After pesticide controversy, MDH now under fire for salmonella contamination

April 29, 2024

Nearly one-third of shipments from Mahashian Di Hatti Pvt Ltd (MDH) have allegedly been declined by the United States since October 2023 due to concerns over salmonella contamination, as reported by the Indian Express.

The report asserts that in 2022, US customs authorities refused entry to approximately 15 percent of MDH shipments, a figure that escalated to nearly 31 percent in 2023. Furthermore, in 2023, the US Food and Drug Administration (FDA) initiated a recall of Everest Food Products after a positive Salmonella test.

The report comes amidst actions taken by Singapore and Hong Kong authorities on Indian spice brands, including MDH and Everest, over the presence of the cancer-causing pesticide ethylene oxide in multiple spice mixes.

On April 5, The Centre For Food Safety of The Government of the Hong Kong Special Administrative Region revealed that several spices contained ethylene oxide in three spice blends from MDH Group – Madras Curry Powder, Sambhar Masala Powder, and Curry Powder.

Continue Exploring: Singapore recalls Everest’s Fish Curry Masala due to high pesticide levels

As part of its regular Food Surveillance Programme, the CFS obtained the aforementioned samples from three retail locations in Tsim Sha Tsui, respectively. The test results showed that ethylene oxide, a pesticide, was present in the samples. In a statement, the CFS stated that it had notified the affected suppliers of the abnormalities and given them instructions to cease sales and remove the impacted products from the shelves.

The report additionally notes that pesticide contamination was found in the Fish Curry Masala from Everest Group.

Last week, Singapore also initiated similar measures against Everest, asserting that the levels of ethylene oxide surpassed the permissible limits.

The International Agency for Research on Cancer has designated ethylene oxide as a Group 1 carcinogen. There are significant health hazards associated with this classification, one of which being an increased chance of breast cancer.

As per the US Food and Drug Administration (FDA), Salmonella comprises a group of bacteria responsible for causing gastrointestinal illness and fever, known as salmonellosis.

Continue Exploring: US FDA probes contamination allegations in Indian spices MDH and Everest

As stated by the Centers for Disease Control and Prevention (CDC), Salmonella naturally resides in the intestines of animals and can be present in their feces. If humans come into contact with salmonella-infected animals or items in their surroundings, the bacteria can spread to them.

According to the CDC, individuals infected with Salmonella may experience symptoms such as diarrhea, fever, and stomach cramps. Certain populations, including children under 5 years old, adults over 65 years old, and individuals with weakened immune systems, may face more severe illness, necessitating medical attention or hospitalization.

Premiumization and cost cuts boost margins for HUL, Tata Consumer, and Nestle India in Q1

SnackTeam

April 29, 2024

Amidst the heightened regulatory scrutiny surrounding processed foods, Hindustan Unilever (HUL), Tata Consumer Products (TCPL), and Nestle India have released their March quarter results. Here’s what you need to know:

Although volume growth remained subdued to moderate across the three companies, there has been an expansion in gross margins. This increase in margins can be attributed to improved operational efficiency and productivity gains. Various strategies such as implementing price hikes, reducing advertising expenditures, and streamlining costs have been employed to achieve this margin expansion.

For TCPL, enhanced margins in international operations contributed to the overall margin expansion. HUL experienced an increase in gross margin thanks to reduced input costs and a more favorable product mix. Nestle India saw margin expansion driven by elevated realizations and decreased input costs.

Premium Segment Performance:

While overall growth remained subdued, HUL’s premium portfolio across various categories continued to perform strongly. Premium skincare products, in particular, witnessed robust double-digit growth.

Continue Exploring: Hindustan Unilever prioritizes beauty and digital capabilities in strategic restructuring for future growth

In TCPL’s domain, both premium and sub-premium segments excelled, surpassing the overall performance of the Indian beverages sector, constituting over two-thirds of total Indian tea sales. In FY24, the company introduced 18 new premium products compared to 6 in FY23. Value-added salts experienced a 34% growth in FY24, representing 9% of the Indian salt market. Nestle India revealed its venture into premium coffee with its Nespresso brand and remains committed to expanding its premium product offerings.

