Simply Good Foods to acquire plant-based protein shake brand OWYN in $280 Million deal

May 1, 2024

The Simply Good Foods Company has finalized a deal to acquire the plant-based ready-to-drink protein shake brand, Only What You Need (OWYN).

OWYN, a nutrition company, crafts its products from top-notch, pure ingredients, void of any artificial additives. Presently, the brand boasts five shake and powder options featuring plant-based protein.

The agreement, amounting to $280 million, aims to strengthen and broaden Simply Good Foods’ portfolio, enhancing its footprint in the ready-to-drink protein shake market segment.

Simply Good Foods’ acquisition of OWYN from United Nutritional Brands, an affiliate of Purchase Capital, and other minority investors, reinforces its standing in the nutritional snacking sector, further solidifying its position within the market.

Continue Exploring: Epigamia launches India’s first 25g protein milkshakes with zero sugar

Through the deal, Simply Good Foods will elevate OWYN products by utilizing combined research and development capabilities to improve core product performance and tap into untapped growth opportunities.

“The purchase of Only What You Need is strategically attractive as it adds a third, complementary brand to Simply Good Foods & strengthens our position in the rapidly expanding RTD shake market,” according to Geoff Tanner, the CEO and president of Simply Good Foods. To further enhance our category-leading presence with retail customers, OWYN expands its consumer base to include a new, additive group.

He further stated, “We are confident that our go-to-market capabilities will drive profitable growth by accelerating distribution expansion, enhancing household penetration, and leveraging our cost-effective supply chain.”

Mark Olivieri, OWYN’s president and CEO, chimed in, stating, “Since OWYN’s inception in 2017, our aim has been to prioritize truth and transparency in all our endeavors, while delivering the most delicious ready-to-drink protein shakes available. This deal aligns seamlessly with our mission, as Simply Good Foods shares our commitment to offering consumers high-quality products centered around ample protein, minimal sugars, and low net carbohydrate levels.”

Following the completion of the transaction, Simply Good Foods will collaborate with Olivieri and the OWYN leadership team, who will remain in their current positions.

Continue Exploring: Nestlé tackles protein gap with affordable, plant-based Maggi Soya Chunks

Roark Group successfully acquires Subway sandwich chain

SnackTeam

May 1, 2024

Subway, the American sandwich chain, has finalized its sale to affiliates of the private equity firm Roark.

The agreement, initially disclosed in August 2023, has been finalized following approval from federal regulators.

While the financial specifics were not publicly disclosed by the companies, reports from Reuters and Bloomberg suggest that the winning bid surpassed $9.5 billion.

Roark’s acquisition comes on the heels of a notable growth phase for Subway, marked by three consecutive years of sales upticks and the first positive global net restaurant growth since 2016.

Continue Exploring: Subway partners with T. Marzetti to launch bottled sauces in retail stores

Following the takeover, neither its executive staff nor the overarching plan will change, and it will continue to maintain its distinctiveness from the rest of Roark’s brands.

Subway CEO John Chidsey expressed, “The entire Subway system is thrilled that our sale to Roark has been finalized.”

“As we gaze ahead, our journey of growth is still unfolding. With an ongoing strategic commitment to providing superior food and enhancing the guest experience, our forthcoming chapter promises to be the most thrilling yet.”

Subway remains committed to its “Build a Better Subway” mission for its franchisees, employees, and customers alike.

This encompasses a dedication to culinary and digital advancements, the modernization of its restaurants, and a strategic expansion into international markets.

In 2024, the restaurant chain furthered its innovation by introducing Subway Sidekicks, a new category of hot food, along with a fresh selection of wraps served on a new lavash-style flatbread.

The company’s forward-thinking strategy is geared towards enriching the Subway experience on a global scale.

Continue Exploring: Subway unveils new lavash-style wraps, expanding bread lineup for first time in three years

Starbucks Canada joins forces with Dairy Farmers of Canada to advance dairy sustainability

SnackTeam

May 1, 2024

This week, Starbucks Canada initiated a fresh partnership with Dairy Farmers of Canada (DFC) to propel sustainability forward in the dairy industry.

Starbucks Canada has pledged CAD 500,000 (approximately $364,426) to fund dairy sustainability projects throughout this year, championing the endeavors of Canadian dairy farmers as they strive for net zero emissions.

The partnership encompasses three projects. The first, already underway, involves collaboration with Farm Credit Canada (FCC) and Lactanet for FCC’s Dairy Sustainability Incentive program. This program recognizes farmers who effectively implement environmental best practices and promotes ongoing sustainable farming by offering annual incentives to qualifying participants.

