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.
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.
Dunkin’ has introduced a new energy drink to its menu, just as its rival Panera Bread grapples with multiple lawsuits related to its own heavily caffeinated beverage.
According to a press release, the company has launched its latest SPARKD’ Energy drink line, featuring flavors like Peach Sunshine and Berry Burst.
Dunkin’ is joining the energy drink trend with a beverage that contains 192 milligrams of caffeine and 37 grams of sugar in its largest size, as stated on the company’s website.
In comparison, Panera’s competitor, Charged Lemonade, packs 236 milligrams of caffeine in a similar serving size. A viral video by TikTok creator Sarah Baus in December 2023 highlighted that one Charged Lemonade packs the caffeine punch equivalent to about four cups of espresso.
For context, the Food and Drug Administration specifies that healthy adults can safely consume up to 400 milligrams of caffeine a day.
The Panera drink has been at the center of multiple lawsuits dating back to last year.
In a recent case, a 28-year-old woman from Rhode Island claimed that the highly caffeinated lemonade from Panera resulted in “permanent cardiac injuries” for her. According to her complaint, she now relies on daily medication and suffers from heart issues after consuming 2 ½ Charged Lemonades in April 2023.
Her lawsuit represented at least the third legal complaint in recent months against Panera concerning its Charged Lemonade.
A lawsuit filed in October claims that Sarah Katz, a 21-year-old University of Pennsylvania student, passed away after consuming Charged Lemonade. Katz, who had a heart condition known as long QT syndrome type 1, refrained from consuming energy drinks as per her doctors’ advice, according to the filing.
Following the first lawsuit, Panera Bread announced that all of its stores across North America would include more comprehensive disclosures about the beverage on their premises, website, and app.
The language indicates that Charged Lemonade should be consumed moderately and is not advised for children, individuals sensitive to caffeine, or pregnant or nursing women.
Another fatality was attributed to the caffeinated beverage in a lawsuit filed in December by the family of a Florida man. Dennis Brown, 46, who had an unspecified chromosomal deficiency disorder, consumed three Charged Lemonades from a nearby Panera on October 9, subsequently experiencing a fatal cardiac arrest on his journey home, according to the suit.
Panera expressed “our heartfelt sympathy for Mr. Brown’s family” and reiterated its confidence in the safety of its products.
Kellogg’s has broadened its Pringles lineup with a fresh array of fiery flavors branded as “Hot.”
Pringles Hot comes in five different flavors: Mexican chili & lime, flamin’ cheese, smokin’ BBQ ribs, kickin’ sour cream, and sweet chili.
Each flavor presents a distinct level of heat intensity, ranging from the gentle kick of kickin’ sour cream and sweet chili to the spicier end of the spectrum found in the flamin’ cheese variety.
The latest lineup is taking the place of Pringles Sizzl’N, introduced in 2021. Pringles Hot features four flavors that adhere to HFSS regulations, except for sweet chili.
Beth Johnson, Kellogg’s UK&I senior activation brand manager, said, “We know our shoppers love spicy flavours, as we saw with our Sizzl’N range. Pringles Hot is the next evolution and allows retailers to capitalise on the demand for more spicy offerings.’’
Pringles Hot is available at across major UK retailers for an RRP of £2.25 per 160g tube.
Inditex, the parent company of Zara and the largest publicly traded fast fashion corporation globally, is expanding its budget-friendly brand, Lefties, targeting Generation Z, in response to competition from Shein, a fast-growing Chinese-founded competitor.
Shein’s rapid expansion as an online marketplace devoid of physical stores is compelling retailers such as Inditex and Sweden’s H&M to seek strategies to counter its competitive pricing. Zara’s pricing competitiveness has waned as Inditex raised prices within its core brand to safeguard profit margins amidst inflation and to cater more to upscale clientele. Nonetheless, the Spanish company is discreetly expanding its budget offerings.
The expansion of Lefties, offering jeans priced at 17.99 euros, dresses for as low as 7.99 euros ($8.64), and handbags at 5.99 euros, is a key component of that strategy.
Initially serving as an outlet for Zara’s surplus items, Lefties has now expanded its presence to 17 countries, including Egypt, Mexico, Romania, Saudi Arabia, Turkey, and the United Arab Emirates.
Its expansion demonstrates Inditex’s desire to establish a presence in the lower-priced segment of the market, even as it continues to enhance profitability at Zara, a brand significantly larger than Lefties in terms of both sales and store count.
