Puma, the German sportswear brand, announced on Wednesday that its first-quarter sales met expectations, leading to a more than 4% increase in its shares. This boost was driven by strong demand for its retro shoes and a rebound in growth in the Americas region, the company stated.
According to Refinitiv data, currency-adjusted sales increased by 0.5% to 2.10 billion euros ($2.26 billion), aligning closely with analysts’ expectations of 2.1 billion euros.
Sales of sportswear brands like Puma and its competitor Adidas have been bolstered by a surge in demand for retro shoe styles like ‘terrace’, amidst challenges posed by weaker consumer demand and excess inventory in the sector.
In a statement, Chief Executive Arne Freundt remarked, “We’re witnessing month-over-month acceleration in sales of our popular terrace and skate styles, Palermo and Suede XL.”
Shares surged by 4.3% to 47.15 euros during early trading on Wednesday.
Analysts at J.P. Morgan noted in a client memo that “the absence of any miss this morning could offer some respite to the shares,” particularly amidst a year of weakness in the share price thus far.
According to the company, sales in the Americas region increased by 1.0% to 790 million euros, marking the first positive rise in four quarters. The U.S. saw a sequential improvement in sales.
Freundt mentioned that while retail partners are still addressing high inventory levels, the company anticipates additional improvement in the second quarter.
The company reported a 3.9% decline in group sales compared to the previous year, with currency effects reducing euro-denominated sales by approximately 100 million euros in the quarter.
Puma’s wholesale business saw a currency-adjusted decline of 2.9%, amounting to 1.61 million euros.
As the demand for quick commerce grows in India, ride-hailing platform Uber is intensifying its hyperlocal deliveries from neighborhood stores, according to sources familiar with the matter.
This service has been introduced by the company in nine Indian cities utilizing two-wheelers, with customer orders being collected from nearby stores.
At present, Uber solely facilitates the delivery of items, with customers required to directly pay the store. However, moving forward, it aims to streamline the process by also handling payments from customers on behalf of the stores, according to one of the sources.
Uber India’s introduction of its store pickup service, mirroring its existing service in the US, coincides with the decline of Reliance-backed Dunzo, which offered similar services. Last month, Walmart-backed PhonePe withdrew from delivering non-food categories it had offered via the ONDC network, while Ola restarted some of these services.
This signals the entry of a global technology company into India’s rapidly growing quick-delivery sector, which has predominantly been dominated by Blinkit, and Instamart.
Flipkart, the ecommerce marketplace, is also strategizing to step into the quick-commerce arena. Meanwhile, companies like Ola, Rapido, and Porter provide on-demand pickup and drop services.
Uber is launching its service by delivering prepaid items from local shops, department stores, pharmacies, and other locations. However, the scope will expand, with Uber collecting and making payments on customers’ behalf straight to the shops,” the source explained.
A senior executive from a Gurugram-based company specializing in delivery and logistics remarked, “Quick-commerce platforms have significantly influenced consumer purchasing patterns. In urban areas, the demand for such services continues to grow, indicating ample opportunities for new players to enter the market.”
“Various companies are anticipated to adopt diverse strategies… Some might opt for the investment-intensive dark store model, while others may focus on enhancing the delivery infrastructure. Uber, for instance, is utilizing its current fleet of two-wheelers from its bike-taxi service,” explained the executive.
Reports indicate that around 12 million local kirana stores witnessed a notable slowdown in sales during the final quarter of 2023, even as quick-commerce firms gained market share, catering not only to impulse purchases but also to bulk orders of staples.
In response to inquiries, a representative from Uber confirmed the news, stating that the company has officially launched its store pickup service in Delhi-National Capital Region, Bengaluru, Chennai, Hyderabad, Jaipur, Lucknow, Kolkata, Guwahati, and Ludhiana.
“Our store pickups service is a recent addition to our offerings, allowing users to request an Uber driver to collect prepaid items from a designated store. Customers will have the flexibility to choose any store within the serviced areas, provided they share its location, and complete the payment directly,” the spokesperson explained.
