Citi Research bullish on Mamaearth, projects 24% upside potential with ‘buy’ rating

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February 23, 2024

Brokerage firm Citi Research has started covering Honasa Consumer Ltd, the parent company of D2C unicorn Mamaearth, giving it a ‘buy’ rating. The firm anticipates strong growth driven by the company’s brand positioning and the expansive market opportunity.

Citi has additionally established a price target (PT) of INR 550 for the stock, suggesting a potential increase of nearly 24% from its recent closing price on the BSE.

“We expect growth outperformance led by company-specific initiatives and masstige positioning (business less impacted by demand slowdown),” said Citi analyst Vismaya Agarwal in the research note.

The analyst pointed out that Honasa’s strengthening market position through innovation, accelerating growth by extending distribution reach, entering new sub-categories, and gradually expanding margins are key long-term advantages.

It’s worth mentioning that Mamaearth had a subdued debut at INR 324 on the BSE in November last year. Since then, its shares have risen by 37% and are presently trading at INR 444.

During its most recent quarter, Q3 FY24, Mamaearth witnessed a significant 264% surge in its consolidated net profit, climbing from INR 7.1 Cr in the corresponding period last year to INR 25.9 Cr. Additionally, its operating revenue rose by 28% year-on-year to reach INR 488.2 Cr for the quarter.

Continue Exploring: Mamaearth parent Honasa Consumer sees 250% YoY surge in net profit to INR 26.1 Crore in Q3FY24

Despite experiencing a marginal sequential decline in PAT during Q3, Citi pointed out that the startup’s financial performance is on an upward trajectory as it scales up.

The brokerage projects that Honasa’s consolidated revenue will experience a 25% Compound Annual Growth Rate (CAGR) from FY24 to FY26, surpassing the growth projections of its FMCG counterparts. This growth will be propelled by Mamaearth’s offline expansion and robust growth in other brands.

It’s important to highlight that Honasa, the parent company of Mamaearth, also possesses other beauty and personal care brands such as The Derma Co., Ayuga, Aqualogica, and Dr. Sheth’s.

Analyst Agarwal anticipates that Honasa’s EBITDA will accelerate at a rate of 55% CAGR, propelled by its rationalization of ad spending, enhancement of channel mix, and operational leverage.

“We also expect return metrics to improve gradually driven by improving profitability, a lean balance sheet (asset-light contract manufacturing model, limited capex requirement for company EBOs) and prudent working capital management,” Citi’s Agarwal said.

Continue Exploring: Nuvama analysts bullish on Mamaearth for MSCI Smallcap Index, Nykaa gaining momentum for Global Standard Index

Nevertheless, the brokerage highlighted that the startup, founded in 2016, remains a relatively young company, with its largest brand, Mamaearth, yet to achieve a stable level of profitability.

In fact, Citi has pointed out that one of the key risks to its thesis is Mamaearth’s reliance on contract manufacturers.

It’s worth noting that during its IPO last year, Honasa collaborated with 37 contract manufacturers, a fact that raised concerns for many.

Nevertheless, during that time, Mamaearth founders Ghazal and Varun Alagh explained that manufacturing required significant capital investment, which could potentially limit the company’s resources. They further stated that outsourcing manufacturing would enable the company to swiftly navigate this growth stage.

Additionally, there are other risks to consider, such as increased discounting and competitive intensity, as well as the potential for pre-IPO shareholders of the startup to sell off shares once lock-ins expire.

The six-month lock-in period for Honasa’s pre-IPO shareholders is set to expire in May. Nevertheless, certain shareholders were granted exemptions from this lock-in period based on their percentage of holding.

Continue Exploring: Honasa Consumer sets sights on outpacing industry growth by 2 to 2.5 times; CFO unveils growth strategy for next year

In December last year, Fireside Ventures sold 60.89 lakh shares, equivalent to a 1.89% stake in a bulk deal. Similarly, last month, Stellaris Venture Partners disposed of more than 32 lakh shares, representing 1% of its stake in the company, in a bulk deal.

Peak XV Partners currently holds the largest stake in Honasa, accounting for 18.84% of the company’s shares. Notably, Sequoia Capital Global Growth Fund holds a 4.38% stake in the D2C unicorn, which is separate from Peak XV Partners’ holdings.

