Nature Spell, a UK-based hair and skincare brand, has launched its products in the Indian market. The brand is introducing an initial lineup of 22 stock keeping units (SKUs) in hair, skin, and body care products in India.
“We noticed a gap in the market for products that were not just effective but also sustainable, clean, and most importantly, transparent. This realisation led us to the concept of blending the richness of earth’s natural goodness with the efficacy of modern high-performance based active ingredients and as a result, build effective products suitable for all hair and skin types,” said Sunny Gandhi, co-founder of Nature Spell.
Nature Spell’s products can be found on its Shopify store and on various e-commerce platforms such as Nykaa, Amazon, Myntra, and Flipkart. Moreover, the brand has plans to launch its products in physical retail stores soon.
The brand is set to broaden its product range, with plans to unveil an additional 80 stock keeping units (SKUs) in the forthcoming months.
Nature Spell is a family-owned business established in 2009, inspired by siblings Simran and Siddhi.
FIL's Junaid Alaf with KimiTech's Stephane Chabierski
Kimitec, a Spanish bio-innovation giant, has entered into a strategic partnership with FIL Industries, India’s leading investor in the apple sector based in Kashmir, to revolutionize the apple fruit industry in India.
Both companies assert that the addressable market for this partnership is approximately $30 million over the next five years.
The partnership seeks to revolutionize the horticulture sector in India, particularly focusing on apples and exploring opportunities in agro-waste management. They will collaborate to establish a circular economy for bio-stimulants and smart fertilizers produced from these processes.
“Given the dimension and market share of the FIL industries, we are ambitious that we can reach the numbers we aim for. If we co-invest and design our solutions according to the needs of the farmers we shall be looking at $30 million addressable market in five years,” said Stéphane Chabierski, EVP Global Corporate Strategy and General Manager Asia-Pacific for Kimitec.
India is projected to be the largest producer of bio-waste by 2030. According to Chabierski, the FIL-Kimitec partnership will concentrate on upcycling waste management.
“FIL is the largest apple integrator in the country and has an existing interest in valorizing apple waste. We think we have technologies to help FIL to work on this and many more such projects on a national scale,” said Chabierski.
Kimitec extracts molecules from biowaste and supplies them to the food and cosmetic industries. The company has recently launched the AI platform LINNA to expedite the discovery of new molecules.
“From 18 months it would now take us just one month to find one molecule. We aim to find 3 to five million new compounds in the next decade,” he said.
With apples as the primary focus of this partnership in its initial phase, both partners are optimistic about their potential to introduce groundbreaking changes in the apple industry in J&K and other regions of India, significantly enhancing both the quality and quantity.
“We are looking at decadal partnership with Kimtec. For a farmer, this partnership aims to bring end to end solutions through cutting edge technology with sustainability and responsibility. For us this is the FIL 2.0 version looking at innovative partnerships and solutions,” said Syed Junaid Altaf, Group Executive Director of FIL industries.
He emphasized the company’s dedication to biologicals and bio-stimulants, highlighting their significance to farmers.
“We are not giving a substitution but we are here with a better alternative that aims to give better look to the fruit, better feel and outcome and better returns,” said Junaid.
FIL Industries is also currently developing a 100% biological solution for apple Scab disease, which is expected to be cost-effective and superior to any chemical pesticide.
“Apple is going to stay and remain the main focus in the horticulture sector at least for the next two decades. We aim to improve the quality of fruit from traditional orchards and educate the farmer about high density plantations to ensure he gets the desired results,” said Junaid.
FIL has already launched some of Kimtec’s products and maintains regular communication with farmers to gather feedback from the field.
The apple industry in J&K is currently valued at around $1 billion. Junaid believes that with technology, awareness, and expertise from international partnerships like Kimitec, it has the potential to triple in size over the next decade.
FIL Industries is also developing an app for development and advisory purposes, targeting interaction with 80,000 to 100,000 farmers annually.
“Focus will be to digitally capture a farmer’s data point, land detail for insurance and advisory as well. It is a pure outreach endeavour,” said Junaid.
FIL is also introducing India’s first parametric apple crop insurance program, appleINSURE, in line with FIL Industries’ commitment to comprehensive support programs aimed at apple farmers in J&K and Himachal Pradesh.
Starbucks, the US-based coffee chain, has opened its second outlet in Gandhinagar at Swagat Holiday Mall in Sargasan, as announced by a company representative on social media.
This represents the launch of the 22nd Starbucks store in the state of Gujarat.