Lefties is expanding both in its domestic market of Spain and in Portugal, particularly as many consumers are opting for more budget-friendly options amidst pressure from Shein’s extremely low prices. In Spain, where Lefties boasts 25 stores according to its website, its customer base has surged from approximately 3.5 million in 2019 to 5 million in 2023, trailing just behind Shein, estimated at 5.2 million, according to figures from market research firm Kantar.
Swetha Ramachandran, a portfolio manager at Artemis Fund Managers in London, whose fund invests in Inditex, suggests that Lefties’ expansion into various emerging markets indicates a strategy by Inditex to cater to shoppers who might be less inclined to spend extravagantly at Zara.
Ramachandran further mentioned that discussions with Inditex management frequently revolve around Shein’s influence on the fast fashion sector and the most effective strategies for Inditex to counter it. According to Coresight Research, Shein, although unlisted, holds the title of the world’s largest fast-fashion retailer, boasting an estimated 18% market share.
On Instagram and TikTok, Lefties employs similar tactics to Shein, often featuring micro-influencers in the majority of its posts, contrasting with Zara’s social media marketing, which tends to lean towards a high-fashion aesthetic.
Lefties remains consolidated under Zara within Inditex’s financial reports, thereby keeping its results undisclosed to the public.
Inditex refrained from providing answers to inquiries regarding Lefties’ sales and strategy. Instead, the company emphasized that the brand has been autonomously curating collections for women, men, and children for over twenty years.
“We don’t have much visibility on it but I think it is working wonders because it is the only one in the low-cost segment with a good online service,” said Patricia Cifuentes, senior analyst at Bestinver Securities.
In Spain, competitor Primark does not provide home delivery services, and Shein typically takes 10 to 12 days to fulfill orders, according to Cifuentes. This situation positions Lefties as a more appealing option. Cifuentes noted that Inditex is strategically maintaining confidentiality regarding the brand’s performance while patiently assessing its trajectory.
“It typically takes time for a retailer to reach the critical mass and, therefore, the right profitability. Moreover, there is an advantage in keeping the results hidden from the competitors for the time being,” she said.
According to Kantar estimates, Shein’s customer base in Spain surged to 5.2 million in 2023 from 421,000 five years prior. However, the Chinese retailer still lags significantly behind Zara and Primark in terms of market presence.
When questioned about Lefties, Shein declined to provide commentary on other companies. Instead, the retailer announced plans to launch “several” pop-up stores across Europe this year, following last year’s successful pop-ups in cities such as Berlin, London, Paris, and Rome.
Primark declined to provide comments regarding competitors.
According to unpublished Kantar estimates, Lefties in Portugal attracted a larger number of shoppers than Zara last year.
“The competitor set is still quite formidable for the very low price point,” said Grace Su, San Francisco-based portfolio manager at Clearbridge Investments, whose fund holds shares in Inditex.
“If they can drive a business with adequate returns, it’s all accretive as long as it’s not cannibalising the rest of the brands.”
Last year saw Lefties opening its first stores in Romania and Turkey, along with expanding its presence in the United Arab Emirates through franchise partnerships.
Despite this, Zara and other Inditex brands such as Bershka and Pull&Bear have been reducing their global store count. As of October 31, 2023, Inditex had 585 fewer stores compared to the previous year.
Similar to Zara, Lefties in Spain concentrates on establishing large stores in major cities. Its largest flagship store was unveiled in Madrid towards the conclusion of 2022.
“This is the first time we have shopped here,” said 47-year-old Diana Doina, waiting to pay at the Lefties store in Madrid with her 13-year-old daughter Carla. “I’ll take some cargo trousers, and the trainers are really cheap.”
Aditya Birla Group‘s jewellery business, operating under the brand name ‘Novel Jewels Ltd’, will begin its operations this July, as reported by ET Now citing its sources.
Last June, the company announced its plans to enter the retail jewellery sector with an investment of approximately INR 5000 crore.
At that time, the company stated that under Novel Jewels, it would establish large-format exclusive jewellery retail stores across India, showcasing in-house jewellery brands.
Novel Jewels, it said, ‘aims to transform the customer experience by creating an aspirational national brand with unique designs and a strong regional flavour’.
“The branded jewellery retail venture will be operated by a newly recruited leadership team with deep retail and category expertise,” the Aditya Birla Group had announced in June 2023.
In a statement Kumar Mangalam Birla, Chairman, Aditya Birla Group then said, “Aditya Birla Group’s foray into branded jewellery retail marks a pivotal moment in our storied legacy of building businesses underpinned on trust. This foray is a strategic portfolio choice that allows us to tap into new growth engines and expand our presence in the vibrant Indian consumer landscape. With rising disposable income, discerning and aspirational consumers are leaning more towards design-led, bespoke, and high-quality jewellery. This venture will capitalise on Aditya Birla Group’s deep expertise in lifestyle retail and nuanced understanding of consumer preferences.”