Continue Exploring: Nestle India’s Q4 net profit jumps 27% to INR 934 Crore amid strong sales growth

E-commerce Sales Growth:

In fiscal year 2024, HUL witnessed a remarkable 50% growth in ecommerce sales within its beauty and skincare category. TCPL, on the other hand, experienced a notable 35% increase in ecommerce channel sales. Ecommerce sales accounted for 6.8% of Nestle’s total revenue during the same period.

Continue Exploring: Tata Consumer Products Q4 net profit dips 19% to INR 217 Crore despite revenue growth

It utilized this platform to enhance the accessibility of its petcare products. Nestle’s rapid commerce expansion was supported by acquiring new users and employing targeted digital communication strategies.

Strategic Acquisitions and Diversification:

To stay ahead of the competition, the companies have adopted various strategies including price reductions, brand investments, launching new products, and acquiring direct-to-consumer (DTC) startups and significant regional players, notably in the spices segment. Tata Consumer successfully acquired Capital Foods and Organic India. Additionally, it ventured into the vending business, surpassing 1,000 machines in operation by FY24. Meanwhile, Nestle introduced the Nespresso brand of coffee and vending machines in India.

HUL experienced urban-led growth in the March quarter. The FMCG giant anticipates a gradual rebound in rural demand moving forward.

Both TCPL and Nestle have directed their efforts towards expanding into ‘rurban’ regions, which refer to rural areas situated on the outskirts of towns or cities. Nestle’s coverage extends to over 200,000 villages.

Fluctuations in commodity prices could potentially impact companies’ profits in the near future. The monsoon season also remains a crucial factor to monitor. Forecasts indicating an above-normal monsoon are promising, as a regular monsoon can contribute to boosting rural demand.

Continue Exploring: Tata Consumer Products seals INR 7,000 Crore dual acquisition, adding Capital Foods and Organic India to portfolio

Men’s ethnic wedding wear demand surges: Sherwanis lead the trend as sales jump by 25%

SnackTeam

April 29, 2024

Wedding Accessories — (Representative Image)

The men’s fashion scene is currently buzzing with the trio of ‘band, baja, and sherwani’. Over the past three years, sales of traditional wedding attire for men, particularly sherwanis, have surged by 25%. This escalating demand is fueling intense competition in the wedding wear sector, prompting established names like Aditya Birla Fashion, Vedant Fashions, and Raymond to ramp up their offerings significantly.

Ashish Mukul, brand head at Tasva, highlighted the significant rise of sherwanis, constituting over a quarter of total sales. “Tasva’s business has doubled in the past year, with the ‘angrakha’ silhouette gaining notable traction among customers, fueling this growth trend,” said Mukul. He attributed this success to extensive retail expansion nationwide and the introduction of diverse designs tailored to meet consumer preferences.

In the past two years, Aditya Birla Fashion, marketing Tasva, and Raymond’s Ethnix have collectively opened approximately 183 stores. Vedant Fashions, better known as Manyavar, accounted for about 94 of these stores. Projections from I-Sec indicate that these two brands are expected to add around 300 more stores over the next two years.

Continue Exploring: Ethnic wear brand Kalki charts course for global expansion & personalized tailoring

The listing success of Vedant Fashions has intensified competition in the wedding-wear segment among other branded players, as stated in the report. Aditya Birla Fashion launched Tasva in partnership with fashion designer Tarun Tahiliani in FY22, and Raymond introduced Ethnix in FY19, but began scaling up aggressively from FY22 onwards.

Vedant Modi, Chief Revenue Officer at Vedant Fashions, mirrors a comparable pattern. “Over the past three years, sales of men’s wedding attire, including sherwanis, have surged by around 20-25%, signifying a growing demand. This trend highlights the substantial impact weddings have on boosting sales of ethnic wear. The rise in sales remains consistent across all categories of wedding garments, demonstrating robust market performance and consumer enthusiasm for our products.”

