Nepal restricts trans-fatty acids in food industry, receives WHO praise

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February 20, 2024

The World Health Organization commended Nepal for enacting legislation to limit levels of industrially produced trans-fatty acids in the food supply, a measure designed to enhance health and preserve lives.

“Eliminating trans-fatty acids is a cost-effective measure with great health benefits in preventing premature deaths from cardiovascular diseases,” said Saima Wazed, Regional Director, WHO South-East Asia.

Prioritising prevention and control of noncommunicable diseases (NCDs) in South-East Asia Region, WHO has been supporting countries for elimination of trans-fatty acids from national food supplies, along with other measures. With Nepal’s legislation, now nearly 80 per cent of the Region’s population – 1.6 billion people – will be potentially protected from the harms of trans-fatty acids.

Globally, 540,000 deaths every year can be attributed to intake of industrially produced trans-fatty acids. High trans-fat intake significantly increases the risk of death from cardiovascular diseases.

There are no recognized health benefits associated with trans fats.

Continue Exploring: ‘Healthier’ options account for only 24% of packaged food sales in India, indicates latest ATNI Report

In the WHO South-East Asia Region, 69% of the nearly 9 million annual deaths are attributed to non-communicable diseases, with cardiovascular diseases being a primary contributor to mortality.

In 2018, the WHO introduced REPLACE, a set of six strategies aimed at facilitating the eradication of industrially produced trans-fatty acids. Through collaboration with Resolve to Save Lives, REPLACE protocols are currently being rolled out across the Region.

By 2022 Thailand, India and Bangladesh had adopted regulations for elimination of trans-fatty acids in food supply. Indonesia had complementary policy measures. Sri Lanka issued a regulation in 2023.

Nepal issued the legislation on trans-fatty acids on February 8.

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Restricting trans-fatty acids is a crucial aspect of the ‘SEA HEARTS’ initiative in the WHO South-East Asia Region, emphasizing the need for unified efforts among all partners and stakeholders to accelerate actions effectively aimed at reducing deaths from cardiovascular diseases.

Nepal’s legislation on trans-fatty acids will add 30 million people to the SEA HEARTS target of protecting two billion people from the harmful effects of trans-fatty acids through best practice or complementary policy measures of WHO REPLACE by 2025.

WHO has been urging countries in the Region to focus on best-practice policies, monitoring and surveillance, to drive progress against trans-fatty acids.

Last month, Thailand was among the first five recipients of WHO certificate validating progress in eliminating industrially produced trans-fatty acids.

Eliminating trans-fatty acids from the food supply will enhance the health and wellbeing of people and also help attain the SDG targets of reducing premature mortality by one-third from noncommunicable diseases by 2030.

Continue Exploring: FSSAI greenlights amendments for single food certification authority

India eases onion export restrictions, allows shipments to selected countries

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February 20, 2024

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India has allowed exports of onions on a government-to-government basis to certain countries, as per the recommendation of the Ministry of External Affairs, informed sources revealed.

One source indicated that a limited quantity of onion exports has been allowed for bilateral purposes, although no decision has been made regarding the complete lifting of the ban on onion exports. Details about the exporting agency could not be confirmed.

Another source stated that the government has authorized the export of onions in restricted amounts to countries including Bangladesh, Sri Lanka, Mauritius, Bahrain, Bhutan, and Nepal, among others.

In December 2023, India, the world’s second-largest exporter of onions, implemented a ban on the shipment of this kitchen staple until March 2024 due to escalating domestic prices and the threat of shortages. Consequently, onion prices skyrocketed in neighboring countries.

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

With the onset of rising onion prices in August 2023, the finance ministry introduced a 40% export duty to restrict shipments. Despite this measure, its intended impact was not realized due to under-invoicing. Consequently, the government enforced a minimum export price of $800 per tonne on onions, effective October 28.

Due to heavy rainfall and hail storms causing damage to crops in regions like Nashik and Ahmednagar in Maharashtra, onion arrivals declined during the peak season in November. This led to a surge in prices, prompting the government to enforce a ban on the shipment of onions effective December 8.

Continue Exploring: India halts onion exports as prices soar due to unseasonal rainfall

This has caused onion prices to drop from over INR 40 per kg to about INR 13 currently in the wholesale market of Nashik, India’s main onion-growing region, leading onion farmers to protest for two months demanding the lifting of the export ban.

