The Derma Co, a skincare brand under the umbrella of Honasa Consumer, the parent company of Mamaearth, reached an annual revenue rate of INR 500 Cr.
Furthermore, The Derma Co achieved sales of over 10 million units in the previous fiscal year.
Mamaearth co-founder Ghazal Alagh announced on LinkedIn the latest milestone: “Exciting news for Honasa Consumer Ltd.! Our second brand, The Derma Co., has joined the 500 crore ARR club. What truly fills us with pride and gratitude is being the sole FMCG company in India to have nurtured two 500+ crore brands within the past decade.”
Alagh further emphasized that this achievement underscores Honasa Consumer’s proficiency in adeptly developing and expanding new brands, providing outstanding skincare solutions to consumers nationwide, and establishing brands with distinctive offerings across dynamic categories like face serums, moisturizing sunscreens, sunscreen sticks, and acne patches.
Additionally, the company emphasized that its strategy remains centered around utilizing data for product innovation and promptly adapting to emerging trends.
Established in 2016 by Varun and Ghazal Alagh, Honasa boasts a product lineup featuring six beauty and personal care brands: Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s.
Launched in 2020, The Derma Co offers a variety of products formulated with active ingredients to address skin and hair issues. The brand provides consumers with an AI-powered experience, allowing them to receive real-time skin assessments to identify conditions and determine the most suitable products or routines for treatment.
“The Derma Co.’s impressive achievement of reaching an annual run rate of INR 500 Cr is a clear validation of our strategic brand-building approach at Honasa Consumer Limited. Our success stems from a thorough understanding of evolving consumer demands and our ability to innovate quickly to provide unique offerings to our customers,” stated Varun Alagh, Co-Founder, Chairman, and Chief Executive Officer of Honasa Consumer Limited.
In the quarter that ended in December 2023, Honasa Consumer Ltd posted a 264% increase in its consolidated net profit to INR 25.9 Cr, up from INR 7.1 Cr in the year-ago quarter.
Nevertheless, there was a sequential decline in profit from INR 29.4 Cr in the previous September quarter.
In November last year, Honasa’s shares were listed on the BSE at INR 324. Since then, the stock has surged by over 30% from its initial listing price. As of 10:30 AM on Monday, shares of Honasa were trading at INR 400.65.
Amidst rising concerns raised by public health advocates, social media influencers, and consumers, organized packaged food companies are under scrutiny for their health claims, product formulations, and nutritional levels. Experts predict that this will compel these companies to prioritize healthier product offerings and adopt greater transparency in their labeling practices.
Last week, the Swiss NGO Public Eye expressed concerns regarding the “added sugar” content in Nestle‘s baby food products marketed in India and other emerging markets. In a separate development, the FSSAI, earlier this month, instructed e-commerce platforms not to label products like Bournvita, Complan, and Horlicks as “health drinks” due to the absence of a clear definition for such beverages. Meanwhile, spice brands Everest and MDH are under scrutiny by the Centre for Food Safety, Hong Kong’s food regulator, for alleged traces of ethylene oxide in some of their products. Additionally, social media influencer Revant Himatsingka raised alarms about elevated sodium levels in certain ready-to-eat items served on Indigo flights.
As per KS Narayanan, a food and beverage expert and former Managing Director of McCain Foods India, merely complying with regulatory standards superficially differs from consistently implementing practices that prioritize public health. Nevertheless, packaged food companies encounter numerous genuine practical challenges that necessitate attention while concurrently upholding health standards.
“Nationally and internationally, packaged food companies typically ensure adherence to regulatory guidelines meticulously. FSSAI’s food standards are aligned with CODEX standards. However, the critical question lies in whether they adhere to these regulations in essence.
The challenge arises from the fact that ingredients available in India may differ significantly from those in other markets, leading to variations in product formulations across countries due to various factors. Brands also must cater to the specific local demands of consumers in each market, including considerations of pricing and packaging,” Narayanan remarked.
This growing scrutiny comes as people seek healthier eating options. Social media has allowed public health activists & influencers to spread their message far and wide. At the same time, insurgent brands providing healthier alternatives or clean label products are eroding established firms’ market position, according to analysts.
