim to make up for it with strong sales in May and June,” he said. Currently India is going through election phase, the process and election-related delays have posed challenges for the alcohol maker.

However, reflecting on their growth trajectory, Jitin highlighted substantial progress. “This year, we aim to sell 120,000 cases, approximately 1.4 to 1.5 million bottles,” he stated.

Continue Exploring: Cartel Bros targets INR 240 Cr revenue in FY25, eyes nationwide expansion for The Glenwalk Whisky brand

Also the company is expanding rapidly, targeting key states with high Scotch consumption. “We are now present in 32 districts of Maharashtra and will soon be available in Delhi, Haryana, Chandigarh, Uttar Pradesh, and Goa,” Jitin detailed.

Diversification into New Products: Vodka and Tequila

On the other hand, Cartel Bros is not resting on its laurels. The company is preparing to launch a new vodka by the end of this year and has plans for a tequila brand. “We began our journey with tequila in mind, but due to slow processes in Mexico, we switched to whisky. Now, we’re ready to bring our tequila brand to market soon,” Jitin shared.

Cartel Bros is also diversifying its product offerings. “Along with our whisky, we’ll be launching a new vodka soon. This addition will further boost our revenue,” Jitin shared. With these aggressive expansion plans and new product launches, Cartel Bros aims to achieve a turnover of INR 200 crore this financial year.

Understanding market dynamics, Cartel Bros is also working on to introduce small version of bottles. “In Maharashtra, the Permit Room culture is significant. People prefer smaller bottles they can handle themselves. We’re developing a smaller SKU, expected to add 80,000 cases to our sales in Maharashtra alone,” Jitin noted. He added, “Our study shows that 45% of the market demand is for 180 ml bottles, with larger bottles accounting for about 40%. And our upcoming vodka launch will significantly boost our revenue,” Jitin stated.

Seeing the traction in the market, Merani recounts the evolution of the Indian alcohol market, “Consumer behavior has evolved dramatically since the Covid-19 pandemic,” Jitin noted. “The ancillary industry around alcohol is showing phenomenal growth, signalling long-term trends.”

He highlighted the shift in consumer preferences from traditional whisky, beer, and vodka towards gin and tequila. “From 2010 to 2022, India was primarily a whisky, beer, and vodka market. The gin revolution came in 2015-2016, with 18 new Indian-made gins launched in the last seven years. Now, the trend is shifting towards tequila, which we identified as early as 2019,” he said.

Looking ahead, Cartel Bros is focused on maintaining its growth trajectory. “We’re moving consumers from Indian whisky to premium Scotch, positioning Glenwalk as an entry-level Scotch priced competitively at INR 1,600,” Jitin explained. “Our strategy includes customizing products for the Indian palate and leveraging celebrity partnerships to enhance brand visibility.”

Cartel Bros is poised for remarkable growth, driven by strategic product launches, market expansion, and a keen understanding of evolving consumer preferences. As Jitin aptly summarized, “We are proudly an Indian-owned company, offering premium products and redefining the alcohol market landscape.”

Continue Exploring: Sanjay Dutt’s Glenwalk Whiskey disrupts Indian market, sells out 4X initial inventory in record time, aims to sell 28 lakh bottles by next FY

Retailers scale back deep discounts as sales growth slows, prioritizing profitability

SnackTeam

June 3, 2024

The discounts that have been luring shoppers to indulge in clothing, electronics, and footwear may see a notable decrease, as retailers like Aditya Birla Fashion and Retail (ABFRL), Arvind, and V-Mart have decided against offering steep discounts in an effort to boost profits.

Madura Fashion, the company behind renowned brands like Louis Philippe, Van Heusen, Allen Solly, and Peter England, reported a significant reduction in discounts during the latter part of the previous fiscal year, particularly in the fourth quarter, aiming to fuel profitable growth by 500 basis points.

“We also realized that our inventory was well-managed, and we didn’t observe significant elasticity in discounting,” Vishak Kumar, CEO at Madura Fashion, informed investors. “We maintained tight control over this aspect, which also contributed to our cost reduction efforts.” Throughout FY24, the retail sales growth rate consistently declined year-on-year across segments such as apparels, footwear, and quick service restaurants (QSR), reflecting subdued consumer sentiment. The slower growth trend of 4-7% observed in FY24 persisted into the current year, with April registering a mere 4% increase, as reported by the Retailers Association of India (RAI) after surveying the country’s top 100 retailers.

