The U.S. FDA is currently gathering information on products from Indian spice makers MDH and Everest after Hong Kong halted sales of some of their products for allegedly containing high levels of a cancer-causing pesticide.
An FDA representative said, “We are aware of the reports & are currently collecting more details about the situation.”
Hong Kong has stopped sales of three MDH spice mixes and one Everest spice mix for fish curries. Singapore issued a recall of the Everest spice mix, alleging that it consists of high quantities of ethylene oxide, which is unsafe for human ingestion and poses a cancer risk with long-term exposure.
MDH and Everest did not respond to requests for comment.
MDH and Everest spices, highly regarded in India and distributed across Europe, Asia, and North America, are now under scrutiny by Indian regulators for compliance with quality standards, following actions taken by Hong Kong and Singapore.
Lenskart, the omnichannel eyewear retailer, saw its consolidated operating revenue more than double to INR 3,788 crore in FY23 from INR 1,502 crore a year earlier. The Gurugram-based company reduced its losses from INR 102 crore in FY22 to INR 64 crore in FY23.
Expenses surged in tandem with the company’s expanding operations, reaching INR 4,025 crore in FY23, up from INR 1,726 crore in the previous fiscal year.
Despite facing a net loss, Lenskart disclosed earnings before interest, taxes, depreciation, and amortization (EBITDA) of INR 404 crore in FY23, a significant increase from INR 1 crore in the preceding fiscal year.
According to regulatory filings sourced from Tofler, a substantial portion of the expenditure was allocated to the cost of materials consumed, totaling INR 1,132 crore, accompanied by additional expenses amounting to INR 1,438 crore.
Lenskart remained profitable on a standalone basis, posting a net profit of INR 138 crore in FY23, marking a significant 25-fold increase from the previous fiscal. Standalone operating revenue amounted to INR 2,375 crore.
Snackfax reported on Thursday that Singapore’s Temasek and US-based asset manager Fidelity are in advanced talks to invest approximately $200 million in Lenskart through a secondary share sale, valuing the company at about $5 billion. Although Lenskart is projected to have concluded FY24 with a revenue of INR 5,500 crore, audited financials have not yet been filed with the Registrar of Companies.
Established in 2010, the company runs approximately 1,500 retail outlets across the country, in addition to its own online platform. Lenskart has inaugurated its largest manufacturing facility in Rajasthan.
In March of last year, Lenskart secured a total of $600 million in funding, marking one of the largest funding rounds for an Indian venture in 2023. The investment came from Abu Dhabi Investment Authority and ChrysCapital. This round comprised a notable secondary component, and it involved early investors like Chiratae Ventures selling their stake in Lenskart.
According to data from research firm Tracxn, the startup has accumulated a total funding of $1.7 billion, which includes proceeds from secondary share sales.
Lenskart runs approximately 1,500 retail outlets across India, in addition to its online platform. In 2022, the company executed a significant acquisition by purchasing Japan’s Owndays, with the objective of expanding into other Asian markets.
In September of last year, Lenskart’s subsidiary Neso Brands made a $4 million investment to acquire a “significant stake” in the Paris-based omnichannel eyewear brand Le Petit Lunetier. This acquisition aligns with Neso’s strategy, and Lenskart anticipates retailing such global brands across all its markets.
In December 2023, it was reported that Lenskart is strategizing to launch 300-400 stores in Southeast Asia within the following two years. At that time, the company had already established 70 stores in Singapore and intends to broaden its presence into Thailand and the Philippines.
Despite sluggish demand and restrained consumer spending, Tata‘s Trent is expected to have outperformed other Indian apparel chains last quarter by rapidly opening more of its youth-focused, low-priced stores.
Zudio, offering a range from dresses to perfume priced under INR 999 rupees ($12), appeals to young consumers seeking frequent wardrobe updates within a constrained budget.
Meanwhile, competitors have had to increase prices to offset rising costs, with shoe retailer Metro Brands even removing footwear priced below INR 1,000 rupees from its shelves. These price hikes further dampen sales, especially as consumers remain cautious about spending due to persistent inflationary pressures.
