FMCG demand in India faces continued decline, Kantar predicts further downturn

February 21, 2024

The demand for daily groceries, essentials, and household products is projected to deteriorate over the next few quarters in India, according to global research firm Kantar. This further delays the timeline for volume recovery in the fast-moving consumer goods (FMCG) industry, following a more pronounced slowdown in the December quarter.

In the December quarter, overall product volumes, reflecting consumer purchases, saw a 5.2% increase, slightly lower than the 6.9% growth observed in the September quarter. According to data from Kantar, sales volumes in rural areas rose by 4.8%, while in urban centers, they increased by 5.6% compared to the previous year. Kantar’s monitoring encompasses both branded and unorganized products, including bulk unpackaged goods. Conversely, Nielsen focuses mainly on tracking branded retail sales.

“We are likely to see another drop in the next quarter, and the current trend of slowdown is expected to stay deep into 2024,” said K Ramakrishnan, managing director, South Asia, Worldpanel division, Kantar. “The mild slowdown we saw in the September quarter became even more pronounced in the December quarter.”

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

Ramakrishnan highlighted that the slowdown in demand was particularly noticeable in the food sector. “Growth here stumbled to 5.8% last quarter, from a strong 8.2% in the previous quarter,” he said.

The consumer industry in India, known for its price sensitivity, experienced a demand slump as companies raised prices by nearly 25% over the last two years to counter rising input costs. These costs initially surged due to global supply chain disruptions triggered by restrictions on mobility and business operations aimed at controlling the spread of the coronavirus. Furthermore, the subsequent combination of historically low policy rates in major economies and the conflict in Ukraine led to a sharp increase in commodity prices.

However, over the past three quarters, companies have been slashing prices amid visible consumer preference in favor of cheaper products, but the strategy hasn’t helped boost volumes just yet.

Companies, too, believe demand revival will have to wait.

“I believe it will require a couple of quarters for the recovery to materialize. Rural consumption is still facing significant pressure stemming from liquidity issues,” stated Mohit Malhotra, CEO of Dabur. “We’re observing an increase in food prices as well. Therefore, we can’t consider ourselves out of the woods until rural demand rebounds.”

The FMCG market in India saw growth of 6.1% in 2023, contrasting with a 0.1% decline in 2022, primarily driven by performance between April and September last year.

Continue Exploring: Indian FMCG sector eyes robust growth in 2024 amidst favorable market conditions

Chaigram expands footprint with 15th store launch in Kolkata, eyes aggressive growth targets

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SnackTeam

February 21, 2024

Kolkata-based tea chain, Chaigram, has unveiled its 15th store in the city, as revealed by a company official on social media on Monday. The new establishment, dubbed Chaigram Canteen, is situated in Sulekha, Jadavpur, Kolkata.

“We are thrilled to announce the launch of the 15th outlet of Chaigram at Sulekha more Jadavpur, Kolkata. On behalf of the team Chaigram we would love to thank all well-wishers, investors, channel partners, supply chain partners and vendors who are involved in our journey so far,” said Anirban Dey, Co-Founder of Chaigram in a LinkedIn post.

Chaigram runs its establishments under various brand names including Chaigram, Chaigram Canteen, The 99 Thali Shop, The Calcutta Street Food, and The Republic of Calcutta. All these stores are situated in Kolkata, with each brand’s outlet located in close proximity to the others.

Continue Exploring: Chaigram expands swiftly: Unveils 14 new stores in just 22 months

“Our plan is to open 100 outlets in Eastern India by another couple of years,” Dey said on social media. Additionally, the brand aims to open 25 new company-owned and operated (COCO) outlets in 2024.

Chaigram was established in 2020 with five team members, and today the brand has grown to employ over 200 members.

According to the company’s official website, the brand has served more than 5,000 customers to date, providing a wide array of over 800 curated products across 40 product categories.

Continue Exploring: Chai Sutta Bar launches its new tea brand ‘Maatea’

Flipkart explores buyout of cash-strapped Dunzo

SnackTeam

February 21, 2024

Flipkart, a major ecommerce platform backed by Walmart, is reportedly exploring the acquisition of cash-starved hyperlocal delivery startup Dunzo.