“Moving ahead, packaged food companies that fail to adhere to standards both in principle and practice will face greater scrutiny. Concurrently, we might witness a surge in innovations aimed at producing healthier products and a commitment to more transparent labeling from established players,” Narayanan remarked.
Rinka Banerjee, Founder of Thinking Forks Consulting and former R&D Director at HUL, noted that packaged food companies have already initiated the transition toward healthier product lineups.
“It’s a strategy being embraced both globally and in India: gradually minimizing negative nutrients while enhancing positive ones in food product innovation. The goal is to maintain great taste while consumers gradually adjust to reduced saltiness or sweetness, for instance. It’s a methodical progression,” she explained.
Harsh Gursahani, a food lawyer & Partner at PLR Chambers, stated that establishing scientifically supported statements that are compliant with rules helps businesses differentiate themselves in the market. “While major players have generally been more careful of making false claims, we are also now seeing a lot more mid-sized & small sized packaged food companies coming to us for assistance to ensure their claims are scientifically-backed & comply with the regulations,” she said.
At the same time, public health advocates are urging for a stricter framework to be implemented within the packaged food industry.
In a video post on X, Arun Gupta, Convenor of Nutrition Advocacy in Public Interest (NAPi), emphasized the necessity for a more comprehensive and rigorous legal framework to tackle these concerns. He underscored the importance of establishing definitions for high fat, salt, and sugar (HFSS) products, as well as implementing front-of-the-pack warning labels.
In the swiftly changing landscape of Indian e-commerce, few sectors have seen the kind of dynamic growth and innovation as India’s online gift market. The upheaval brought by the Covid-19 pandemic only accelerated this trend, catapulting both corporate and consumer gifting to unprecedented heights. Furthermore, the online gifting space continues to evolve, driven by technological advancements, shifting consumer preferences, and an ever-growing demand for convenience.
Leading the charge in this thriving domain is IGP.com, an online gifting platform renowned for its unique and personalized gift offerings tailored for every occasion.
International Gifts Platform, or IGP.com, is a Mumbai-based company that was founded in 2017 and has been a steadfast supporter of the Vocal for Local initiative. The company’s innovative ideas and business acumen have been highlighted by recent recognition from The Economic Times, which includes the “Entrepreneur of the Year – D2C” award at the ET Entrepreneur Summit & Awards 2024 and the “Excellence in Gifting & Stationery category” award at the ET Great Retail Awards 2024.
In a recent conversation with SnackFax, Tarun Joshi, the Founder & CEO of IGP.com, shared insights into the brand’s remarkable journey over the past year and outlined its ambitious plans for the future.
Reflecting on the past year, Joshi remarked, “Last year’s journey at IGP has been truly remarkable.” He shared that the platform experienced a substantial year-on-year growth of 50% across all categories, attributing this success to the team’s dedication and strategic initiatives.
This remarkable growth is a result of the hard work, strategic thinking, and unwavering dedication of our team to providing our esteemed clients with the best goods and services possible. We’re thrilled to keep up this momentum as we aim for even greater success in the future. We’re incredibly proud of what we’ve accomplished,” he remarked.
Regarding the first quarter of 2024, Joshi expressed excitement about the significant milestones achieved. “We began the year with a resounding triumph during Valentine’s Day, exceeding expectations by selling over 10 lakhs stems in India, which resulted in a surge in demand for hampers and chocolates. As our presence is not just limited to India, we also had successful Valentine’s Day launch sales in Dubai,” he shared.
Currently the brand is on the expansion spree, expressed Joshi. Discussing expansion efforts, he highlighted that IGP.com has been actively expanding its reach both internationally and offline. “Over the past month, we’ve made significant strides in our international expansion, particularly in the MENA region, connecting with new customers. We are soon launching in Singapore as well to strengthen our presence in the international market,” he told us.
A study conducted by TechSci Research reveals that the online gifting sector in India is projected to reach a market size of $72.56 billion by 2029. This growth is propelled by evolving consumer preferences and a heightened awareness of gifting norms. Moreover, corporate gifting serves as a significant driver of the robust expansion of the gifting market in India.