David Wiens, president of Dairy Farmers of Canada, expressed, “Starbucks’ support will acknowledge more farmers’ dedication to environmental stewardship and illustrate to Canadians that sustainability starts with the individuals producing their food. As farmers aim for net-zero emissions by 2050, we understand we cannot do it alone. DFC warmly welcomes Starbucks as they join us on this part of the journey.”

Continue Exploring: Starbucks brings fresh flavors to Latin America and the Caribbean with new beverage lineup

Lori Digulla, Senior Vice President and General Manager for Starbucks Canada, remarked, “At Starbucks, we’re dedicated to partnering with others to support thriving communities and safeguard the environment. As a company that relies on the dairy industry daily, we feel a responsibility to innovate and cooperate in responsibly and sustainably sourcing dairy. Teaming up with DFC, we aim to merge our expertise and resources to benefit Canada’s farming community and ensure a sustainable future for dairy production.”

Dairy plays a crucial role on the Starbucks menu, and bolstering the enduring vitality of the dairy industry represents one of the company’s recent strides toward sustainability. Just last week, the coffee giant teamed up with the Environmental Defense Fund’s Dairy Methane Action Alliance on a global scale, alongside Californian dairy brand Clover Sonoma.

The alliance was initially unveiled in December 2023 during the UN’s climate summit (COP28) in Dubai, with Danone, Bel Group, General Mills, Lactalis USA, Kraft Heinz, and Nestlé among its founding members.

By participating in the initiative, these corporations undertake to publicly disclose methane emissions within their dairy supply chains on an annual basis by the end of 2024. Each company has pledged to develop and release a methane action plan by the close of the year.

Starbucks’ action plan will specifically address methane emissions in regions where the company directly procures milk for its stores.

Continue Exploring: Starbucks expands footprint in Chile, opens first store in Osorno

Katie Anderson, Senior Director of Business Food and Forests at the Environmental Defense Fund, expressed, “We’re delighted to welcome Clover Sonoma and Starbucks to the Dairy Methane Action Alliance. With their inclusion, the alliance now encompasses an even broader spectrum of participants within the dairy sector, ranging from regional producers to processors to restaurants. This expansion underscores the growing momentum within the sector toward addressing methane emissions.”

Angela Anderson, Director of Starbucks Sustainable Dairy, further commented, “As a company, we’re dedicated to assisting farmers in our collective effort to decrease emissions throughout our dairy supply chain. We’re enthusiastic about joining the Dairy Methane Action Alliance and engaging in cross-industry collaboration to drive progress toward our resource-positive objectives.”

The Body Shop unveils new Activist Workshop store in Bengaluru’s Phoenix Mall of Asia

SnackTeam

May 1, 2024

The Body Shop, a British-based personal care brand, has inaugurated its new Activist Workshop store in Bengaluru. Situated at the Phoenix Mall of Asia in South Bengaluru, the store covers nearly 584 sq. ft. of retail space.

This marks the second complete workshop store of The Body Shop in the city. Presently, the brand boasts 23 outlets in Bengaluru, with 19 operating independently. Customers can return product packaging to the store for recycling, with over 70% of The Body Shop’s packaging being fully recyclable.

“We are excited to introduce our second Activist Workshop store in Bengaluru, a crucial market in South India, along with Hyderabad and Chennai,” stated Harmeet Singh, Vice President of Product, Marketing, and Digital at The Body Shop South Asia.

The Body Shop set to expand with 100 new stores in India by 2025, eyes double-digit growth

Operating in India since 2006, The Body Shop is managed by Quest Retail Pvt Ltd, a cosmetic manufacturing company based in Delhi.

Currently, The Body Shop operates 200 stores across the nation and extends its reach to over 1500 cities through online channels and partnerships with e-commerce brands in various marketplaces.

Established in 1976 in Brighton, England, by Dame Anita Roddick, the beauty retailer now runs approximately 2,500 retail outlets across over 80 countries.

Recently, Quest Retail reassured the media that the restructuring in the UK will not impact the Indian operations of the cosmetics firm, The Body Shop.

Continue Exploring: No impact on The Body Shop India amid UK restructuring, assures Quest Retail

Myntra Rising Stars programme onboards streetwear brand Urban Monkey

SnackTeam

May 1, 2024

Myntra‘s Rising Stars initiative, dedicated to bolstering indigenous direct-to-consumer (D2C) brands in India, has onboarded Urban Monkey, a streetwear brand, into its fold.

The brand is set to showcase more than 170 styles on Myntra’s platform, spanning various categories including apparel and accessories. Urban Monkey will feature a diverse range of products such as t-shirts, caps, sweatshirts, shirts, backpacks, jeans, and shorts.