“The upscale segment of wedding attire is witnessing significant expansion, propelled by the aspirational essence of weddings. Customers are gravitating towards top-tier products for memorable occasions, fueling strong growth in our luxury brand, Twamev.”

In FY2023, the Indian men’s apparel market was valued at over INR 2.2 lakh crore, exhibiting a nearly 10% compound annual growth rate (CAGR) from FY2015-2020. However, the pandemic led to a contraction of 3.6% from FY2020-2022. Nevertheless, a robust recovery is evident, with projections indicating a CAGR of 18% over the next four years, according to consulting firm Technopak. Ethnic wear constitutes approximately 6% of the total men’s wear market and is anticipated to experience a CAGR of nearly 20% over the next four years.

Continue Exploring: Ethnic menswear brand Tasva makes debut in Kolkata

The apparel market is experiencing significant growth due to factors such as the expanding middle class, increased discretionary spending, and evolving consumer demographics. Notably, the premium segment, particularly sherwanis, is seeing substantial expansion.

Industry experts note that customers are now more discerning and knowledgeable about Indian attire, placing a strong emphasis on meaningful designs and prioritizing comfort alongside luxury. As a result, brands have successfully tapped into this growing market by making high-quality designs more accessible to a broader audience.

Additionally, among ethnic apparel, kurtas and kurta sets rank as some of the most popular items. Factors such as bolstering the network and introducing new and competitive offerings contribute to this growth. Physical stores continue to dominate as the primary sales channel, accounting for roughly 90% of the market.

Continue Exploring: Bootstrapped ethnic fashion brand Libas surpasses INR 500 Crore revenue milestone in FY24; eyes 60-70% growth and seeks first round of funding

Govt pushes for ONDC shopfronts on e-commerce giants Amazon and Flipkart

SnackTeam

April 29, 2024

The Centre has instructed Amazon and Flipkart to establish storefronts for the Open Network for Digital Commerce (ONDC) on their home pages, according to executives familiar with the matter. This directive aims to enhance the scalability of operations for the government-backed network and improve assistance in deliveries. They emphasized that the goal is to boost operational efficiency and address any glitches and delays on ONDC.

T. Koshy, the managing director of ONDC, stated that the network is “actively engaging in discussions with Amazon and Flipkart regarding phased participation, with anticipated results forthcoming soon.”

Queries directed to Amazon and Flipkart went unanswered.

This development holds significance as ONDC, initiated in January last year, was positioned as a strategic effort to challenge the dominance of Amazon and Flipkart.

Continue Exploring: Govt-backed ONDC sees rapid adoption, CEO T. Koshy expects tenfold merchant growth in coming year

In India, Amazon boasts a seller base exceeding 1.1 million, with over 50% hailing from tier 2 towns and cities.

In February of last year, Amazon revealed its initiative to integrate its logistics network, covering pickup to delivery, and SmartCommerce services with ONDC. SmartCommerce, Amazon’s software solution, empowers small and medium-sized businesses in India to expand their operations across digital platforms. Amazon stated that these small businesses would now have the capability to leverage it to join the ONDC network.

At that time, Flipkart’s logistics subsidiary Ekart was in the advanced stages of integration with ONDC. The logistics division of Flipkart had already become part of the network.

Sources had indicated at the time that Amazon wouldn’t fully integrate Amazon Transport Services, and only the last mile would be linked with ONDC. They had mentioned that there were no immediate plans to integrate Amazon India’s core marketplace with ONDC.

Should Amazon’s core marketplace become integrated with ONDC, users of the US e-commerce giant will gain access to product catalogues from over 105,000 non-mobility sellers currently active on the government-supported network. This integration facilitates the onboarding process for smaller players, eliminating the need for hefty commissions and individual onboarding procedures with Amazon.