Continue Exploring: Retail sales growth slows down as India’s revenge shopping fades

Over the past eighteen months, retailers have attempted to address declining demand by consistently offering discounts. However, these price reductions have not yielded significant benefits.

V-Mart, a department store chain catering to smaller towns, has redirected its attention towards enhancing internal capabilities that are scalable, replicable, and sustainable. “We’re prioritizing strategies that don’t artificially inflate growth, such as excessive discounts or customer incentives,” stated Lalit Agarwal, chairman of V-Mart, during an analyst briefing. “We’re focused on maintaining our gross profits and not compromise on them.”

Post-Pandemic Surge in Demand and Growth

With the relaxation of Covid restrictions, pent-up demand surged, resulting in a sales boom across athleisure wear, apparel, and lifestyle products. As offices reopened and social activities resumed, consumers embarked on wardrobe upgrades, leading to consistent monthly growth of 13-24% throughout FY23.

Shailesh Chaturvedi, managing director at Arvind Fashions, noted a significant shift among retailers towards a direct-to-consumer model for online sales post-pandemic. This approach allows retailers to have greater control over merchandise, assortment, and pricing compared to relying on ecommerce marketplaces.

“We set the prices ourselves, avoiding heavy discounting, ensuring a healthier and more sustainable business model,” he remarked during an earnings call.

Last month, Bajaj Electricals’ chief executive, Anuj Poddar, informed analysts that discounting in the electronic product categories the company operates in has reached levels as high as 5-6% in the market. He mentioned that some of these discounts are being scaled back due to their negative impact on margins, and the company has recently implemented price increases. “We are willing to take the risk of price hikes, aiming to mitigate any adverse volume impact, although it’s not feasible to roll back the entire 6% discount at this moment,” Poddar stated.

Continue Exploring: 90% of Indian retail market to stay offline despite digital surge, says Accel’s Prashanth Prakash

Amul milk prices hiked by INR 2/Litre across all variants

SnackTeam

June 3, 2024

The price of Amul milk across all variants has been increased by INR 2 per litre with effect from Monday, according to Gujarat Cooperative Milk Marketing Federation (GCMMF). This adjustment is in response to the rising overall cost of operation and milk production. Consequently, the price of Amul milk pouches will be higher by INR 2 per litre in all markets across the country.

Jayen Mehta, the Managing Director of GCMMF, which markets milk and dairy products under the ‘Amul’ brand, announced that the price of Amul milk across all variants has been increased by INR 2 per litre, effective from June 3rd.

Continue Exploring: Amul’s ‘fresh milk’ brand to hit U.S. shelves for the first time

Mehta stated that GCMMF last raised milk prices in February 2023. The current hike is essential to offset the increased production costs for farmers.

Details of the Price Adjustment

Following the latest increase, the updated rates for milk stand at INR 36, INR 33, and INR 30 for variants like 500 ml Amul buffalo milk, 500 ml Amul Gold milk, & 500 ml Amul Shakti milk, respectively.

In its statement, GCMMF remarked, “The INR 2 per litre rise results in a 3-4% increase in MRP, significantly below the average food inflation. It’s important to highlight that Amul has maintained stable prices for fresh pouch milk in major markets since February 2023.”

The rise in the overall cost of operation as well as milk production is the reason for this price increase, it stated.

According to GCMMF, Amul’s policy ensures that nearly 80 paise of every rupee paid by consumers for milk and milk products is passed on to milk producers.

“The price adjustment aims to maintain competitive milk prices for our dairy farmers and motivate them to increase milk production,” it further stated.

Continue Exploring: Amul secures top spot as world’s strongest dairy brand and second strongest food brand globally

Badminton star PV Sindhu invests in biofortified staples brand Better Nutrition

SnackTeam

June 3, 2024

Indian badminton star PV Sindhu has invested an undisclosed sum in Better Nutrition, a brand by Greenday specializing in biofortified staples. Better Nutrition offers agri-input services like biofortified seeds, fertilizers, and agronomic practices.

Biofortification is a method used to enhance crops with essential micronutrients, resulting in a higher-quality yield.

Greenday aims to boost the nutritional value of staple crops, enabling consumers to obtain essential vitamins and minerals through their daily meals, said founder Prateek Rastogi, an alumnus of IIM-Ahmedabad.

Founded in 2017, Greenday collaborates with farmers, providing education and incentives to grow nutrient-rich crop varieties. According to the company, these biofortified crops are enhanced with micronutrients like iron, zinc, pro-vitamin A, calcium, and protein.