“IRCTC has tied up with M/s. Bundl Technologies Pvt. Ltd. (Swiggy Foods) for supply & delivery of pre-ordered meals through IRCTC e-catering portal as a PoC (Proof of Concept) in the first phase at four Railway stations — Bengaluru, Bhubaneswar, Vijayawada & Visakhapatnam,” said IRCTC in a statement to the stock exchange on Thursday.
This development comes four months after Zomato partnered with the IRCTC for the supply and delivery of pre-ordered meals on a pilot basis in October last year. The service was then announced for five railway stations – New Delhi, Prayagraj, Kanpur, Lucknow, and Varanasi, in its first phase.
Meanwhile, as per its statement, IRCTC indicated that the e-catering service through Swiggy might be available soon.
Presently, the Indian food delivery market is dominated by Zomato and Swiggy, with the Deepinder Goyal-led startup holding the lead with approximately 54% market share.
As per an analysis, between January and November 2023, Zomato also led the total number of app downloads (47.5 Mn) while Swiggy’s count stood at 36 Mn.
Swiggy, meanwhile, is gearing up for its IPO and aiming to achieve an INR 10K revenue in FY24, along with profitability ahead of its listing.
However, in FY23, Swiggy’s net loss widened by 51% to INR 4,179.3 Cr from INR 3,628.9 Cr in the previous fiscal year. Despite this, its operating revenue experienced a notable 40% year-on-year (YoY) increase, reaching INR 8,264.4 Cr, driven by the growth of its quick commerce vertical.
Meanwhile, amidst a vast pool of railway traffic, IRCTC continues to experience a surge in its catering business. Its revenue from catering services increased by almost 30% year-over-year to INR 507.8 Cr in the last reported quarter – Q3 FY24.
Uber Eats is gearing up to roll out autonomous food delivery robots on the bustling streets of Tokyo. This marks its first international expansion into robotic food delivery. The initiative, scheduled to begin by the end of March, is the result of a collaboration between Uber Eats, robotics startup Cartken, and Japanese industrial giant Mitsubishi Electric.
Located in Silicon Valley, Cartken has created delivery robots called Model C. These robots feature artificial intelligence and sophisticated sensors, allowing them to maneuver sidewalks and detect obstacles. Sporting six wheels and capable of carrying up to 27 litres of cargo, these robots can travel at a pedestrian-friendly pace of up to 3.3 miles per hour.
One of the key functionalities of Cartken’s technology is its capability for remote monitoring and guidance of the robots in case they encounter unforeseen obstacles during delivery.
Customers within the designated delivery zone in Tokyo will be able to order food through the Uber Eats app and choose autonomous robot delivery. The robot will autonomously travel to the restaurant for pickup and then to the customer’s location. Additionally, customers have the option to have their meal left at the door without requiring a hand-off.
Mitsubishi Electric will oversee the operations and training of the delivery robots in Tokyo. Shoji Tanaka, Senior General Manager of Mitsubishi Electric’s Advanced Application Development Center, expressed optimism that the initiative would spur the adoption of robot delivery services in Japan. He highlighted robots as an effective solution to Japan’s persistent logistics labor shortage.
The autonomous delivery program, initially introduced by Uber Eats in Miami in early 2022 in collaboration with Cartken, later expanded to Fairfax, Virginia. The expansion into Tokyo signifies the first deployment of delivery robots beyond the United States.
Qingrong “Gary” Xiao, CEO and co-founder of Cartken, emphasized Tokyo as a logical progression for the company, considering Japan’s historical embrace of robotics and automation. Xiao expressed enthusiasm about collaborating with Uber Eats and Mitsubishi Electric to deliver exceptional delivery experiences to Tokyo residents.
Specifics regarding the Tokyo restaurants joining the autonomous delivery program and the neighborhoods gaining access to the service remain undisclosed. Further details are anticipated to be unveiled closer to the late March launch date.
Praveen Nagamalla and Rahat Achanta, Co-Founders, Fruitoholic
Fruitoholic, the renowned fresh fruit brand, has secured a total of INR 25 Crores in a recent fundraising round comprising both equity and debt financing. This milestone marks a significant step forward for the Hyderbad-based company as it continues its journey towards expansion and growth in the market.
The seed round investment, which contributed to the overall fundraising amount, was led by prominent industry leaders including CXOs of KFC, investment bankers, and other senior corporate professionals. Additionally, public institutions also participated in the fundraiser, demonstrating widespread support and confidence in Fruitoholic’s vision and potential.