Additionally, a market research report by Technavio forecasts that the global gifts retailing market will witness a substantial expansion of $13,491.69 million between 2022 and 2027. The report anticipates a CAGR of 3.01% during this period, with the growth rate expected to accelerate.
In response to these trends, IGP.com plans to strategically increase its physical presence. The company has already opened three offline retail storefronts in key areas including Bandra, Vashi, & Breach Candy. “The response to our offline expansion has been overwhelmingly positive, underscoring our commitment to reaching clients wherever they are. Our ambitions include increasing our store footprint to improve the giving experience for our clients.”
Joshi highlighted the growing importance of offline retail in the current market environment, pointing out that it is now a significant portion of the market for all businesses. “As a result of our recognition of the growing importance of offline retail in the current market environment, IGP operates three offline retail locations in Mumbai. Many more physical stores are being opened across the nation by us right now”. He stated, “Our goal is to develop immersive experiences that change people’s perceptions about and interactions with gifts.”
Joshi further explained that the initiative to expand offline presence underscores their commitment to providing convenient access to their products and enhancing the shopping experience for customers. Initially focusing on Mumbai as a key market for offline expansion, the brand plans to gradually extend its presence to all major cities.
Joshi elaborated on the strategy, stating, “This strategic approach allows us to establish a strong foundation in significant metropolitan areas while strategically scaling our operations to reach a wider audience across various urban centers.”
Furthermore, Joshi highlighted the brand’s growth strategy, which includes a focus on tier 2 and tier 3 cities alongside their existing emphasis on tier 1 cities. “By catering to these markets, we aim to tap into new demographics and serve a broader customer base while remaining true to our mission of enriching relationships,” he said.
However, expanding into offline retail also comes with challenges of its own, among them is soaring real estate costs. But to conquer the market challenges posed by the real estate prices, IGP.com is revolutionizing retail spaces into vibrant showcases of the gifting brand essence, fostering unparalleled customer engagement.
“Coupled with our relentless pursuit of product perfection and unwavering commitment to customer satisfaction, profitability will not only endure but flourish, propelling us to new heights of achievement. Additionally, we’re offering customers the opportunity to buy online by integrating a digital screen within our retail stores. This enables customers to explore more products, providing both visual attraction and the convenience of scrolling through our offerings in-store and ordering instantly,” he said.
Navigating further, with the world moving towards quick commerce and convenience, Joshi discussed how IGP.com is enhancing its delivery capabilities. He explained that expanding their physical footprint is one of the key strategies that is helping brand to do so.
“The strategic move toward quick commerce and convenience significantly enhances our ability to deliver better at IGP. By introducing a 30-minute delivery option for over 100 products across 2000+ pincodes in India. Further, with our presence in 150+ countries we’re ensuring that our customers receive their orders swiftly, meeting their urgent gifting needs with ease,”
Additionally, brand’s strategic tie-ups for speedy deliveries further streamline the process, allowing them to fulfil orders efficiently and reliably. “These initiatives underscore our commitment to adapting to the evolving demands of the market and providing unparalleled convenience to our valued customers,” he elaborated.
Overall, Joshi is optimistic about the future of IGP.com and its role in shaping the online gift market in India.
Vishal Jindal & Kaushik Roy, Co-Founders, Biryani By Kilo
Biryani by Kilo, a name synonymous with culinary excellence and innovation, has emerged as a household favorite across India. From its humble beginnings in 2015, Founders Kaushik Roy and Vishal Jindal embarked on a journey to redefine the biryani experience, and today, their brand stands tall as one of the largest players in the market.
With a focus on quality ingredients and authentic flavors, Biryani by Kilo has not only captured the taste buds of millions but also topped sales charts on leading platforms like Zomato or Swiggy. In 2023, Zomato users showcased their love for biryani by placing a staggering 10.09 crore orders, enough to fill eight Qutub Minars in Delhi, according to Zomato’s annual ordering trends report. In the last quarter alone, their unwavering commitment to excellence has propelled them to new heights of INR 300 crores, setting the stage for even greater achievements in the days to come.
In a recent conversation with Snackfax, he shared insights into the brand’s remarkable growth trajectory and its plans for the future.
