D2C brand Basil secures INR 3.6 Crore seed funding to disrupt India’s consumer houseware market

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February 19, 2024

Basil, a consumer houseware startup, has raised INR 3.6 crore in a seed funding round co-led by IIMA Ventures and Appreciate Capital. The round also saw participation from angel investors such as Mohit Sadaani, Koo co-founder Aprameya Radhakrishna, Abhishek Goyal, Malini Adapureddy, and Magicpin co-founder Brij Bhushan.

The raised capital will be directed towards strengthening its direct-to-consumer (D2C) strategy, broadening its market presence through e-commerce channels, and diversifying its product offerings.

Founded in 2023 by Harini Rajagopalan and Mahesh Muraleedharan, Basil is a first-of-its-kind D2C startup aimed at reimagining the consumer houseware market in India, typically dominated by a handful of traditional players. The startup offers tailored products designed to specifically appeal to Generation Alpha and their millennial parents.

According to Datum Intelligence, the Indian consumer houseware market is set to cross INR 507 billion by 2027. Within the houseware market, categories such as lunchboxes, drinkware, storage containers and insulated products, contribute to 22 per cent of the overall market share. With the evolving lifestyle of Indians, high degree of urbanization, proliferation of nuclear families and technological advancement, India is witnessing a major shift in the houseware industry.

Continue Exploring: D2C homecare startup Happi Planet raises $1M funding from Fireside Ventures to expand offline presence and drive growth

Harini Rajagopalan, Co-Founder of Basil said, “Our mission is to disrupt this overlooked space, infusing it with breakthrough designs based on market needs, premium materials, functional designs and aesthetic appeal. With our launch product range, we aim to emerge as the preferred choice for Indian parents seeking the best for their children and at the same time, be seen as a fun, cool, engaging & aspirational brand for kids.”

Basil seeks to revolutionize this sector by introducing innovative designs tailored to market demands, utilizing high-quality materials, functional yet stylish designs, and aesthetic appeal. Its products are accessible nationwide through their direct-to-consumer (D2C) platform and prominent online marketplaces like Amazon.

Over the next 12 months, the Bengaluru-based company aims to diversify its product offerings by launching lunch bags for kids and introducing a new range of bento boxes tailored for working professionals.

Basil competes with companies like Rabitat, Vaya, Solara, Milton, and Cello, as well as the unbranded segment.

Continue Exploring: D2C home care brand Koparo secures INR 6 Crore from 4P Capital Partners and Shark Tank India

HyugaLife’s parent Pratech Brands secures INR 52 Crore in seed funding round

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February 19, 2024

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Pratech Brands, a leading digital retailer and the parent company of HyugaLife, has successfully secured INR 52 crore (approximately $6.3 million) in a seed funding round. The investment was spearheaded by Spring Marketing Capital and Stride Ventures, with notable contributions from Peak XV Partners‘ Surge Ventures, alongside other investors.

According to regulatory filings with the Registrar of Companies, Pratech Brands’ board has approved a special resolution to allocate 21,77,817 Seed Compulsory Convertible Preference Shares (Seed CCPS) at a price of INR 168.15 each, amounting to INR 36.62 crore (approximately $4.4 million). Additionally, the company passed a separate resolution to issue 29,735 partly paid CCPS at INR 168.15 per share and 1,500 non-convertible debentures (NCDs) priced at INR 1,00,000 each to Stride Ventures, raising INR 15.5 crore.

In the funding round, Stride Venture and Spring Marketing Capital took the lead with investments of INR 15.5 crore and INR 12.5 crore, respectively. Following closely, Surge Ventures contributed INR 10 crore to the round.

The remaining amount was invested by Oorumane Mercantile, Patni Wealth Advisors, Eco Power Systems, AS Desaai Consultants, AMD Consultancy Services, and individuals including Nihir Parikh, Dhaval Parikh, Sandhya Shah, Rohan Mehta, Suhagi Parikh, Nimish Shah, Prakash Shah, Nitesh Jha, Simraan Teckchandani, Priya Ujgaonkar, and Karan Jindal.

Continue Exploring: HyugaLife unveils Vito, a revolutionary health supplement brand for time-strapped consumers

According to estimates from the startup intelligence platform TheKredible, Pratech Brands is valued at approximately INR 160 crore or slightly over $19 million. To date, the company has raised approximately $9.3 million.