Arvind Singhal, chairman of business management consultancy Technopak Advisors, said, “A strong performance by Trent positions it as a standout, especially when compared to the underwhelming performance of its direct and indirect competitors.”
Three analysts surveyed by LSEG anticipate that Trent, the operator of Westside department stores, will experience a notable 46.1% surge in revenue to 31.90 billion rupees for the March quarter. This growth would signify the 11th consecutive quarter of surpassing expectations.
HDFC Securities remarked earlier this month that the organic growth in apparel and footwear, excluding Trent, continues to show a subdued trend.
In recent quarters, other apparel retailers such as Shoppers Stop and Tommy Hilfiger-licensee Arvind Fashions have reported modest growth compared to Trent, which introduced Zudio in 2016.
As of December 31, Zudio has expanded its presence with 460 stores across India, contributing to Trent’s total store count of 715.
In contrast, Shoppers Stop operated 105 department stores, Aditya Birla Fashion and Retail, the owner of Pantaloons, managed 4,753 stores, and V-Mart Retail, the operator of Unlimited, had 454 stores.
According to Singhal from Technopak, Trent’s competitors have attempted various formats instead of maintaining a clear focus, whereas Zudio is adopting a more gradual approach, first establishing itself in clothing before venturing into footwear.
Analysts anticipate that the introduction of new stores by Reliance Industries and Aditya Birla offering affordable apparel will not impact Trent’s growth trajectory.
Axis Securities analyst Preeyam Tolia mentioned that Trent is poised to maintain robust double-digit growth due to its expansion strategies, with newer players expected to capture market share from independent stores, which constitute the majority of Indian apparel sales.
Decathlon, the sports retailer, has named Sankar Chatterjee as its new Chief Executive Officer for India.
Chatterjee took up the position of CEO for the company in February 2024, as stated on his LinkedIn profile. With over 13 years of experience with the brand, Chatterjee previously served as the Country Digital Leader for Decathlon Sports India.
On his LinkedIn profile, he states, “Bringing over two decades of diverse experience in the sports industry, I currently hold the position of CEO at Decathlon Sports India. Leading a dynamic team of more than 5,000 dedicated individuals, we are committed to our shared mission of making sports accessible and enjoyable for all Indians.”
Chatterjee led the digital overhaul of Decathlon India, crafting a cohesive network of e-commerce, digital marketing, technology, data management, customer engagement, and logistics. Additionally, he played a pivotal part in the launch of Decathlon Connect stores across India.
Decathlon verified the development but refrained from commenting on any further alterations within the senior management in India.
Earlier this year, Decathlon’s global CEO Barbara Martin Coppola stated that India ranks among the top ten global markets, experiencing growth at a rate double that of others.
Patanjali Foods Ltd, which is mainly into edible oils, said that it will evaluate a proposal to acquire the non-food business of promoter group Patanjali Ayurved, led by Baba Ramdev. Patanjali Foods stated in a regulatory filing that its board reviewed the initial proposal it received from Patanjali Ayurved Ltd to sell the latter’s non-food business endeavour to the company.
“The board granted preliminary approval to explore the most efficient method of enhancing synergies with the non-food portfolio of Patanjali Ayurved, ensuring a fair and independent evaluation,” stated the filing.
The board also authorized officials to conduct due diligence, engage professionals, negotiate proposal terms, and report their findings to the Audit Committee and the board for further consideration.
In a move to bolster its product lineup, Patanjali Foods purchased the biscuits business of Patanjali Natural Biscuits Pvt Ltd for INR 60.03 crore in May 2021.
In addition, the company acquired the noodles and breakfast cereals division for INR 3.50 crore in June 2021, followed by the food business in May 2022 for INR 690 crore from Patanjali Ayurved.
Patanjali Foods stated that the proposal from Patanjali Ayurved “has the potential to bring synergies to the company’s product range through a variety of brands, thereby enhancing revenue and EBITDA growth.”
Established in 1986, Patanjali Foods Limited (previously recognized as Ruchi Soya Industries Ltd) stands as a prominent player in the FMCG sector.