ONDC is currently operational across various sectors, including grocery and fast-moving consumer goods, food and beverage, ride-hailing, agriculture products, fashion and apparel, health and wellness, beauty and personal care, electronics and appliances, home and kitchen, business-to-business transactions, exports, metro ticketing, and financial products. During the January-March period, the number of cities or districts, termed ‘countable cities’ by the network, generating over 100 orders per month increased to 622.

Food services executives mentioned that ONDC is engaged in discussions with the National Restaurants Association of India (NRAI), an organization representing over 500,000 restaurants. The aim is to establish seamless last-mile connectivity for food delivery, order tracking, and enhancing discoverability.

An executive closely involved with the organization mentioned that ONDC, in collaboration with NRAI, has established a Champion Council. This council includes notable representatives from casual and fine-dining chains, quick-service restaurants, cloud kitchens, cafes, and regional players. The objective is to facilitate sectoral growth and encourage broader and smoother participation.

Continue Exploring: ONDC surpasses 7.1 Million orders milestone in February since inception last year

The government-supported network, directly competing with independent food delivery aggregators Swiggy and Zomato, has incorporated end-to-end services for pioneer buyer and seller platforms like Magicpin and Paytm.

In the past 14 months, network participants have surged from 24 to 81. Initially launched with three domain categories, the network now operates across 13. Buyer apps driving significant order volumes include Paytm, Snapdeal, Magicpin, Pincode, Mystore, Rapidor, NoBrokerHood, Ola, and nStore.

“An issue is who drives traffic & stickiness towards restaurants, as ONDC has multiple options, unlike the dedicated food delivery apps,” a food services industry official stated. “The larger scale hasn’t yet been reached & will happen over time.”

Since its official launch in January last year, ONDC has facilitated over 49.79 million transactions. Mobility, spearheaded by ride-hailing apps like Namma Yatri, remains the predominant force, constituting over 50% of total monthly orders. Between February last year and March this year, mobility accounted for more than 32.2 million orders, while non-mobility contributed to over 17.5 million orders.

During the corresponding period, food and beverages accounted for over 5.78 million orders, while grocery orders surpassed 1.74 million. Fashion transactions exceeded 2.64 million, and home and kitchen items totaled more than 1.35 million orders.

The roster of onboarded companies and platforms includes Wow Momo, McDonald’s, and Domino’s Pizza in the food and beverage sector; Marico, P&G, and Hindustan Unilever in FMCG; and Namma Yatri, Kochi Open Mobility Network, and Ola in mobility.

In recent months, Barbeque Nation and cloud kitchen aggregator Rebel Foods, known for operating brands such as Behrouz Biryani, Oven Story Pizza, and Faasos, have joined ONDC.

In April 2022, ONDC initiated its alpha rollout across five cities, conducting live transactions with a select group of sellers and buyers for testing purposes.

Continue Exploring: Rebel Foods joins ONDC to expand D2C presence and enhance consumer reach

Hindustan Unilever shifts focus to bigger brands in pursuit of volume growth

SnackTeam

April 29, 2024

FMCG giant Hindustan Unilever‘s managing director, Rohit Jawa, stated that he is neither satisfied with the company’s volume growth nor believes the company has lost its pricing power. This sentiment arises as the consumer trend leans heavily towards investing in larger and more premium brands.

“We aim for more than just a 2% volume growth; our focus is on seeing substantial expansion. We won’t wait for macroeconomic conditions to improve; instead, we’ll actively pursue growth opportunities wherever they arise,” Jawa emphasized. He also noted that tailwinds such as improving macroeconomic indicators and the agricultural economy will be advantageous for HUL.

“But in the meanwhile, we’re not going to wait; instead, we’re going to take action. That will only serve to strengthen us more as we are increasingly pursuing greater volume and variety by investing more money and personnel in high-growth spaces, channels, & formats.” HUL had a 6% decline in net profit for the March quarter, but revenue remained steady.