According to a TechCrunch report, complexities around Reliance-backed Dunzo’s ownership structure have made it difficult for both parties to reach a deal.

It’s important to highlight that Dunzo has been grappling with a cash shortage for nearly a year. This has led the startup to implement numerous rounds of layoffs and suspend salary payments to employees for several months. Additionally, the company experienced the departure of several key board members and its co-founder, Dalvir Suri, last year.

Continue Exploring: Dunzo Co-Founder Dalvir Suri announces departure after six years of service

According to the report, discussions regarding the acquisition between Flipkart and Dunzo are ongoing. Nevertheless, the deal has not materialized yet, partly because Flipkart is uncertain about the aspects it would be able to incorporate through the acquisition.

Dunzo has multiple IP relationships with Reliance Retail. Furthermore, as the largest investor in Dunzo, the Reliance Group company holds considerable sway and has reportedly not yet approved the deal.

Emails sent to Dunzo and Flipkart did not elicit a response.

According to the report, Flipkart recognizes the value of specific assets within Dunzo, particularly its business-to-business offerings in the hyperlocal delivery sector.

Established in 2015 by Kabeer Biswas, Suri, Mukund Jha, and Ankur Aggarwal, Dunzo connects consumers with nearby stores and facilitates deliveries of products including groceries, medicines, and food, among other daily needs. Though the startup entered the quick commerce space with Dunzo Daily, it only resulted in more cash burn for the company.

In fact, the startup’s major funding round from Reliance Retail in January 2022 was to support its quick commerce operations and strengthen its B2B business.

Nonetheless, its business has faced challenges in expanding at the same pace as the leading quick-commerce giants such as Blinkit, Zepto, and Swiggy Instamart. Even in the B2B sphere, Dunzo encountered stiff competition from Porter, Shiprocket, as well as Zomato and Ola.

Continue Exploring: Cash-strapped Dunzo promises to settle outstanding payments to former employees by March-end

Dunzo has secured approximately $457 million across various funding rounds to date. In addition to Reliance, notable investors on its cap table include Google, Lightbox, Lightrock, and Alteria Capital.

Amid the ongoing challenges, Dunzo saw its losses almost quadruple year-on-year to INR 1,801 crore in FY23. Nevertheless, there was a remarkable growth in operating revenue, which stood at INR 226.6 crore during the year, marking a 317% YoY increase.

Meanwhile, reports have emerged indicating that PhonePe, a major fintech firm backed by Walmart and previously associated with Flipkart until its separation in 2022, is exploring an investment opportunity in Dunzo.

Radisson Blu, Kaushambi sets the bar high with a series of dynamic events and culinary delights throughout January

SnackTeam

February 20, 2024

Radisson Blu, Kaushambi, known for its dedication to superior hospitality and innovative event coordination, successfully executed a range of dynamic and captivating events throughout January. Whether immersing in cultural festivities or savoring gourmet delights, Radisson Blu, Kaushambi, delivered an exceptional experience catering to visitors with varied interests and tastes.

Ashwani Kaushik, Cluster F&B Manager, of Radisson Blu, Kaushambi, said, “We are delighted to have hosted a diverse range of events at Radisson Blu, Kaushambi throughout January. Each event was thoughtfully organized to offer our guests an immersive and engaging experience. Furthermore, in February, we are excited to continue our series of events by organizing themed brunches and other activities. We look forward to offering our guests unforgettable experiences that they will cherish in the coming future.”

Continue Exploring: Radisson partners with EaseMyTrip and Jeewani Group for second hotel venture in Ayodhya

During the series of events, Radisson Blu arranged a New Year’s brunch and dinner, a Republic Day brunch, and a Lucknow Food Festival named ‘Lazzat e Awadh’. Additionally, Radisson Blu hosted Theme Brunches featuring diverse cuisines from around the world.

The dynamic events showcased the talents of Radisson Blu’s expert chefs, who skillfully crafted specially designed dishes to lead diners on an unforgettable culinary adventure. Meticulously curated menus featured an array of exclusive dishes, inviting guests to savor global flavors that enhanced their dining experience. With such remarkable events and innovative menus, Radisson Blu, Kaushambi, continues to push boundaries and establish new benchmarks of excellence in the highly competitive hospitality industry.