“Thrilled to announce the launch of our new store, Swagat Holiday Mall, Gandhinagar! Our second store in Gandhinagar and our 22nd in the Gujarat region,” Prathamesh Akre, assistant manager -projects at Starbucks India said in a LinkedIn post.
The first Starbucks outlet in the city is situated at Pramukh Orbit, Gandhinagar, and opened three months ago.
Recently, the coffee chain achieved a milestone of 400 stores in India, opening a new outlet in Coimbatore at The Lakshmi Mills.
The Starbucks-branded coffee chain in India is operated through a 50:50 joint venture between Seattle-based Starbucks Coffee Company and Tata Consumer Products Ltd.
In 2023, Starbucks expanded its presence into 15 new cities across India with the opening of 71 new stores.
The beverage company revealed plans to double its workforce, aiming to increase its partners from the existing 4,300 to around 8,600. This growth strategy includes expanding into tier 2 and 3 cities in India and introducing services like drive-thrus, airport locations, and 24-hour store formats to meet the varied needs of customers.
The company aims to operate 1,000 stores in India by 2028, with a goal of opening one new store every three days.
Consumer goods manufacturers are redesigning their product packaging to be more e-commerce friendly due to the continued growth of this sales channel in their overall revenue.
Company executives stated that products sold through ecommerce undergo multiple handlings compared to offline sales, often experiencing rough handling by quick commerce delivery personnel. Additionally, individual units are shipped, increasing the likelihood of leakages or transit damage.
ITC Ltd is redesigning the packaging of most of its FMCG products to withstand transit damage. For example, it has modified the cap of shower gel packs to prevent leaks even without the use of adhesive tape.
Biscuit manufacturer Parle Products is introducing additional protective layers for its INR 30-80 packs, which are primarily sold online. They are also implementing separate outer packaging for bundled online sales to ensure the biscuits remain intact.
Mayank Shah, Vice President of Parle Products, noted that packages in e-commerce undergo more handling compared to modern or general trade, particularly with the increasing prominence of quick commerce.
Sameer Satpathy, the Chief Executive of ITC Ltd’s personal care products business, stated that designing e-commerce friendly packaging offers a competitive edge as consumers seek maximum value from their purchases.
Since the Covid pandemic, most fast-moving consumer goods (FMCG) companies have reported an increase in the contribution of e-commerce to their total sales. This trend has persisted even after the pandemic, which experts attribute to shifts in shopping behavior and the growth of quick commerce in major cities.
For example, according to research by NielsenIQ, the online contribution for impulse food items like chocolates, confectioneries, and salty snacks increased from 3% in 2022 to 5% in 2023. Similarly, for fabric care products such as washing powders/liquids, pre-post wash solutions, detergent cakes/bars, and fabric blues, the online contribution surged from 6% to 7%. Moreover, for home cleaning products like utensil cleaners, toilet cleaners, floor cleaners, and glass cleaners, the online contribution rose from 10% to 11% during the period analyzed.
Little wonder, a major FMCG company discussed this issue during their recent corporate management committee meeting, prompted by complaints from several executives who received damaged products when buying online.
Dabur, aiming to attract younger online consumers, has begun designing new packaging specifically for online sales. Chief Executive Mohit Malhotra stated that they are introducing “aspirational packaging,” featuring consumer-friendly designs that are ergonomically improved for easier handling and use.
Health food brand Bagrry’s has transitioned their mid-sized cereal packages from cardboard boxes to pouches and jars to make them more suitable for e-commerce shipping. Additionally, they have introduced corrugated boxes for their plant-based beverages to minimize transit damage. In collaboration with Amazon, the company has also developed a corrugated box packaging for a 1.5 kg muesli pack, eliminating the need for Amazon to add additional packaging.
“The returns due to shipping damage has drastically come down due to these packaging changes,” said Bagrrys India director Aditya Bagri.
Orion India, the Indian subsidiary of South Korea’s confectionery giant, Orion Holdings, is expanding its range of local snack products. This includes the popular Choco Pie dessert snack and Turtle chips, as stated by the company’s Managing Director, Saurabh Saith.
The company, which ventured into India five years ago, is increasing the production capacity at its current manufacturing facility in Rajasthan and introducing new snack products to meet the growing demand, according to Saith. The snack manufacturer has enlisted actor Palak Tiwari to promote its Turtle Chips brand in India.
The growing popularity of Korean cuisine has prompted major brands to diversify their offerings with Korean-inspired products. For instance, Nestle recently introduced Korean BBQ noodles under its Maggi brand, while ITC expanded its Bingo chips range to include Korean varieties just last week.