Continue Exploring: Hindustan Unilever rebrands Horlicks as ‘functional nutritional drink,’ drops ‘health’ label amid regulatory changes

According to the company, the recent quarter’s performance of no pricing growth is the result of price reduction in price-sensitive segments such as laundry and soap. “There are aspects of our business where we raise pricing for reasons other than inflation, such as increased desirability and higher quality. In other areas, we must reduce prices and match price points because consumers require a sweet spot for us to be viable. And we continue to make nice margins on it. As a result, it isn’t a lack of pricing power.”

Over the past four quarters, companies have been reducing prices in response to a noticeable consumer inclination towards more affordable products. However, this strategy has not succeeded in driving up volumes.

“Over the past two to three years, all consumer goods industries had to pass on a considerable amount of inflation, which primarily affected lower-income and rural households. But during that time, the premium end of the market held strong. The market is gradually getting back to normal. Now that volumes are returning, rural areas are progressively getting better. It will most likely occur in the medium term,” according to Jawa, but it’s still not where it was when rural areas were expanding more quickly than metropolitan markets.

The company is aiming to revamp its 90-year-old traditional business model to pursue and invest in high-growth sectors. For example, its primary focus is on nurturing 19 major brands, each generating annual sales exceeding INR 1,000 crore, collectively contributing 80% of total sales. Additionally, it is prioritizing market expansion and premiumization efforts, which together constitute a quarter of its business and have experienced double-digit growth rates.

Continue Exploring: Hindustan Unilever’s net profit dips 1.53% to INR 2,561 Crore in Q4 FY24

“With over two-thirds of our media budget and innovations going towards these categories, the investment will be disproportionate. Accordingly, we are mainly relying on following the money, the people, and the areas of growth. That will revolutionise the company to align with the direction of the new India and is crucial right now,” Jawa stated.

The consumer goods company noted that it perceives a limited correlation between consumption patterns and election cycles, emphasizing instead the significance of governmental actions in rural regions. Jawa highlighted the government’s influence on aspects such as employment, minimum support prices, and capital expenditure initiatives, which play a crucial role in fortifying Asia’s third-largest economy. He emphasized that such measures also contribute to making India an attractive business destination for global players, including HUL.

“The business-friendly policies in place are proving effective. Government investments are playing a pivotal role in propelling the country’s robust GDP growth. This favorable environment makes it an opportune time to establish and expand brands and businesses,” stated Jawa.

In recent quarters, there has been a resurgence of small brands, particularly in the beauty and skincare segment, with nearly 500 direct-to-consumer or digital-only brands emerging. “While we’re making gains in the beauty market, there’s still more to be done. Within our beauty business, the six major initiatives we’ve prioritized have already generated sales of INR 2,000 crore last year and are experiencing a 50% growth rate in ecommerce. In fact, a fraction of our total beauty business is already comparable in size to a successful direct-to-consumer company,” noted Jawa.

Continue Exploring: Hindustan Unilever evaluates options for ice cream business future amid global restructuring by parent company

High-end fashion label Rare Rabbit set to secure $50 Million funding from A91 Partners

SnackTeam

April 29, 2024

Rare Rabbit, a high-end men’s fashion label, is set to secure around $50 million in funding from venture capital firm A91 Partners, valuing the nine-year-old brand at around $330 million, as reported by The Hindu Businessline.

The discussions, currently in advanced stages, involve the venture firm acquiring a 15% stake in the start-up.

Sources indicated that discussions have been ongoing since the start of the year. Around that time, the clothing brand was also in negotiations with Tata Capital for funding of a similar amount at a valuation of $300 million. However, the deal, which was in the due diligence stage, fell through. Additionally, sources mentioned that Reliance Retail showed interest in acquiring a significant stake in the brand but found the valuations to be too high.

Continue Exploring: Tata Capital eyes $300 Million stake in luxury fashion label Rare Rabbit

Tata Capital did not respond to an email seeking clarification. A spokesperson for Reliance Retail stated, “As per our policy, we refrain from commenting on media speculation and rumors.”

Manish Poddar and Akshika Poddar, the founders of Rare Rabbit, were unavailable for comments. Similarly, senior executives at A91 Partners did not respond to messages.