Pratech Brands is a tech-first hub of brands specializing in home and health products, driven by identifying consumer needs and cultivating consumer brands.

In January, its health and wellness brand HyugaLife secured $1 million in funding from Stride Ventures and Getvantage. Additionally, the brand enjoys support from Indian cricketer K L Rahul and actress Katrina Kaif.

Continue Exploring: HyugaLife secures $1 Million in funding to boost product and tech infrastructure

For context, HyugaLife operates under Hyuga Health & Wellness Private Limited and Hyuga Ecommerce Ventures Private Limited, both of which are subsidiaries of Pratech Brands Private Limited.

Additionally, Pratech Brands also owns Neesan Ventures and a natural healthcare brand for female hormones, Inaari.

Continue Exploring: HyugaLife scores big with KL Rahul’s investment and partnership for a healthier India

Following the fresh capital infusion, the company’s promoters, including Neehar Modi, Sandhya Shah, Sachin Parikh, Shruti Parikh, and Anvi Shah, now collectively possess more than 52% ownership. Surge Ventures holds an 18.6% stake, while Spring Marketing Capital retains a 9.4% stake in the company.

In FY23, Pratech Brands saw its revenue from operations grow to INR 4.87 crore from INR 1.71 lakh in FY22. However, as per TheKredible, the company’s losses surged to INR 25.39 crore during FY23 compared to INR 99 lakh in FY22.

Govt panel explores shifting nutraceutical regulation from FSSAI to CDSCO

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February 19, 2024

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The government has formed a panel to examine the possibility of bringing nutraceuticals under the ambit of the apex drug regulator CDSCO instead of the food regulator FSSAI to address regulatory challenges and promote consumer safety Presently, the Food Safety and Standards Authority of India (FSSAI) regulates the usage of health supplements and nutraceuticals under the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, and Prebiotic and Probiotic Food) Regulations, 2022.

According to official sources, this regulation includes food items that undergo special processing or formulation for specific nutritional or dietary purposes.

Nutraceuticals are products derived from food sources that are believed to provide extra health benefits besides the basic nutritional value found in foods

Continue Exploring: HyugaLife unveils Vito, a revolutionary health supplement brand for time-strapped consumers

The sources indicated that during a recent meeting with officials from the Central Drugs Standard Control Organisation (CDSCO), challenges related to uniform implementation and enforcement, interchangeable usage of the same nutrient/ingredient at varying doses for pharmaceutical and nutraceutical purposes, as well as overlapping prophylactic and therapeutic uses, alongside claims of reducing disease risk, were discussed.

“Several issues were discussed following which a high-level committee under the chairmanship of Secretary, Ministry of Health has been constituted to review the regulatory challenges in nutraceutical and drugs to ensure consumer safety,” a source said.

The committee comprises the Secretary of the Ministry of Ayush, the Secretary of the Ministry of Food Processing Industries, the Secretary of the Department of Pharmaceuticals, the Chief Executive Officer (CEO) of FSSAI, the Drugs Controller General of India, the Director General of the Indian Council of Medical Research, and the Director General of Health Services (DGHS).

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According to industry data, the nutraceutical market in India is projected to reach USD 18 billion by the end of 2025, compared to USD 4 billion in 2020.

During the meeting some officials noted that many health supplements like probiotics, vitamins, minerals and botanicals also have therapeutic usage and due to unclear demarcation, many companies are shifting from CDSCO to FSSAI for approval of ingredients which are akin to drugs such as melatonin and zinc carnosine.

According to the sources, some officials mentioned that numerous supplements are being marketed with claims of managing diseases or reducing disease risk. This is because the same ingredients are permitted in both drug and nutraceutical regulations.

“Besides, there is no mandatory medical supervision for products covered under nutra regulations as a result people might consume it for longer duration and/or in higher doses which might prove harmful,” the sources said.

Officials said due to unsupervised usage of supplements, people at the same time consume supplements along with drugs which might interact with each other and may cause adverse effects on the health of the consumer.

Continue Exploring: Dietary supplement innovator Setu Nutrition secures funding from notable HNIs and celebrities

Due to availability of health supplements over the counter there are chances of consuming multiple nutrients whose action might be antagonistic to each other like calcium from a multi-mineral supplement might affect the absorption of iron.