The India division of the San Francisco-based company, primarily known for its ride-hailing services, has recently been increasing its investments in the delivery sector.
One of the sources mentioned above stated, “The company makes data-driven decisions, ensuring that any project or experiment is pursued only if it demonstrates ongoing financial viability.”
In 2020, the company divested its food delivery venture, UberEats, to Zomato through an all-stock transaction.
On a global scale, Uber is broadening its grocery delivery operations conducted through UberEats.
According to industry sources, up until the start of 2023, Dunzo held the top position in peer-to-peer package delivery services. However, following its decline, its competitors have seized the opportunity to gain momentum.
In January 2023, Porter, introduced two-wheeler delivery services catering to both individuals and businesses. Subsequently, in October, Ola, Uber’s primary competitor, along with Zomato, also launched their hyperlocal delivery services.
“Following Dunzo’s decline in the market, Porter and Uber have predominantly filled the void in the package delivery sector,” noted an industry executive. “Additionally, Swiggy Genie has experienced substantial growth during this period.”
In 2022, Ola ceased its quick-commerce operations amid cuts to ancillary segments. Last year, it introduced food delivery on its ride-hailing app via the government-backed ONDC network, having previously suspended its own food delivery service.
Honasa Consumer Limited, a prominent player in India’s beauty and personal care retail domain, has unveiled its first impact report, ‘Driven By Purpose,’ assessed by Aspire Impact Ratings Pvt. Ltd. The report highlights the company’s dedication to social and environmental endeavors, underscoring its conscientious governance practices across its varied brand spectrum.
The impact report delineates the noteworthy results of diverse purpose-oriented endeavors, assessing their roles in fostering economic advancement, environmental preservation, and community enrichment. These initiatives have catalyzed favorable changes throughout India, reaching across 14 states and 2 Union Territories, nurturing sustainable development and societal upliftment.
Starting with Mamaearth‘s Plant Goodness endeavor, dedicated to afforestation and bolstering farmer welfare, Honasa collaborated with the Sankalptaru Foundation to sow 500,000 trees and uplift 581 farmers. This endeavor not only advocates for sustainable agricultural methods but also forecasts a significant yearly fruit harvest of more than 10,000 tons, potentially yielding revenue surpassing INR 20 crore. Furthermore, it offers environmental advantages such as absorbing 250,000 tons of carbon annually, generating 500,000 tons of oxygen, and greening 3,500 acres of land.
Moreover, Mamaearth’s Plastic Positive initiative has effectively recycled 8311 metric tonnes of plastic, making a significant contribution to environmental sustainability. Through The Derma Co brand, Honasa endeavors to empower underprivileged children via The Young Scientist Program, in partnership with Bhumi NGO. This program prioritizes imparting hands-on science education, leading to a notable enhancement in science assessment scores among the participating children.
Aqualogica’s Fresh Water for All initiative tackles the issue of providing clean drinking water in remote regions. Partnering with the Watershed Organisation Trust, Aqualogica has set up water tanks in four villages, benefiting 496 households and saving over 400 collective hours daily previously spent on water fetching.
Lastly, Bblunt, in collaboration with the Sambhav Foundation, introduced The Bblunt Shine Academy, empowering more than 10,000 women across 11 states with hair styling training and certification. This initiative fosters skill enhancement and economic self-sufficiency, providing a blend of online and offline courses guided by expert trainers.
Honasa’s ‘Driven By Purpose’ impact report highlights its commitment to fostering positive change through sustainable initiatives, reinforcing its standing as a socially responsible leader in India’s retail sector.
Varun Alagh, Co-Founder and CEO of Honasa Consumer Limited, remarked, “At Honasa, we envisioned a brand that transcends mere products, aiming instead to make a meaningful impact on the lives of our consumers and society as a whole. Within our diverse portfolio of purpose-driven ‘Me & We’ brands, each aspect embodies a dedication to our consumers, communities, and the environment. The launch of our inaugural impact report heralds the dawn of a new era in the Honasa narrative. We blend purpose with passion, striving to create beauty that resonates far beyond the surface. Our goal is not simply to tackle challenges but to leave a lasting imprint on the lives we touch, ensuring our brands are recognized not just for their products, but for the profound and extensive reach of their influence.”
