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

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February 20, 2024

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.

Continue Exploring: Coca-Cola to debut exclusive flavor on TikTok, setting a new trend in beverage marketing

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.”

Continue Exploring: PepsiCo’s Quaker brand eyes wider reach and market share with new instant oats lineup

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.

Nature’s Basket unveils flagship store in Mumbai, marking third addition to ‘Artisan Pantry’ brand

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February 19, 2024

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Nature’s Basket, the gourmet retail subsidiary of Spencer’s Retail, has launched its flagship store in Mumbai, as announced in a press release on Monday. Spanning over 9,200 sq. ft. of retail space, the new outlet is located on the third floor of Krishna Curve, Linking Rd, Santacruz West, Mumbai.

This latest establishment marks the third addition to the ‘Artisan Pantry’ brand, providing a selection of more than 10,000 gourmet ingredients.

Continue Exploring: Spencer’s Retail to launch luxury Natures Basket stores to boost profit margins

Within the store, visitors can explore a meticulously curated wine cellar, a cheese room, a chocolate factory, a truffle to nut bar, a farmer’s market, a salt station, a tearoom, a counter offering baked artisanal bread, a live honey counter, an array of exotic fresh meats, and experience live cooking demonstrations at The Good Food Cafe, along with a global dining area known as Chef’s Table.

In January 2024, the retail chain unveiled its second Artisan Pantry in Kolkata, following the inaugural launch of its first outlet at Phoenix Palladium, Lower Parel, Mumbai, in November 2023. Spanning a vast 12,000 sq. ft., it holds the distinction of being the largest Nature’s Basket store in India.

Continue Exploring: Nature’s Basket elevates gourmet experience with grand opening of flagship store in Kolkata

Nature’s Basket, a wholly owned subsidiary of Spencer’s Retail and a member of the RP-Sanjiv Goenka group headquartered in Kolkata, West Bengal, began its journey as a gourmet retail brand in 2005 with a solitary store in Mumbai.

Presently, the brand has evolved into an omni-channel retail enterprise, boasting more than 33 stores spanning cities like Mumbai, Pune, Bangalore, NCR, and Kolkata.

Spencer’s Retail, a multi-format retailer, offers a diverse array of products spanning categories such as food, personal care, fashion, home essentials, and electronics. According to its official LinkedIn page, Spencer’s operates more than 158 stores, including 48 hyper stores, across over 35 cities in India.

Quick-commerce unicorn Zepto launches Zepto Pass membership program

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February 19, 2024

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Zepto, the quick-commerce unicorn, is experimenting with a membership program called Zepto Pass.

Priced at INR 99 per month, the membership offers unlimited free deliveries on orders costing INR 99 or more, and discounts of up to 20% on certain orders. While discounts are available to some users for orders of INR 299 or more, for others the threshold is INR 699 or more. The firm is currently offering the service to a targeted set of users, with some receiving an introductory price of INR 19.

With Zepto Pass, Zepto joins Swiggy Instamart as the second quick-commerce firm to provide subscription benefits. In contrast, Zomato, a rival of Swiggy, does not offer benefits from its Gold subscription to its quick-commerce service, Blinkit.

“We are constantly running dozens of small experiments to improve customer experience. Only a few of these experiments are brought to market, hence we do not comment on them,” a spokesperson for Zepto said, declining to give further details about the plan.

Continue Exploring: Quick-commerce unicorn Zepto considers reverse flip to India, targets IPO in 2026

Subscriptions play a significant role for food-delivery and quick-commerce firms in increasing usage and fostering user loyalty. In its report for the quarter ended June 30, Zomato disclosed that the Gold program contributed over 30% of the total gross order value (GOV) for its food business, amounting to INR 7,318 crore for that quarter.

In contrast, Swiggy has been striving to broaden the reach of its One subscription by packaging it with telecom subscriptions and financial products like credit cards.

Swiggy One is priced at INR 1,299 for a three-month period without any discounts, while Zomato Gold is offered at INR 999 for the same duration. However, both companies provide substantial targeted discounts to customers. Three-month subscriptions of Zomato Gold were found to be priced at INR 99 and INR 249 for different customers, while three-month subscriptions of Swiggy One were available at INR 39 and INR 149.

Continue Exploring: Swiggy competes with Zomato Gold with its new affordable Swiggy One Lite subscription plan

Quick-commerce companies are exploring innovative methods to boost their earnings, including leveraging advertising opportunities. Blinkit reported a significant surge in its ad revenue during the December quarter, with a more than threefold increase compared to the corresponding period last year, as announced on February 8.

In the financial year that ended in March 2023, Zepto’s revenue surged over 14 times, reaching INR 2,024 crore. However, the Mumbai-based company incurred a loss of INR 1,272 crore in FY23, which was over three times wider than the previous year.

Zepto’s FY23 revenue soars to INR 2,024 Cr with 14-fold growth, but losses triple

Godrej Yummiez to enter South African market, targeting Q1FY25 for launch

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February 19, 2024

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Godrej Yummiez, the frozen ready-to-cook brand from Godrej Tyson Foods Ltd, is set to enter the South African market by the first quarter of the next financial year, as stated by Mohit Marwaha, AVP of Yummiez at Godrej Tyson Foods.

Yummiez recently forayed into the markets of Singapore and Bangladesh, Marwaha said.

“We’re exploring opportunities in South Africa, given its significant Indian diaspora. Additionally, the UK remains on the cards,” he added.

Moreover, the company plans to allocate INR 25-30 crore towards setting up dedicated Yummiez freezers in retail outlets across India within the next 2-3 years.

Continue Exploring: Godrej Yummiez teams up with IRCTC to bring nutritious millet patties to rail passengers

Marwaha stated that Yummiez plans to broaden its sachet format.

“We have recently launched a pack of two chicken sausages priced at INR 30, and we are receiving good traction on this product in India due to its affordable pricing. We are planning to add more products in sachet format for both the veg and non-veg segments within the next quarter,” he said.

Marwaha observed that there is increasing acceptance of having frozen food at home, and he anticipates a robust double-digit growth in the frozen food category moving forward.

“I have observed positive changes deep in the infrastructure, particularly in the supply chain and storage for stock. Across logistics, freight, and retail, there’s a noticeable improvement. In the retail sector, especially for frozen food, there’s a solid foundation, and resources for last-mile delivery have become more readily available. This overall enhancement is expected to drive growth in this category,” he said.

Marwaha highlighted the advantages of competition, particularly in a niche category such as the frozen food market. He expressed his belief that the entry of more players into the market could enhance awareness and be advantageous for all involved. Given the current single-digit penetration in various categories, he views competition as a driving force for accelerated category growth.

Marwaha stated that there’s a widespread consumer belief that frozen food is unhealthy and laden with preservatives. To counter this perception, we launched a campaign for Yummiez, emphasizing its preservative-free nature.

“For instance, storing green peas in freezers without preservatives, thanks to the low temperature of minus 20 degrees, extends their shelf life. People are recognising the benefits of frozen food, its nutritional value, and adopting it as a valid and convenient option,” he added.

Continue Exploring: Vegetarian frozen foods gain momentum with increased shelf space to meet rising consumer demand

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