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.”
Jubilant Foodworks Ltd (JFL) has unveiled a new outlet of the Chinese food chain Hong’s Kitchen in Delhi, as disclosed by a company executive on social media. Positioned at Unity One Mall, Rohini, this marks the 28th venture of Hong’s Kitchen.
Prem Chhabra, Deputy Manager of Business Development at JFL, shared on his LinkedIn profile: “Excited to announce the opening of Hong’s Kitchen at Store no. 28, located in Unity One Mall, Rohini.”
Other outlets of Hong’s Kitchen include those situated at Unity One Mall in Delhi’s CBD Shahdara and Omaxe Chowk in Chandni Chowk.
JFL is the proprietor of Hong’s Kitchen as well as the operator of fast-food chains such as Domino’s Pizza and Dunkin’ Donuts. Hong’s Kitchen made its debut in India at Eros Mall, Gurugram, in 2019 under JFL’s management.
Established in 1995, JFL stands as one of India’s premier food service enterprises, operating under the umbrella of the esteemed Jubilant Bhartia Group.
Meena Bazaar, a Delhi-based ethnic wear retailer, has inaugurated its fifth retail store in Bengaluru, as disclosed by a company official on social media. The new high-street store is nestled in the heart of Commercial Street, a bustling shopping destination in the city.
In a LinkedIn post, Manish Jeetwal, business head at Meena Bazaar, expressed his excitement, stating, “We are delighted to declare the grand opening of our latest establishment at Bengaluru’s Commercial Street. This signifies our fifth venture in the lively city of Bengaluru, and we are thrilled to broaden our footprint in this dynamic market.”
Founded in 1970 by Suresh and Vishnu Manglani, Meena Bazaar specializes in a range of ethnic wear essentials, encompassing lehengas, kurta sets, sarees, and suits.
Starting as a modest shop in Chandni Chowk vending printed sarees, the company has now expanded to over 70 locations across India and the United States. Meena Bazaar has set its sights on establishing more than 250 Exclusive Brand Outlets (EBOs) by 2025.
The Tourism & Hospitality Skill Council (THSC) will be organizing the IndiaSkills 2024 Hospitality Competitions, a three-day event scheduled from April 27 to April 29. The event will take place at the Institute of Bakery and Culinary Arts, and Hotel Saket 27 in New Delhi. The competition serves as a cornerstone of the Ministry of Skill Development & Entrepreneurship’s IndiaSkills 2023-24 program, spotlighting the emerging talents in five key hospitality skills: Bakery, Cooking, Restaurant Services, Patisserie and Confectionery, and Hotel Reception.
To participate in the IndiaSkills Track-II Competitions in Delhi in 2024, competitors from all over the nation battled for a spot. In the five hospitality skill sets, 194 individuals made the short list after a demanding screening procedure that included physical competitions and an MCQ-based examination. IndiaSkills 2024 is the route to the coveted WorldSkills competition, which is the most prestigious skills event globally and is commonly referred to as the “Olympics of Skills.”
Rajan Bahadur, CEO of THSC, emphasized the importance of IndiaSkills 2024, stating, “These competitions play a crucial role in identifying and nurturing vocational talent in India. We’re thrilled to participate in an event that not only showcases skill development but also enables young professionals to represent our nation on the global stage. Our partnership with the National Skill Development Corporation (NSDC) and other industry stakeholders underscores our dedication to cultivating the future generation of skilled champions.”
These competitions aim to pinpoint and cultivate promising talent through guidance and mentorship provided by a diverse team of experts hailing from colleges, academies, industries, and institutes. Among the winners in each of the five skills at the IndiaSkills Competition, the top three will undergo rigorous training and engage in two additional physical contests. These additional challenges will determine the singular competitor who will earn the prestigious opportunity to represent India at the WorldSkills event in Lyon, France.
Young professionals have a rare opportunity to demonstrate their abilities and win recognition across the country through the IndiaSkills 2024 Hospitality Competitions. To ensure a thorough and impartial evaluation, a panel of industry experts from top universities, academies, & institutions will analyse the participants.