The company operates in the edible oil, food and FMCG, and wind power generation domains through a portfolio of brands such as Patanjali, Ruchi Gold, Nutrela, and others.
In a recent Nestle shareholders’ meeting, attention was drawn to the sugar content in infant milk sold in less affluent areas. This discussion, prompted by a recent study, took place on April 18 and focused on critical decisions concerning Nestle’s product offerings.
ShareAction, an NGO focused on responsible investment, put forth a motion pressing Nestle to reduce the sales of food and beverage items containing high levels of sugar, salt, and fats. The proposal aimed to boost the percentage of sales derived from healthier products, requiring Nestle to disclose sales data categorized by the healthiness of the products and establish corresponding targets.
ShareAction stated, “While Nestle expresses a commitment to enhancing global health, the bulk of its worldwide sales in food and beverages consist of unhealthy products. Unhealthy diets are shortening lives by fueling conditions like diabetes, heart diseases, and certain cancers.”
However, Nestle rejected the claim that the majority of its products are unhealthy. In its statement, it argued that “people can enjoy indulgent products in moderation” and underscored that individuals have the autonomy to make healthy choices.
However, Nestle shareholders voted against this proposal, with only 11% in favor, expressing concerns about limiting the company’s “strategic freedom.” Nestle responded by affirming that individuals should have the liberty to enjoy indulgent products in moderation, highlighting the importance of personal responsibility in making healthy choices.
ShareAction condemned Nestle’s dismissal, advocating for the adoption of internationally recognized standards to define healthy food. They contended that Nestle’s significant global impact on consumer diets demands a shift towards healthier products, ultimately benefiting communities worldwide.
ShareAction urged Nestle “to adhere to globally recognized standards for defining healthy food, rather than diverging from reputable guidelines.” Additionally, they emphasized, “As the largest food company globally, Nestlé wields significant influence over the diets and lives of billions through its production, advertising, and sales. A shift away from unhealthy product sales by Nestlé would undoubtedly foster healthier communities worldwide and, in the long run, contribute to economic well-being.”
In 2023, Nestle set a goal to increase the sales of healthier food items by 50% by 2030. Nonetheless, ShareAction voiced apprehensions that this objective might merely mirror Nestle’s projected growth trajectory, lacking substantial influence on consumer eating habits and public health.
Previously, Action on Sugar criticized Nestle for the high sugar content found in cereals and yogurts targeted at children. Their research revealed that 65% of the surveyed yogurts contained one-third of the daily maximum sugar recommendation for 4-6 year-olds, based on the manufacturer’s suggested serving size.
The outcome of the Nestle shareholders’ meeting highlights continuing discussions regarding the obligations of food companies in advocating for healthier diets. Despite Nestle’s establishment of targets to enhance the sales of nutritious items, doubts linger regarding the company’s dedication to mitigating the impact of its products on consumer health. ShareAction’s push for more stringent standards mirrors the escalating worries about the global food industry’s responsibility in tackling public health issues.
India’s appetite for alcoholic beverages is rising at an unprecedented rate, fueled by a burgeoning middle-class demographic and its enduring love for whiskey. Over the course of almost a decade, the domestic spirits market has experienced a remarkable surge, with annual sales increasing by 100 million cases, soaring from 228 million cases in FY11 to 330 million in FY18.
However, following a downturn during the pandemic when the spirits market dipped to 311 million cases in FY21, it swiftly rebounded, adding approximately 100 million cases in annual sales within a mere three years. According to industry executives, citing the latest excise department data, sales surged to 412 million cases in FY24.
Annual sales growth in India since FY21 have surpassed the total spirits consumption of the UK, France, and Spain combined.
This is despite market growth slowing to 4% in the year ended March 31, which is a third of the growth rate seen in the previous two fiscal years. Companies attribute this phenomenon to the thriving demand across various categories and price ranges. Particularly, there’s a surge in demand for premium products and a noticeable trend toward at-home consumption.