Onions account for 0.6 percentage points of the overall inflation index and 10 percentage points in the vegetable basket. Any increase in onion prices has the potential to elevate food inflation, which is a cause for concern for the government, particularly with Lok Sabha elections looming in a few months.

In early February, a delegation of central government officials conducted a visit to the onion-growing regions of Maharashtra. The purpose of the visit was to provide recommendations to the government regarding the export ban.

Meanwhile, on Sunday, some exporters wrote to the government suggesting that instead of imposing a complete ban on onion exports, the government should allow outbound shipments on a restricted basis. They emphasized that a significant export volume could lead to a notable price increase in the domestic market.

Continue Exploring: Onion prices plunge by 50% following govt ban on exports

Consumer goods giants scale back B2B sales to ensure fair play for distributors

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February 20, 2024

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Leading consumer goods companies Britannia, Dabur, Amul, and Parle are restricting sales to organized wholesalers such as Flipkart Wholesale, Udaan, and Reliance Cash and Carry. This decision aims to avoid margin issues with their traditional distributors or those who may cannibalize their sales.

“We do not want to actively participate in the B2B (business to business) because that gets us onto the wrong foot with our distribution agenda with our distributors and can disrupt through pricing actions our distribution chain in the country,” Britannia’s managing director Varun Berry told investors.

Continue Exploring: Quick-commerce giants grab 30-50% of FMCG sales, kirana stores witness slowdown

In India, approximately 80% of fast-moving consumer goods sales are dominated by kirana stores, which are serviced by either distributors or wholesalers. Although organized retail and wholesalers only make up about 5% of FMCG sales, they wield significant influence over supplies and pricing due to their scale. However, companies have expressed anticipation of reaching unserviced kirana stores through these large organized B2B sales channels, a goal that has yet to materialize.

“We have suffered and opened floodgates as we thought it is an emerging channel, and, therefore, we need to leverage them because they all promised they will do distribution in hitherto not covered retail. But when we supplied them stock, they did an easy business by supplying to our wholesaler at a lower rate, which the distributor was supplying, because their terms of trade are better than the distributor’s terms. So, it undercut our business in general trade,” remarked Mohit Malhotra, Chief Executive of Dabur.

For companies, supplying products through conventional distributors typically incurs costs equivalent to 13-14% of sales, whereas with organized wholesalers, these costs are nearly halved. Previously, intense price competition in the grocery B2B sector, characterized by significant discounting, led traditional distributors to consider ceasing supplies from consumer product companies.

Continue Exploring: NielsenIQ forecasts 4.5-6.5% growth for FMCG sector in FY24; volume surges by 6.4% in Q4 2023 as urban-rural gap narrows

“We are not curtailing our supplies to zero and will still sell at B2B outlets, but our strategy is to keep the overall percentage to low single digits and not go beyond it even if we can potentially get higher sales. This helps us bring margin parity with conventional distributors and avoid them from eating into their kirana network,” said Krishnarao Buddha, senior category head-marketing at Parle Products.

There are approximately 10 to 12 million kiranas, yet companies only directly engage with a fraction of them, relying heavily on the wholesale network instead. This significantly hampers their ability to influence market share, offer promotion schemes, and effectively track inventory, as well as support credit access for small retailers.

“India is a vast and diverse country, and the distribution and brand salience dynamics vary for each company in each geography. Hence, one size doesn’t fit all. Even the best brands serve anywhere between 25-35% of the outlets, even if they may account for almost half the sales,” said Dinkar Ayilavarapu, vice-president, head, Flipkart Wholesale.

Continue Exploring: FMCG firms optimistic about rural recovery amid macroeconomic improvements

ISWAI presses for immediate rationalization of excise duties on alco-bev sector

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February 20, 2024

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The International Spirits & Wines Association of India (ISWAI), representing multinational and domestic alcoholic beverage companies investing and operating in India, has urged immediate action on the pressing matter of steep state excise duties. These duties constitute approximately 70-80 percent of the consumer Maximum Retail Price (MRP), exacerbating inflationary pressures and placing considerable strain on the industry.

With rising inflation rates across the country, the alcoholic beverage sector is grappling with significant challenges due to the escalating costs of production, transportation, raw materials, and exorbitant import duties. This situation poses a dire threat to the industry’s sustainability.