“We hope to grow by at least 35% in this FY. Last year’s turnover was close to INR 300 crores, and we expect close to INR 400 crores this year. That’s a huge number for us! And I am excited to witness this incredible growth because it will undoubtedly benefit all customers and the business!” said Founder Kaushik Roy to Snackfax.
Kaushik highlights the brand’s success across various states in India, with a strong presence in 45 cities and 20 states. He identifies key markets, while emphasizing the importance of tailoring menus to suit regional preferences.
“Delhi-NCR has always been a big chunk of our business, followed by Punjab, UP and Madhya Pradesh. Maharashtra and West Bengal have also shown promising growth. And only two years back we moved to the South and East. When you walk down the regions, the palate changes, as does people’s consumption patterns. We keep modifying our menus based on the place, for example spice preferences, rice-to-meat ratio. We believe in understanding the local palate and tweaking our menu accordingly to cater to diverse tastes,” said Kaushik.
Kaushik describes the bustling nature of his business, which employs over 3000 people and experiences peak sales on weekends. He explains the strategic planning involved in managing sales fluctuations and optimizing operations for maximum efficiency. “My day is usually very hectic. It’s a brick-and-mortar business so there’s a lot of firefighting that happens. Managing 3000 people is a big challenge. Our sales are typically higher at weekends, usually over 2X more than on weekdays. We plan our days accordingly, focusing on preparing for the busy weekends.
Meanwhile, the brand is cooking up something new for consumers as summer is already upon us. Kaushik reveals it exclusively to Snackfax.
“We usually deliver within 70-90 minutes. This summer we’d like to deliver your biryani a little faster. We’re launching a ‘Tufani’ menu that will be delivered in 45 minutes, while still focusing on fresh dum cooking. This will be a shorter menu with five to ten items,” revealed Kaushik.
To meet shifting consumer needs for speedy delivery, biryani makers are experimenting for the first time. However, Kaushik guarantees that they will not compromise on quality.
“To adhere to the notion of dum cooking, we adopted some technology that helps us to cook faster. We have restricted the delivery radius to a five-kilometer radius in order to deliver more quickly,” he explained.
While Biryani by Kilo continues to set new benchmarks, the Biryani industry too is growing exponentially with the brand at the forefront of the gastronomic delight. According to Technopak’s analysis, the biryani market was estimated to be close to $4 billion out of the $70-$80 billion F&B market overall, which makes it the biggest category in F&B.
Kaushik Roy sees the next wave of growth coming from strategic expansions and innovative offerings tailored to diverse regional palates.
Biryani by Kilo is not only experimenting with services, but it’s also expanding its offerings. With the acquisition of frozen dessert brand Get-A-Way, biryani brand has incorporated sugar-free desserts to cater to diabetic customers. “We have added five to six popular products from that menu to the Biryani by Kilo menu, such as the Kulfi, which contains no sugar. These sugar-free desserts are low calories and high protein. Perfect for any diabetic. I am diabetic and consume a lot of that!” he shared.
Looking ahead Kaushik outlines plans to enhance the menu with new kebab variations and regional biryanis, catering to diverse tastes across different parts of India.
“We will expand the menu further. As I mentioned, one is the dessert addition. In the following six months, you will see a few additional additions of the kebab range, that we intend to sell at a much more efficient pricing point. We also aim to launch a few additional regional biryanis in the future, particularly in the southern region, so that people may better relate to the biryani,” he revealed.
To be competitive in the fast-paced food sector, Biryani by Kilo wants to stay on top of market developments and changing client preferences. To keep ahead of the game, Kaushik stated that they are always watching market trends. While their primary focus is on offering exceptional customer service to respond to shifting consumer preferences. “This is how we evolve over time,” Kaushik concluded.
Zomato, the foodtech giant, has raised its platform fee by 25% to INR 5 per order and suspended its intercity delivery service, Intercity Legends.
Zomato has increased the platform fee in its major markets, which include the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow.
On Monday (April 22), Zomato’s shares commenced trading at INR 193.00, marking a 2% increase from its prior close at INR 189.20.
According to reports, even a modest INR 1 increase in Zomato’s fees for its sizable customer base, handling between 2-2.2 million orders per day, could lead to a substantial earnings boost for the company within a quarter.