We believe consumers should prioritize quality over quantity in their drinking choices. With 20 million individuals reaching legal drinking age in India annually, our focus remains consistently on promoting diverse drinking experiences rather than sheer volume. Despite this, India’s per capita alcohol consumption remains relatively low compared to many developed nations, indicating significant potential for growth in the years ahead,” stated Vikram Damodaran, Chief Innovation Officer at Diageo India.
Although the spirits industry has returned to stable growth levels following the 12-15% spikes witnessed in the post-Covid years, premiumization has remained a consistent trend across categories, contributing to overall value growth.
Of India’s almost 1.4 billion people, roughly 300 million are of legal drinking age. However, over half can only afford low-cost, unbranded spirits. The fast rising middle-class population that can afford premium-and-above liquor brands is approximately 150 million.
“In recent years, we’ve witnessed a notable transformation in consumption behaviors driven by premiumization and increased out-of-home consumption. Premiumization remains a strong force in our industry, propelled by the dynamic economy, rising disposable incomes, and evolving consumer aspirations. This trend is especially encouraging as consumers increasingly emphasize value over volume, resulting in sustained double-digit growth across premium categories,” remarked Jean Touboul, CEO of Pernod Ricard India.
He expressed optimism regarding the overall outlook for the Indian alcobev industry.
Third Wave Coffee Roasters, a Bengaluru-based QSR coffee chain, saw its losses nearly quadruple in the financial year ended on March 31, 2023. The startup reported a net loss of INR 54.3 Cr in FY23, an increase of 272% from INR 14.6 Cr in the previous fiscal year.
Established in 2017 by Ayush Bathwal, Anirudh Sharma, and Sushant Goel, the startup now runs more than 100 stores nationwide. Additionally, it markets coffee products via its website and various e-commerce platforms.
Despite a 356% surge in sales to INR 144.4 Cr in FY23 from INR 31.7 Cr in the prior year, the startup experienced a rise in its losses. The boost in operating revenue is credited to the expansion of retail outlets managed by the startup.
Third Wave Coffee generates revenue through the sale of coffee and other food items, both through offline and online channels.
With additional income factored in, the startup witnessed a 351.8% increase in total revenue, reaching INR 144.6 Cr from INR 32 Cr in FY22.
The startup’s overall expenditure surged by 332%, reaching INR 201 Cr in FY23 compared to INR 46.5 Cr in the preceding fiscal year.
The startup saw its procurement expenses skyrocket by 387%, reaching INR 43.3 Cr from INR 8.9 Cr in FY22.
Employee costs surged nearly fourfold to INR 57.6 Cr from INR 15 Cr in FY22. These costs primarily encompass wages, gratuity, and PF contributions. The increase in employee benefit expenses correlates with the startup’s expansion, marked by the opening of more outlets in FY23.
In FY23, the startup allocated approximately INR 43 Cr towards rent, marking a substantial increase of 310% from INR 10.5 Cr in the preceding fiscal year.
Third Wave Coffee witnessed a rise in its EBITDA loss, reaching INR 38.7 Cr in FY23 compared to 12 Cr in the previous fiscal year. Despite this increase, the EBITDA margin showed improvement, narrowing to -26.8% from -37.8% in FY22.
In September last year, the startup secured $35 Mn in its Series C funding round, spearheaded by private equity firm Creaegis. Notably, existing investors such as WestBridge Capital and Udaan cofounder Sujeet Kumar also participated in the funding round.
To date, the startup has secured a total funding of $62 Mn, with notable backers including Nikhil Kamath and Ayyapan Rajgopal.
In December last year, Third Wave Coffee underwent a restructuring initiative, resulting in the termination of approximately 10% of its workforce, or around 80 employees, aimed at streamlining its teams.
Third Wave Coffee competes with Slay Coffee, Blue Tokai, and Starbucks.
Nestle is investing $195 million to enhance its Purina pet-food processing facility in Wisconsin, USA.
The facility in Jefferson will undergo an expansion with an additional 35,000 square feet added to its premises.