PepsiCo India has initiated trials aimed at substituting palm oil and palmolein with a combination of sunflower oil and palmolein in Lay’s, the leading potato chip brand in the country. This move comes amid concerns over the utilization of palm oil, a cheaper but less healthy ingredient, in packaged foods across India.
In the United States, PepsiCo, the largest market for the company, employs “heart-healthy” oils like sunflower, corn, and canola oil for Lay’s snacks and beverages. On its U.S. website, PepsiCo states, “Our chips are cooked in oils that are considered heart-healthy.” They further explain, “Sunflower, corn, and canola oils are rich in beneficial mono- and polyunsaturated fats, which can aid in reducing LDL ‘bad’ cholesterol and maintaining HDL ‘good’ cholesterol levels as part of a controlled-calorie diet.”
According to a spokesperson from PepsiCo India, conducting trials with this blend in certain products positions the company as “one of the few players in the food industry in India” to undertake such a initiative.
Palmolein, derived from palm oil through a refining process, is a liquid fraction, while palm oil itself is in a semi-solid state, both sourced from the oil palm fruit.
The Indian division is also striving to decrease the sodium content in its snacks to below 1.3 mg per calorie by 2025, as stated by the person.
Numerous packaged food brands in India, spanning from salty snacks and biscuits to chocolates, noodles, breads, and ice cream, utilize palm oil due to its significantly lower cost compared to sunflower or soybean oil.
The starting price for Lay’s classic salted chips in India is INR 10, one of the lowest prices for the global brand.
Packaged food companies, particularly multinational corporations, have come under criticism from nutritionists, health advocates, and social media influencers. They have accused these companies of employing varied, and often cheaper or less nutritious, ingredients in their packaged foods in developing nations compared to those used in the US and Europe.
Last week, Nestle India announced its endeavor to develop a no-added-sugar variant of its infant food Cerelac. This decision comes amidst recent controversy surrounding the company’s use of higher levels of added sugar in Asian and African countries. The issue gained attention following a report released by the Swiss investigative organization, the Public Eye, and the International Baby Food Action Network. The report revealed that Cerelac contained nearly 3 grams of sugar per serving in India. It highlighted the presence of added sugar in Nestle’s infant foods in low-and-middle income countries like India, while indicating its absence in developed markets such as the UK, Germany, Switzerland, and certain other European countries.
Besides Lay’s, PepsiCo India’s food range encompasses Doritos, Kurkure, and Quaker. A spokesperson for the company stated that PepsiCo has established a target to ensure that by 2025, at least three-fourths of its food portfolio volume will contain no more than 1.3 milligrams of sodium per calorie.
He added, “We are steadily advancing towards achieving this objective.”
Additionally, he mentioned that the company employs varying recipes for foods or beverages across different countries, taking into account local preferences, manufacturing capabilities, ingredient availability, and market dynamics. He emphasized that the ingredients listed on all products enable consumers to make informed choices.
Last month, Influencer Revant Himantsingka shared on X about “foreign companies resorting to cheaper ingredients in India” to facilitate sales at lower price points. Previously, he had raised concerns about the high sugar content in Mondelez’s product Bournvita, prompting the company to subsequently reduce the quantity.
India largely imports palm oil from Malaysia, Indonesia, and Thailand. According to research platform Statista, the country’s palm oil consumption reached 8.9 million metric tonnes in FY23. India holds the title of the largest global importer of palm oil, with a significant portion of imports originating from Indonesia. International trade data from TrendEconomy in 2022 indicates that India constituted 23% of worldwide imports of palm oil and its derivatives, with China following at 11.4%, Pakistan at 7.47%, and the US at 4.75%.
Westlife Foodworld, which operates McDonald’s restaurants in west and south India, reported a 96% drop in fourth-quarter profit on Wednesday, as inflation-weary consumers reduced their spending on fast food, despite franchisees’ efforts to entice them with lower prices.
