FMCG sector eyes monsoon and elections for growth, says Britannia MD

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April 12, 2024

Varun Berry, Vice-Chairman and Managing Director of Britannia Industries

Fast-moving consumer goods (FMCG) have observed a marginal uptick in sales volume growth, as highlighted by Varun Berry, executive vice-chairman and managing director of Britannia Industries, India’s largest biscuits maker. However, Berry cautioned that several extraneous factors could potentially impact the future demand outlook. “We constantly monitor input costs & competitive pricing activities in order to take appropriate decisions,” he said in a recent interview.

On Tuesday, Skymet, a private forecasting agency, forecasted a regular monsoon for the year ahead. This announcement has boosted hopes for agricultural productivity and rural consumption, both pivotal for the continuous growth of the FMCG sector. The previous year witnessed inconsistent monsoon patterns, characterized by below-average or erratic rainfall. Given that rural areas in India account for approximately 40% of annual FMCG sales, a normal monsoon is crucial for sustaining market vitality.

“A regular monsoon will be a boon for the rural economy, which has lagged behind urban growth for more than a year,” Berry remarked. He warned about the potential impact of variable rainfall across different regions on crop yields. Britannia’s product portfolio predominantly caters to urban areas and is 1.3 times larger than its offerings aimed at rural consumers. Alongside popular biscuits like Good Day, Jim Jam, and NutriChoice, the company, promoted by Nusli Wadia, also manufactures a range of products including cheese, croissants, cakes, and bread.

Continue Exploring: Good monsoon, improved macro indicators to drive consumer demand for FMCG products

Companies are also banking on the upcoming Lok Sabha elections, set to begin next week, to stimulate demand, anticipating an increase in market liquidity.

“Political stability and the government’s ongoing investment in both digital and physical infrastructure over the years bode well for the economy,” Berry said. “We expect an upward trend in spending as elections approach.” Britannia has dramatically increased its capacity in recent quarters, utilising a mix of new greenfield facilities and additional production lines in existing factories. Berry underlined that these investments put the company in a solid position to handle any sales increase.

He stated, “Our commitment remains steadfast in innovating and investing in our brands to stimulate demand in crucial categories and regions, all while maintaining a keen eye on cost efficiencies.”

Nonetheless, controlling inflation will also be pivotal for stimulating demand, as companies navigate between safeguarding margins while facing competition from lower-priced regional competitors, particularly in categories like biscuits, tea, and laundry.

Continue Exploring: Rural FMCG sales outpace urban growth for first time in three years, signaling demand recovery

Berry noted that due to government interventions aimed at enhancing price accessibility, sugar prices are anticipated to remain stable. However, certain other commodities essential to Britannia’s operations continue to face inflationary pressures. “Considering the average wheat crop & lower-than-normal govt buffer stocks, we expect inflation in flour prices,” he went on to say. Despite significant fluctuations in cocoa prices, the company’s reliance on cocoa remains limited.

In the March quarter, companies reduced prices to reflect the easing of some commodity costs, although these costs have reverted to inflationary trends in April.

Britannia’s consolidated net profit fell by 40.4% year-on-year to INR 555.6 crore for the December quarter, primarily due to subdued rural demand and price adjustments made to counter regional competitors. Additionally, its fiscal third-quarter profit declined, influenced by a one-time gain in the corresponding quarter of the previous year. Despite this, FMCG companies have observed signs of recovery in sales of essential daily items and staples in Indian villages during the March quarter. This resurgence follows a period of sluggish performance throughout most of last year, attributed to increased food and fuel prices, as well as erratic rainfall affecting demand in rural areas.

Continue Exploring: Britannia eyes diversification into chocolates, salty snacks, and fresh dairy through joint ventures, unveils aggressive growth strategy

Foodtech giant Swiggy introduces ‘Paw-ternity’ policy to support employees on pet care

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April 12, 2024

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Swiggy, a leading player in food delivery and quick commerce, has introduced a ‘Paw-ternity’ policy to support employees with pet care and adoption.