Notably, RightRoad Ventures spearheaded the last round of fundraising, reaffirming their commitment to Fruitoholic’s growth trajectory. The investment will primarily fuel the brand’s expansion plans, facilitating its entry into two new cities while bolstering its presence in existing markets.
Reflecting on the successful fundraising endeavor, the Founders extended their gratitude to investors and stakeholders for their steadfast support. They stated, “We are thrilled to have received such overwhelming support from investors who share our vision for Fruitoholic. This funding will enable us to accelerate our expansion plans and further enhance our product offerings, thereby solidifying our position as a market leader in the fresh fruit segment.”
Founded in 2021 by Praveen Nagamalla and Rahat Achanta, Fruitoholic has rapidly become a leading brand in the fresh fruit category, earning widespread acclaim for its quality products and customer-centric approach. With a remarkable track record of generating close to 30,000 orders every month, the company has experienced exponential growth, recording a staggering INR 65 Crores in revenue over the past three years.
In addition to its impressive revenue generation, Fruitoholic has attained profitability, showcasing the strength of its sustainable business model and strategic operational prowess. Moreover, the company is set to expand into Bangalore and Chennai this year, alongside the introduction of a range of new products.
As Fruitoholic enters its next phase of expansion, the company remains steadfast in its dedication to providing exceptional value to its customers, all while upholding its mission of advocating for health and wellness through the consumption of fresh and nutritious fruits.
Ikea India has decided to discontinue operations at its R-City Mall store in Mumbai by the middle of this year. This move will see the Swedish retail giant consolidating its Mumbai operations to Ikea Worli and Ikea Navi Mumbai, alongside its e-commerce operations.
Opened in 2022 as part of the company’s strategy to experiment with smaller format concepts in India, this store faced challenges in delivering the complete brand experience due to layout and design-related constraints.
Employees at the R-City store will not be impacted and will be given opportunities to work at other stores operated by the retailer.
“This strategic decision is at the back of the learnings we have had in terms of customer experience and aligned to our vision of creating a leaner and faster retail business in the country. It further allows us to consolidate our Mumbai operations to Ikea Worli, Ikea Navi Mumbai and online presence, while exploring newer opportunities for future growth,” Ikea India said in a statement.
“The focus on growing Mumbai remains robust as we explore newer omni-channel formats for the city, further develop the existing IKEA Navi Mumbai site into a retail destination, expand our physical presence in Pune, and become even accessible through our online presence across Maharashtra. India is a long-term priority for IKEA, and we will continue to invest in more growth avenues and job opportunities,” the company added.
“Taking care of our dedicated co-workers is our highest priority. We are committed to supporting them with equal growth opportunities and a seamless transition and have them continue to be a part of the IKEA family,” Ikea India added.
Earlier this month, the Swedish furniture retailer extended its doorstep delivery services to 62 additional districts across four states, encompassing 14 districts in Maharashtra as well as areas in Karnataka, Telangana, and Andhra Pradesh.
Additionally, it plans to commence e-commerce operations in Delhi within one year ahead of the store launch in the region. Ingka Centres, Ikea’s parent Ingka Group’s shopping centre division, will open Lykli Gurugram meeting center in late 2025, while another meeting place is being developed in Noida.
Accessorize London, the fashion accessories brand, has teamed up with Gurugram-based e-commerce enablement SaaS platform Unicommerce, as stated in a joint release on Thursday.
Accessorize London has adopted Unicommerce’s multi-channel order management and warehouse management system. This technology is poised to optimize warehouse operations by assigning orders to the nearest facility, ultimately leading to faster deliveries for customers. Additionally, the Unicommerce platform will assist in returns management, reducing return orders and enhancing the post-purchase experience for Accessorize London’s customers.
Exclusively dedicated to e-commerce and retail, Accessorize London intends to integrate Unicommerce’s omnichannel retail management system, enabling the seamless processing of orders across both physical and digital channels. Presently, the fashion brand handles an average of over 20,000 orders per month.
Accessorize London, a subsidiary of Planet Retail Holdings Pvt. Ltd., maintains stores across various cities including Mumbai, Bengaluru, Haryana, Kolkata, Hyderabad, Punjab, Delhi, Goa, Nagpur, Ahmedabad, and Pune, with over 25 stores according to the company’s official website.
“We are presently in the phase of creating a collection tailored specifically for India, collaborating closely with our design team in the UK. As we expect e-commerce to take a larger share of our revenue in the coming years, our partnership with Unicommerce is another step towards building our operational strength and our focus on providing a seamless shopping experience to our customers,” said Kumar Saurabh, CEO of Planet Retail Holdings.
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