“To differentiate from existing competition and the number of similar products which exist in potato chips and tortilla chips, we need to break the clutter,” Saith said.
According to the latest NielsenIQ data, the market value of Korean noodles in India surged to over INR 65 crore last year, up from a mere INR 2 crore in 2021. In contrast, the overall instant noodles market grew by 10%, albeit from a significantly larger base.
Other Korean food items available on store shelves include Hindustan Unilever’s Knorr Korean meal pots, Top Ramen’s Geki K-noodles, and Moi Soi noodles and sauces.
The snacks market in India is expanding quickly, supported by easy entry for new players, a consumer preference for all-day snacking, and local innovations, as highlighted in a report by market research firm IMARC Group. The report states that the Indian snacks market was valued at INR 42,694.9 crore last year and is projected to more than double to INR 95,521.8 crore by 2032.
Produced, blended, and packaged at the Poonamallee plant by Enrica Enterprises, Veeran is classified within the “ordinary range” segment, catering to cost-conscious consumers.
Authorities indicate that several additional liquor options within the affordable range are set to be introduced to the market shortly.
“Twelve brands including four beer varieties have been approved by Tasmac board and they will hit the shops post elections. The approval for Veeran came much before the model code of conduct,” said Tasmac official.
Since the price increase in 2022, budget-friendly options have constituted approximately 50% of the liquor corporation’s total sales. Tasmac has raised the maximum retail price (MRP) twice within the past two years.
The latest hike, implemented on February 1st, saw increases in the prices of both ordinary and medium-range liquors. For 180ml bottles, the cost of ordinary range and medium range increased by 10, while for 375ml bottles, the increase was 20, and for 750ml bottles, it was 40. Premium liquor varieties also became pricier by 20, 40, and 80 respectively for the same bottle sizes. Currently, Tasmac offers 43 varieties of ordinary range liquor, 49 medium-range liquors, and 128 premium range liquors, along with 35 types of beer and 13 varieties of wine.
Retail shop employees at Tasmac have noted an increase in customers opting for ordinary range liquors, attributing this shift to the comparatively higher prices of medium-range options.
“Daily wage labours who drank medium range have shifted to ordinary range now,” said a worker .
McDonald’s India (West and South), operated by Westlife Foodworld Limited, has announced an exciting partnership with Lotus Biscoff to introduce a new range of desserts, including the Lotus Biscoff McFlurry and Lotus Biscoff Frappe. This limited-time collection is designed to satisfy the sweet tooth of McDonald’s customers.
Fans can enjoy the tempting Lotus Biscoff McFlurry, a blend of McDonald’s famous McFlurry with Lotus Biscoff crumbs, as well as the delicious Lotus Biscoff Frappe from McCafé.
Arvind R.P, Chief Marketing Officer, McDonald’s India (W&S) said, “We are pleased to partner with Lotus Biscoff and offer our fans this delectable range of Desserts. We believe this exciting collaboration exemplifies our commitment to constant menu innovations, bringing to India a range of global flavours. We are hopeful that our customers will be delighted by these three mouth-watering indulgences. At McDonald’s India, we are committed to making delicious feel-good moments easy for everyone.”
Kathleen Buyst, Global Brand Director Biscoff said, “We’re excited to announce the launch of the Biscoff McFlurry in India. Through this partnership between Biscoff and McDonald’s India, we’re introducing a new taste sensation to Indian consumers. The unique caramelized taste and crunchy bite of our beloved Biscoff cookie, combined with McDonald’s creamy McFlurry, promises a truly delightful experience for all. Already a big hit in numerous markets, we’re thrilled to bring this popular treat to India.”
Available at all McDonald’s India locations in West and South India, customers can enjoy these crispy treats for a limited time, including through the McDelivery service.
McDonald’s India’s menu is based on the ‘Real Food-Real Good’ philosophy, highlighting quality ingredients without artificial additives. Using cheese from globally recognized suppliers and soft-serve made from real milk with low-fat content, McDonald’s India guarantees an authentic dining experience. Get ready to savor the crunch, enjoy the rich flavors, and appreciate the distinctiveness with each delicious bite.
Unilever has declined to comment on a media report suggesting that the FMCG titan has reached out to private-equity firms to assess their interest in its ice-cream business.
As announced this week, Unilever is considering a potential demerger of its ice-cream unit into a separate listed company, though no final decision has been made. The Financial Times reports that the company behind Magnum is working with advisors to attract interest from private-equity firms.
Unilever, through a spokesperson, stated today that the company “had no comment to share” on whether it had approached potential private-equity suitors or if it had enlisted Morgan Stanley and JPMorgan Chase as advisors, as reported by the FT yesterday.