“We note pre-IPO private equity players were holding stake in Honasa. After the promoters, Peak XV/Sequoia is the largest shareholder, with 23% stake in the company. The other PE players together own about 19% and have all sold partially in the IPO. We note the risk of excess supply of Honasa shares coming to the market once the lock-ins for these players expire,” the Citi analyst said.

Nevertheless, Citi anticipates additional upside potential for the stock going forward, driven by the possibility of outperforming its peer group.

In fact, the brokerage also pointed out that while some market segments compare Honasa to Nykaa due to similarities in their operations, target audience, and digital-first approach, direct benchmarking might not be suitable. This is because they have distinct business models—Honasa operates more as a brand while Nykaa functions as a marketplace.

Jefferies brokerage also maintains a ‘buy’ rating on Mamaearth shares with a price target of INR 590.

Zara expands presence in Gujarat with grand opening of flagship store in Ahmedabad’s Palladium Mall

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February 23, 2024

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Global fashion brand Zara has unveiled its first store in Ahmedabad, Gujarat, located at Palladium Ahmedabad.

Covering 27,000 square feet, this marks the brand’s second establishment in Gujarat. It presents collections for women, men, and kids across three floors—ground, first, and second—and is furnished with cutting-edge technological amenities.

The brand’s app is seamlessly integrated with various services, such as reserving fitting rooms, accessing a designated area for online order pickups, browsing store inventory online, ordering items for pickup within two hours, and checking stock availability. Additionally, the store features two self-checkout zones for added convenience.

Continue Exploring: Zara’s parent company Inditex strengthens Lefties brand to compete with Shein

Regarding sustainability, the establishment has been meticulously designed, constructed, and operated to minimize energy and water consumption. Furthermore, the wood utilized in the store, along with paper goods such as bags and labels, bear PEFC or FSC certifications, ensuring responsible and sustainable sourcing practices.

Zara operates under the Inditex Group, an international fashion conglomerate that oversees various retail brands including Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home.

Inditex manages a comprehensive network of both brick-and-mortar and online stores across more than 200 markets and aims to achieve climate neutrality by 2040. Presently, Inditex operates 23 Zara outlets in India, including the one mentioned.

According to information on Trent Limited’s official website, the company holds two distinct associations with the Spanish Inditex group. One involves a 51% shareholding by Inditex and 49% by Trent, dedicated to operating Zara stores in India. The other association is similarly structured for the operation of Massimo Dutti stores in the country.

Continue Exploring: Retail boom in tier-2 Indian cities: Global brands and local players invest heavily as economic growth spurs consumption hubs

Victoria’s Secret continues Indian expansion, opens stores in Gurugram and Mumbai

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February 23, 2024

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Victoria’s Secret, the renowned American specialty retailer, has recently launched new outlets in Gurugram and Mumbai.

The newly opened stores can be found at Ambience Mall in Gurugram and Phoenix Marketcity in Kurla, Mumbai.

The brand is unveiling the “Store of the Future” concept to provide an immersive shopping experience. Both of the new stores feature the complete range of Victoria’s Secret beauty products and accessories, including the newly launched Bare Rose collection.

“These additions align seamlessly with our vision of offering unparalleled luxury and style to our customers. As we continue to grow and strengthen our presence, we look forward to creating immersive shopping experiences that showcase the iconic allure of Victoria’s Secret. This expansion is a testament to our dedication to curating diverse, trendsetting collections that resonate with the dynamic tastes of our patrons across the country,” said Tushar Ved, President of Apparel Group India.

In 2021, Victoria’s Secret made its debut in the Indian market via a partnership with Apparel Group India. Initially, the international brand launched its presence in India through an e-commerce platform, providing a variety of products such as fragrances, beauty, and personal care items.

During the third quarter of the Financial Year (FY) 2023-24, Victoria’s Secret inaugurated more than four stores, with two located in Pune, and one each in Hyderabad and Bengaluru. Furthermore, the brand launched its inaugural beauty store in Mumbai last month.

Continue Exploring: Victoria’s Secret unveils its first beauty store in Mumbai

In 2022, Victoria’s Secret broadened its presence in India with the opening of its maiden physical store at Palladium Mall in Mumbai. Subsequently, another store was established at Ambience Mall in Vasant Kunj, New Delhi. Continuing its growth trajectory, the brand introduced its first store in Pune at Phoenix Mall of the Millennium in November 2023.