Continue Exploring: Karnataka govt to revise liquor duty rates to bolster revenue and curb trade diversion

Nita Kapoor, CEO, ISWAI while emphasising the need for urgent action said, “The liquor industry has consistently and significantly contributed by generating 25-40 percent of revenues for state governments and nearly 2 percent of nominal GDP. However, the current tax and tariff structure, characterised by high excise duties, limited supplier price flexibility, and exorbitant import duties of 150 percent (50 percent BCD + 100 percent AIDC), is pushing the industry toward a crisis. Regulators must recognise the necessity of inflation-linked adjustments in supplier prices as the Alco-Bev industry is a cornerstone of economic activity.”

ISWAI’s specific recommendations include implementing a uniform inflation-linked supplier pricing model for the industry, rationalizing ad hoc levies and taxes imposed by state governments, and utilizing technology for operational ease and approvals.

ISWAI believes that by implementing these steps, economic growth will be stimulated and new employment opportunities will be created. This will also provide consumers with access to a wider variety of affordable and premium choices, and position India as a leading player in the global spirits market, as stated in an association release.

ISWAI called for a collaborative outlook between industry stakeholders and policymakers to ensure the continued prosperity of the Alco-Bev sector and its contribution to the Indian economy, it added.

Continue Exploring: Uttarakhand introduces new excise policy: Allows bottling of foreign liquor, targets INR 4,440 Crore revenue in FY 2024-25

Mexican Coca-Cola bottler FEMSA outlines bold capital allocation strategy for future growth and shareholder returns

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February 19, 2024

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Mexican Coca-Cola bottler FEMSA has unveiled additional insights into its future capital allocation plans.

FEMSA holds a crucial position in the bottling of Coca-Cola products across numerous Latin American countries via its subsidiary, Coca-Cola FEMSA (KOF). These initiatives, sanctioned by FEMSA’s board of directors, are in harmony with its overarching strategy known as ‘FEMSA Forward’.

FEMSA’s strategy for capital allocation prioritizes enhancing long-term intrinsic per-share value. Over the upcoming five years, the company aims to allocate over MXN 237 billion (approximately $13.89 billion) towards core organic growth endeavors, with nearly MXN 170 billion (approximately $9.96 billion) earmarked for investment in Mexico.

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Being one of Mexico’s major employers and contributors to tax revenue, FEMSA, boasting a workforce of over 280,000 employees, foresees paying more than MXN 100 billion (approximately $5.86 billion) in total income taxes from fiscal years 2023 to 2028.

The company plans to allocate funds to projects demonstrating favorable risk-reward ratios, prioritizing value generation and cash flow. Strategic investments will adhere to FEMSA’s fundamental objectives and undergo thorough financial scrutiny.

Additionally, contingent upon business performance and capital deployment opportunities, FEMSA targets returning to shareholders an aggregate amount approximately equivalent to 6% of its current public market value within the next two to three years.

This will be achieved through a combination of additional dividends and share buybacks, going beyond the usual dividend distribution.

To distribute capital to shareholders in 2024 and beyond, FEMSA plans to utilize dividends along with a multi-year share buyback program.

The board of directors has approved proposals for submission at the 2024 annual shareholders meeting. This includes an approximate 20% increase in ordinary dividends compared to 2023, disbursed in four quarterly installments, and the payment of an additional dividend in four quarterly installments alongside the approved ordinary dividends. Additionally, the maximum share buyback capacity will be doubled from the current authorization.

Continue Exploring: Coca-Cola undertakes major refranchising move in India, shifting bottling operations to independent partners

British supermarket Morrisons adopts discounters’ pricing to stay competitive

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February 19, 2024

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Morrisons, Britain’s fifth largest supermarket group, is emulating its larger competitors by aligning prices with those of the German-owned discounters Aldi and Lidl across hundreds of comparable grocery items. This strategy aims to counteract a decline in market share.

Last month, Rami Baitieh, who previously served as the CEO of Carrefour France and assumed the role of CEO at Morrisons in November, voiced his dissatisfaction with the group’s performance. He stated his commitment to developing improvement plans.

Continue Exploring: UK supermarket Morrisons appoints Rami Baitieh as new CEO

Since the financial crisis of 2008, the swift expansion of discounters has compelled Britain’s traditional chains to increase their investment in value offerings, aiming to safeguard their market positions.

Tesco, the leading company in the industry, along with Sainsbury’s, ranked second, attribute their Aldi price matching initiatives for halting the migration of customers to discount retailers. Together, these discounters have secured a 17% share of the UK’s grocery market.

Last month, Asda, ranked third, introduced a comparable program.