“We are expanding our concept of parenthood to encompass pet parents as well,” said Girish Menon, Chief Human Resource Officer at Swiggy. “We are building upon our gender-neutral parental policy introduced in 2020, that offers significant paid leave for both primary and secondary carers, along with bonding leaves as well as time off for adoption, surrogacy, miscarriage, and IVF.” We are therefore happy to announce the Swiggy Paw-ternity Policy, which is effective immediately for all full-time staff.

As per the policy, employees will be granted an extra paid day off, beyond their annual leave allowance, to celebrate the arrival of their new furry friends at home. This initiative coincided with National Pet Day, observed on April 11th.

Continue Exploring: Swiggy woos high net-worth individuals with 20% discount in pre-IPO offering

In a blog post, Menon expressed, “Pet parents have the option to work from home during the settling-in period to offer comfort and support to their newest family member.”

Furthermore, pet parents are encouraged to utilize their casual or sick leave without reservation to tend to their pets’ needs. “Whether it’s for a routine vaccination or accompanying a sick or injured pet to a veterinary appointment, the policy empowers employees to take the necessary time off to care for their beloved companions,” Menon emphasized.

Swiggy will additionally provide bereavement leave for pet parents, offering employees the necessary time to mourn and recuperate from their loss.

Continue Exploring: Invesco marks IPO-bound Swiggy’s valuation at $12.7 Billion, up 18% from last fundraise

Tata Neu launches food & beverage services on ONDC with pilot program in Delhi-NCR and Bengaluru

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April 12, 2024

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The Tata Group‘s superapp, Tata Neu, has launched its services in the food and beverage segment on the government-backed Open Network for Digital Commerce (ONDC). This pilot program encompasses over 540 pin codes in Delhi-NCR and 264 pin codes in Bengaluru.

The superapp made its debut less than a month ago, with magicpin as its technology service provider.

Continue Exploring: Tata Neu joins online food delivery race through ONDC integration, posing competition to Zomato and Swiggy

They also intend to expand to additional cities in May, according to sources. ONDC currently includes two Tata enterprises as sellers: the StarQuick grocery app and the online grocer BigBasket.

Neu, operating within Tata Digital, the conglomerate’s ecommerce division, marks the first consumer app from the diverse conglomerate to join ONDC.

Other buyer apps within the food and beverage category include magicpin, Mystore, Novopay, NStore, Pai Platforms, pincode, and Spicemoney.

Reports indicated that ONDC received 5,777,231 food and beverage orders between April 2023 and March of this year. In March alone, food and beverage orders made up 9.55% of the total monthly orders, which amounted to 7.68 million on ONDC.

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

Requests for comment went unanswered by Tata Digital, magicpin, and ONDC.

Although Tata Neu has been involved in segments such as grocery, medicines, electronics, fashion, money, payments, and travel since 2022, it lacked a significant presence in the food and beverage category. Its entry into ONDC is aimed at bolstering its position in this sector.

At present, ONDC boasts approximately 105,000 sellers operating outside the retail sphere, with the food and beverage sector holding a significant portion of this share.

Reports indicate that in its first year of operation, Neu, which encompasses electronics, grocery, and e-pharmacy, has struggled to establish robust consumer loyalty.

However, according to sources, Neu is unlikely to incorporate additional categories such as grocery onto ONDC. This decision stems from the potential competition it would pose to Tata group’s BigBasket and StarQuick grocery apps already present on ONDC.

Continue Exploring: ONDC disrupts food delivery landscape: 50,000 restaurants join platform, challenging Zomato and Swiggy dominance

Reliance Retail’s Tira brand steps into beauty accessories market with ‘Tira Tools’

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April 12, 2024

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Tira, a brand under Reliance Retail, announced its entry into the beauty accessories space on Thursday with the launch of its in-house brand ‘Tira Tools’.

The company emphasized in a statement that this new venture marks the launch of its first in-house brand.

“We’re excited to unveil Tira Tools! Whether you’re a beginner or an expert, these essentials have got you covered—you can sculpt your face, create a stunning contour, and master the perfect cut crease,” stated the company in an Instagram post.