“In our pursuit of delivering top-notch trend-focused fashion to our customers, we’re excited to introduce Urban Monkey on our platform. We have full confidence in the brand’s ability to captivate our fashion-forward clientele nationwide with its stylish array of premium apparel and accessories,” stated Maneesh Dubey, Senior Director of Category Management Marketplace at Myntra.

Continue Exploring: Myntra sees 75 Million new users in 12 months, non-metro areas drive majority growth

Established in 2013 by Yash Gangwal, Mumbai-based Urban Monkey operates within the mass premium market segment, catering specifically to millennials and Generation Z.

The brand will additionally utilize Myntra’s social commerce features, including Myntra Minis and Myntra Studio, to amplify customer engagement, improve overall visibility, and enhance brand recall.

“We’re thrilled to announce our collaboration with Myntra. With their extensive reach and solid presence, Myntra offers us an ideal platform to engage with our audience and broaden our footprint. Through this partnership, we aspire to triple our growth within the next two years, harnessing Myntra’s platform to achieve new milestones,” Gangwal expressed.

Flipkart-backed Myntra provides a diverse selection of over 6,000 fashion and lifestyle brands, featuring esteemed names such as H&M, Levi’s, U.S. Polo Assn., Tommy Hilfiger, Louis Philippe, Jack & Jones, Mango, Forever 21, Marks & Spencer, W, Biba, Nike, Puma, Crocs, M.A.C, and Fossil. Servicing more than 19,000 pin codes across the nation, this Bengaluru-based company ensures widespread accessibility for its customers.

Continue Exploring: Myntra’s marketplace reports positive EBITDA in Q4 2023 amid strong growth

Adani Wilmar’s Q4 net profit surges 67% YoY to INR 157 Crore; revenue down 5%

SnackTeam

May 1, 2024

Adani Wilmar, a fast-moving consumer goods (FMCG) company, reported a 67% growth in its consolidated net profit to INR 157 crore for the quarter ended March 2024. This marks a significant increase from INR 94 crore in the year-ago quarter.

During the reporting period, revenue from operations experienced a 5% year-on-year decline to INR 13,238 crore. This contrasts with the company’s revenues of INR 13,872 crore in the same period last year.

The company noted robust growth in sales volume, particularly in its edible oils and foods segments, both for the quarter and the entire fiscal year. This growth was primarily driven by increased retail presence.

Although edible oils saw an 11% increase and food and FMCG products experienced a 9% rise in volume, a notable decrease in the export of oil meals contributed to an overall volume growth of 3% year-on-year in the March quarter.

Continue Exploring: Adani Wilmar’s Q3 profit slides 18% YoY to INR 201 Crore; revenue witnesses a 17% decline

Breaking it down by segment, the edible oil division achieved revenues of INR 10,195 crore in the fourth quarter, accompanied by an 11% year-on-year growth in volume.

The growth rate of domestic branded sales volume surged even faster at 13% year-on-year, outpacing the overall growth. This marks the second consecutive year of faster growth in the branded portfolio, leading to notable gains in market share.

In the fourth quarter, the food and FMCG segment generated revenue of INR 1,341 crore, reflecting a solid underlying volume growth of 9% year-on-year.

In the fiscal year 2024, domestic revenue and volume both surged by 39%, while export volumes of rice plummeted by 46% due to imposed export restrictions.

Consequently, the overall food and FMCG revenue soared by 23% year-on-year, reaching INR 4,944 crore. Revenue from branded products in the domestic market has exhibited consistent year-on-year growth of over 30% for the past 10 quarters.

In the fourth quarter, the industry essentials business reported revenue of INR 1,702 crore, and for the fiscal year 2024, it amounted to INR 7,479 crore. However, the segment witnessed a 22% year-on-year decline in volume during the March quarter, largely attributed to a 45% decrease in the oil meal business.

“Our edible oils and foods business sustained robust volume growth, propelled by expanded retail presence. Our focused sales & marketing strategies, along with a regional approach in each category, are driving market share gains from local competitors,” stated Angshu Mallick, MD & CEO.

Adani Wilmar stock concluded Tuesday’s trading session 4.6% up, reaching INR 359 on the NSE.

Continue Exploring: BN Group enters wellness and fitness oil category with Nutrica launch, Targets INR 500 Crore revenue in three years

India’s diverse market landscape demands tailored state-wise focus, says Heineken CFO

SnackTeam

May 1, 2024

Heineken, the second-largest brewer globally, expressed astonishment at India’s accelerating momentum. This isn’t limited to the beer sector, where state governments are increasingly adopting progressive measures, but also extends to its ability to attract and nurture businesses across various industries. This transformation is positioning the Indian market as one of the final frontiers of growth for international companies.