In 2015, Rare Rabbit was founded by the Poddars under the House of Rare umbrella, aiming to revolutionize formal wear for men. Departing from the conventional whites and greys of office attire, the brand encouraged men to embrace colors and styles. As stated on its website, Rare Rabbit celebrates the aspect of men who defy societal expectations. Over the years, the brand has expanded its offerings, ranging from shirts, t-shirts, suits, and blazers to jackets, trousers, and jeans.

Rare Rabbit initiated its retail journey with its first store in Bengaluru and now boasts over 100 outlets across India. Alongside, its women’s brand counterpart, ‘Rareism,’ operates under Radhamani Textiles. According to data from Tracxn, in the fiscal year 2022-23, the company reported a net profit of INR 32.2 crore, a notable increase of over 70% compared to the previous year. Additionally, revenue surged by 74% to reach INR 381 crore.

A91 Partners, typically stepping in during the scale-up phase, has recently provided funding for companies like Akshayakalpa, Blue Tokai, Kaar, Healthkart, and several others.

Continue Exploring: Mohit Gupta and Mukesh Bansal’s fashion startup Lyskraft raises $26 Million in seed funding

MDH Group says its spice products safe for consumption, no communication received from Hong Kong or Singapore authorities

SnackTeam

April 29, 2024

Spices company MDH Group affirmed the safety of its products, stating that it abstains from using ethylene oxide (ETO) in any stage of spice storage, processing, or packaging. Additionally, the company emphasized that it has not received any communication from regulatory authorities in Hong Kong or Singapore concerning its products.

Earlier this month, the food safety regulator in Hong Kong suspended the sale of three spice products from the company due to alleged traces of ethylene oxide (ETO). Additionally, one product under the Everest brand was also suspended from sale. Subsequently, the Singaporean food regulator initiated a recall of one Everest product.

Continue Exploring: Singapore recalls Everest’s Fish Curry Masala due to high pesticide levels

MDH Group stated in a release that the allegations regarding the presence of ethylene oxide (ETO) in its products are “unfounded and lack substantial evidence.” The company reassured its customers that it does not utilize ethylene oxide at any point during the storage, processing, or packaging of its spices. Furthermore, MDH emphasized its 105-year legacy of delivering premium-quality spices, underscoring its commitment to upholding the trust of its clientele.

The company underscored its commitment to upholding health and safety standards, both domestically and internationally, assuring consumers of MDH’s adherence to quality. It further noted that MDH’s tagline “Asli Masale Sach Sach, MDH MDH” and “Real Spices of India” epitomize the company’s dedication to delivering authentic, premium-quality spices to its customers.

After Hong Kong and Singapore initiated recalls of certain spice products, the Food Safety and Standards Authority of India has initiated a sampling and testing campaign for spice products from major brands, including MDH and Everest, within India.

Continue Exploring: FSSAI launches quality checks on MDH and Everest spice mixes following reports of high ethylene oxide levels

The Spices Board of India has requested technical information from authorities in Hong Kong and Singapore regarding the recall. Additionally, it has commenced compulsory testing for ethylene oxide (ETO) in spice shipments bound for Hong Kong, Singapore, and other nations. Such mandatory ETO testing for spices is already enforced for exports to the EU and the UK.

In the meantime, MDH asserted that neither the FSSAI nor the Spices Board of India has received any communication or test reports from Hong Kong and Singapore. The statement further emphasized that these facts reinforce the baseless and unsubstantiated nature of the allegations against MDH, which lack concrete evidence.

Earlier, Everest Food Products Pvt Ltd had also affirmed that its products are safe for consumption and undergo rigorous quality checks.

Continue Exploring: MDH Spices to invest INR 150 Crore in new Ujjain facility, eyes INR 2,000 Crore expansion nationwide

Slim Chickens strikes multi-unit deal with Slims Southern Boys for expansion across Alabama and Georgia

SnackTeam

April 27, 2024

Slim Chickens has inked a fresh multi-unit agreement with Slims Southern Boys, a seasoned franchise operator, aiming to broaden its footprint across Alabama and Georgia in the United States.