Continue Exploring: Radisson Hotel Group expands footprint with Park Inn’s grand opening in Ayodhya

WMO shines at MEWA India 2024: CEO Jillian Laing leads insightful panel, hosts exclusive high tea with Chef Rakhee Vaswani

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SnackTeam

February 20, 2024

World Macadamia Organization (WMO), a leading name in the dry fruits and nuts industry, took part in MEWA India 2024, a prestigious event organized by the Nut and Dry Fruit Council of India. The event, held on the 16th and 17th of February, showcased the finest offerings in the global dry fruits and nuts sector, bringing together industry leaders, experts, and enthusiasts.

Jillian Laing, the CEO of WMO, honored the event with her esteemed presence and played an active role in a panel discussion focused on exotic nuts. Her participation provided invaluable insights into the industry’s trends, challenges, and prospects.

Continue Exploring: MEWA 2024 kicks off with Hon’ble Lok Sabha speaker’s inauguration, showcasing India’s potential in nut & dry fruits market

WMO’s involvement in the event was notably marked by an exclusive high tea session led by the esteemed Chef Rakhee Vaswani. The focus of this session was on promoting healthy culinary practices, particularly highlighting the nutritional advantages and imaginative applications of incorporating macadamia nuts into daily recipes. Additionally, attendees were treated to a live cooking demonstration, where innovative methods of incorporating macadamia nuts into various dishes were showcased, showcasing the nuts’ versatility and delectable flavor to great acclaim.

The event attracted a large number of industry professionals from the nut and dry fruit sector worldwide, alongside enthusiastic participation from various media outlets, further amplifying the exposure and significance of WMO’s presence at MEWA India 2024. The company remains dedicated to delivering superior quality products and fostering innovation in the industry.

Continue Exploring: NDFCI unveils MEWA India 2024: India’s first B2B exhibition for nuts and dry fruits industry

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

SnackTeam

February 20, 2024

A senior official stated on Tuesday that the government will uphold the ban on onion exports until its originally set deadline of March 31. This decision is driven by the government’s commitment to stabilizing prices and ensuring an ample domestic supply. The export of onions was initially prohibited on December 8, 2023, with the deadline set for March 31.

“Ban on onion exports has not been lifted. It is in force and there is no change in the status,” Consumer Affairs Secretary Rohit Kumar Singh told.

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

He further emphasized that the government’s utmost priority is to guarantee sufficient domestic availability of onions at affordable prices for consumers.

Following reports of the export ban being lifted on the commodity, wholesale onion prices surged by 40.62% to INR 1,800 per quintal on February 19 in Lasalgaon, the nation’s largest wholesale onion market, compared to INR 1,280 per quintal on February 17.

Sources indicate that the ban is unlikely to be lifted even after March 31, especially with the general elections looming ahead. This is due to projections of lower rabi (winter) onion production, attributed to reduced coverage of cultivation areas, particularly in Maharashtra.

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

During the 2023 rabi season, onion production was estimated to reach 22.7 million tonnes.

The Agriculture Ministry officials will assess the rabi onion coverage in key growing states of Maharsthra, Madhya Pradesh and Gujarat in the coming days.

Meanwhile, the export of onion to friendly countries is allowed on a case-to-case basis after approval from the inter-ministerial group.

Continue Exploring: India eases onion export restrictions, allows shipments to selected countries

abCoffee expands rapidly: 25 outlets opened in 20 months, aims for 150 by 2024

SnackTeam

February 20, 2024

abCoffee, a Mumbai-based tech-enabled specialty coffee quick-service restaurant (QSR) chain, has opened 25 outlets in 20 months.

The brand aims to have 150 stores by the end of the 2024 financial year. Currently, 25 outlets are operational, with an additional 25 in the pipeline. The remaining 25 are scheduled to open by April 2024.

Continue Exploring: abCoffee brings affordable speciality-grade coffee to India through tech-enabled outlets

Abhijeet Anand, Founder and CEO of abCoffee, said, “This rapid expansion underscores our unwavering commitment to delivering exceptional coffee experiences at honest prices, coupled with a dedication to building strong community connections.”