The FT, quoting “people familiar with the matter”, said “deliberations remain at a preliminary stage”, with the publication’s sources putting a value on Unilever’s ice-cream business of around €10-15bn ($10.8bn-$16.2bn).
According to sources from the Financial Times, CVC Capital Partners is reportedly showing potential interest in the ice-cream division, with the news indicating that the private-equity firm “may consider making a bid.”
In 2022, CVC Capital Partners finalized the purchase of Unilever’s tea business, Ekaterra, for €4.5bn. In contrast, Unilever sold its spreads operations to KKR in 2017 for €6.8bn.
Announcing the spin-off of ice cream this week, Unilever said, “A demerger of ice cream is the most likely separation route and, in that case, we expect the company to operate with a capital structure in line with comparable listed companies.
“Other options for separation will be considered to maximise returns for shareholders. The costs and operational dis-synergies relating to the separation of ice cream will be determined by the precise transaction structure chosen.”
However, the complete separation of the ice cream division is not anticipated until the end of 2025.
Karel Zoete, an analyst at the financial services firm Kepler Cheuvreux, indicated that a private-equity transaction would be the most probable route if Unilever opts to sell its ice cream division.
“I don’t see a strategic buyer. Unilever is larger than the other top five players combined,” Zoete suggested, adding that “capital gains tax implications might be significant” from a sale of ice cream.
Unilever’s decision to separate its ice cream division has sparked speculation about the future of the company’s remaining food portfolio, which encompasses brands like Knorr soups, Hellmann’s mayonnaise, and Colman’s mustard under its nutrition division.
After divesting its ice cream business, Unilever would remain with four divisions: nutrition, beauty and wellbeing, personal care, and home care.
Last year, Unilever’s ice cream business generated €7.9bn in turnover, whereas the nutrition division accounted for €13.2bn. The beauty and wellbeing, personal care, and home care divisions brought in €12.5bn, €13.8bn, and €12.2bn, respectively.
This week, analysts at Barclays, headed by Warren Ackerman, noted that ice cream had negatively impacted Unilever’s historical performance. They indicated that the spin-off “is another move to further align its portfolio with HPC [home and personal care].”
The Barclays analysts wrote in a research note, “Overall, this is firm action that the market has been looking for. It still has a big job to improve competitiveness but we think it is moving in the right direction. There will now be inevitable questions about the future of its nutrition division, which is also dilutive to growth (although not to margins). It is very clear that Unilever’s future is HPC.”
This year, consumers may face a bitter price hike for their sweet Easter baskets due to the soaring cost of cocoa reaching record highs.
Cocoa futures have skyrocketed this year, nearly doubling since the beginning of 2024. Adverse weather conditions and rising temperatures have adversely affected and damaged crops in West Africa, the region responsible for over 70% of the world’s cocoa production.
Sugar prices are on the rise as well. Futures for a pound of sugar have increased by approximately 8% in 2024, following a 2.7% rise in 2023.
Major chocolate corporations such as Hershey’s and Mondelez, the maker of Cadbury, have been transferring these expenses to consumers, and even more so: Hershey’s saw its net profit margins increase to 16.7% in 2023 from 15.8% in 2022, while Mondelez experienced a surge to 13.8% in 2023 from 8.6% in 2022.
Both companies noted declining sales volumes for their latest quarters as consumers become increasingly weary of paying elevated prices.
The National Retail Federation anticipates a decrease in Easter spending this year, although the overall amount remains substantial compared to historical norms. According to its recent survey, consumers are projected to spend $3.1 billion on candy this Easter, averaging $24.78 per person. This is a decline from $3.3 billion, or $26.31 per person, compared to last year.
Mondelez, which owns Easter basket staple Cadbury, has been relying on price increases to counter the surge in cocoa prices. The company has said it commands a 13% share in the global chocolate market. It acknowledged price increases of up to 15% within its chocolate category in 2023, and higher prices will likely be a key factor in meeting revenue growth forecasts for up to 5% in 2024.
“Pricing is clearly a key component of this plan,” said Luca Zaramella, chief financial officer at Mondelez, in an conference call in January. “Its contribution will be a little bit less than we have seen in 2023, but it is higher than an average year.”
Last year, Hershey implemented price increases across its chocolate range in response to surging inflation, and it further raised prices on select grocery and food service items at the beginning of 2024. The company anticipates sales growth of up to 3% this year.
The company has indicated it will raise prices to offset inflation, although much of this increase is a carryover from previous adjustments.
