Holi festivities drive record-breaking sales for quick-commerce giants Swiggy Instamart, Zepto, and Blinkit

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March 26, 2024

Over the long weekend, Holi festivities boosted online spirits as quick-commerce platforms like Zomato‘s Blinkit, Zepto, and Swiggy Instamart experienced a significant increase in sales. Based on trends as of Monday evening, Swiggy Instamart and Zepto were set to announce record-breaking orders.

Sales were driven by Holi-related items like color (gulaal), sweets, pichkaris, and flowers. Executives from quick-commerce firms also noted a notable increase in demand for related categories such as white t-shirts and coconut oil.

According to insiders, Swiggy Instamart was on track to surpass 700,000 orders in a single day, marking its highest ever. Similarly, Zepto was anticipated to achieve over 600,000 orders, also setting a new record, as per a spokesperson.

On a typical business as usual (BAU) day, Bengaluru-based Swiggy receives approximately 550,000 orders, while Zepto averages around 500,000 orders. Blinkit, as the quick-commerce frontrunner in the nation’s primary markets, boasts approximately 600,000 orders per day.

Continue Exploring: Flipkart challenges Zepto and Blinkit with quick commerce expansion

Platform executives turned to X to celebrate their Holi sales.

Blinkit co-founder and CEO, Albinder Dhindsa, announced that the company reached its peak order volume per minute (OPM) on Sunday. He mentioned that the firm was “on track to surpass its previous all-time high order record (from Valentine’s Day this year),” without providing specific details.

Phani Kishan Addepalli, Swiggy co-founder and head of Instamart, mentioned that Instamart’s flower sales were five times higher than last year’s Holi, without providing specific details.

Aadit Palicha, co-founder and CEO of Zepto, shared that the platform was also being utilized to purchase items like white t-shirts for Holi.

“People are starting to realise that Zepto serves a lot more use cases than daily grocery,” Palicha said on X.

Festival days are increasingly becoming prime sales events for quick-commerce firms, breaking order records. For instance, on Valentine’s Day, February 14, both Zepto and Swiggy Instamart, as well as Zomato-owned Blinkit, recorded their highest single-day sales ever, surpassing the peaks achieved on New Year’s Eve.

On March 4, it was reported that quick-commerce firms are expanding their product offerings, with a selection comparable to that of e-commerce platforms like Flipkart and Amazon in categories such as fashion, beauty, electronics, toys, as well as home and kitchen.

Continue Exploring: Quick commerce platforms Blinkit and Zepto expand into e-commerce, targeting fashion, beauty, electronics, and more

With the increase in orders, certain areas in Delhi-NCR reportedly experienced delays and cancellations in deliveries through Swiggy. Inquiries did not receive a response from the company.

“Food delivery companies benefited from event-based surges in the past as well, but quick commerce has identified a very broad range of client needs that can be satisfied, so you see them benefit greatly during events,” an industry executive stated. Nonetheless, many trends do appear to overlap, such as the recent spike in sales of sweets on both Instamart and Swiggy food.

Industry executives mentioned that the primary food delivery services of Zomato and Swiggy were also expected to experience an increase in orders on Monday night, without providing specific details.

Continue Exploring: Quick-commerce sector on track to compete with e-commerce giants, says Glade Brook Capital Founder

India’s ready-to-eat market set to surge by 45% over next five years, says SATS Food Solutions CEO; plans to hire 300 employees for new Bengaluru facility

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March 26, 2024

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Stanley Goh, CEO of Singaporean airport service provider SATS Food Solutions

The ready-to-eat market in India is expected to grow by approximately 45% over the next five years, according to Stanley Goh, CEO of Singaporean airport service provider SATS Food Solutions. This growth positions India as a significant investment opportunity in the segment.

“As part of the SATS solution group, we’ve consistently recognized India’s rich cultural diversity. Presently, Indian consumers display an increased openness to high culinary standards. With growing interest in segments such as ready-to-eat and ready-to-heat, alongside convenience offerings, we perceive significant growth potential. Leveraging our extensive decade-long experience in the Indian market, we aim to capitalize on these opportunities effectively,” he remarked.

The Indian subsidiary of the food and gateway services provider, SATS Food Solutions India, plans to hire approximately 300 employees for its latest facility at Bengaluru’s Kempegowda International Airport, as shared by CEO Sagar Dighe.

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“When considering food, it’s crucial to focus on the ecosystem and the availability of raw materials. In Bengaluru, thanks to our established network with Tata SATS and our joint venture with Bengaluru Airport, we have a complete logistics chain in place,” commented Dighe.