At the start of the year, Zomato increased its platform fee from INR 3 to INR 4 per order in key markets starting January 1st.
Meanwhile, Zomato has temporarily halted its interstate delivery service, interstate Legends. The intercity area of the Zomato app presently displays the phrase “Closed now.” We will be back shortly.” It also includes the note: “Enhancements are currently underway. Please stay tuned; we’ll be back to serve you soon.”
Launched initially in 2022, the service enabled food delivery from specific restaurants in chosen cities to a limited range of urban areas. However, Zomato modified the model last year, allowing the delivery of pre-stocked items from various cities within a shorter delivery timeframe.
In 2023, Zomato initiated various experiments, one of which involved implementing a platform fee on orders starting in August. The fee began at INR 2 and later rose to INR 3 across major markets.
Swiggy, Zomato’s main competitor, also introduced a fee of INR 2, which was subsequently raised to INR 3.
Both platforms are implementing a platform fee in addition to the delivery charge, although this fee is waived for customers who are part of their loyalty programs. However, it’s important to mention that the platform fee still applies to members of Zomato Gold and Swiggy One.
With both platforms prioritizing profitability, Zomato has experienced a significant turnaround in its profits over the past three quarters.
In the December quarter (Q3) of the financial year 2023-24 (FY24), Zomato posted a consolidated profit after tax (PAT) of INR 138 Cr. The company’s operating revenue surged to INR 3,288 Cr in Q3 FY24 from INR 2,848 Cr in Q2 FY24.
Recently, Zomato unveiled an all-electric “large order fleet” aimed at delivering substantial orders for up to 50 people in one go.
Zomato’s founder and CEO, Deepinder Goyal, expressed that the new vehicles would effectively address the challenges faced by customers when placing large orders.
Starting from June ’24, reusable insulated water bottles, flasks, and containers crafted from copper, stainless steel, and aluminum may no longer be available on both retail shelves and online platforms. This change is expected because the Ministry of Commerce and Industry is set to enforce a mandate requiring these products to obtain certification from the Bureau of Indian Standards (BIS) in order to be sold.
According to a report by ICICI Securities, currently, the majority of major players, including the listed Cello, import these water bottles since there are hardly any manufacturing facilities for them in India. The report suggests that companies might face additional duties if they continue importing or decide to establish manufacturing units in India to source locally, which could have a near-term impact on existing players.
Cello, Milton, and Prestige are prominent players in the production of these items.
Given that most players presently import copper, stainless steel, and aluminum water bottles, setting up manufacturing units in India may become necessary for them.
“The BIS directive mandating the use of standard marks could expedite sector formalization and provide competitive advantages for larger, compliant players,” stated the ICICI report.
Should the center not grant any further extensions to comply with the deadline and if additional customs duties are imposed, companies might be required to either pay extra duty for imports or establish manufacturing units in India to procure locally.
For the three months that ended on December 31, 2023, Cello World recorded a revenue from operations of INR 527.1 crore and a net profit of INR 84.9 crore. A request for comments from the company via email was not answered.
Efforts to reach Hamilton Housewares, the manufacturer of Milton bottles and Treo cookware, for comment were unsuccessful.
“The impact will be far higher for smaller & unorganised businesses, who make up over 30% of the market. An official from a mid-sized manufacturer of insulated flasks & bottles stated, “We are hoping for an extension, but that seems unlikely now.”
In July last year, the Ministry of Commerce and Industry issued an order mandating the inclusion of a standard mark, obtained through a license from BIS, on all insulated flasks, bottles, and containers intended for domestic use. Initially projected for implementation within six months, the order is now anticipated to take effect by June of the current year.
Honasa Consumer, the Delhi-NCR based parent entity of D2C brand Mamaearth, has announced that its board has approved the integration of two of its wholly owned subsidiaries – Just4Kids Services Private Limited and Fusion Cosmecutics Private Limited – into itself.
In a filing with the exchange, Honasa mentioned that the proposed merger scheme would be contingent upon obtaining several regulatory approvals, including those from the National Company Law Tribunal benches in New Delhi and Chandigarh.