The company’s shares experienced a decline of up to 7.7% following the release of the results, before ultimately settling down 1.7% at the closing bell.
Quick-service restaurants have faced challenges in enticing customers amid persistent inflation and mounting competition from local establishments.
Westlife reported a decline in consolidated profit after tax to 7.6 million rupees ($91,012.8) for the January-March quarter, down from 200.9 million rupees compared to the previous year.
This marks the company’s lowest profit since the July-September quarter of 2021, during which it recorded a loss.
During the quarter, Westlife witnessed a nearly 6% increase in total expenses, contrasting with a 1.6% growth in revenue.
“Margin pressure continues as competition within the category intensifies,” stated Elara analyst Karan Taurani, who also noted that growth prospects will be subdued due to the volatile demand environment.
However, Taurani mentioned that the rate of decline is anticipated to decrease.
Despite the availability of affordable value packs, they have struggled to capture customers’ attention, largely due to the persistent high food inflation in India throughout the year.
During the quarter, Westlife’s same-store sales, which gauge the revenue growth from stores operating for at least a year, dropped to 5%.
In November of last year, the company faced scrutiny when the Maharashtra state suspended the license of a McDonald’s outlet in eastern Mumbai over allegations of using cheese substitutes and misleading consumers.
Nevertheless, the country’s leading food standards authority had validated the company’s assertions regarding the use of authentic cheese in its products.
US-based McDonald’s fell short of quarterly profit estimates as customers cut back on spending and international sales dampened.
Sula Vineyards, a prominent wine producer in India, has reported a 4.85 percent decline in consolidated net profit to INR 13.55 crore in the fourth quarter ended March 2024.
The company had posted a consolidated net profit of INR 14.24 crore in the same quarter a year ago.
During the quarter under review, consolidated revenue from operations amounted to INR 131.7 crore, compared to INR 120 crore in the corresponding period last year.
The company reported that total expenses in the fourth quarter rose to INR 116.83 crore, up from INR 100.83 crore in the corresponding period of the previous year.
Sula CEO Rajeev Samant said, “Our focus on premiumization has resulted in our Elite and Premium wine share reaching a record high of 75.1 percent in Q4, up from 71.7 percent a year ago.”
Furthermore, he stated, “Our wine tourism revenues continued to grow at double-digit rates, marking the fifth consecutive quarter of growth. Wine tourism remains a top priority, and our expansion efforts are moving quickly.”
Samant said that following the acquisition‘s completion, ND Wines is now a part of Sula. Work is set to commence on expanding the current 120 sq ft bottle shop into a sprawling 3,600 sq ft wine tourism destination, located less than 50 km from the Gujarat border.
“In addition to these projects, there are more in the pipeline, which will solidify Sula’s position as a leader in wine tourism in India,” he emphasized. “With a successful harvest, a thriving wine tourism industry, and increasing consumer demand for our high-quality Indian wines, the future looks bright for Sula.”
In the fiscal year that ended on March 31, 2024, the consolidated net profit amounted to INR 93.31 crore, representing an increase from INR 84.05 crore recorded in the previous fiscal year.
The company stated that for FY24, consolidated revenue from operations amounted to INR 608.65 crore, showing an increase from INR 553.47 crore reported in FY23.
Sula Vineyards announced that the board of directors has proposed a final dividend of INR 4.50 per share for the financial year ended on March 31, 2024, on the equity shares with a face value of INR 2 each. The recommendation is subject to approval by the shareholders at the upcoming annual general meeting.
Designed to captivate food aficionados, Landcraft Retail launched its first-ever store in Bandra West, Mumbai. Spread across four floors and covering 25,000 square feet, Food Square aims to emerge as the premier destination for gourmet enthusiasts. Boasting an in-house bakery, a dedicated truffle section, an impressive array of over 350 cheese varieties, and a cozy café, Food Square offers a plethora of experiences, including a salad bar, a specialty pet store as well as the spice mill. Prioritizing offline retail, Food Square is committed to delivering an unparalleled shopping venture.