With a 4.6-star rating across customer ordering platforms and a commendable 61% customer loyalty rate, AbCoffee fosters local connections through strategically positioned outlets across Mumbai and Delhi, spanning corporate parks, residential areas, and vibrant high streets.

Founded in 2022 by IIT Dhanbad graduate Abhijeet Anand, the company has successfully raised a seed fund of $2 million.

abCoffee secures $2 Million in seed funding to fuel growth in India’s specialty coffee market

Beverage startup Salud to debut exciting new lineup of ready-to-drink offerings

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SnackTeam

February 20, 2024

Salud, a beverage startup, is gearing up for the release of its latest lineup of ready-to-drink (RTD) offerings, known as Salud Viking. According to a statement from the company, this RTD treat combines pure honey with natural ingredients, presenting consumers with an innovative carbonated beverage reminiscent of ancient mead, all packaged in a convenient pint-sized format.

The beverage comes in a 375ml bottle containing 15% alcohol content and is currently accessible in the markets of Kerala and Goa.

Continue Exploring: Salud embarks on Indian market domination: Introducing spirit-based ready-to-drink beverages and Salud bitters in 10 new regions

In 2022, the worldwide RTD market held a valuation of USD 1.22 billion, with projections indicating a rise to USD 2.57 billion by 2030. Furthermore, the Indian market is anticipated to hit USD 1.2 billion by 2027, as reported by Market Research Future and Mordor Intelligence.

Ajay Shetty, CEO and Founder of Salud, said, “Tourism plays a significant role in Kerala’s economy, and tourists have their own drinking habits. It has created pockets of increased alcohol consumption in the Kerala market. Our team has been working behind the scenes all year to develop a unique range of products to add to its catalogue of traditional and sparkling meads and honey. Salud Viking is our thoughtful response to the growing trend of celebrating everyday moments. Crafted as a unique celebration in a bottle, it embodies the changing preferences of our consumers.”

Salud stands as a global urban lifestyle brand specializing in products within the spirit-based ready-to-drink (RTD) category, offering not only quality beverages but also embodying a chic and fashionable lifestyle.

Continue Exploring: Salud targets Indian market with new gin collection and expansion strategies

Prasuma makes history as the first and only Indian food brand to win an International Taste Award

SnackTeam

February 20, 2024

Prasuma

Prasuma, India’s leading frozen foods brand, has achieved a significant milestone by becoming the first and only Indian food brand to win an International Taste Award. Recognized for its commitment to quality and taste, Prasuma’s Spicy Chicken Momos and BBQ Chicken Bao Buns have both been awarded 2 stars out of 3 for the Superior Taste Award 2024 by the prestigious International Taste Institute in Brussels.

Lisa Suwal, CEO, Prasuma, expressed her excitement, stating, “This is a thrilling recognition. For a quintessentially Indian street snack, the humble Momo, in this case by an Indian brand to be recognised on the World’s stage, we’re elated!”

“We put a lot of effort and love into ensuring every item on our menu tastes fresh and mouthwateringly tasty. As fresh as if it were made by you at your home from scratch. The best quality of vegetables, spices and flour that are sourced straight from farms or from parts where they are found in their best natural state. All the ingredients are perfected and detailed out to mimic what an expert hand would do at home or in a Chef’s kitchen. Our commitment to using the best quality ingredients, sourced directly from farms or regions where they are found in their best natural state, is what sets Prasuma apart,” she added.

Continue Exploring: A-Listers Spice Up Their Portfolios with Bold Bets on India’s Booming F&B Startups

The judging criteria, emphasizing parameters like first impression, vision, olfaction, taste, and texture, acknowledged Prasuma’s commitment to excellence across all aspects of their culinary creations. These products were independently tasted by renowned chefs from over 20 countries, including those from Michelin Star restaurants and chefs who have catered to Presidents, Prime Ministers, and Royalty.