“The committee will identify the feasibility of regulating probiotic/prebiotic in food formats and drug formats. It will also examine if there is a need and possibility of bringing nutraceuticals and health supplements under the ambit of the CDSCO,” another official source said.

The panel will also explore the feasibility of price control for categories covered under nutraceutical regulations, besides, examining the feasibility of GMP provisions and certification for nutraceuticals and similar products in alignment with schedule M of drugs.

Zomato’s Blinkit set to ramp up e-commerce deliveries with diverse product range

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February 19, 2024

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Zomato may soon encounter competition from ecommerce giants such as Amazon and Flipkart as it delves into expanding its 10-minute delivery service, Blinkit, to include a diverse range of brands across various categories. This ambitious move into the rapidly expanding direct-to-consumer (D2C) market involves Zomato establishing its own supply chain to procure branded products directly and handle inventory. Multiple sources familiar with the company’s plans revealed that Zomato intends to deliver these products through Blinkit.

Zomato, currently expanding its quick commerce operations, has engaged in discussions with individual brand owners across various categories to increase inventory. This initiative is being viewed as a potential driver for long-term growth, according to one source.

This wouldn’t entail direct ownership of inventory by the company. Instead, it would involve overseeing the product flow for D2C brands, akin to how marketplaces operate.

Zomato declined to comment on queries.

As part of its strategy, the Deepinder Goyal-led firm has attempted to acquire and merge with Shiprocket at least twice, according to another individual briefed on the discussions. However, Shiprocket, which collaborates with many D2C brands, did not agree to the proposal.

During Shiprocket’s $185-million round in 2021, Zomato acquired a stake in the company, and as per Tracxn, it presently possesses a 6.6% share in the logistics provider.

As of press time, queries directed to Shiprocket have gone unanswered.

As discussions between the two parties progress, Zomato has leased one warehouse each in New Delhi and Mumbai to bolster Blinkit’s ecommerce initiative.

Apart from its largest segment, food delivery, and quick commerce, Zomato also operates in the business-to-business grocery supply sector through Hyperpure. Additionally, it has a presence in the going-out segment with an event ticketing vertical known as Zomaland, as well as a dining out vertical.

Continue Exploring: Zomato’s B2B vertical Hyperpure sees exponential growth in Q3 FY24, revenue inches closer to INR 1,000 Cr

Recently, with growth slowing in its core business, analysts have started viewing Blinkit as the next major growth opportunity for Zomato.

“New-age D2C brands in categories like home needs, small electronics, beauty and personal care are looking at quick commerce as a growing channel for sales,” said an industry watcher. “Blinkit has a strong footing there. Now, Zomato wants to set up a backend structure, where it would work directly with brands and help them sell on Blinkit. With this, the company gets greater control over its supply chain.”

Continue Exploring: Zomato’s strong Q3 performance spurs brokerage firms to boost price targets; Blinkit expansion drives optimism

Zomato and Swiggy, India’s leading food delivery platforms, have been exploring diversification strategies. In a similar vein, Swiggy introduced its ecommerce marketplace, Minis, last year. Minis emphasizes local delivery of various brands across sectors and notably operates with zero marketplace fees.

Zomato aims to leverage hyperlocal warehouses and expedited delivery schedules to gain a competitive edge. With Blinkit, it intends to challenge established players like Flipkart, owned by Walmart, and Amazon.

For Blinkit, expanding into new categories, particularly within the D2C realm, is a strategic move aimed at increasing its average order value (AOV). This metric has been instrumental in driving the company’s revenue growth by minimizing losses. In the December quarter, Blinkit’s AOV reached INR 635, up from INR 553 the previous year and INR 607 in the September quarter.

Continue Exploring: Blinkit continues growth trajectory with second consecutive quarter of positive contribution

Margins could have been more robust if it weren’t for the slim profit margins that most grocery businesses operate on.

“For a large part, entry into newer categories has been responsible…for the increase in Blinkit’s AOV…but the company hasn’t given out details on its product mix,” said a Mumbai-based consumer sector analyst. “Typically, grocery products are less accretive on margins, so it’s likely that profitability is also improving on account of higher (share in the) mix (of) products such as consumer electronics, beauty and personal care, etc.”