Heineken’s chief financial officer, Harold van den Broek, remarked to investors, “India’s national confidence, coupled with its commitment to fostering prosperity across industries and enabling growth and attraction of work, is truly remarkable.”

United Breweries, under the ownership of Dutch brewer Heineken, commands fifty percent of the Indian beer market, boasting popular brands like Kingfisher, Bullet, and London Pilsner. Despite India’s warm tropical climate, promising demographics, and growing prosperity, it remains one of the largest beer markets for international brewers. However, significant challenges persist, including the disparity in tax rates between beer and spirits, particularly in key states like Karnataka, Maharashtra, and Haryana. Moreover, the limited availability of alcohol retail licenses, totaling just 80,000 across the country, including stores, pubs, and bars, presents additional obstacles.

Despite over 20 million people reaching the legal drinking age annually in the country, beer represents only 10% of the spirits market. Per-capita beer consumption in India stands at just two liters, trailing behind most Asian markets.

Continue Exploring: Heineken surpasses Q1 beer sales targets, maintains 2024 outlook

“We’re witnessing the alignment of perfect branding with market execution, albeit cautiously, as India’s market dynamics vary significantly from state to state. Each state requires its own tailored approach. However, we’re encouraged by the increasingly constructive and enduring dialogues with various state governments. India remains a strategic long-term investment for us,” Broek noted.

“We are observing a normalization of consumer behavior, indicating a growing acceptance of alcohol in several states.”

In India, over 80% of the total volume in the beer market is attributed to strong beer. Interestingly, many consumers of strong beer also show interest in purchasing value and low-priced spirits. This inter-category competition underscores the significance of price, including excise rates. According to the IWSR Drinks Market Analysis report, if regulations result in increased beer prices, the price gap between cheap Indian-made foreign liquor and beer narrows enough to prompt many consumers to switch their preferences.

Heineken reported a 20% organic increase in net revenue in India last quarter, primarily fueled by volume growth and a favorable price mix. Beer volume expanded in the low-teens, outpacing the market, a result influenced by adjustments in route-to-market strategies implemented last year.

In the premium beer segment, United Breweries commands less than a quarter of the market share, trailing behind AB InBev, known for brands like Budweiser and Corona. AB InBev has achieved strong performance in this segment, surpassing the domestic beer market, fueled by increasing demand for its premium offerings.

Continue Exploring: United Breweries unveils Heineken Silver Draught Beer, setting a new standard for crafted refreshment in India

Cremica Foods eyes INR 500 Crore funding, plans expansion and new product launches

SnackTeam

May 1, 2024

Akshay Bector, Chairman and Managing Director of Cremica Foods Ltd

Cremica Foods Ltd, known for its condiments such as mayonnaise and ketchup, is aiming to secure INR 500 crore, which would peg its valuation at INR 2,000 crore. According to Akshay Bector, chairman and managing director of Cremica Foods Ltd, the company plans to dilute 20-30 percent of its equity for this purpose.

The brand plans to use these funds to enhance operational efficiencies, support working capital needs, expand distribution channels, and venture into new product categories such as frozen items, specialty beverages, and pickles.

“We’re seeking funding to expedite the brand’s growth,” he stated.

Earlier, the brand had plans to raise funds during FY22-23, but the deal fell through due to regulatory issues.

Continue Exploring: Wow! Momo secures INR 70 Crore funding boost from Z3Partners to fuel expansion and R&D efforts

In addition to this, the brand plans to adopt a combined retail and HoReCa strategy for all its businesses in the future.

He affirmed, “We’ll begin with HoReCa for the new product launches, with plans to expand to retail for all products eventually.”

In Una’s Cremica Foodpark, the brand currently operates one manufacturing unit for sauces. Recently, it acquired an additional unit to further expand its sauce manufacturing capabilities.

The brand plans to expand the recently acquired unit by installing an additional production line.

Declining to disclose the acquisition cost, he mentioned, “It was a modest sum. The unit was distressed, and we acquired it. Now, we’re in the process of expanding it. However, the overall equipment cost for the project is estimated to be around INR 20 crore.”

The ongoing expansion is expected to boost capacity by approximately 25-30 percent. Additionally, the new unit within the food park will cater to the brand’s needs for the upcoming year.

“Given the current dynamics in the condiment industry, the situation is somewhat fluid. Hence, we’re gearing up to handle potential increases in volume should opportunities arise. Consequently, some of the capacities we’re constructing are progressing slightly ahead of schedule,” he elaborated.