The new facility, he mentioned, heavily utilizes automation and the Internet of Things (IoT) for efficient operations. He further noted that the facility has effectively streamlined the cooking process to ensure consistent taste across all its locations.

“Our chefs will be focused on specific tasks, such as crafting new recipes,” he said.

Continue Exploring: Samosa Singh launches diverse lineup of ‘ready-to-cook’ guilt-free Samosas with over 20 irresistible flavors

Starbucks India continues expansion, opens debut store in Gwalior

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March 26, 2024

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Starbucks, the US-based coffee chain, has opened its first store in Gwalior, as announced by a company representative on social media. Situated in DB Mall, Gwalior, Madhya Pradesh, the store started serving customers on 23rd March.

“Prepare to relish the timeless allure of Gwalior with the grand debut of Starbucks India! Come join us for an impeccable fusion of tradition and flavor, indulge in sumptuous brews and delightful treats while embracing the authentic essence of Gwalior’s heritage,” Monisha Ajmera, business development manager at Starbucks India said in a LinkedIn post.

Currently, Starbucks runs over eight stores in Madhya Pradesh, predominantly located in Bhopal and Indore.

The coffee chain recently opened a new outlet at The Lakshmi Mills in Coimbatore, marking the 400th store in India. According to the company’s official website, Starbucks plans to expand to 1,000 stores in India by 2028, targeting the opening of one new store every three days.

Continue Exploring: Starbucks hits 400th store milestone in India with grand opening in Coimbatore

In India, the Starbucks-branded coffee chain is run through a 50:50 joint venture between Starbucks Coffee Co., based in Seattle, and Tata Consumer Products Ltd.

In 2023, Starbucks expanded its presence in India by entering 15 new cities and opening 71 new stores.

The beverage company announced its plans to double its workforce, targeting an increase to approximately 8,600 partners from the existing 4,300. This expansion strategy includes entering tier 2 and 3 cities in India and introducing services such as drive-thrus, airport locations, and 24-hour store formats to meet the diverse needs of customers.

Continue Exploring: Starbucks CEO bullish on India’s coffee market, targets 1000 cafes by 2028

Govt extends ban on onion exports indefinitely

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March 26, 2024

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The government has decided to continue the export ban on onions to enhance domestic availability and stabilize its prices. Previously, this ban was set to expire on March 31 of this year.

The Directorate General of Foreign Trade (DGFT) announced in a notification dated March 22 that the export ban on onions, which was originally set to expire on March 31, 2024, has been extended until further notice.

The DGFT is a branch of the ministry responsible for handling issues related to exports and imports.

The government imposed a ban on the export of onions on December 8, 2023.

Continue Exploring: Onion export ban set to continue until March 31, no immediate changes expected

Onion output was projected to be 22.7 million tonnes for the 2023 rabi season.

The export of onions to friendly nations is allowed on a case-by-case basis, contingent upon approval from the inter-ministerial group.

The government has authorized the export of 64,400 tonnes of onions to the UAE and Bangladesh via the National Cooperative Exports Ltd (NCEL).

In order to provide relief to consumers, the Centre had previously decided in October 2023 to increase the sale of buffer onion stock at a subsidised rate of INR 25 per kg in retail markets.

The government had previously put in place a number of measures to control prices. For onion exports between October 28 and December 31, 2023, a minimum export price (MEP) of USD 800 per tonne was established.

In August, India introduced a 40% export duty on onions effective until December 31, 2023.

Onions are a politically sensitive commodity.

Continue Exploring: India’s onion export ban triggers soaring vegetable prices across Asia

McDonald’s ends partnership with Sri Lankan franchisee over compliance issues, shuts down all 12 outlets

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March 26, 2024

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McDonald’s has ended its partnership with its franchisee in Sri Lanka, leading to the shutdown of all 12 locations in the country, according to a spokesperson from the U.S. company.

McDonald’s attorney Sanath Wijewardane said, “The parent company decided to end the agreement with the franchisee due to compliance issues.” They are not currently conducting business in the country. But, they might think about coming back later on with a different franchisee.”

He mentioned that although the deal was canceled on Wednesday, the stores remained operational for a few days thereafter.

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A representative for the local partner, Abans, chose not to provide a comment.

Wijewardane chose not to specify the issues, but according to local media, McDonald’s reportedly took legal action against Abans due to concerns about inadequate hygiene.

According to its website, Abans states that it initially partnered with McDonald’s in 1998.

Sri Lanka, an island nation in the Indian Ocean with a population of 22 million, is currently recovering from a severe financial crisis.