Morrisons announced that starting Monday, they would implement price matching on over 200 items with the discounters. These items include essentials like milk, corn flakes, canned tomatoes, rice, bread, beef mince, chicken fillets, bananas, and carrots.

Prices will undergo bi-weekly checks, and adjustments will be made if deemed necessary.

Since its acquisition in 2021 by U.S. private equity firm Clayton, Dubilier & Rice, Morrisons stands out from its primary competitors due to its integrated production operations. Approximately half of the fresh food it offers is produced in-house.

Baitieh has announced plans to provide a strategy update in March.

Continue Exploring: Morrisons Daily collaborates with Just Eat for on-demand grocery delivery

Shoppers Stop unveils its first retail outlet in Agartala

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February 19, 2024

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Shoppers Stop, a prominent department store chain, announced the launch of its first retail store in Agartala, Tripura, according to a press release issued on Monday. The newly launched store aims to offer an unmatched shopping experience to the residents of Agartala and its neighboring areas.

The brand remains dedicated to enhancing Tripura’s local economy by offering both direct and indirect employment opportunities. Notably, 100% of the front-end staff at Shoppers Stop are residents of Agartala, fulfilling this commitment.

Continue Exploring: Shoppers Stop betting big on beauty segment, targets to open 100 stores

“Northeast continues to be an important market for us. In line with the brands’ purpose of inspiring India to look good and feel confident and in line with our expansion strategy in the Northeast of India, we are pleased to launch our first store in the enchanting city of Agartala,” said Kavindra Mishra, Customer Care Associate, Executive Director, and CEO, of Shoppers Stop Limited.

“Beyond premium collections, offering the latest in fashion, beauty along with unparalleled shopping experiences is what we are committed to,” he added further.

The store offers a wide array of products from over 500 international, national, and exclusive brands spanning various categories including fashion, beauty, home decor, and lifestyle. Additionally, services such as beauty makeovers, Personal Shopper assistance, and membership in the Shoppers Stop First Citizens Club program aim to enhance the shopping experience for Agartala residents.

The store will showcase a wide selection of sought-after and esteemed brands exclusively available through Shoppers Stop. Customers can discover a remarkable assortment of leading brands such as Jack & Jones, Rare Rabbit, Latin Quarter, Only, Vero Moda, Levi’s, Chambor, Colorbar, Faces Kay Beauty, Maybelline, L’Oreal, Lakme, Adidas, Lee Cooper, Louis Philippe, PUMA, Sketchers, USPA, and numerous others.

Founded in 1991 by property developer K Raheja Corp, Shoppers Stop Ltd. opened its first store in Andheri, Mumbai. In 2020, the retailer expanded its portfolio by venturing into the beauty segment with the launch of SS Beauty. Presently, the company boasts a network of over 107 department stores across more than 56 cities, along with 7 premium home concept stores, 88 specialty beauty stores featuring brands like M.A.C, Estée Lauder, Bobbi Brown, Clinique, Jo Malone, Too Faced, and SSBeauty. Additionally, it operates 23 airport doors and 10 Intune stores, collectively occupying an impressive area of 4.1 million square feet.

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

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February 19, 2024

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McDonald’s India West and South, managed by Westlife Foodworld Ltd, has launched its latest offering, McSaver Meals, with prices starting at just INR 99 for customers in Gujarat, Madhya Pradesh, and Chattisgarh, and INR 149 for customers in other parts of West and South India.

McSaver Meals go beyond mere affordability, reshaping the idea of ‘value’ by encapsulating the delightful experiences the brand fosters, thereby ensuring that the unmatched taste and quality of its iconic meals are within easy reach for our customers.

Continue Exploring: McDonald’s India – North & East tempts taste buds with new kebab rolls

“At McDonald’s India (W&S), our focus has always been on creating unforgettable memories and deliver feel-good moments to our customers. With our new ad campaign, we wanted to showcase the irresistible value of McSaver Meals and the moments of joy and connections that our valued customers can experience while enjoying these affordable meals.. Through initiatives like McSaver Meals, we reaffirm that McDonald’s is the best value-for-money QSR destinations for anyone, at any time of the day,” shared Arvind R.P., Chief Marketing Officer, McDonald’s India (W&S).

The McSaver Meals provide an extensive array of options, catering to a variety of tastes. Customers can indulge in regular servings of McVeggie, McChicken, McAloo Tikki, and Chicken Kebab Burgers, all conveniently bundled together at a budget-friendly rate. This offers an excellent chance for both individuals and families to savor the delicious McDonald’s flavors without burdening their finances.