Flipkart has unveiled same-day delivery services across 20 cities for various products. While ecommerce companies aren’t directly competing in the grocery sector, they are consistently reducing delivery times in response to heightened competition from quick commerce firms, particularly for specific products.

Continue Exploring: Flipkart revives same-day delivery service across 20 cities, taking on Amazon’s Prime model

The analyst also highlighted Blinkit’s tactic of leveraging events and occasions such as popular cricket matches, festivals, New Year’s Eve, and holidays.

“Through these occasions, Blinkit is marketed as a larger platform for D2C products and brands…the items move quickly through inventory and turn in higher margins in rupee value terms than groceries and FMCG,” he said.

Blinkit has been offering occasional items with lower price tags, such as flowers, earthen lamps, and stuffed toys, alongside high-value goods like top-end smartphones.

Japanese beverage giant Kirin Holdings to invest $25 Million more in B9 Beverages

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February 19, 2024

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Kirin Holdings, a Japanese beverages group, is investing $25 million (approximately INR 205 crore) to acquire an additional minority stake in B9 Beverages, the manufacturer of craft beer Bira 91 and owner of the Beer Cafe pub chain, according to executives familiar with the development.

As per a report from ET, executives, who preferred to remain anonymous, stated that Kirin’s acquisition of fresh shares will increase its ownership in B9 Beverages beyond the current approximate 20%. Additionally, another American financial investor is nearing a $25 million investment for a further stake in B9 Beverages, with closure anticipated in the upcoming weeks, as mentioned by one of the aforementioned executives.

The investor remains unidentified. Fresh investments totaling $50 million (INR 410 crore) are being made at a pre-money valuation of $600 million. In late 2022, Tokyo-listed Kirin Holdings injected INR 570 crore into the beer company, elevating its stake to 20% and valuing the beer maker at $600 million. Established in 2015, B9 Beverages retails craft, lager, and strong beer under brands like Bira White, Gold, and Boom. It operates across 24 countries and manages six breweries. Ankur Jain, CEO of B9 Beverages, and Rahul Singh, CEO and founder of The Beer Cafe, were unavailable for comment.

Continue Exploring: India’s rising cocktail culture: Niche bars thrive beyond metros, offering unique concepts and flavors

Sequoia Capital and Belgium’s Sofina are also among the investors of B9 Beverages. This development comes amid double-digit demand projections for beer, driven by younger and newer consumers, as well as the introduction of new craft brands and flavors aiding the category’s growth. The latest funding round, marking the third fundraising effort for B9 Beverages within a year, will be allocated towards expanding breweries, enhancing global retail presence, and further developing Bira 91’s Taproom pubs, according to a second executive mentioned above.

Continue Exploring: Bira 91 takes beer innovation to new heights with latest taproom launch in Delhi

Over the past fifteen months, Kirin Holdings and Japan’s MUFG Bank have each invested $80 million in B9 Beverages. According to a report by IMARC, India’s beer market reached INR 41,407 crore in 2023 and is projected to achieve sales of INR 78,120 crore by 2032, driven by a surge in craft breweries and an increasing preference for locally brewed beers.

Major players in the Indian beer market comprise United Breweries, owned by Heineken, known for its Kingfisher brand; Carlsberg’s Tuborg; and Ab InBev, the owner of Budweiser, Hoegaarden, and Corona. In December 2023, reports indicated that B9 Beverages was in discussions with potential investors to secure INR 400 crore in fresh funding from both existing and new investors.

Continue Exploring: B9 Beverages gears up for INR 400 Crore funding round to drive business expansion

According to filings with the Registrar of Companies, B9 reported revenues of INR 824 crore for the fiscal year 2023, marking a 14.6% increase from INR 719 crore in the previous fiscal year. B9 holds an 11% market share in the premium beer segment.

Diageo sets the bar high with launch of premium ready-to-serve cocktails in Great Britain

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February 17, 2024

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Diageo has introduced an innovative lineup of high-quality ready-to-serve (RTS) cocktails in Great Britain. Dubbed The Cocktail Collection, this fresh trio aims to revolutionize the home drinking experience.

Set for launch in March, the upcoming range will showcase 500ml bottles, accessible in grocery stores and wholesale channels. Additionally, Diageo intends to accommodate various tastes by introducing premium RTD cocktails in 100ml cans, slated to debut in April.