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Healthy snacking brand Farmley set to expand retail presence, targets 30-40% offline sales share by 2026

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March 26, 2024

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Farmley Co-founders Akash Sharma and Abhishek Agarwal

Farmley, a health-focused snack brand, is expanding its physical retail presence and anticipates this channel to account for approximately 30-40% of its total business in the upcoming 2-3 years. After securing $6.7 million in funding in December, the brand has surpassed INR 300 crore in annual recurring revenue (ARR).

Utilizing its strong connections with over 5,000 farmers and its own production facilities, the brand provides a variety of products, including raw dried fruits and nuts, trail mixes, foxnuts, and natural desserts, among others.

Akash Sharma, the co-founder of Farmley, stated, “At present, our products are available in over 5,000 retail stores. We plan to broaden our offline footprint to encompass 60,000-70,000 outlets. While the online channel currently makes up a significant portion of our business, as we expand, we anticipate the offline channels to account for 30-40% or possibly even 50% of our total business in the next 2-3 years.”

In December, the brand secured $6.7 million in its pre-Series B funding round, with BC Jindal Group leading the investment. Existing investors DSG Consumer Partners, Omnivore, and Alkemi Partners also joined in this funding round.

Continue Exploring: Farmley raises $6.7 Million in a pre-Series B round led by BC Jindal Group

Sharma pointed out that Indian consumers are increasingly seeking guilt-free healthy snack options.

“We aim to provide delicious, satisfying, indulgent yet guilt-free snack choices. The recent funding infusion is enabling us to expand our reach and enhance our visibility,” he elaborated.

Last year, the brand enlisted Rahul Dravid as its brand ambassador.

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Discussing the brand’s growth, Sharma commented, “We are currently operating at an annualized run rate of INR 300 crore. We anticipate a growth of INR 60-70 percent in the next fiscal year. While we have experienced some profitable months, we project to achieve overall profitability by the following financial year.”

While raw dried fruits and nuts make up a significant portion of the overall business, the brand is also experiencing robust growth in segments like trail mixes, flavored foxnuts, and flavored dried fruits. Sharma highlighted that the company is also placing a strong emphasis on the on-the-go snacking category by providing products at competitive price points.

Continue Exploring: Healthy snack brands see explosive growth amidst health-conscious consumer trend

The brand is also exploring a regionalization strategy.

“We have started exploring the introduction of products tailored for niche markets. These products will target specific regions, taste preferences, and demographics,” Sharma elaborated.

Mother Dairy set to launch 30 new products this summer, anticipating a 25-30% surge in demand; announces INR 750 Crore investment for expansion

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March 26, 2024

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This summer, Mother Dairy plans to introduce 30 new products, primarily focusing on the ice cream and yogurt categories, anticipating a 25-30% surge in consumer demand, according to a senior company executive. As a prominent milk provider in Delhi-NCR, Mother Dairy operates nine company-owned dairy processing facilities with a total daily capacity of more than 50 lakh litres.

Manish Bandlish, the Managing Director of Mother Dairy Fruits and Vegetables Pvt Ltd, expressed, “For our business, summer is the most eagerly awaited season, particularly for categories such as ice creams, curd, and beverages.”

“Given the Indian Meteorological Department’s (IMD) forecast of above-normal temperatures and a hot summer ahead, we anticipate a significant increase in demand for these categories,” he added.

Bandlish noted that there has already been an increase in ice cream sales compared to the previous year.

Continue Exploring: From scoops to sundaes: Ice cream sales set to soar 15-20% this summer

He mentioned that the company is fully equipped to meet this rising demand and has invested up to INR 50 crore to expand capacities, ensuring ample availability of its products.

“As we enter the season, we are fully prepared to delight consumers in our golden jubilee year with a lineup of over 30 new enticing products. In addition to Greek yoghurts and other dairy products, the upcoming line will feature about 20 new ice cream flavours”, stated Bandlish.

Overall, he expressed that the company is highly optimistic about the season.

“We anticipate a 25-30% increase in demand for our dairy products compared to last season,” Bandlish commented.

Mother Dairy has also unveiled its expansion plans for both the dairy and fruits and vegetables (F&V) sectors.

The company plans to invest INR 650 crore in establishing two new processing plants for milk and fruits and vegetables.

Additionally, the company will invest an extra INR 100 crore to enhance the capacities of its current plants, bringing the total capital expenditure to INR 750 crore.

“In our efforts to broaden our distribution network and connect with consumers, we have allocated a capital expenditure (capex) budget of more than INR 750 crore to improve our dairy and fruits and vegetables processing capabilities across strategic locations,” Bandlish remarked.