The Tourism and Hospitality Skills Council (THSC) was founded in 2014 and is India’s premier body on skill development and vocational education. Over a million kids have been successfully certified by THSC since its inception in 2014, and over 1.5 million have been enrolled. Through its network of more than 2000 industry members, more than 100 colleges, and more than 600 institutes, THSC hopes to meet its mission of assisting millions of beneficiaries in finding decent jobs that fulfil their needs by fostering a strong industry-aligned skilling ecosystem.
AussieBum, the renowned Australian label specializing in men’s swimwear, underwear, and apparel, plans to establish its own manufacturing unit in India, as announced by Sean Ashby, the company’s founder and CEO. This strategic move aims to cater to both domestic and global markets.
Ashby stated, “By localizing production, we’ll generate employment opportunities and seamlessly integrate Indian talent and resources into aussieBum’s design and innovation process.”
Established in 1999 by Sean Ashby, AussieBum evolved from a modest swimwear venture into a renowned global brand.
“We acknowledge India’s potential as an emerging fashion hub, where global and local styles intersect. Our brand aims to meet the style preferences of contemporary Indian men, offering apparel that seamlessly combines fashion, functionality, and sustainability,” the executive emphasized.
Indian consumers are showing a growing preference for sustainable fashion options. In October 2023, an Australian-based men’s innerwear and athleisure brand commenced its operations in India.
The brand operates manufacturing facilities in China, Bangladesh, Thailand, and Vietnam.
The innerwear market in India is valued at approximately INR 48,123 crore and is expected to grow at a compound annual growth rate (CAGR) of 11.5%, reaching a market worth of INR 26,952 crores by 2025.
Taking heed of the government’s advisory against marketing beverage mixes and drinks like Bournvita, Horlicks, and Boost as “health drinks,” a category not officially recognized in food regulations, e-commerce platforms have initiated the classification of these products as “nutrition drinks.”
For example, BigBasket has begun eliminating the term “health drinks” from its search options. While consumers may still encounter beverages labeled as “health drinks” on other company websites and apps, achieving full compliance will take some time. Industry executives explained that this process involves extensive adjustments to product listings and backend systems across various companies.
Beyond e-commerce platforms, consumer goods companies are also adjusting their product positioning internally to adhere to government directives. Hindustan Unilever, for instance, is now categorizing its brands Horlicks and Boost as “functional nutrition drinks” internally. This marks a shift from their previous labeling as health food drinks in investor presentations until the December quarter.
“We updated the labels as necessary to ‘functional nutrition,’ which I also believe is the appropriate…much improved way to refer to the category,” stated Rohit Jawa, CEO & MD of HUL.
“We see a significant role for the functional nutrition category within the community, addressing micro-nutrient deficiencies and providing consumers across all income levels with appropriate daily nutrients. Additionally, the market for this category remains relatively untapped, presenting ample opportunities for growth,” Jawa remarked. He added that the company continues to observe increasing penetration of Boost and Horlicks.
A company insider clarified that there has been no alteration in the packaging of its products, as Horlicks and Boost packs were never labeled as health drinks to begin with.
Regarding the e-commerce sector, executives noted that changes to mobile apps are being implemented more swiftly compared to websites, although it may take some time for these modifications to be reflected on the website.
On the BigBasket website, the listing for Horlicks Millet Chocolate is characterized as both a malt-based food drink and a health food drink. Meanwhile, on the Swiggy Instamart app, the listing for Horlicks Classic Malt Refill drink mix has been described as the “ultimate health and nutrition drink for kids.”
Walmart’s Flipkart indicated that the “reclassification” is still ongoing. “We are currently collaborating with brands regarding the directive on listing healthy drinks,” stated a spokesperson for the company. Amazon has already labeled the majority of products as “nutrition” drinks or, in some instances, as malt-based food drinks. A company insider confirmed that the term “health drinks” is no longer in use.