Crafted using Diageo’s renowned brands, the collection presents three distinct options: Johnnie Walker Old Fashioned (20.5% ABV), Tanqueray Negroni (17.5% ABV), and Cîroc Cosmopolitan (17.5% ABV). Each generously portioned bottle contains five servings, ideal for sharing or special occasions.

Continue Exploring: Coca-Cola’s Minute Maid diversifies portfolio: Enters alcohol market with innovative cocktails

Diageo’s newest release perfectly embodies the “drink less, but better” philosophy. Tailored for both newcomers and connoisseurs, these cocktails are easily poured directly from the bottle or can, removing the usual complexities of mixology.

Perfect for elevating any social gathering or intimate gathering, The Cocktail Collection inspires individuals to savor moments with elegance. Its premium packaging showcases sophisticated designs that mirror the essence of each cocktail, promising a memorable visual delight.

Continue Exploring: Dr. Dre and Snoop Dogg collaborate to launch ‘Gin & Juice’ canned cocktails

In recent years, the Ready-to-Drink (RTD) category, especially cocktails, has experienced remarkable growth, driven by premium options. With the introduction of this meticulously curated trio of cocktails, Diageo seeks to enable retailers to satisfy the growing demand for top-tier libations enjoyed at home.

Nin Taank, marketing manager RTDs at Diageo GB, said, “We recognise that consumers are still looking to create quality, memorable experiences at home and The Cocktail Collection innovation in GB provides consumers with the means to easily elevate any occasion – whether they are hosting a dinner party, having drinks and nibbles with friends or treating themselves with a partner in the evening. The range is set to revolutionise the way people enjoy drinks at home by providing accessible, premium options – the expertly crafted cocktails mean consumers can pour the perfect serve every time with ease.”

Continue Exploring: Rise in alcohol consumption: Australians double down on RTDs, beer consumption declines

New Culture’s animal-free casein granted ‘world first’ clearance for commercial sale

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February 17, 2024

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New Culture‘s casein protein, crafted without any animal inputs, has been deemed safe for consumption.

The alt-dairy start-up, following a recent evaluation by an independent panel of qualified scientific and toxicology experts, has self-affirmed that its animal-free casein is ‘Generally Recognized as Safe’ (GRAS). This determination means that the company’s casein can now be sold, used, and consumed in the US like any other food ingredient.

New Culture announced that it has attained Generally Recognized As Safe (GRAS) status for its casein, which closely aligns with the identity and macro-nutritional profile of traditional cow casein while adhering to reproducible, industry-standard, and food-safe manufacturing processes.

In June last year, New Culture announced its successful creation of mozzarella cheese using its casein protein. The forthcoming mozzarella is scheduled to debut this summer at Silverton’s Pizzeria Mozza in Los Angeles, US, before expanding to retail shelves.

Continue Exploring: Orkla joins A$24.4 Million investment in Eden Brew’s innovative animal-free dairy venture

In August 2023, New Culture revealed that it had upscaled its fermentation process to manufacture volumes significantly larger than previous deployments. This enabled the production of enough cheese for 25,000 pizzas per run, a significant step forward in its plans to supply animal-free mozzarella to pizzerias across America.

Casein serves as a key component in converting milk into various dairy products such as cheese, yogurt, and whipped cream. New Culture’s animal-free casein provides identical taste, texture, and functionality to traditional dairy. Notably, products using New Culture casein are devoid of lactose, cholesterol, trace hormones, and antibiotics. Moreover, they contribute to significantly reduced greenhouse gas emissions, as well as decreased land and water usage.

Inja Radman, New Culture’s co-founder and CSO, said, “Having secured another “world’s first” for our animal-free casein is a testament to the hard-working and innovative team we have at New Culture. Achieving GRAS status proves that animal inputs aren’t needed to produce casein protein and marks an essential step on our path toward commercialisation.”

New Culture has expressed its intention to inform the FDA about its self-GRAS determination shortly. Additionally, the startup has confirmed ongoing efforts to expand its manufacturing capacity in anticipation of the first sale of its cheese later this year.