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Mother Dairy is establishing a large dairy plant in Nagpur with an investment of approximately INR 525 crore.

The new plant will have a daily processing capacity of 6 lakh litres of milk.

In addition, Bandlish stated, “we plan to set up a new fruit processing facility in Karnataka with a budget of over INR 125 crore, operating under our Safal brand.”

These two plants are expected to be completed in approximately two years.

For the horticulture (fruits and vegetables) segment, the company operates four of its own plants, and for edible oils, it produces through 15 affiliated plants.

Mother Dairy recorded a turnover of approximately INR 14,500 crore in the fiscal year 2022-23.

Regarding the anticipated turnover for this fiscal year, Bandlish commented, “Despite facing a challenging year and a lackluster summer season last year, along with deflation in the edible oil sector, the company is expected to conclude 2023-24 with a modest growth rate of approximately 7-8% in volume terms.”

Established in 1974, Mother Dairy is currently a wholly-owned subsidiary of the National Dairy Development Board (NDDB).

Mother Dairy was established as part of ‘Operation Flood’, the world’s largest dairy development program aimed at making India self-sufficient in milk production.

Mother Dairy, a prominent player in India’s dairy industry, produces, markets, and distributes a range of milk and milk-based products, including cultured items, ice creams, paneer, ghee, and more under the brand name ‘Mother Dairy’.

Continue Exploring: Mother Dairy’s Safal outlets to sell onions at subsidized rates amid soaring prices

The company also boasts a diversified portfolio, offering edible oils under the ‘Dhara’ brand, and fresh fruits & vegetables, frozen vegetables & snacks, unpolished pulses, pulps & concentrates, and more under the ‘Safal’ brand.

It operates numerous milk booths and Safal retail outlets in the Delhi-NCR region.

Mother Dairy sells over 35 lakh litres of fresh milk (both pouched and token milk) daily in the Delhi-NCR region.

Nestle collaborates with suppliers to foster cocoa farming sustainability

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March 23, 2024

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Nestle has introduced two fresh initiatives in collaboration with suppliers Cargill and ETG | Beyond Beans. These projects aim to aid in the restoration of deteriorated lands surrounding cocoa farming communities through reforestation efforts.

The initiatives are part of Nestle’s broader pledge to achieve net zero emissions by 2050. These five-year partnerships are designed to diminish and eliminate carbon emissions from Nestle’s supply chains while expediting the shift to regenerative agriculture.

The initiatives are part of Nestle’s broader pledge to achieve net zero emissions by 2050. These five-year partnerships are designed to reduce and eliminate carbon emissions from Nestlé’s supply chains while expediting the shift to regenerative agriculture.

Farmers will receive various multi-purpose species of shade trees along with training on tree planting and pruning techniques. These shade trees serve multiple functions such as mitigating the harsh effects of the sun and creating moisture-rich environments essential for cocoa crop survival during dry spells. Additionally, they contribute to improved water management, on-farm biodiversity, and the absorption of carbon from the atmosphere.

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Collectively, the projects are projected to eliminate more than 500,000 metric tonnes of carbon over a span of 20 years. This will be achieved by planting over two million shade trees on land tended by nearly 20,000 farmers across Ghana and the Ivory Coast.

Community-owned fallow land will be designated for reforestation efforts, starting with the setup of tree nurseries. These nurseries will cultivate seedlings for transplantation onto farmland. Farmers willing to participate will voluntarily sign up and should already be enrolled in Nestle’s Cocoa Plan program.

Farmers will be provided with incentives for planting the seedlings and nurturing them during the crucial initial years, vital for the trees’ survival and the project’s overall success. Regular farm visits will enable monitoring, with technical guidance and assistance offered as needed.

Monitoring strategies will oversee both the quantity of trees planted and the associated amount of CO2 sequestered. Additionally, non-carbon benefits arising from the projects, such as the impact, suitability, effectiveness, and efficiency of natural landscape restoration efforts, will be monitored.

High-resolution satellite imagery will be employed for ongoing monitoring to ensure the sustained growth and prosperity of the planted trees over the long haul.

According to Darrell High, Nestle’s global cocoa manager, “These projects represent significant milestones in our path towards achieving net zero emissions. We are committed to addressing our emissions right from the farms we source from.”

Continue Exploring: Nestlé targets 70% emission reduction: Strikes green transition deal with shipping giants

“The preservation of forests for sustainability depends greatly on suppliers like Cargill and ETG | Beyond Beans showing full commitment. Equally important is the active engagement of local communities, whose direct influence over forest areas is vital for tailoring land-use solutions to meet local needs.”