Established in 1977 by siblings Roy and Gaye Raymond, Victoria’s Secret has evolved into a leading American retailer specializing in lingerie, clothing, and beauty products. As per its official website, the company currently operates globally, boasting approximately 1,360 retail outlets across 70 countries.

Apparel Group boasts an extensive network of more than 2,025 stores spanning across 14 countries. They represent and promote over 80 brands, which include renowned names such as Beverly Hills Polo Club, Bath & Body Works, Tim Hortons, Tommy Hilfiger, Nine West, Call it Spring, Charles & Keith, Inglot, La Senza, and R&B Fashion.

Continue Exploring: Myntra expands international brand portfolio with Victoria’s Secret Beauty, teams up with Apparel Group for exclusive collaboration

Karnataka Legislative Assembly passes bill to ban hookah bars and tighten tobacco regulations

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February 23, 2024

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The Karnataka Legislative Assembly on Wednesday passed a bill that prohibits hookah bars in the state, and carries a penal provision of imprisonment of one-to-three years and fines of up to INR 1 lakh for violations.

Additionally, the bill mandates the prohibition of tobacco product consumption in public spaces and restricts the sale of cigarettes and other tobacco items in proximity to educational institutions and to individuals under 21 years of age.

The bill titled the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) (Karnataka Amendment) Bill, 2024, amends the central act of 2003 in its application to the state of Karnataka. No person shall either on his own or on behalf of any other person open or run any hookah bar in any place, including the eating house or pub or bar or restaurant by whatever name it is called, the bill said.

Continue Exploring: Haryana Govt announces statewide ban on hookahs in commercial establishments

Hookah bar means “an establishment or place where people gather to smoke tobacco from a communal hookah or narghile, which is provided individually,” according to the text of the bill. Piloting the bill for the consideration of the House, Health Minister Dinesh Gundu Rao said the main intention is to safeguard the health of citizens, especially the youth, and to stem the tide of tobacco-related diseases.

Youth today consider the hookah a “fashion statement or fashionable”, he said. “It not only affects those consuming it, but also people around — passive smokers.” The state government has already issued a notification prohibiting hookah bars, against which their owners have gone to the courts, he said.

“Courts also have not given any stay, so if we bring amendments and make a law, there wont we any objections further,” minister said. Noting that hookah bars have been opened at restaurants and bars, Rao said, “Considering that smoking cigarettes is harmful to health, it is already prohibited in public places.

In the case of hookah, tobacco and nicotine are used along with other substances like narcotics, and to prohibit it this amendment has been brought. Punishment for running hookah bars has newly been introduced in the bill, he said, adding that violators of section 4A will be imprisoned for a term between one and three years, and be fined an amount between INR 50,000 to INR 1 lakh.

Further noting that the bill prohibits the sale of cigarettes and other tobacco products to persons below the age of 21 years, the minister said, “As per law, it is 18 years, but we have now increased it to 21 years. It cannot be sold within the radius of 100 metres from educational institutions. The fine for violation has been increased to INR 1,000 from INR 200.”

The bill that prohibits the use of tobacco products in public places, says no person shall use tobacco products in any public place, and “use” means and includes smoking and spitting of tobacco.

The exceptions are in a hotel having 30 rooms or a restaurant with a seating capacity of 30 persons or more, and in airports, where, the bill says, a separate provision for smoking area or space may be made.

Continue Exploring: Bombay high court bars restaurants from serving hookahs under eating house licenses

Kerala’s food tech sector takes center stage at Dubai Investor Meet

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February 23, 2024

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Kerala showcased its potential in the food, ready-to-eat, and food tech sectors to investors and entrepreneurs at the ‘Investor Conclave’ organized by the Kerala State Industrial Corporation (KSIDC) in Dubai on Wednesday, coinciding with Gulfood 2024.

The Kerala Pavilion at Gulfood 2024, one of the world’s largest food and beverage events, is attracting global policymakers and industry leaders during the five-day expo held at the World Trade Centre, which began on Monday.

The “Invest Kerala” event held at the Ritz Carlton Dubai highlighted the strengths and opportunities within the state’s food and food technology sector. These sectors have been prioritized by the Kerala government for increased inward investments and development.

Suman Billa IAS, Principal Secretary (Industries and NORKA), provided a comprehensive overview of the state’s food ecosystem.