“With Sindhu on board, we hope to raise awareness about the importance of nutrient-dense staples while making them more affordable and accessible to people across the country. Additionally, we seek to improve the livelihoods of our farmers and their families, who are an integral part of our supply chain,” Rastogi said.

Continue Exploring: Ninjacart makes strategic investment in Philippines-based agritech firm Mayani

Sindhu’s investment is part of a INR 4 crore funding round that also includes contributions from other angel investors.

The company plans to raise an additional INR 4 crore. “After that, we will seek a venture capital round of approximately $3 million to support further expansion,” Rastogi said.

In 2022, the company raised INR 3.2 crore from investors led by IIMA Ventures, formerly known as CIIE.CO.

The startup runs around 75 agri-input stores and procurement centers nationwide under its Greenday ‘Kisan Ki Dukan’ brand.

The product range of Better Nutrition encompasses biofortified varieties of wheat, rice, pearl millet, finger millet, and maize. Presently, the company collaborates with 15,000 farmers and intends to expand its operations.

Product Range and Expansion Goals

Better Nutrition’s products, presently available exclusively online, are priced at a premium of approximately 160% compared to generic alternatives in the market. Over time, the company aims to reduce this premium to 40%, Rastogi mentioned.

“Having already exceeded INR 10 crore in revenue, we anticipate the nutrition-dense farming and staples market to reach approximately INR 2,000 crore by 2030, with Greenday leading the charge,” Rastogi added.

“I truly admire the dedication and innovation displayed by Prateek and his team in developing Better Nutrition products and the beneficial impact they have on our health. It’s commendable how they educate and support the farmers who play a crucial role in this initiative,” Sindhu expressed.

Continue Exploring: Agritech startup DeHaat forays into consumer market with Honest Farms brand

Country Delight eyes $9 Million funding from Alteria Capital for expansion

SnackTeam

June 3, 2024

Country Delight, a Delhi-NCR-based dairytech startup, is looking to raise $9 million (INR 76 crore) from Alteria Capital through a mix of debt and equity financing.

To secure the funds, Country Delight’s board has approved a special resolution to issue 70,000 Series F2 debentures at an issue price of INR 1 lakh each and 3,160 Series E1 Compulsorily Convertible Cumulative Partly Paid Preference Shares (CCPS) at an issue price of INR 21,045, according to the startup’s filings.

It further stated that these shares were issued to Alteria Capital Fund II and Alteria Capital Fund III.

Continue Exploring: Country Delight records INR 650 Cr revenue in H1 FY24, eyes EBITDA breakeven by 2025

Entrackr was the first to report the development.

Alteria Capital will primarily invest in the startup through its recently closed third venture debt fund. This fund, closed in March at INR 1,550 crore (over $190 million), aims to support 100-125 companies by December 2026.

In addition to Country Delight, the VC firm has supported One Card, Renee Cosmetics, Samunnati, Bliss Club, Rebel Foods, Giva, Lead School, Kissht, Captain Fresh, Traya, Bluestone, and Ather through its fund to date.

It will become part of the cap table alongside the current supporters of the dairytech startup: Temasek, Matrix Partners, Orios Ventures, and Elevation Capital.

This marks Country Delight’s second funding round for the year.

In January, it secured approximately $20 million (INR 164 crore) from its current investors – Temasek, Venturi Partners, and others – at a valuation of $820 million.

In February, Orios Venture Partners also partially exited from Country Delight, securing a 45X return on its investment.

Continue Exploring: Orios Venture Partners nets 45X ROI with Country Delight partial exit

Country Delight’s Financial Performance

Meanwhile, the startup’s operating revenue has purportedly surged by 66% year-on-year (YoY) to INR 900 crore in the financial year 2022-23 (FY23), up from FY22’s INR 542.6 crore. It additionally asserted a revenue of INR 650 crore in the first half of FY24.

Established in 2013 by Chakradhar Gade and Nitin Kaushal, Country Delight operates on a subscription-based model. It procures milk from farmers and delivers it directly to customers’ homes. Additionally, it offers a variety of other products including bread, ghee, various dairy items, as well as fruits and vegetables.

Nestlé Toll House rolls out Triple Chip Mix morsels with three tempting flavors!

SnackTeam

June 1, 2024

Nestlé Toll House has unveiled its latest innovation: Triple Chip Mix.

Triple Chip Mix, now available for purchase nationwide in the US, brings together three popular morsel flavors: the sweet and creamy vanilla-flavored Premier White Morsels, the rich Semi-Sweet Chocolate Morsels, and the Dark Chocolate Morsels, all conveniently packaged into one.