Over two-thirds of Nestle’s greenhouse gas (GHG) emissions originate from ingredient sourcing. Nestlé has pledged to plant and cultivate 200 million trees in the regions from which it sources globally by 2030. It targets a 20% reduction in absolute GHG emissions compared to its 2018 baseline by 2025, and a 50% reduction by 2030. In 2023, the company achieved a net reduction in emissions of 13.58%.

UK food investor S-Ventures in talks for subsidiary sale to Riverfort Global Opportunities

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March 23, 2024

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S-Ventures, a UK-based food investor, has initiated negotiations regarding the potential sale of its subsidiaries to listed investment group Riverfort Global Opportunities (RGO).

S-Ventures stated that it was “in talks” to sell 100% of its assets to the London-based investor.

If finalized, the agreement would constitute a reverse takeover, transitioning RGO from “an investing company into an operating business,” as stated in its own stock-exchange filing.

The proposed deal would value S-Ventures at £3.5 million ($4.4 million).

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S-Ventures has chosen to divest its operational subsidiaries, aiming to grant them “enhanced access to capital to bolster their investment and growth endeavors.”

In addition to the ongoing discussions about the potential sale, the investor has obtained two rounds of funding loans from RGO and current shareholder Sherwood International Holdings, totaling £2 million.

Both loans will be extended for a duration of 12 months each, carrying a 15% interest rate and a 5% arrangement fee. They are stipulated as “repayable on maturity.”

S-Ventures announced it has received a £1 million bridging loan from “a Middle Eastern family office.” Initially scheduled for repayment in May, the loan has been extended until November.

S-Ventures further stated that “The lender has also been provided with the option to convert the loan into equity” should RGO’s acquisition proceed. S-Ventures noted that Sherwood has also concurred with these terms regarding its loan.

S-Ventures initiated a fundraising campaign last October, expressing its aim to raise more than £2.5 million at that time.

It sought £1.25 million to “accelerate progress, consolidate costs, and achieve efficiencies,” along with an additional £1.25 million to address “deferred consideration” expenses stemming from its acquisition of the gluten-free brand Juvela in December 2022.

The group’s quest for funding came amidst “a combination of factors, including inflationary pressures and higher interest costs,” as outlined in its 2022 annual report.

Continue Exploring: Zomato continues streamlining operations: Completes liquidation of subsidiaries in Vietnam and Czech Republic

S-Ventures also attributed a portion of its losses to the German free-from pasta and bread brand Lizza, which it acquired in 2022 and subsequently filed for insolvency the following year.

Aside from Juvela, S-Ventures’ array of investments includes Purely plantain chips, known for their healthy snacking appeal, Pulsin protein shakes and powders, Plant Punk specializing in plant-based meat products, and Market Rocket, a digital marketing agency.

S-Ventures CEO Scott Livingston expressed his delight in announcing this funding facility and proposed transaction, which have developed “against the backdrop of a highly challenging environment in capital markets over the past twelve months.”

He elaborated, saying, “The integration with RGO would secure us a spot on AIM and bolster our ability to acquire new capital, facilitating the expansion and progression of SVEN enterprises. The commitment of our shareholders and directors to this initiative underscores our belief in the businesses’ potential.”

Mars invests $70 Million in Hackettstown facility to drive innovation and manufacturing advancements

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March 23, 2024

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Mars has announced a significant investment of over $70 million into its facility in Hackettstown, New Jersey, USA, aimed at boosting innovation and manufacturing capabilities.

The company plans to set up an R&D innovation studio, complete with a new test kitchen and packaging lab. Additionally, the investment will target enhancements in manufacturing efficiencies and food safety at the Hackettstown facility.

The R&D innovation studio will feature a new prototyping kitchen, packaging lab, and collaborative workspace, with the goal of accelerating innovation and development to align with changing consumer preferences.

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The studio’s functionalities will bolster the production of Mars Wrigley products made in the US, including iconic brands like M&M’s, Snickers, Twix, Milky Way, Skittles, Starburst, Extra, and Altoids, while also driving fresh product innovations. Furthermore, the revamped packaging studio will prioritize the development and testing of sustainable packaging materials, aligning with Mars’ dedication to a circular economy.

Anton Vincent, the president of Mars Wrigley North America and Global Ice Cream, emphasized, “For over a century, Mars has prioritized quality and innovation. Our ongoing investment in the Hackettstown site reaffirms our dedication to innovation in New Jersey and to enhancing the skills of our associates with state-of-the-art facilities. Our aim is to continually bring more moments of everyday happiness to our consumers.”

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