Regarding her investment, Ujjwala Raut expresses, “Food Square embodies culinary brilliance on par with international standards, providing an unmatched shopping experience reminiscent of the finest establishments in the UK or US. With its diverse range of offerings and flawless accessibility, every aspect of this distinctive store radiates sophistication. It stands as a jewel in its own right, and I recognize significant potential in its vision.”
Regarding the utilization of the newly acquired funds, Lalit Jhawar and Mayank Gupta, the Co-Founders of Landcraft Retail, stated, “Landcraft Retail serves as an extension of our agricultural venture, Trueganic by Landcraft Agro. Trueganic offers fresh fruits and vegetables to more than 200 supermarkets as well as gourmet stores throughout West and South India. Venturing into retail was a natural progression for us. With a target of acquiring more than 200,000 customers, our aim is to achieve an annual revenue milestone of 300 Crores in the next three years and introduce over 20,000 SKUs across the store. This marks just the beginning of our journey, and we are steadfast in our commitment to bring global culinary experiences to India.”
Sharing insights on the brand potential of Food Square, Abhishek Agarwal, the Founder of Purple Style Labs, commented, “We’ve always believed in the luxury growth trajectory of Indian consumers over the next 2-3 decades, as demonstrated by scaling Pernia’s Pop-Up Shop by 100x in the last 6 years. By combining the untapped potential of gourmet offerings in luxury retail with the founding team’s expertise in introducing global food experiences to India, we are confident that Food Square will achieve remarkable success. With our investment, we aim to leverage our expertise to bolster Food Square and play a pivotal role in establishing the brand as the premier luxury gourmet shopping destination across India.”
Zomato, the online food delivery platform, has launched Weather Union, a crowd-supported weather infrastructure boasting over 650 on-ground weather stations.
According to Deepinder Goyal, Founder and CEO of Zomato, these weather stations provide real-time, location-specific data on crucial weather factors such as temperature, humidity, wind speed, rainfall, and others.
Excited to unveil India's first crowd-supported weather infrastructure, https://t.co/pUhhX8zKMe. A proprietary network of 650+ on-ground weather stations, it is the largest private infrastructure of its kind in our country.
He emphasized, “At Zomato, obtaining accurate and real-time weather data was essential for making informed business decisions and enhancing our customer service. Therefore, we undertook the responsibility of crafting a solution that could empower us in this regard.”
As part of its Zomato Giveback initiative, the company is providing free API access to all institutions and businesses nationwide, underscoring the significance of sharing resources for the benefit of the public.
Goyal highlighted that this extensive dataset harbors significant potential for unlocking various weather applications for enterprises and research institutions.
He expressed, “Having already partnered with CAS – IIT Delhi, we anticipate that more institutions and companies will derive benefits from this collaboration, thereby contributing to the overall betterment of our economy.”
Presently accessible in 45 Indian cities, its availability is anticipated to extend to additional cities in the near future.
Recently, the Gurugram-based company reportedly piloted offering priority food delivery to a select group of customers at an additional cost.
Additionally, Zomato recently hiked its platform fee by 25% to INR 5 per order and ceased its intercity delivery service, Intercity Legends, in response to tax demands and penalties imposed by authorities.
Food companies are employing unethical tactics such as incorporating bright colors and cartoon characters to entice children into craving junk food, as indicated by a report from campaign group Bite Back.
Bite Back, a charity and advocacy organization led by chef Jamie Oliver, enlisted nutrition experts to assess 262 sweet food products available in the UK. These products were manufactured by the ten largest food companies, with packaging designed to appeal to children.
The group has alleged that food manufacturers deliberately utilize packaging designed to captivate young minds, aiming to boost the sales of unhealthy food products.
Research conducted by Action on Salt, a consortium of food experts affiliated with Queen Mary University of London, revealed that 78% of the examined products were classified as unhealthy due to high levels of fat, salt, or sugar. Among these, 67% featuring a character were categorized as unhealthy. Additionally, 80% of the products utilized vibrant colors, playful patterns, and engaging lettering to capture children’s attention.