With the ideal mixture pre-combined in every bag, the opportunities for baking experimentation are limitless.

Continue Exploring: Nestlé to introduce GLP-1-friendly products in the US market

Melanie Knoke, senior marketing manager at Nestlé Toll House, expressed, “We understand that consumers enjoy blending our flavors, so we aimed to simplify the process by combining three cherished classics into one convenient bag. The outcome? A Triple Chip Mix of our renowned flavors that’s indulgently rich, creamy, and sweet enough to elevate any treat.”

Crafted to meet the demands of home bakers, Triple Chip Mix provides a means to customize existing recipes or invent entirely new creations.

Pricing and Release Date

With a suggested retail price of $5.29 for a 9oz bag, Triple Chip Mix is scheduled to debut on shelves in June.

Welch’s unveils new Grape’ade Beverage made with Niagara green grapes!

SnackTeam

June 1, 2024

Welch’s is introducing a fresh lineup of juice beverages under the name Welch’s Grape’ade. Crafted from Niagara green grapes and without any added sugar, it promises a delightful and naturally sweetened refreshment.

Exploring the Flavor Variants

Offered in three enticing flavors—strawberry, mango, and green grape—Welch’s Grape’ade is conveniently packaged in 16oz bottles, perfect for on-the-go enjoyment. Free from artificial colors or sweeteners, each variant promises a refreshing explosion of taste, boasting half the sugar content compared to similar beverages, according to the company.

Continue Exploring: Coca-Cola unveils ‘Coca-Cola Lens’, offering valuable insights for food and beverage industry

Chris Kwiat, Vice President of Marketing Communication and Innovation at Welch’s, expressed, “The Welch’s Innovation Team has pioneered a completely new ‘ade experience, harnessing our unmatched skill in capturing the crisp, tangy essence of Niagara green grapes, bottled within hours of harvest, to present an exceptionally refreshing take on the classic flavor. Grape’ade epitomizes our dedication to offering delightful, top-notch products that adapt to changing and varied consumer tastes, even if it entails inventing an entirely new beverage category to satisfy their demands.”

All three flavors will be available at select retailers and in every Publix store across the southeastern United States starting next month, followed by a nationwide rollout planned for early 2025.

Sabelli set to acquire Stella Bianca cheese company from Mila Cooperative

SnackTeam

June 1, 2024

Sabelli has inked a deal with its fellow Italian dairy counterpart, Mila Cooperative, to acquire the Stella Bianca cheese company.

Mila confirmed the divestment of its stake in Stella Bianca after a 14-year ownership period in a statement. A spokesperson for the cooperative elaborated that the growth experienced in Mila’s primary sectors, namely yogurt and cut cheese, has led to the adoption of a strategic approach aimed at fostering additional advancements in these segments in the foreseeable future.

Continue Exploring: Burger King’s parent company completes $1 Billion acquisition of Carrols Restaurant Group

“The proceeds from the sale of Stella Bianca will empower Mila to undertake significant investments in plant automation and digitization, aligning with our company’s sustainability strategy,” the spokesperson elaborated.

Located in Lodi, Italy, Stella Bianca specializes in crafting fresh cheeses from 100% Italian milk, encompassing varieties such as stracchino, robiola, goat cheese, and cream cheese. Additionally, it provides a selection of vegan and gluten-free yogurt substitutes crafted from Italian rice flour. Catering to diverse preferences, the company offers both its signature branded items and customized private label solutions.

Multiple sources indicate that the transaction, the terms of which remain undisclosed, is anticipated to conclude by the end of June of the current year.

Continue Exploring: J&J Snack Foods expands portfolio with acquisition of Thinsters cookie brand

Mondelez International resumes Oreo cookie production in Ukraine

SnackTeam

June 1, 2024

Mondelez International, the American confectionery giant, has resumed the production of Oreo cookies at its facility in Ukraine.

The company affirmed in a statement that it has resumed producing Oreo cookies at its Trostyanets plant in Ukraine.

The facility is operational once more after undergoing a full reconstruction of its biscuit line, the statement noted.

Mondelez informed Reuters that a segment of the factory briefly opened last year to produce chocolates.

Continue Exploring: Arla Foods teams up with Mondelez to launch Milka Chocolate Milk in three countries

Following Russia’s invasion of the country in the first half of 2022, the snacks plant, located in northeastern Ukraine near the city of Trostyanets in the Sumy Oblast region, suffered significant damage.