The cost of candy and other sweets increased by 5.8% in February compared to the previous year, as per the government’s recent consumer price report. Prices have been hovering around this level since late 2023.
Inflation has been moderating overall but remains higher than what economists anticipated at this stage in 2024. Analysts are becoming increasingly concerned about the effects of persistently high inflation and elevated interest rates on consumer spending and overall economic growth.
Mondelēz International, has unveiled the fifth edition of its annual State of Snacking report. This global consumer trends study provides yearly insights into consumer snacking preferences and decision-making. The latest report shows that despite persistent global economic instability, consumers still prioritize, buy, and favor snacks.
Developed in collaboration with The Harris Poll, this report was first introduced five years ago to further Mondelēz International’s commitment to shaping the future of snacking. Over the past five years, the report has consistently tracked attitudes and behaviors of thousands of consumers across 12 countries, revealing an ongoing trend of consumers favoring snacks over traditional meals.
This year, Mondelēz is also rolling out a standalone, complementary “State of Snacking: Future Trends” report. This report highlights long-term consumer macro trends that are shaping the future of snacking. The identified macro trends encompass a changing demographic landscape, evolving lifestyles, a growing emphasis on sustainability and environmental impact, the widespread focus on health and well-being, and the resurgence of the experience economy. These macro trends offer a broader perspective on shifting consumer behaviors and provide insights into the potential evolution of the snacking industry in the future.
This year’s State of Snacking report indicates that snacking behaviors are on the rise, with a significant increase in mindful snacking observed. Notably, the chocolate category is strongly linked with feelings of joy.
Consumers are snacking:
Consistently:Snack spending has remained consistent, with 66% of consumers indicating that they have not significantly altered their snack expenditures, even though they are more price-conscious.
Mindfully: 85% of consumers state that they often enjoy the taste, flavor, and texture of snacks while eating them; meanwhile, 78% indicate that they value snacks more when consumed with mindfulness.
Adventurously:Surveyed consumers are utilizing social media (62%) and actively seeking novelty, with six out of every ten identifying as “snack adventurers” who enjoy experimenting with new snacks.
Purposefully: More than two-thirds of global consumers indicate that they frequently select brands that resonate with their values, driving an increasing demand for snacks that offer sustainability benefits.
Dirk Van de Put, Chairman and CEO of Mondelēz International, said, “The trend lines of the past half-decade of our State of Snacking report reinforce that despite a continued dynamic environment and changing preferences, snacking remains an integral pillar in the lives of global consumers.”
“As a more intentional consumer evolves, embracing mindful snacking, we continue to help empower them with choices across our brands as we aim to become a global snack leader,” he added.
The survey highlights an increasing consumer demand for snacks that provide both enjoyment and resonate with personal and environmental values. A significant portion of consumers turn to snacks for benefits like boosting energy (75%), enhancing mood (74%), and supporting fitness objectives (70%). Moreover, 63% of the surveyed consumers look for snacks that aim to reduce their environmental footprint.
Further insights from the report reveal:
The Evolving Snacking Mindset: Snacking continues to be a favored eating pattern, with 88% of consumers stating they snack daily. Six out of 10 respondents prefer having multiple small meals throughout the day rather than a few large ones.
Mindful Snacking: Portion control is gaining importance, as 67% of consumers express a preference for portion-controlled snacks. Seven out of 10 respondents indicate they would opt for a smaller portion of a rich snack over a larger serving of a low-fat/sugar alternative. Additionally, 72% of those surveyed believe that a “world without chocolate would be a world without joy,” a sentiment that resonates consistently across generations and regions.
Snack Curation:Social media is pivotal in snack discovery, as more than half of the surveyed consumers show interest in an “instant buy” option for snacks discovered online. 74% indicate that the uniqueness of flavor and texture combinations is a significant factor when selecting a snack. Furthermore, 56% of consumers find new snacks through social media, a figure that is even more pronounced among younger generations.
Snacking with Purpose: 63% of the surveyed consumers look for snacks that aim to reduce their environmental footprint through practices like using carbon offsets, emphasizing local ingredients, and optimizing supply chains for sustainability. 74% indicate that they frequently recycle their snack packaging, marking a notable three-percentage-point rise from the previous year. Millennials are the most inclined to prioritize snacks with minimal plastic packaging to start with, at 71%.
“We have seen that snacking has helped consumers navigate the last five years,” said Martin Renaud, Chief Marketing and Sales Officer at Mondelēz International. “At Mondelēz International, we continue to work towards meeting the rising demand for more sustainable snacking options and mindful snacking, as the category remains a consistent daily ritual.”
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