Continue Exploring: McDonald’s to launch Adult Happy Meal in Australia, featuring nostalgic toys and collectibles

Max Fashion set to expand with over 50 new stores in India, eyes nationwide revamp for enhanced shopping experience

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February 19, 2024

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Max Fashion is gearing up to open over 50 additional stores this year, further expanding its presence in the Indian fashion landscape, as revealed by Sumit Chandna, president and deputy CEO of the company in a recent media release.

With expansion plans in motion, the total number of stores is projected to reach 550 by the end of this year.

Continue Exploring: Max Fashion celebrates 17 years and 480 stores in India, poised for further growth

The company announced on Monday the opening of its 500th store in Pune. Spanning across 10,699 square feet on both ground and plaza floors, the store features a wide range of stylish apparel, footwear, accessories, and more, catering to diverse tastes.

Max is set to undergo a nationwide revamp of its stores, with the goal of creating a world-class experience. These revamped stores are anticipated to become even larger fashion hubs.

With a strategic emphasis on accelerating growth across various markets, the aim is to strengthen its position in the fashion industry, fostering meaningful connections with consumers, nurturing brand loyalty, and advancing towards market dominance.

Continue Exploring: Fashion giant Mango sets sights on 500 new stores in global expansion strategy by 2026

Marico’s Saffola introduces four exciting gourmet flavors to its oats range, catering to diverse palates and preferences

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February 19, 2024

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Marico, a prominent FMCG company in India, has introduced four exciting gourmet-style flavors in its flavored Oats range under its flagship brand – Saffola. For the first time, Saffola Oats, will offer two exciting, sweet flavors viz Nutty Chocolate and Apple ‘n’ Almonds. Alongside expanding the portfolio of savory (Masala) oats with the launch of two new flavors viz Spicy Mexicana and Cheesy Italia.

These latest releases align with a steadfast dedication to delivering a delightful experience for consumers, along with providing ‘Better for you’ food options. Saffola Oats has consistently led the way in making Oats accessible to all, presenting them in flavors beloved by the Indian palate and in convenient formats. With its recent additions, the brand seeks to broaden its appeal to new demographics and occasions.

Saffola Oats’ sweet-flavored variants, Nutty Chocolate and Apple ‘n’ Almonds, are tailored to meet the growing yet unmet demand for chocolate and fruity flavors. They offer a delightful breakfast experience and are ideal for homemakers and working women seeking a convenient and hassle-free option throughout the day.

Continue Exploring: Marico’s innovative flavor strategy propels Saffola to top spot in oats market

Saffola Masala Oats presents a range of six delectable savory flavors tailored for snacking. Expanding its offerings, the brand introduces two fusion flavors, Spicy Mexicana and Cheesy Italiaa, which are already gaining traction in the snacking category. This culinary innovation underscores the commitment to providing diverse and convenient choices that resonate with the mindful lifestyles of modern consumers.

With a mere preparation time of 3 minutes and flavors that transcend culinary boundaries, the four new flavors are ideal for health-conscious consumers looking to satisfy their hunger pangs while indulging in genuine delight.

Speaking about the new Saffola Oats Flavours, Vaibhav Bhanchawat, chief operating officer- India & Foods Business (Marico), said, “With the introduction of Saffola’s new Gourmet Flavors, we hope to satisfy the needs of modern consumers who constantly seek healthy convenience without compromising on flavor and taste. Our commitment to offering wholesome and flavorful options remains steadfast, ensuring that consumers across age groups can savour the delicacies of Oats on all sorts of occasions. We invite everyone to experience the fusion of taste and nutrition in these new Saffola Oats variants, enhancing your everyday moments with a burst of deliciousness.”

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The four new flavors of Saffola Oats will be accessible through prominent e-commerce and online grocery platforms such as Flipkart, Amazon, Zepto, Swiggy, and BlinkIt.

Since 2011, Saffola has established itself as a trusted and innovative brand, meeting the varied taste preferences of Indian consumers and providing “better for you” food options. Recognizing the Indian affinity for spicy flavors reminiscent of flavorful street food, Saffola introduced ‘Savory Oats,’ fulfilling the demand for savory delights while making oats more accessible in an exciting format. This initiative challenges norms by showcasing that tasty food can also be healthy, thus democratizing the perception of oats.

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