The investment is projected to increase the production of Purina’s wet pet food brands, including Fancy Feast, Elegant Medley, Friskies, and Pro Plan, by close to 50%.
Approximately 100 new positions will also be established at the new location.
The Wisconsin Economic Development Corporation (WEDC), a local government agency, is backing the initiative with $1.7 million in “business development tax credits,” as stated in a joint announcement with Nestlé Purina PetCare.
The amount will be allocated to the Swiss food corporation over five years, contingent upon “the quantity of jobs generated” by Nestlé and “the level of capital investment during that timeframe.”
Nestlé’s Jefferson project is a part of its $2 billion investment into Purina’s overall “capital expansion projects” between 2020 and 2025, aiming to enhance its pet food manufacturing footprint.
In 2021, the company announced plans to invest $182 million in expanding its Purina factory in King William, Virginia, a project completed last July. Additionally, in 2020, it unveiled a $450 million investment in constructing a new pet food facility in North Carolina, which opened in March of this year.
In February 2023, Nestlé acquired a US pet treats facility from Red Collar Pet Foods located in Miami, Oklahoma. The financial details of the deal were withheld.
The company runs 23 pet food factories across the United States.
In October of last year, the Felix cat food producer announced its intention to invest approximately Ft90 billion ($246 million) into its European pet food division located in Hungary.
Nolan Terry, Purina’s chief technical officer, stated that the investment in Jefferson “strengthens our ties within the community.”
“We continue to prioritise sustainability, quality, as well as security in our operations, and we are grateful to our local and state partners for their support,” he added.
The Purina facility in Jefferson has been operational since 1910, with approximately 250 employees currently employed at the site.
Earlier this week, Nestlé disclosed its financial results for the first quarter of 2024. The company highlighted its Purina PetCare business as the primary driver of its overall organic growth.
Organically, Nestlé experienced a 1.4% increase in sales, driven by a 3.4% rise in pricing. However, the group’s real internal growth (RIG), which adjusts for pricing effects to reflect changes in volumes, declined by 2%.
In North America, Nestlé noted a widespread demand for its Purina PetCare business, reiterating it as the primary driver of growth for the region, although specific figures were not disclosed.
Wilde Brands, the snack manufacturer, has secured $20 million in funding to accelerate its growth and foster innovation.
KarpReilly spearheaded the funding round with additional investments from American musicians Jack Harlow and MGK, along with The Family Fund, Grey Space Group, and other existing strategic investors.
The investment will enable Wilde to capitalize on its achievements, expanding its retail footprint, amplifying marketing initiatives, and nurturing innovation as it aims to double its business in 2024.
Established in 2018, Wilde Brands prides itself on crafting what it asserts as the ‘world’s first’ chip composed of chicken breast, egg whites, and bone broth. Wilde offers seven flavors: Buffalo, Barbeque, Chicken & Waffles, Himalayan Pink Salt, Sea Salt & Vinegar, Nashville Hot, and Spicy Queso.
The chips can be found at major retailers across the nation, such as Target, Whole Foods, Walmart, Costco, and Kroger. They are manufactured in Wilde Brand’s USDA-certified facility located in Kentucky, USA, which has recently undergone expansion to meet the demands of its rapid growth.
Jason Wright, the founder and CEO of Wilde, commented, “Prior to Wilde, there was no product that combined the crunch of a chip with the protein, flavor, and real ingredients we offer. We’ve disrupted the snacking landscape, and our growth reflects that.”
“My aspiration was to craft a chip that’s not only crunchy but also packed with nutrients, but the journey wasn’t straightforward. It requires significant effort to pioneer something entirely new, to redefine a whole category. Witnessing the enthusiastic embrace of our journey by both consumers and retailers is the motivation that drives us forward. This funding will enable us to stay focused on what truly matters to us—empowering our fans to live Wilde-ly.”
Josh Wand, general partner at The Family Fund, expressed, “We’re committed to collaborating with the founders we support to build successful companies, and we’re thrilled to partner with the Wilde team. They’re primed for exponential growth and generating excitement for their brand, and we’re fully prepared to stand by them throughout their journey.”
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