Queries directed to Swiggy, Zepto, and Blinkit remained unanswered.
“BigBasket has discontinued health drinks as a category as well as removed this as a search term and from product descriptions,” a company spokesperson said.
Puru Gupta and Sreejith Moolayil, Co-Founders, True Elements
In a world where health is wealth, a Pune based company, True Elements stands as a beacon of hope, offering wholesome breakfast alternatives and snacks that nourish both body and soul. Founded in 2014 by Puru Gupta and Sreejith Moolayil, True Elements emerged from a shared vision to promote preventive healthcare. What began as an aggregator of health food brands blossomed into a private label and eventually evolved into the True Elements brand we know today.
In an exclusive interview with the SnackFax team, Puru Gupta shared the insights behind True Elements’ remarkable journey and its mission to promote preventive healthcare while empowering individuals to prioritize their well-being.
Gupta shared that True Elements’ journey began with a simple yet profound realization: people often prioritize health only when faced with adversity. Determined to change this narrative, Puru and Sreejith embarked on a mission to redefine the breakfast and snack landscape in India.
“Personal challenges motivated Sreejith and me to pursue preventative healthcare. We saw a common pattern: people prioritise their health only when it’s too late or someone close to them becomes unwell. This is how we founded Healthy World, which was originally an aggregator of healthy food companies. It eventually evolved into a private label called True Elements. Today, True Elements is a nutritious breakfast and snack brand that produces Food That Does Not Lie,” he explained.
True Elements emerged as a healthy breakfast and snacks brand, aiming to offer ‘Food That Does Not Lie’. While recognizing the sensitivity of taste preferences in the country, the brand is focused on developing breakfast and snack options that prioritize health without compromising on flavor, shared Gupta.
“The goal was to motivate people to eat clean, healthy breakfasts and snacks from 8 a.m. to 5 p.m. The name True Elements implies that we are true to what we stand for. Being transparent and sustainable is in the brand’s DNA, so what you see in the ingredient list on the package is precisely what’s inside. For example, if there is sugar in the product, we name it explicitly without disguising it or using jargons to make it complicated.”
Gupta highlighted that quick commerce has emerged as one of their fastest-growing channel clusters. Additionally, their Seeds and Seed Mixes, alongside trail mixes, have been instrumental in acquiring a significant number of customers for the brand. Reflecting on the past year, Gupta shared that 2023 was a journey marked by both challenges and triumphs for True Elements, shaping its trajectory. “Our work in millets got recognition,” Gupta emphasized.
True Elements began 2023 by representing India at The Saveurs & Métiers Expo in Belgium, hosted by APEDA where Sreejith raised awareness about indigenous millets. This was followed by numerous national and state level trade events. They were featured in the President’s coffee table book on Millets. The brand got award as the runner up for Best Millet Startup Award by FICCI for innovating – Cereal Biscuit Jowar (an upcycled cereal biscuit made from Jowar, without sugar, jaggery or honey).
“We wrapped up 2023 with another international Millet event: ASEAN-India Millet Festival in Indonesia. This is just the start; we have a long way to go in turning our ‘Har Din Millet’ dream into a reality,” he said.
However, amidst the accolades, True Elements faced two key challenges: navigating a crowded market saturated with health-focused brands and managing escalating channel costs. “Firstly, clutter of numerous brands joining the bandwagon, it can be difficult to ensure that consumers are not misled by false information. Secondly, with similar businesses entering the market, channel costs become burdensome. As a result, a low-margin category experiences additional cost pressure from greater channel margins,” he told us.
Despite these hurdles, the brand persevered, launching a diverse range of products—from millet-based innovations to clean peanut butter and flavored dry fruits—that resonated with health-conscious consumers nationwide.