The deal will lead to the launch of four or more Slim Chickens establishments spanning Russell, Coweta, Carroll, and Troup counties.

This initiative aligns with the broader expansion strategy of the American fast-casual restaurant chain.

The company presently runs over 265 establishments in both the US and the UK, with over 1,200 agreements already in the pipeline.

Continue Exploring: Earn points, get free chicken: KFC’s new rewards program hits the US market!

Led by Johnny Griggs, Slims Southern Boys brings a 35-year track record of owning and operating various businesses, including 11 convenience stores, two Culver’s, and 15 Firehouse Subs across Alabama and Georgia.

The franchisee is set to debut its first Slim Chickens venue in Russell County by early 2025.

Slim Chickens is renowned for its selection of 17 house-made dipping sauces, providing customers with a diverse array of flavor profiles to choose from.

The brand’s menu features an array of options including chicken tenders, fresh salads, sandwiches, chicken and waffles, chicken wings, and distinctive side items.

Additionally, Slim Chickens has experienced a 70% increase in restaurant growth over the past three years and has undergone significant expansion over the last five years.

The company is also aiming to penetrate various markets across the US, such as Ohio, Illinois, Pennsylvania, Virginia, New York, and Massachusetts, in addition to international markets spanning Europe, Asia, and beyond.

Jackie Lobdell, Vice President of Franchise Development at Slim Chickens, expressed, “Slims Southern Boys is the perfect operator to extend Slims’ presence across Alabama and Georgia.”

Continue Exploring: FAT Brands accelerates growth: 40 fresh franchised Fatburger outlets planned for Northern California

“Their extensive experience in the restaurant industry, managing and owning multi-unit locations in Alabama, equips them with the skills necessary to expand Slims in their market.”

“Our team is excited to partner with Slims Southern Boys, celebrating their growth and success, and eagerly anticipate witnessing their dedication to service, quality food, and community flourish in the years ahead.”

Jam brand Fearne & Rosie targets £5 Million revenue by 2026, eyes expansion in UK and abroad

SnackTeam

April 27, 2024

Fearne & Rosie, a UK-based better-for-you jam start-up, aims to achieve a revenue of around £5 million ($6.2 million) by the end of its 2026 fiscal year.

Founder Rachel Kettlewell stated that Fearne & Rosie is on track to achieve a 150% year-on-year growth in revenue for the company’s latest full financial year, which concludes at the end of the month.

Kettlewell, who established the business in 2019, refrained from disclosing a specific figure for the anticipated sales in its 2023/24 financial year, which is scheduled to conclude next week.

However, she anticipates revenue of approximately £2 million in the upcoming 2024/25 fiscal year, starting in May, followed by an expected figure of around £5 million by the conclusion of the 2025/26 period.

Continue Exploring: India targets boost in agricultural value-added exports; alcoholic beverages and jam among 12 key items for export push

“There’s a swiftly growing demographic of health-conscious customers, and they’re making decisions aligned with that ethos,” she remarked, expressing the company’s ambition to become the leading player in the UK’s market segment.

“Our products were initially aimed at children, but consumer research revealed that 40% of Fearne & Rosie customers are without children,” she explained.

Kettlewell mentioned that the company is revamping its packaging to cater to adults, aligning with the growing trend toward better-for-you options, particularly low-sugar choices.

“We anticipate the new packaging will significantly enhance our appeal to the secondary market. Our primary target audience is families, followed by health-conscious individuals, and then contemporary adults,” she explained.

“There are numerous micro- and macro-trends in the food industry that Fearne & Rosie can tap into. We’re compliant with HFSS regulations, meeting the demand for lower sugar products. Additionally, there’s a growing awareness of good health, with consumers seeking products rich in healthy fibers,” she elaborated.

Kettlewell announced the addition of a new flavor to the company’s super berries range in September. “I believe one of Fearne & Rosie’s strengths lies in bringing innovation to the category,” she remarked.