Prasuma’s commitment to perfection shines through their meticulous focus on every detail, from sourcing the freshest ingredients to refining their recipes. With over 38 years of experience, Prasuma has established itself as a symbol of quality and excellence in the food industry. Pioneering the Fresh & Chilled Deli Meats and Ready to Cook Momos segment in India, Prasuma has earned widespread acclaim for its exceptional products and service among leading modern retail outlets, restaurants, chefs, and consumers across the nation.

Continue Exploring: Wow! Momo Foods secures INR 350 Crore funding led by Malaysia’s Khazanah Nasional Berhad, eyes aggressive expansion

India to invest INR 105 Crore to boost organic food testing capabilities amid growing market demand

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SnackTeam

February 20, 2024

In a bid to enhance the quality of organic food available in the domestic market and ensure better pricing for farmers, the Centre plans to invest about INR 105 crore to add organic food testing capabilities to two dozen central and state-owned testing labs, as reported by Mint, citing two people aware of the development.

According to the sources, India’s food regulator plans to upgrade an additional 66 government-owned labs to facilitate organic food testing.

The move comes as India’s organic food market rapidly expands, prompted by the current limited capacity for testing organic products, as stated by one of the individuals mentioned on condition of anonymity.

As of January 1st, approximately 67 laboratories are capable of conducting testing and certification for organic food. These laboratories are predominantly privately owned and associated with APEDA (Agricultural & Processed Food Products Export Development Authority). However, both APEDA and the government express dissatisfaction with the testing results from private labs, leading to the decision to enhance government-owned laboratories.

Continue Exploring: Grocery retailer The Organic World to expand nationwide with 100 stores by 2025

The Bureau of Indian Standards (BIS), the country’s apex certification body for testing standards under the Ministry of Consumer Affairs, plans to provide funding to state and central government institutes for the enhancement of their food testing laboratories.

The initiative will be carried out in collaboration with the Food Safety and Standards Authority of India (FSSAI). The other person, who also preferred not to be named, mentioned that over 90 laboratories are anticipated to be operational for testing organic products within the next three months.

Financial and technological assistance will be provided to food laboratories within research institutes, including those associated with the BIS, the Council of Scientific & Industrial Research (CSIR), the Indian Council of Agricultural Research (ICAR), the Defence Research and Development Organisation (DRDO), the National Test House (NTH), and other relevant entities.

Financial support will be allocated to laboratories located in Kerala, Karnataka, Maharashtra, Uttar Pradesh, Rajasthan, and Haryana, covering a total of 12 state labs and 12 central research institute labs. Additionally, the remaining 66 labs will undergo upgrades facilitated by FSSAI.

Continue Exploring: Tata Consumer Products approves INR 6,500 Crore fundraising for Capital Foods and Organic India acquisitions

The BIS has approved the proposal to procure advanced equipment for these labs, as stated by the first person cited above.

Queries directed to the Director General and Secretary of BIS, the spokesperson of the Consumer Affairs Ministry, and the Chief Executive of FSSAI remained unanswered as of press time.

“Recently, APEDA banned some private agencies for their involvement in unethical practices,” said Siraj Hussain, former agriculture secretary. “So, it will be a good move by BIS and FSSAI for setting up their own labs for organic products. This will increase consumer confidence in organic products.”

According to the Economic Survey 2022-23, India boasts the largest count of farmers engaged in organic farming globally, with 4.43 million practitioners. In the same period, Indian farmers yielded 2.9 million tonnes of certified organic produce, encompassing food grains, oilseeds, perishables, cotton, and tea.

In 2022-23, India exported INR 5,525 crore worth of organic produce, significantly surpassing domestic sales estimates. However, domestic consumption of organic food products remains constrained by high prices, primarily influenced by retailers seeking substantial margins and expenses associated with certification.

Continue Exploring: FSSAI greenlights amendments for single food certification authority

India’s primary exporting destinations for organic food products include the US, the EU, Canada, the UK, Switzerland, and several other countries.

According to APEDA, India had a total area of 10.17 million hectares under organic produce in 2022-23. Among states, Madhya Pradesh leads as the largest producer of organic food products, followed by Maharashtra, Rajasthan, Karnataka, and Odisha.

Globally, Australia holds the largest area under organic agriculture, spanning 36 million hectares, according to the World of Organic Agriculture report 2021.

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