“Today, Kerala has an impressive infrastructure dedicated to food processing, including five state-of-the-art food processing parks, two mega food parks & upcoming mini food parks. The state is also home to a spices park, underscoring its rich heritage in spice cultivation,” he said.

“These facilities serve as hubs of innovation and efficiency, facilitating seamless transformation of raw materials into value-added products. With its fertile land and conducive climate, the state is a powerhouse of agricultural production. We are encouraged by the response to the Investor Conclave and will support investors in their entrepreneurial journey in Kerala’s food and food tech sector.”

Continue Exploring: Indian food service market to surpass $100 Billion by 2028: Redseer Report

Welcoming the investors, S Harikishore, Managing Director of KSIDC and Director of the Department of Industries & Commerce, expressed the aim of the Investor Conclave to attract foreign investment into Kerala’s rapidly growing food sector. Additionally, it seeks to inspire entrepreneurs from the Gulf region to establish flourishing businesses within the state.

“The Kerala state government is committed to creating an enabling environment for both domestic and foreign investors to engage in the food-based ecosystem,” he said.

“From easy access to raw materials to a well-established network of manufacturing facilities, the state offers an ecosystem ripe for investment. Further, the state’s cosmopolitan outlook and extensive international market provide ample opportunities for growth and expansion,” he added.

Sunjay Sudhir, Ambassador of India to the UAE, and Saleh Abdullah Lootah, Chairman of the Food & Beverage Manufacturing Business Group in the UAE, also addressed the guests.

The Kerala co-exhibitors at the Kerala pavilion at Gulfood 2024, including Beecraft Honey, Cremberie Yoghurt, Foo Foods, Glenview Tea, Global Natural Food Processing Company, Harrisons Malayalam, Malabar Natural Foods, Manjilas Food Tech, Nasfood Exim, Pavizham Rice, Protech Organo, and Veliyath Food Products, were given the chance to engage with potential investors who attended the Investors Conclave.

Leveraging a set of reforms complementing the Kerala State Industrial Policy 2023, Kerala’s food ecosystem has experienced substantial growth in its sunrise sectors. Presently, Kerala plays a pivotal role in India’s agricultural landscape, boasting a dominant position in various sectors. It holds sway over 97 percent of India’s pepper production, 70 percent of cocoa output, and holds substantial shares in coffee, cashew, coconut, and seafood processing industries.

Furthermore, Kerala boasts a strong ecosystem of research and development institutions focused on the food sector. Institutions like the Central Institute of Fisheries Technology, Central Tuber Crops Research Institute, and Kerala Agricultural University are instrumental in nurturing innovation and achieving excellence in the field.

With these established systems, the state is positioned to emerge as a prominent player in the food processing sector, both domestically and globally.

Continue Exploring: Post-pandemic resurgence: India’s food services sector thrives with M&A, investments, and IPOs as younger consumers drive growth

KRBL reports highest ever quarterly revenue in Q3FY24, reinforces commitment to domestic market growth

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February 23, 2024

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Riding on robust support from its domestic business, KRBL Limited, the world’s largest rice millers and basmati rice exporters, and parent company of the renowned basmati rice brand India Gate, achieved its highest ever revenue from the Indian market in the period October-December 2023, crossing revenues of INR 1000 crore.

Over the past few quarters, KRBL Ltd. has intensified its efforts to expand its business in India, resulting in a 14% year-on-year revenue growth. This expansion is chiefly driven by a notable rise in sales of branded basmati rice, coupled with a remarkable 158% increase in non-basmati rice sales. With strong growth witnessed across both consumer and bulk pack segments within the Indian market, the company achieved a consolidated revenue of INR 1465 crore for the quarter.

Continue Exploring: From basmati to chicken: Indian products in high demand as the UAE seeks to expand imports

Ayush Gupta, Business Head for India Market, KRBL Limited said, “We have been witnessing steady growth in our domestic business through the last few quarters, with Q3FY24 being the highest ever. We also see our domestic business show a 9-month volume growth of 13% which is significantly higher than the FMCG volume growth of 5-7%.”

During the quarter, KRBL expanded its distribution network by 52,665 outlets, reaching a total of 385,970 retail points. The company achieved a market share of 35.9% in traditional trade, marking its highest historical figure.