Since the conflict began on February 24, Mondelez had shut down the site.

According to an unnamed source familiar with the company’s plans, Oreo cookies were exported to Ukraine during the site’s closure.

Product Portfolio of Mondelez in Ukraine

Apart from Trostyanets, Mondelez oversees a facility in the village of Stari Petrivtsi near the capital, Kyiv. Besides Oreos, the company’s branch in Ukraine manufactures Milka chocolate, Tuc and Belvita biscuits, Dirol gum, and Halls lollipops.

Mondelez stated in its announcement that products from Trostyanets would be available for sale in the Ukrainian market and exported to other countries.

The company informed Reuters that brands produced at Trostyanets would not be exported to Russia, where it maintains operations through three factories.

Its factories in Russia, located in Veliky Novgorod, Pokrov, and Sobinka, manufacture chewing gum, chocolate, and biscuits, respectively.

Since the onset of the war, the group has persisted in exporting certain products to Russia. Among these is its Milka chocolate, which has been sourced from Belgium.

Last year, in response to mounting criticism and boycotts from the Nordic market, Mondelez announced plans to scale down production in the country.

Continue Exploring: Mondelēz unveils $5 Million Biscuit and Baked Snacks Innovation lab in Singapore

The organisation had previously stated that by the end of 2023, it hoped to establish its Russian operations as a “stand-alone” company with a “self-sufficient supply chain.”

Mondelez was listed on Ukraine’s ‘international sponsors of war’ roster, which, until recently, was publicly accessible online. Food industry giants like Nestle, Unilever, Mars, Bonduelle, and PepsiCo were also included to highlight the presence of major corporations maintaining operations in Russia post-invasion.

Following appeals from various countries regarding the absence of a regulatory framework for managing the list and concerns about its “negative impact” on bureaucratic decision-making aimed at countering Russian aggression in Ukraine, the list was removed from the public domain.

Pernod Ricard teams up with ecoSpirits in five-year global licensing pact

SnackTeam

June 1, 2024

Pernod Ricard and ecoSpirits, a technology company specializing in circular economy solutions, have entered a five-year global licensing agreement. This partnership aims to distribute Pernod Ricard’s spirits brands to on-trade venues worldwide, utilizing ecoSpirits’ innovative circular packaging technology.

Building on a successful pilot conducted in Singapore in late 2022, this collaboration seeks to advance circularity within the spirits industry, in line with Pernod’s 2030 Sustainability and Responsibility roadmap. Originating from a pilot program in Singapore, the partnership commenced by integrating ecoSpirits’ technology with Pernod’s brands. This initial phase yielded essential operational and sustainability insights vital for expanding circular packaging solutions.

Impact on Sustainability and Responsibility Roadmap

With ecoSpirits, products reach hospitality venues in reusable 4.5-liter glass ecoTote containers, lessening waste and cutting carbon emissions from bottle production and transportation.

According to the agreement, Pernod’s renowned brands, including Beefeater London Dry gin, Havana Club rum, and Absolut vodka, will venture into fresh markets, with further brands from the company’s portfolio slated for inclusion in due course.

Continue Exploring: Pernod Ricard unveils new Spanish wine brand Tapabrava

Maria Pia De Caro, EVP of integrated operations and sustainability at Pernod Ricard, expressed, “This advancement in our collaboration with ecoSpirits underscores our confidence in the transformative potential of this solution to elevate operational efficiency and diminish not only our environmental footprint but also the broader impact of our industry. We eagerly anticipate further collaboration to refine, expand, and advocate for ecoSpirits as the forefront of wine and spirits distribution.”

Paul Gabie, CEO of ecoSpirits, commented, “For nearly three years, Pernod Ricard and ecoSpirits have collaborated to actualize circularity within the spirits industry. This latest global agreement marks a significant milestone in our shared journey, leveraging our collective expertise to introduce circular packaging to additional Pernod Ricard markets globally. We are encouraged by Pernod Ricard’s dedication to Circular Making and eagerly anticipate deepening our collaboration with their brands and market teams.”

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NewsHub

Diversification into New Products: Vodka and Tequila

Post-Pandemic Surge in Demand and Growth

Details of the Price Adjustment

Product Range and Expansion Goals

Country Delight’s Financial Performance

Pricing and Release Date

Exploring the Flavor Variants

Product Portfolio of Mondelez in Ukraine

Impact on Sustainability and Responsibility Roadmap