Honasa stated that the amalgamation aims to eliminate cost duplication and enhance financial efficiencies. “The anticipated streamlined operations are poised to significantly improve cost-effectiveness, thereby maximizing shareholder value and bolstering the competitive standing of the merged entity,” the company remarked.
Moreover, the amalgamation will eliminate redundant hierarchical layers, enhance managerial focus, and contribute to improved efficiency in cash management, the company added.
Fusion Cosmecutics, the parent company of Dr. Seth’s, focuses primarily on formulating and trading skincare products. Mamaearth acquired a controlling interest in Fusion Cosmecutics in May 2022, valuing the company at INR 28 Cr. During the initial nine months of 2024, Fusion Cosmecutics recorded a revenue of INR 76.6 Cr.
Conversely, Just4Kids serves as the parent company of Momspresso, providing mothers with parenting tips and pregnancy guidance in multiple languages, such as English, Hindi, and eight additional regional languages.
It’s worth mentioning that Momspresso marked Mamaearth’s initial acquisition at INR 167.9 Cr. Prior to its IPO, Momspresso’s website was taken offline and remains inaccessible to this day.
In July last year, it was reported that Mamaearth was discontinuing two verticals of Momspresso – Momspresso MyMoney and its brand marketing division. Prior to closing these segments, the startup had laid off 80-100 employees earlier in 2023.
According to Mamaearth’s red herring prospectus (RHP), the startup’s board, during a meeting in March 2023, resolved to “scale down” a significant portion of Momspresso’s business verticals.
Additionally, Honasa incurred a goodwill impairment loss of INR 136 Cr in FY23, leading to a net loss of INR 151 Cr for the year. Mamaearth also wrote off goodwill amounting to INR 136 Cr for Just4Kids.
Overall, the company reported exceptional items before tax of INR 155 Cr in FY23, largely due to the impairment of goodwill and other intangible assets. Excluding these, the startup would have reported a net profit of about INR 3.7 Cr during the year under review.
In the initial nine months of FY24, Just4Kids recorded a revenue of INR 4 Cr.
On the BSE, Honasa’s shares concluded Friday’s session up by 0.9% at INR 385.75.
Puig, the renowned Spanish beauty conglomerate known for beloved brands such as Paco Rabanne and Charlotte Tilbury, is gearing up for its debut on the stock market through an initial public offering (IPO). This IPO is set to be the largest in Europe this year.
According to the Financial Times (FT), the company aims for a valuation of up to €14 billion ($14.92 billion).
Puig is slated to commence trading on May 3rd, with an expected market capitalization ranging between €12.7 billion ($13.54 billion) and €13.9 billion ($14.81 billion).
The IPO will entail the sale of €3 billion ($3.2 billion) worth of shares, accounting for 21% to 24% of the company’s ownership.
The Puig family founders will maintain majority control.
With its headquarters in Barcelona and a rich heritage spanning over 110 years, Puig will list its shares on the Madrid Stock Exchange in addition to other Spanish exchanges.
The IPO process is being spearheaded by investment banking giants Goldman Sachs and JPMorgan.
The company plans to utilize the raised capital for “general corporate purposes,” which may include funding additional acquisitions.
The primary offering of the IPO comprises approximately €2.6 billion ($2.77 billion) in shares, with Goldman Sachs granted an additional allotment option of €390 million ($415.66 million).
The bookbuilding process, which assesses investor interest, concludes on April 30th.
The ultimate share price will be established upon the conclusion of the bookbuilding process.
“We believe that being a family-owned company with market accountability will enable us to remain competitive in the market throughout the next phase of the company’s development,” said Marc Puig.
The IPO sets Puig up for substantial expansion and reinforces its status as a key player in the global beauty industry.
The coffeehouse chain collaborated with Avolta, a global travel retailer operating in 64 countries, to inaugurate the store.
Situated in the airport’s non-Schengen zone, the new store offers Costa’s signature coffees alongside a variety of locally sourced artisanal delicacies.
The collaboration between Avolta and Costa Coffee symbolizes a strategic step to expand the Costa Coffee brand into new and unexplored territory.
Massimiliano Santoro, CEO of Avolta Italy F&B, expressed delight in partnering with Costa Coffee, a prominent international entity. He emphasized the company’s dedication to evolving its offerings and utilizing global partnerships to provide travelers with an exceptional experience.