Continue Exploring: Reliance Retail ventures into beauty and personal care with Tira, targets 100 locations nationwide

Tira Tools will offer a variety of beauty accessories such as brushes, face rollers, beauty sponges, and a diverse array of other products within the category. The company highlighted that the new brand will serve both beauty enthusiasts and professional makeup artists.

Tira intends to retail the “cruelty-free and vegan” accessories brand through both online channels and its physical stores.

The beauty ecommerce platform introduced its first proprietary brand almost a year after Tira went live in April last year. Since then, the Indian beauty ecommerce space has seen cutthroat competition as incumbents and new entrants both vie for a bigger pie of beauty shoppers.

Continue Exploring: Malabar Investments in talks to secure INR 80-100 Crore stake in Sugar Cosmetics via secondary transaction

Fueled by the rising purchasing power of Indian consumers and the continuous growth of ecommerce, the beauty and personal care industry in India has experienced significant growth in recent years. This surge has propelled established players like Nykaa, as well as startups such as SUGAR and Purplle, into prominence.

At the same time, conglomerates such as Tata and Reliance have their own brands vying for market share in the beauty and personal care sector.

According to a report, the Indian beauty and personal care (BPC) industry achieved a market size of $26.3 billion in 2022 and is expected to surge to $38 billion by 2028.

Continue Exploring: Reliance Retail’s Tira debuts in North India with flagship store in New Delhi’s DLF Avenue Mall

Bacardi India intensifies focus on premiumization as demand for high-end spirits surges

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April 12, 2024

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One in two Indians are favoring premium spirits, as per Bacardi India managing director Vinay Golikeri, citing the Bacardi Cocktail Trends Report 2024. Golikeri emphasized that “Premiumisation continues to flourish, and currently we are into the golden era of spirits given that the cocktail culture is thriving in India.”

The producer of Bacardi rum, Bombay Sapphire gin, Grey Goose vodka, and Dewar’s Scotch is ramping up its premiumization efforts across its range to align with evolving demand patterns, he elaborated.

Continue Exploring: Premiumization trend to fuel India’s soaring liquor industry, Crisil Report reveals

Golikeri described India as a “standout” market for the multinational alcohol and beverage manufacturer. However, he refrained from disclosing the specific contribution of Bacardi’s Indian division to its global sales. As per the most recent data from the business intelligence platform Tofler, Bacardi India reported revenue surpassing INR 500 crore for the financial year that ended on March 31, 2023.

Just like in other consumer-focused industries, companies in the spirits sector like Diageo, United Spirits, Radico Khaitan, and Jagatjit Industries are also prioritizing premiumization to capitalize on the increasing demand for greater profitability.

As per the Confederation of Indian Alcoholic Beverage Companies (CIABC), alcoholic beverages priced above INR 1,000 experienced a growth rate four times faster than those priced under INR 500 in the calendar year 2023. Vinod Giri, the director-general of CIABC, attributed this rising trend of premiumization to a blend of factors. “Consumers are increasingly open to exploring different alcoholic beverages, and notably, the perception of spirits is shifting from mere functionality to embodying a lifestyle choice or a means of making a statement,” he remarked.

In a March report, credit ratings agency ICRA projected growth of 8-10% for the Indian alcoholic beverages sector in the current financial year. This growth, it noted, would be bolstered by consumer inclination towards premium products, with volumes expected to increase by 3-5% on a strong foundation.

Over the last three to four years, Scotch whisky sales in India have nearly quadrupled, according to Vijay Dev, the category lead for whiskies at Bacardi. He emphasised Dewar’s outstanding achievement in the Scotch whisky market in India, pointing out that the company’s volume has grown by an astounding 44.2% in the previous five years, above industry norms.

He added, “India offers us a significant growth potential, considering the increasing preference for premium Scotch whisky.”

The executives at Bacardi India refrained from commenting on the implications of the government’s recent directive, which requires alcohol manufacturers to provide a list of products marketed as surrogate extensions, including water, soda, and music festivals.