Likewise, KRBL’s regional rice portfolio, which includes Sona Masuri, Kolam, and Gobindobhog, has been experiencing positive momentum, contributing nearly INR 159 crore year-to-date to domestic revenue. In the last quarter alone, this portfolio accounted for 5.62% of the overall revenue in India and is poised to surpass INR 200 crore by the end of the fiscal year.

Gupta added, “Our performance has come on the back of unwavering focus on brand-building, driven by consumer insights and sustained media investments. Furthermore, our portfolio expansion and significant improvements in our supply chain capabilities have empowered us to achieve our highest-ever quarterly revenue.”

“Regional rice has huge potential to grow and we will be aggressively pursuing this segment. Over the next 9-12 months, we anticipate doubling of revenues in the portfolio alone. There is a huge untapped market, and the opportunity to grow remains constant. As we continue to grow in this area, we’re also actively exploring opportunities to expand into new categories in the upcoming fiscal year,” Gupta said.

KRBL recently expanded its product range by venturing into the realm of spices with the introduction of the India Gate Classic BiryMasala Range. This new line assures an authentic biryani experience at home and is available in three variants: Hyderabadi, Lucknowi, and Kolkata Biryani Masala. The range was launched in Modern Trade stores and on various e-commerce platforms.

Continue Exploring: Daawat earns top spot in Canstar Blue’s dry rice ratings in Australia

Amazon India partners with GAME to empower women entrepreneurs nationwide

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February 23, 2024

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E-commerce platform Amazon India has forged a Memorandum of Understanding (MoU) with the Global Alliance for Mass Entrepreneurship (GAME), aiming to bolster the digital growth of women entrepreneurs in India, spanning tier 1, 2, 3, and beyond cities.

Through this collaboration, the platform seeks to nurture the expansion of MSMEs while providing assistance to approximately 25,000 women entrepreneurs and artisans.

“It is truly inspiring to witness women entrepreneurs nationwide harnessing the power of e-commerce to build and grow their business. Through innovative products, they are catering to customer preferences and establishing scalable enterprises that contribute significantly to societal well-being and economy,” said Gaurav Bhatnagar, head of seller acquisition and development, Amazon India.

Continue Exploring: E-commerce firms boost efforts for gender diversity in supply chain roles

Through this collaboration, Amazon Karigar and Saheli will offer workshops, training, onboarding, and AM support for sellers involved in this entrepreneurship without any financial investment.

Amazon introduced its specialized program, Amazon Saheli, tailored for women entrepreneurs in 2017.

“Through this partnership, Women Economic Empowerment (WEE) at GAME is supporting Amazon in solving large-scale ecosystem challenges to women’s economic empowerment with access to training in the digital marketplace as well as research and data about access to new markets,” said Ketul Acharya, president, Global Alliance for Mass Entrepreneurship.

Continue Exploring: Ecommerce to be the driving force for Indian MSMEs, says ministry of MSME

India extends duty-free import window for yellow peas to April 2024

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February 23, 2024

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India has extended the timeline for duty-free imports of yellow peas by a month through April, 2024, an official gazette notification said. In early December, the central government allowed duty-free imports of yellow peas until March 2024. It was part of New Delhi’s intervention to cool the prices of the overall pulse basket.

Reportedly, the duty on yellow peas was first implemented in November 2017 at 50 per cent. India largely imports yellow peas from Canada and Russia. India is a large consumer and grower of pulses and it meets a portion of its consumption needs through imports. India primarily consumes chana, Masur, urad, Kabuli chana, and tur.

Continue Exploring: Tur dal prices surge by 5% despite arrival of new crops and ongoing imports

As part of centre’s invervention, it had in September extended stock limits on tur and urad dal by two months until December 31, besides revising the stock holding limits for certain stakeholders. Earlier, the stock limits on these two varieties of pulses were to end on October 30.

As per a notification issued then, the limit for stock with wholesalers and also big chain retailers at the depot was reduced from 200 MT to 50 MT, and the limit for millers was reduced from the last three months’ production or 25 per cent of annual capacity, whichever is higher to last 1-month production or 10 per cent of annual capacity, whichever is higher.

The Ministry of Consumer Affairs, Food and Public Distribution had maintained the revision in stock limits and extension of the time period is to prevent hoarding and elicit the continuous release of tur and urad in sufficient quantities to the market and make the pulses available at affordable prices.