Continue Exploring: Danone and Wilk join forces to produce animal-free infant formula with strategic investment deal

Turkish beverage giant CCI to acquire Coca-Cola Bangladesh Beverages for $130 Million

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February 17, 2024

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Coca-Cola Icecek (CCI), the Turkish beverage company, has inked an agreement to purchase Coca-Cola Bangladesh Beverages Ltd (CCBB) for a sum of $130 million.

CCBB stands as one of the two bottlers operating in Bangladesh, responsible for the manufacturing, marketing, and distribution of Coke brands within the nation.

According to a statement released on its website, CCI will purchase all of CCBB’s shares, totaling 100 percent ownership, at a net worth of $130 million, equivalent to over Tk 1,400 crore, after deducting CCBB’s estimated net financial debt as per the agreement.

“The equity value will be subject to a post-closing price adjustment mechanism following the completion of a closing audit to determine the exact net financial debt amount of CCBB as of the closing date,” it said.

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

CCI stated that the acquisition will likely be funded using existing cash reserves of CCI International Holland BV (CCIHBV) and will result in a minimal effect on CCI’s net leverage.

Officials from CCBB have verified the development, noting that the deal is anticipated to be finalized upon receiving regulatory approval in Dhaka.

In its statement, CCI, along with its wholly-owned subsidiary CCIHBV and a subsidiary of The Coca-Cola Company, announced the signing of the deal. CCIHBV will serve as the primary direct shareholder.

CCBB is going to be transferred to the Istanbul-based company seven years after International Beverages Private Ltd (IBPL), Bangladesh, a subsidiary of The Coca-Cola Company, established the plant in 2017 in Bhaluka of Mymensingh, with an investment of $74 million and developed other infrastructure.

Abdul Monem Ltd, a local firm, is another bottler of Coca-Cola beverages in Bangladesh, where the non-alcoholic ready-to-drink market saw a 10 percent compound annual growth rate in the three years leading up to 2022.

The soft drink market in Bangladesh, estimated to be between Tk 4,000 crore and Tk 6,000 crore, is served by two US-based soft drink giants, Coca-Cola and PepsiCo, as well as by several local beverage manufacturers like Pran, Akij, and Partex.

According to CCI, the non-alcoholic ready-to-drink market in Bangladesh is anticipated to achieve a 12 percent average annual growth rate over the decade leading up to 2032.

CCI produces, distributes, and markets various Coca-Cola brands and operates in 11 predominantly Muslim countries, namely Azerbaijan, Iraq, Jordan, Kazakhstan, Kyrgyzstan, Pakistan, Syria, Tajikistan, Turkey, Turkmenistan, and Uzbekistan.

In his comment, CCI Chief Executive Officer Karim Yahi said, “We are very pleased to sign the share purchase agreement to acquire CCBB, which we see as a great opportunity to enter a market with significant future potential, where growth and value can be generated by deploying CCI’s core capabilities.”

“This acquisition also creates a more diverse geographical footprint for CCI and solidifies its alignment with The Coca-Cola Company.”

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

CCI, referencing forecasts from the International Monetary Fund, stated that Bangladesh’s economy experienced an average annual growth rate of 6.5 percent from 2012 to 2022 and is projected to grow at an average annual rate of 6.7 percent from 2023 to 2028.

CCBB caters to approximately 10 crore consumers across the Rangpur, Rajshahi, Mymensingh, and Dhaka regions.

With a workforce of over 300 employees, a single bottling plant, and three main warehouses, CCBB operates approximately 300,000 points of sale and collaborates with nearly 500 distributors.

Most of CCBB’s total sales come from soft drinks, with the remaining portion of its product portfolio comprising the water category.

Over the last five years, the company has consistently enhanced its competitive standing in Bangladesh, rising to become the market leader in the soft drinks category with a 45.3 percent share as of 2023, as reported by CCI.

Continue Exploring: Coca-Cola reports robust growth in India in 2023, plans increased investments for expansion

Wendy’s reports strong Q4 2023 with nearly 14% rise in net income, reaching $46.9 Million

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February 17, 2024

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Wendy’s has disclosed a notable 13.6% surge in net income during the fourth quarter (Q4) of 2023, soaring to $46.9 million compared to $41.3 million in the corresponding period of the prior year.

The company attributed the growth to a gain from the early extinguishment of debt and an increase in operating profit.