Continue Exploring: Central Consumer Protection Authority cracks down on liquor brands for violating surrogate advertising regulations

Spirits manufacturers promote and market products such as water, music festivals, music CDs, and soda to bypass regulations on advertising spirits. The CIABC has called on the government to reconsider its crackdown on this practice. Like other alcoholic beverage companies, Bacardi also heavily invests in events and platforms like NH7 Weekender and Xperiences to attract consumers.

The Central Consumer Protection Authority (CCPA) has instructed spirits manufacturers to disclose lists of products promoted under the same brand or as alternatives to alcoholic beverages over the past three years. Additionally, the authority has mandated these companies to provide details regarding the revenues generated from the sale of surrogate brand extensions during this three-year period.

Continue Exploring: CIABC presses for unfettered advertising rights for liquor brand extensions amid regulatory scrutiny

Rasna’s new-generation portfolio drives 20% of business, says Chairman Piruz Khambatta

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April 12, 2024

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Piruz Khambatta, Group Chairman of Rasna Group

Rasna, a homegrown beverage brand, derives about 20 percent of its business from its new generation portfolio, as shared by Piruz Khambatta, Group Chairman of Rasna Group.

Khambatta said, “The new-gen portfolio, that we launched post Covid, accounts for 15-20% of our business. However, the conventional portfolio continues to dominate, accounting for 80%. This is simply because mass items generate volume.”

Speaking about the consumer trend towards healthier options, he remarked, “At Rasna, unlike many other Indian brands, we’ve always been at the forefront of innovation, introducing numerous pioneering products. Rasna holds the distinction of being the first brand to introduce stevia-based products free from artificial colors and flavors.”

Continue Exploring: Rasna sets sights on global manufacturing with overseas franchise deals

Sharing his insights on the anticipated demand in response to hot summer projections, he emphasized that for any soft drink company specializing in dilutables, the duration of the heat wave outweighs its intensity in importance.

“During the season, we have just one opportunity each month. Last year, from January to April, demand was robust, causing shortages. Yet, come May, early rains completely disrupted operations, leaving the industry with unsold inventory.”

Regarding Rasna’s readiness, he remarked that the company’s prowess lies in its strong R&D department, the emotional bond consumers share with the brand, and its robust distribution network spanning direct and indirect distributors across 2,000 small towns.

As summer approaches, Rasna unveiled a fresh advertising campaign featuring actress Tamannaah Bhatia. Discussing the company’s advertising strategy for the upcoming fiscal year, Khambatta revealed that marketing expenditures will surpass last year’s, with a stronger emphasis on digital marketing initiatives.

Continue Exploring: FMCG companies and Kirana stores gear up for summer: Dairy and beverage sales spike across India

Indri Single Malt Whisky emerges as world’s fastest growing brand, selling over 1 Lakh cases and capturing 30% market share in India

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April 12, 2024

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Indri Single Malt Whisky, meticulously crafted by Piccadily Distilleries, has set a new standard in the spirits market, emerging as the fastest-growing single malt whisky globally. Within a mere two years since its debut, Indri-Trini has soared past the remarkable milestone of selling over 1 lakh cases, capturing a substantial 30 percent market share in India and outshining even established global giants.

Indri-Trini’s remarkable surge, with a remarkable 599 percent leap from the previous year, has catapulted it into the esteemed ranks of the world’s best-selling single malt whiskies. Fueled by this monumental achievement, Piccadily Distilleries now sets its sights on joining the top 5 selling single malt whiskies globally, as it persistently reshapes industry norms.

Since its debut in November 2021, Indri Single Malt Whisky has amassed more than 25 prestigious awards on the global platform. These accolades include esteemed titles like ‘Best Indian Single Malt’ from renowned events such as the World Whisky Awards and the International Whisky Competition. Particularly noteworthy is its Diwali Collector’s Edition, which secured the highly coveted accolade of ‘Best Whisky In The World’ at the Whiskies of the World Awards, surpassing esteemed competitors from Scotch and American distilleries.