Continue Exploring: Chana Dal goes affordable with the launch of government’s ‘Bharat Dal’ brand

Stovekraft hits 150-store milestone, reinforcing its nationwide presence

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February 23, 2024

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Stovekraft Ltd., a renowned kitchenware brand, has reached a significant milestone with the opening of its 150th store, situated in Bengaluru’s Jayanagar district.

“We are thrilled at expanding the reach of our range of kitchen essentials closer to consumers across cities in both metro and non-metro areas. Through this effort, our focus is to create numerous job opportunities, support local talent, and contribute to the overall economic growth,” said Rajendra Gandhi, managing director, Stovekraft Ltd.

After launching its retail operations in June 2022, the company rapidly expanded its presence, achieving 100 stores by September 2023. Subsequently, within the next five months, it further expanded its retail footprint by adding 50 additional stores.

Continue Exploring: Stovekraft bolsters market presence, unveils first Pigeon brand outlet in North India

Stovekraft stores boast a diverse range of products, comprising over 1,000 items such as gas stoves, chimneys, pressure cookers, cookware, and various other small domestic appliances.

The retailer has consistently pursued initiatives aimed at providing skill development to women, who constitute 80% of its 350-strong workforce. Previously, the company introduced a franchise opportunity for women requiring zero capital investment. This initiative attracted over 500 applications from women entrepreneurs.

Continue Exploring: Stovekraft empowers women entrepreneurs with revolutionary franchise opportunity at grand opening of 100th store

Founded in 1994 by Rajendra J Gandhi, Stovekraft currently boasts a product portfolio of over 600 items, marketed under brands such as Pigeon, Gilma, Black & Decker, and Pigeon LED. With a widespread presence, the company operates across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Kerala, and New Delhi.

Boasting a turnover of INR 1000 crore, Stovekraft’s nationwide presence is facilitated by 600 distributors, over 75,000 retail touchpoints, 150 company-owned retail stores, and 60 exclusive GILMA stores. Additionally, its global footprint extends to 14 countries, including the USA, Middle East, and Africa, catering to esteemed clients such as Walmart and Big Lots.

Continue Exploring: Stove Kraft’s Q3 profit dips 13.3% to INR 6.8 Crore, revenue climbs 11.4%

McDonald’s faces regulatory heat: Maharashtra FDA revokes license amid cheese substitution allegations

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February 23, 2024

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The FDA has taken action against the fast-food titan McDonald’s, alleging deceptive practices related to the substitution of real cheese with alternatives in burgers and nuggets, according to a TOI report. Consequently, the FDA has revoked the license of a McDonald’s branch in Ahmednagar, prompting the removal of the term “cheese” from several menu items. The regulatory body asserts that McDonald’s utilized cheese analogs without adequate disclosure, thereby misleading consumers regarding the authenticity of the cheese. Additionally, the state FDA has urged the chain to enforce corrective measures statewide and potentially nationwide.

Cheese analogs are designed to replicate the taste and texture of traditional dairy cheese, substituting dairy fat with more cost-effective vegetable oil. The FDA claims that McDonald’s failed to disclose the use of cheese analogs on food labels or electronic display boards, potentially posing health risks to consumers.

Continue Exploring: McDonald’s India launches McSaver Meals, offering budget-friendly options

FDA commissioner Abhimanyu Kale said, “During inspection, our officers did not find any mention of cheese analogues anywhere. Items like ‘cheese nuggets’, ‘cheesy dip’, and ‘cheese burger’ were being labelled as such without indicating that the cheese was a substitute,” he said. “Most other fast food pizza and burger joints could be indulging in the same practice. We plan to investigate these chains as well.”

During an inspection in October, it was discovered that a McDonald’s branch in Ahmednagar had at least eight items containing cheese analogs. Despite McDonald’s disputing the action taken, the outlet’s license was suspended due to an inadequate explanation. In December, McDonald’s communicated with the FDA, stating that they had renamed the products by eliminating the word “cheese.” However, the FDA is advocating for broader investigations into similar practices by other fast-food chains.

As per TOI report, McDonald’s has now denied using substitutes. “…we want to reassure customers that we use only real, quality cheese in all our products,” a spokesperson said.

Continue Exploring: McDonald’s faces intensifying backlash over alleged support for Israel amid Gaza conflict, #BoycottMcDonalds trend gains momentum

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