Wendy’s total revenues for the quarter ending December 31, 2023, stood at $540.7 million, marking a modest increase of 0.8% from $536.5 million in the corresponding period of the previous year.

The company recorded an operating profit of $86.6 million for the quarter, reflecting a 3.1% increase from $84 million in the fourth quarter of 2022.

The improvement primarily resulted from increased franchise royalty revenue, reduced investment in breakfast advertising, and a decrease in general and administrative expenses.

Wendy’s diluted earnings per share experienced a notable increase of 21.1% to $0.23 from $0.19 in the corresponding quarter of the previous year.

Continue Exploring: Wendy’s appoints former PepsiCo executive Kirk Tanner as new CEO

The company’s adjusted earnings before interest, taxes, depreciation, and amortization for the quarter rose by 2.5% to $126.6 million from $123.5 million in the fourth quarter of 2022.

The company witnessed a 3.2% growth in system-wide sales globally, with a 2.3% increase in the US and a notable 9.7% rise in international markets.

Global system-wide sales increased from $3.39 billion in Q4 2022 to $3.49 billion in Q4 2023.

Regarding same-restaurant sales, Wendy’s noted a 1.3% global growth, with the US experiencing a 0.9% increase and international markets seeing a 4.3% rise in the fourth quarter of 2023.

Wendy’s company president and CEO Kirk Tanner stated, “The Wendy’s system delivered strong sales, profit and cash flow growth in 2023, all supported by progress on our strategic growth pillars.

“2023 marked the brand’s 13th consecutive year of global same-restaurant sales growth, highlighting the system’s consistent execution and strong franchisee alignment as the team continued to grow the beloved Wendy’s brand.

“The team also significantly accelerated digital sales, opened nearly 250 new restaurants across the globe, and expanded US company-operated restaurant margin to pre-Covid levels despite extreme inflationary headwinds in recent years.”

Continue Exploring: Wendy’s unveils exciting ‘Flavour Fresh’ range for Indian palates

Pernod Ricard reports 4% sales growth in Indian market during first half of FY24

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February 17, 2024

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Pernod Ricard, the renowned French spirits producer, has reported a 4% increase in sales within the Indian market for the first half of the ongoing fiscal year. The company, adhering to a fiscal year from July to June, notes a robust market appetite for spirits in India, as stated in its latest earnings report.

Moreover, a “strong growth” is expected in the second half (January to June 24) from India, which is the second largest market globally for Pernod Ricard after the US.

Its international brands Jameson, Absolut and The Glenlivet reported a “very strong growth” in the Indian market during the period, the company said.

Besides, its Indian whisky portfolio Seagram’s which includes IMFL (Indian-made foreign liquor) brands such as Blenders Pride, Imperial Blue and Royal Stag also reported over 4 per cent growth in sales, Pernod Ricard added.

Continue Exploring: Pernod Ricard anticipates a threefold increase in India sales, expects to topple US market

The company had an “acceleration in Q2 net sales against easing comparables”, according to the earnings statement.

Globally in the first half of FY24, Pernod Ricard’s sales at 6.59 billion euros declined 7 per cent. Its organic sales were down 3 per cent.

The India market contributed 11 per cent of the global net sales of Pernod Ricard in the first half of FY24, becoming the second largest contributor after the US which contributed 19 per cent.

Pernod Ricard’s premium portfolio was driving high-single-digit pricing in all regions, which was offset by lower volumes and an adverse market mix.

Pernod Ricard’s global portfolio comprises over 200 premium brands, including 100 Pipers, Chivas Regal, The Glenlivet, Absolut, Havana Club and Jacob’s Creek.

It also owns IMFL brands such as Blenders Pride, Imperial Blue and Royal Stag.

Pernod Ricard’s local unit in India has already crossed INR 25,000 crore sales mark

Pernod Ricard India posted a consolidated revenue of INR 25,039.47 crore from its operations in the financial year that ended on March 31, 2023.

Its India MD Jean Touboul in an interview last December said he expects India to become a leader in the next 10-15 years, replacing the US market as the domestic market is growing faster here than other markets.

The company expects the Indian market to triple its sales by next decade, led by macroeconomic tailwinds, extremely favourable demographic dividend and growing premiumisation in IMFL and imported brands here, Touboul had said.

Continue Exploring: Pernod Ricard unveils its first made-in-India single malt, Longitude77

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