Continue Exploring: India’s Indri Whisky crowned ‘Best in Show, Double Gold’ at prestigious Whiskies of the World Awards

This remarkable feat not only enhances the brand’s reputation but also strengthens the global appreciation for Indian whiskies, sparking a notable increase in demand for high-quality Indian single malts. The rapid ascent of Indri mirrors a noteworthy change in consumer inclinations, with premium spirits taking the forefront.

Industry statistics indicate that in 2021–2022, Indian single malt whiskies increased by a remarkable 144%, much outpacing their Scottish counterparts. According to initial projections provided by the Confederation of Indian Alcoholic Beverage Companies (CIABC), the share of Indian single malts in total sales in 2023 was an astonishing 53%, showing a notable shift in the spirits market.

Continue Exploring: India’s finest whiskies take center stage at exclusive tasting event hosted by Indian Embassy in Beijing

Praveen Malviya, CEO of Piccadily Distilleries, stated, “In a market previously dominated by imported brands, Indri emerges as a symbol of Indian excellence, epitomizing national pride and enhancing the reputation of Indian spirits worldwide. Indri isn’t merely taking the lead; it’s spearheading a revolution.”

As Indri continues to set new standards for Indian single malt whisky, Piccadily Distilleries remains steadfast in its dedication to pushing limits, venturing into uncharted territories, and providing extraordinary experiences to whisky aficionados across the globe.

Continue Exploring: Indri Dru named ‘Best Indian Single Malt’ at World Whiskies Awards 2024

Agritech startup DeHaat forays into consumer market with Honest Farms brand

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April 12, 2024

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Shashank Kumar, Amrendra Singh, Shyam Sundar, and Adarsh Srivastav - Co-Founders, DeHaat

Agritech startup DeHaat, backed by investors such as Peak XV Partners and Sofina Ventures, has entered the consumer market by introducing its own brand alongside its existing business-to-business supply chain and market linkage services.

This comes months after the startup completed an all-cash deal in November last year to acquire the fruit export business of Ahmedabad-based listed fruit export firm Freshtrop Fruits.

Continue Exploring: DeHaat diversifies agritech portfolio with strategic acquisition of Freshtrop Fruits’ export business

DeHaat has introduced its Honest Farms brand across various retail channels such as modern trade, quick commerce, and ecommerce platforms. The brand encompasses 200 different stock keeping units (SKUs) spanning categories like pulses, rice, and spices.

Since the brand is still relatively new, Honest Farms is now operating in stealth mode. As such, we are not actively pursuing TV advertisements or significant marketing expenses. “We are more concerned with attracting the first 100,000 customers purely on the basis of our product than we are with marketing,” DeHaat founder and CEO Shashank Kumar said.

Emails sent to DeHaat yielded no response.

Established in 2012 by Shashank Kumar, Amrendra Singh, Shyam Sundar, and Adarsh Srivastav, DeHaat, headquartered in Patna and Gurugram, provides comprehensive agricultural solutions to farmers. These solutions encompass the distribution of premium agricultural inputs, personalized farm advisory services, access to financial facilities, and connections to markets for selling their produce.

Since its establishment, the startup asserts that it has catered to more than 2 million farmers across 11 states in India via its digital network comprising over 11,000 ‘DeHaat Centers’.

Continue Exploring: Former Swiggy executive Kedar Gokhale launches agritech venture ‘Orbit Farming’ targeting mid-sized Indian farmers

The startup maintains a network of over 1,500 stock-keeping units, delivering over 15,000 orders per day to customers in more than 15 countries.

In FY22, DeHaat recorded a staggering 253% year-over-year increase in its loss, reaching INR 1,563.9 Cr. Additionally, in 2022, the startup successfully secured $60 million in Series E funding, bringing the total amount raised in the round to $106 million.

Papa John’s inks deal with Bajco Group to open 50 new restaurants across the US

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April 10, 2024

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Papa John’s International is set to expand its footprint by opening 50 more US restaurants by 2028 through a new agreement with franchisee Nadeem Bajwa and his company, the Bajco Group.