Bite Back discovered that businesses employ child-attractive packaging to market unhealthy products to children. This includes brands such as Kinder Surprise, M&Ms, Randoms, and Monster Munch Giants, all of which feature colorful, child-friendly wrappers on products with high levels of salt, sugar, and fat.
Bite Back’s research revealed that, according to analysis conducted by the University of Oxford, for seven out of the ten businesses examined, over two-thirds of their packaged food and beverage sales in 2022 comprised products categorized as high in fat, sugar, or salt (HFSS), thus deemed unhealthy.
It further stated, “Two businesses derive the majority of their food and beverage sales from unhealthy products. Only two out of the top 10 businesses generate less than a third of their sales from unhealthy products. Moreover, the top five categories of food and beverage products by sales value include chocolate, savory snacks, reduced sugar soft drinks, regular soft drinks, and ice cream – none of which align with the recommendations of the Eatwell Guide.”
Jamie Oliver remarked, “Whether it’s employing fun characters, vibrant images, or novel shapes, these savvy companies opt for them because they understand their appeal to young minds. This tactic… is just another method companies use to inundate children with unhealthy junk food.”
A House of Lords inquiry into ultra-processed food, diet, and obesity uncovered that all 58 child-appealing products made by Mondelēz were unhealthy. Similarly, all 22 products from Ferrero contained significant levels of fat, salt, or sugar. Furthermore, Mars, PepsiCo, and Kellogg’s were identified as selling numerous products with child-enticing packaging that are deemed unhealthy. Strikingly, none of Danone’s children-targeted products were found to be unhealthy.
James Toop, the Chief Executive of Bite Back, proposed that ministers implement new regulations to curb these “sinister tactics” employed by junk food giants, cautioning that we are “unwittingly heading towards a preventable health crisis.”
Companies such as Mondelēz have refuted allegations that their marketing targets children, contending that their products are primarily intended for adults and parents. They dispute the assumption that colorful packaging inherently appeals to children.
Advisors have recommended tighter regulations on food packaging and advertising to tackle childhood obesity, suggesting the implementation of a 9 pm watershed for advertising unhealthy products.
This step marks Triple B’s debut in the snacking sector, underlining its dedication to backing pioneering endeavors with game-changing capabilities. The latest funding round, securing £3.5 million for Doughlicious, lays the groundwork for the company’s ongoing development and expansion into new markets.
Having rolled out nationwide in Whole Foods Market outlets throughout the US, Doughlicious is ready to satisfy the growing appetite for snack choices with its selection of frozen Cookie Dough and Gelato Bites. Featured flavors encompass Chocolate Chip, Chocolate Truffle, Cinnamon Churro, and Mint Chocolate Chip.
Thomas A Bata, CEO of Triple B, expressed enthusiasm, stating, “Triple B is excited to collaborate with Doughlicious, a pioneer in the gourmet snacking realm. The remarkable 100% year-over-year growth in business over the past few years, coupled with the recent prosperous investment round, highlights Doughlicious’ potential for continued expansion and innovation.”
He added, “We’re thrilled to unite with Doughlicious and bolster its commitment to providing exceptional snacking experiences while advocating for sustainability and excellence in quality.”
Crafted by hand in London within its 22,000-square-foot production facility, which operates on renewable electricity, Doughlicious’ pre-portioned cookie dough snacks deliver a delectable, creamy texture while reducing food waste. Certified gluten-free and crafted from natural ingredients, Doughlicious’ offerings seamlessly marry taste with sustainability, aligning with the growing trend for guilt-free indulgence.
Kathryn Bricken, Founder of Doughlicious, chimed in, saying, “Doughlicious is thrilled to embark on this thrilling venture with Triple B. Our collaboration symbolizes a harmonious fusion of principles and aspirations, as we persist in reshaping the snack domain with our inventive offerings and steadfast dedication to excellence and eco-consciousness. Together, we eagerly anticipate broadening Doughlicious’ influence and bringing joy to consumers worldwide.”
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