“We extend our gratitude to Aeroporti di Roma for hosting our new venue, where we enhance our presence in Italy’s most significant airport. Here, we engage with a diverse array of travelers daily, providing solutions tailored to their every need, taste, and trend.”
At the grand opening of the store, visitors enjoyed a captivating Latte Art Show and got to indulge in a variety of delicious food and drink offerings from Costa Coffee.
In addition to Costa’s signature coffees, the store’s menu features traditional Italian espresso and cappuccinos, an array of refreshing cold beverages, and plant-based options.
The selection extends to a variety of pastries like croissants, cakes, and muffins, alongside savory options such as wraps, sandwiches, and bagels.
Sam O’Brien, Managing Director of Costa Coffee EMENA, expressed, “The opening of our first store in Italy is truly exhilarating. It was the Costa brothers’ passion for Italian coffee and their quest to find it in their adopted home, England, that sparked the inception of Costa Coffee.”
“Every day, their Italian heritage as well as entrepreneurial spirit inspire us to create fresh coffee experiences for coffee aficionados.”
“We are thrilled to collaborate with Avolta in Fiumicino, enriching the journeys of travelers to and from Italy by imparting our Italian heritage to new customers.”
Shicken, a UK-based producer of vegan ready-meals, is targeting profitability by 2025 after its recent expansion into the US market earlier this year.
According to Shicken’s co-founder Parm Bains, the company projects a fivefold revenue increase, setting a revenue target of £5.6 million ($7 million) following its recent listing in the US.
The US has become Sprouts Farmers Market’s sixth overseas area with the launch of the plant-based ready-meals in 410 stores nationwide.
“What we’ve seen is actually greater opportunity from a global perspective because the domestic market has become oversaturated,” stated Bains, who created Shicken with his wife Satvinder. There are many competitors in the plant-based market, regardless of whether products are chilled or frozen.
“One of our main advantages is that we can produce 20,000 metric tonnes of volume at our current manufacturing facility in Dartford, Kent. Only 15% of the factory’s capacity is being utilised. Thus, there is room for us to keep expanding in the plant-based industry, both locally and globally.”
The co-founder stated that 70% of the business will be directed towards international markets, with the remaining 30% focused on the domestic market.
In its second round of funding, the business secured £4 million ($5 million) from vegan investment fund Veg Capital, bringing the total invested capital since Shicken’s establishment in 2020 to £6 million.
According to Bains, the main goal of this new money is to keep investing in our facility, in our personnel, and in helping them develop. That will enable Satvinder and me to carry on with our global expansion.
“Our ultimate goal is to leave this business to our children, so we intend to stick with the longer-term plan of continuing to have an effect on animals in the supply chain as well as to produce durable, ethical products.”
He further mentioned that Veg Capital, established by Veganuary campaign co-founder Matthew Glover, now holds a “significant stake” in Shicken, although specific details were not disclosed.
Shicken offers a variety of plant-based options, including Indian-style curries and vegan kebabs, alongside their plant-based chicken alternative, crafted from a blend of soya, wheat, and pea protein.
Bains mentioned that the Dartford-based company is also receptive to own-brand and private-label manufacturing, and is currently “exploring various opportunities for late 2024 and even into 2025.”
The company has already established a presence in foodservice channels, partnering with US-based Sysco and discount retailer Costco in various European markets, such as the UK, Iceland, Sweden, France, and Spain.
Regarding the current state of the plant-based sector, Bains remarked, “The market was inundated with numerous plant-based products, but what we’ve witnessed in the last 18-24 months is its maturation. There’s been a shift towards higher quality offerings in the category, with lower quality products fading out. For us as a business, focusing on quality is paramount moving forward.”
According to him, the current climate has caused consumers’ behaviour to alter, and as a result, they have less money to spend. This is in addition to the category maturing and going through a phase of extremely quick growth. The use of that money has been really judicious on their part.
“I believe the problem for the manufacturers and brands in the plant-based community is that everyone is vying for the same place at the moment. In addition, we want to make sure that we are presenting our items to customers and conversing with them.”
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