The move underscores a broader strategy aimed at bolstering the brand’s presence in key markets and is in line with the Bajco Group’s objective to own 500 Papa John’s outlets, with the group currently operating more than 200.

Bajwa expressed, “Inking this deal, my excitement mirrors that of 20 years ago when I inaugurated my initial restaurant.”

“At Papa John’s, it’s not solely about business. My team members are my family, and that’s an entirely distinct dynamic.”

Continue Exploring: Papa John’s UK to close 43 stores following business review

“I take pride in the fact that through our collaboration with Papa John’s, I’ve been able to pursue my own aspirations and witness my team members evolve from starting their first jobs to becoming leaders themselves.”

The latest agreement will facilitate the brand’s expansion into the Midwest, Arizona, Pennsylvania, and Florida.

Earlier this year, Papa John’s launched its Back to Growth (B2G) Program as part of its Back to Better 2.0 strategy, aimed at fostering growth in North America.

The program is centered around improving restaurant-level margins, providing a 600-basis point annual cost saving in restaurant profit and loss statements within the initial five years of new restaurant operations.

The initiative will notably enhance cash-on-cash returns for franchisees, increase scale for Papa John’s in strategic markets, and attract franchisees oriented towards growth.

Joe Sieve, Papa John’s Chief Restaurant Officer, remarked, “Nadeem’s journey exemplifies Papa John’s commitment to assisting franchisees in fostering mutual success.”

“Commencing his Papa John’s journey as a delivery driver, he now stands as one of the most influential advocates for the opportunities that Papa John’s offers to its team members and franchisees.”

“Nadeem’s belief in the brand and his industry expertise underscore why he is convinced that there has never been a more opportune moment to expand with Papa John’s.”

In March 2023, Papa John’s introduced its newest menu offering, the Crispy Cuppy ‘Roni, in the United States.

Continue Exploring: Snacking continues to rise: Mondelēz International’s latest report reveals global surge in consumer snacking behaviors

Casio unveils first exclusive G-SHOCK store in New Delhi

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April 10, 2024

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Casio Computer Co. Ltd, the parent company of Casio India, opened its first exclusive G-SHOCK store in New Delhi, marking the sixth addition to its exclusive store network across the country. With this latest addition, Casio & G-SHOCK now boast a total of 61 Exclusive stores across India, reaffirming the brand’s dedication to providing unmatched experiences for its customers nationwide.

Located in the vibrant Pacific Mall Subhash Nagar neighborhood, the newly established G-SHOCK Exclusive Store is poised to become a beacon of horological excellence in the capital city’s core. This exclusive G-SHOCK store guarantees an immersive encounter, committed to spotlighting the extensive product range.

Continue Exploring: Swiss luxury watch brand Breitling unveils first exclusive boutique in Chennai, eyes expansion across India

With an impressive array of G-SHOCK’s renowned men’s and women’s collections, this store serves as a sanctuary for enthusiasts of its robust elegance and meticulous craftsmanship. At the heart of the store’s offerings lie G-SHOCK’s masterpiece series, featuring the esteemed 5600 and 2100 series, alongside a carefully curated assortment of the newest releases and sought-after limited-edition watches. From durable functionality to avant-garde design, every G-SHOCK timepiece encapsulates the brand’s principles of innovation, resilience, and sophistication.

Hideki Imai, Managing Director of Casio India, expressed his excitement about the launch, stating, “We are delighted to introduce our inaugural Exclusive G-SHOCK Store in New Delhi, a city renowned for its authentic style, creative flair, and rich culture. With the unveiling of this store, we eagerly anticipate offering our latest releases and a meticulously curated selection of G-SHOCK watches to the Delhi community. With unparalleled craftsmanship and distinctive designs, G-SHOCK timepieces provide an enticing option that resonates with the dynamic preferences of today’s audience. We eagerly await welcoming our customers to our new establishment at Pacific Mall, Subhash Nagar.”

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