“Recently, we have launched a super oats and oats pro range. In the Year of Millets, we’ve developed new millet products such as Jowar Poha, Ragi Huri Hittu, Cornflakes Pro, Millet & Pulse health mix, and Millet Shake. We have also entered the spread category. Our clean peanut butter is manufactured from 100% slow-roasted peanuts and has no palm oil, emulsifiers, or artificial preservatives. We introduced a new line of flavored dry fruits and nuts, Baked Cashews and Almonds, in four delicious flavors to meet the growing demand for nutritious snacks. We launched Panch Ratna Trail Mix, a blend of 5 premium dry fruits suitable for snacking, yoghurt topping, and baking,” informed Gupta.
As demand for nutritious breakfast options rises, driven by increased health-consciousness and busy lifestyles, the global breakfast food market is projected to grow substantially. Between 2022 and 2027, it is expected to increase by USD 125 billion, with a CAGR of 5.31%. Notably, the US dominated the market in 2017, generating an estimated annual revenue of USD 83.60 billion.
While witnessing the shift in a dynamic health food industry, True Elements remains at the forefront of innovation, constantly adapting to changing market trends and consumer preferences. Leveraging data insights and consumer feedback, the brand pioneer’s new product offerings that cater to diverse needs and tastes.
“We use Amazon Pi to provide a holistic view of our brand’s data into category trends, search patterns, and our competitive positioning. This enables us to introduce new products and combinations based on consumer purchasing patterns, identify trends, and to improve the brand. Many of our innovative product ideas stem from direct interactions with consumers,” he said.
True Elements launched peanut butter driven by feedback from Rolled Oats consumers seeking a clean peanut butter option. This feedback, coupled with the observed protein deficiency in the market, led them to develop the product. Similarly, consumer interactions at gyms highlighted a lack of easily accessible vegetarian, plant-based protein options for everyday use. This insight inspired the launch of Super Oats and Super Muesli.
Similarly, recognizing regional preferences, they introduced Oats Pro range, featuring flavors like Desi Masala, tailored for markets like Kerala and Tamil Nadu, who find plain oats boring. The approach with millets follows a similar strategy, incorporating nutritious grains into regional delicacies like Jowar Poha, Ragi Huri Hittu, and Mysore Millet Dosa Mix to cater to the diverse Indian palate.
In 2024, True Elements is set to launch exciting new products as an extension of their Oats range. This includes Oats Pro Chilla, a quick, protein-packed breakfast option. Other additions to their Oats-based products include Oats biscuits and Oats chocolate shakes made with clean, gluten-free ingredients.
Furthermore, True Elements will expand its muesli portfolio with Muesli Fruity Delight, featuring nuts, dried fruits, oats, and millets, sweetened naturally with jaggery powder and beetroot powder.
Highlighting the company’s dedication to sustainability, Gupta emphasized that sustainability extends beyond its product offerings to its operations, packaging, and sourcing practices. Through initiatives such as contract farming, plastic upcycling, and advocating indigenous millets, the brand champions environmental stewardship and social responsibility. By empowering farmers, minimizing plastic waste, and promoting eco-friendly ingredients, True Elements demonstrates an approach to sustainability that benefits both people and the planet.
“Direct sourcing, contract farming with farmers in rural Maharashtra, we eliminated middlemen, resulting in excellent raw materials and a 20% increase in income for farmers. Additionally, we collect empty packets from clients and recycle them in our facility to produce biofuel for communities in Maharashtra. We have recycled approximately 40,000 kgs of plastic thus far,” Gupta explained.
Looking ahead, True Elements remains steadfast in its vision to become the preferred brand for nutritious and transparent food choices in every household. In the short term, the brand aims to establish leadership in key product categories and consolidate its market share. In the long term, True Elements seeks to embody authenticity, integrity, and wellness, becoming a trusted companion on every individual’s journey to better health.
“In the short term, we would like to build leadership in the Seeds / Dried Fruits and Nuts aisle in the store, along with commanding share from the leader brands in Oats. In the long term, we aspire to be the brand in every household for any of their 8am-11am-5pm food needs with a solution that is True to them. Whenever a customer thinks of eating food that does not lie, they should think of True Elements,” he pointed out.
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