Presently, the brand’s processing facilities cover an area of 20 acres, encompassing a building space of 300,000 square feet.

This financial year, the brand intends to broaden its distribution network, scaling up from 400 distributors and 20,000 retail touchpoints to 700 distributors and 40,000 retail touchpoints.

“Our goal is to expand our reach to 200,000 retail touchpoints within the next three years,” he stated.

Despite aiming for INR 450 crore in FY 23-24, the brand achieved a revenue of INR 340 crore.

Continue Exploring: abCoffee secures $3.4M in Series A funding led by Nexus Venture Partners, targets 150 stores by end of 2024

“Our margins have seen a 5-6 percent improvement. However, the revenue growth has been subdued due to a significant decline in HoReCa industry sales. We anticipate slight growth in business this fiscal year, but the substantial downturn in the food service industry has affected our sales. Nevertheless, with the sector showing rapid recovery, the future looks promising for both revenue and profits,” he elaborated.

This fiscal year, the brand expects to achieve an EBITDA of 15-20 percent, based on an expectation of reaching a turnover of INR 400 crore.

“Currently, our B2B operations constitute 15 to 20 percent of our total business, with the remainder being branded products. Meanwhile, HoReCa contributes to 70 percent of our total revenue,” he explained.

The brand remains optimistic about launching an IPO within the next two years.

“We’re steadfast in our IPO plans as margins have notably improved, and we’re committed to upholding our guidance on bottom lines for both this year and the next,” he concluded.

Continue Exploring: Biggies Burger secures pre-series A funding, valuation soars to INR 210 Crore, fueling rapid expansion plans

Manyavar’s parent Vedant Fashions records 6.3% rise in Q4 net profit to INR 115.79 Crore

SnackTeam

May 1, 2024

Vedant Fashions, the parent company of Manyavar, has reported a 6.3 percent increase in its combined net earnings, amounting to INR 115.79 crore for the fourth quarter (Q4) that ended in March 2024.

According to the BSE filing, its operational revenue in Q4 FY24 rose to INR 363.15 crore from INR 355.06 crore in Q4 FY23.

In Q3 FY24, the company’s total expenses increased to INR 239.35 crore, up from INR 209.61 crore in the same quarter of the previous fiscal year.

Continue Exploring: Manyavar’s parent Vedant Fashions sees 4.8% surge in Q3 FY24 consolidated net profit, reaches INR 157.71 Crore

Brookfield explores public listing for The Leela Hotels, initiates talks with bankers

SnackTeam

May 1, 2024

Brookfield Asset Management is planning to list its luxury hotel chain, The Leela Palaces, Hotels & Resorts, and is in talks with bankers for the process, according to people familiar with the matter.

Brookfield had committed to investing over ‘1,500 crore in the hotel chain following its initial deal, which involved an investment of ‘4,500 crore. This represented the largest-ever foreign investment in the Indian hospitality sector.

The Canada-based asset manager chose not to comment on the development.

The Leela’s portfolio presently comprises 13 hotels, both owned and managed.

India’s hospitality sector has experienced a significant rebound following the Covid-19 pandemic, with listed entities like the Tata Group-backed Indian Hotels Company posting record-breaking figures.

Reflecting the trend of increasing demand for premium experiences, luxury operators have been thriving. For instance, approximately 80% of the new deals in India now focus on the luxury and premium segments for Marriott International, a departure from the situation before the pandemic.

Continue Exploring: Hotel giants bet big on India: Radisson, Marriott, Hilton, IHG, and Wyndham compete in intense race for expansion

In 2023, hotel investments in India surged to $401 million, marking a fourfold increase compared to 2022. According to data provided by JLL, the first quarter of the calendar year 2024 witnessed an 80% year-on-year increase in deals, amounting to $78 million.

JLL reports that 2023 marked the highest number of assets traded in the past decade, with high-net-worth individuals driving most of the transactional activity. The year also witnessed a record number of signings and openings, with 25,176 keys signed and 12,647 keys opened. Additionally, there was a significant increase in greenfield projects, totaling 13,600 keys, compared to 8,000 keys in 2022.

Apeejay Surrendra Park Hotels launched its ‘920-crore initial public offering on February 5 of this year. Additionally, Juniper Hotels, jointly promoted by the Saraf Group and Hyatt Hotels Corporation, made its debut on stock exchanges in the same month. Juniper, the largest owner of Hyatt-affiliated hotels in India with 1,836 keys, is co-owned by Saraf Hotels and Two Seas Holdings, an affiliate of Hyatt Hotels Corp.

Continue Exploring: Hotel investments in India surged to $401 Million in 2023, reveals JLL Report

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