She pointed out that jam is a “particularly intriguing category” in the UK, especially when compared to products like honey and peanut butter. Fearne & Rosie, she noted, can draw inspiration from innovations within the latter segment.

“We’re emphasizing the diversification of usage occasions, demonstrating that jam isn’t limited to just being spread on toast. It can be utilized in a multitude of exciting ways,” she highlighted.

In April, the North Yorkshire-headquartered jam maker expanded its distribution across the UK by introducing its products into 407 Asda stores with two available SKUs. These are priced at £3.20 for a 310-gram jar.

The company aims to ramp up growth across various sales channels, including expanding its wholesale options. Presently, its UK retail clientele includes outlets such as Ocado and Waitrose in Yorkshire.

Continue Exploring: Indian delights Achappam and Gulab Jamun named among top 50 doughnuts globally

Kettlewell mentioned that the company will also be entering The Co-op starting from May 20th.

The company has secured its inaugural export agreement in Dubai with the online grocer Spinneys, encompassing all five flavors: strawberry, raspberry, blackcurrant, cherry, and “Superberry,” a blend of the first three.

Ireland is also in the pipeline, scheduled for September. Fearne & Rosie will prioritize this market, along with the UK and the UAE, for the next 12 months instead of venturing into new territories.

“Our main goal is to become one of the most beloved and trustworthy family brands, thus the UK is our main priority. Before we consider rolling out any further, we really need to test, learn, and ensure that everything is operating as we want it to within the UK,” she said.

Fearne & Rosie also provides products to 40 cafes at the UK broadcaster BBC and is set to enter Center Parcs holiday outlets in May.

“We aim to expand our distribution and enhance our product offerings to drive growth within retailers,” Kettlewell stated, emphasizing a goal to elevate the category’s premium status.

Energy drink brand Bizzi revolutionizes market with new collagen-infused beverage line!

SnackTeam

April 27, 2024

Bizzi, the new energy drink brand, has launched into the market featuring a range of ready-to-drink beverages blending caffeine and collagen.

The trio of options—Coffee + Collagen Signature Blend, Matcha + Collagen Signature Blend, and Coffee + Collagen Vanilla & Turmeric—are crafted to cater to health-conscious consumers in search of convenient wellness choices.

The Bizzi Coffee + Collagen Signature Blend showcases Ugandan cold-brew coffee infused with 10g of bovine collagen, complemented by 100% of the recommended daily allowance of vitamin C and zinc. This blend promotes joint, muscle, skin, and immune health.

Continue Exploring: Energy drink brand Odyssey secures $6 Million in funding round

Bizzi Coffee + Collagen with Vanilla & Turmeric maintains the same foundation but introduces vanilla and turmeric notes. With 10g of bovine collagen and 100% of the recommended daily allowance of vitamin C and zinc, this variant brings a fruity twist to the caffeine boost.

On the other hand, catering to those preferring a non-coffee alternative, the Matcha + Collagen Signature Blend blends Japanese ceremonial-grade matcha tea with 10g of bovine collagen, supplemented with 100% of the recommended daily allowance of vitamin C and zinc.

Ashley Verma, the creator of Bizzi, expressed, “I’m thrilled for individuals to try Bizzi’s cold brew and matcha RTDs and introduce this unique blend of collagen and coffee to the UK market. As a dedicated coffee enthusiast myself, I developed Bizzi not only to enhance busy lifestyles and promote wellness but also to deliver an exceptionally delicious taste.”

“I think Bizzi fits perfectly into what consumers have been searching for in the highly vibrant and ever-evolving UK drinks market.”

Bizzi’s collagen-infused drinks can be purchased on the company’s website and through Amazon.

Continue Exploring: Dunkin’ rolls out SPARKD’ energy drink range amid Panera’s legal battles over high-caffeine drink

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Premium Segment Performance:

E-commerce Sales Growth:

Strategic Acquisitions and Diversification: