Luxmi Tea, the proprietor of the Makaibari brand, plans to broaden its retail footprint nationwide, as stated by a company representative.
The company has already inaugurated stores for the sale of its premium tea within Kolkata and Bagdogra airports, as well as within the international terminal of Mumbai airport.
Rudra Chatterjee, MD of Luxmi Tea, said “The retail and online channels of our tea sales are growing fast. Presently, online and retail constitute less than ten per cent of overall sales.”
“Luxmi Tea, which has gardens in West Bengal, Assam and Rwanda in Africa, produces around 25 million kilogramme of the crop annually,” Chatterjee said.
He said, “We have started with three airports at present. Preliminary talks are on to open more retail stores in other airports like Bengaluru and Delhi as well.”
Luxmi Tea’s Branded Accessories Offerings
According to him, the stores are branded as ‘Makaibari’ and feature the sale of the iconic tea, along with other premium Luxmi products at the airport outlets.
The airport outlets will also offer branded accessories such as cups and saucers, in addition to caddies and gift boxes.
Chatterjee said, “The objective is to promote Luxmi tea across the country, primarily the Makaibari brand. Our monthly sales of tea in value terms is around INR 18 lakh to INR 20 lakh”.
Apart from airports, the company also maintains a presence in upscale malls and modern trade establishments.
Approximately ten percent of the company’s overall production volumes are dedicated to tea exports.
Tata Consumer Products (TCPL) plans to finance its acquisitions of Capital Foods Ltd and Organic India Ltd, with a combined enterprise value of INR 7,000 crore, using internal cash reserves and bridge financing, according to MD and CEO Sunil D’Souza. D’Souza emphasized that both acquisitions operate in sectors with a significant growth potential, attractive profit margins, and a robust business growth rate.
Furthermore, TCPL intends to enhance its food and beverage portfolio through organic means to address existing gaps. However, the company will also actively explore inorganic growth opportunities, especially if they involve superior brands, technology, and teams, as highlighted by Sunil D’Souza.
Last Friday, TCPL announced the complete acquisition of Capital Foods, which owns brands like Ching’s Secret and Smith & Jones, at an enterprise valuation of INR 5,100 crore, and Fab India-backed Organic India, which operates in the health and wellness category, at an enterprise value of INR 1,900 crore.
The Tata Group FMCG arm will finance half of these two all-cash deals through internal accruals.
“We have a decent amount of cash sitting on our balance sheet, but obviously will require far beyond that to make sure we fund it,” said D’Souza.
TCPL’s board is scheduled to meet on January 19 to deliberate on the proposal for fundraising through debt issues in the form of commercial papers/debentures and equity issues.
“Right now the proposal that we are putting in front of our board is a short- term, whichever way we do on equity which is going to take time and therefore we will look at a short-term debt. I would say bridge financing with that but we will also look at equity funding further on. Right now we are exploring all options including a possible rights issue as we go forward,” he said.
TCPL, which is a relatively new company in the FMCG sector, has made some acquisitions in the past to increase its play in the food segment and would continue to evaluate more options.
“This is the very start of our journey. We have a long way to go. Therefore we intend to keep dry powder ready in case options come up in the future as well,” he said.
Tata Consumer Products’ Value Creation through Acquisitions:
When asked specifically about the next acquisitions, D’Souza said they are not in a “hurry” and in the short term, they would focus on integrating these two companies properly.
“But yes, we will continue to keep our eyes open for opportunities that come along,” he said adding “We will seek to create value as and when we look at inorganic opportunities.”
When asked about gaps in the offering of TCPL in the food & beverages segment, D’Souza said TCPL has already decided the strategic categories in which it will operate.
“Most of it (gaps) are by choice and not by default,” he said adding if there are some areas by default which has opportunities, then the preferable route will be organic.
“But there will be opportunities, where someone does a far better job, has got a far better brand or it has got far better technology far better team. We will continue to look at those opportunities,” he added.
The Tata Group firm has the ambition to become a large FMCG company.
“In the short to medium term we will first build food and beverage before we get to the FMCG spaces. We have defined our strategic priorities in terms of which are the categories that we will operate in whether it is our core, we will look at the pantry now we have got Sampann Foods and Capital Foods to play in the pantry,” he said.
Besides, TCPL is looking to move up the value chain.
“Therefore whether it is Organic India in the core or Capital Foods as we enter pantry and mini meals etc, the margin profiles of these categories are significantly accretive to Tata Consumer. We will continue to focus on to deliver double-digit growth and EBITDA, ” he said.
TCPL – which owns iconic brands such as Tata Tea, Tetley and Tata Salt – had a revenue in FY23 of INR 13,783 crore.
In 2011, TCPL acquired Bengaluru-based Kottaram Agro Foods for INR 155.8 crore to expand its product portfolio.
Next Level Burger, a plant-based burger chain headquartered in the United States, has successfully acquired Veggie Grill, establishing itself as one of the foremost plant-based-only restaurant platforms in the country.
The combined entity will operate 27 units throughout the country.
Matt de Gruyter, co-founder of Next Level Burger, is set to lead both chains as CEO.
De Gruyter said, “We’re not just writing a new chapter for Veggie Grill — we’re starting a new book. Veggie Grill by Next Level will mean all sorts of changes: organic produce, non-GMO ingredients and ensuring living wages for our many team members across the country.
“Everything guests know and love about Veggie Grill is about to be taken to the Next Level, but know that the fan favourites aren’t going anywhere.”
De Gruyter has outlined immediate changes for Veggie Grill, which closed a dozen units – 40% of its outlets – in the summer of 2023.
These adjustments will bring Veggie Grill in line with Next Level Burger’s dedication to using non-GMO ingredients and exclusively organic produce.
VegInvest, an investment fund that previously rescued Veggie Grill from bankruptcy, played a key role in facilitating the acquisition.
VegInvest will maintain its involvement with the expanded entity, serving as both a shareholder and partner.
Veggie Grill had launched a franchising program to rejuvenate the business. However, this initiative was temporarily halted to concentrate on optimizing the company’s operations.
Veggie Grill co-founder TK Pillan said, “We signed most of our leases pre-Covid when we had a large office lunch business.
“That office lunch trade is a fraction of what it used to be, so a group of our restaurants weren’t worth moving forward with. Large dining rooms in office-centered markets just don’t make sense anymore. It’s about resizing the box economics based on this new world.”
Veggie Grill currently operates across 17 stores in California, Oregon, Washington, and Massachusetts. Meanwhile, Next Level Burger runs ten restaurants spanning California, Colorado, New York, Oregon, Texas, and Washington, enhancing the coast-to-coast coverage of the newly established platform.
Miller Lite presents a unique option for beer enthusiasts, even those observing Dry January, with the introduction of Miller Lite Beer Mints. These mints aim to capture the flavor of Miller Lite without the actual beer.
Designed for consumers aged 21 and older, Beer Mints present a combination of mint freshness and a subtle hint of Miller Lite taste when chewed.
This offering allows beer enthusiasts to enjoy a brew-like experience without consuming any alcohol, providing a unique twist for those participating in Dry January.
Ann Legan, VP of Marketing, Miller Family at Molson Coors, said, “We created Beer Mints for the folks participating in Dry January who might miss the taste of Miller Lite while being out with friends this January”.
“If you love the taste of beer but want to take a break from the ABV for the month, we’re offering consumers the perfect way to enjoy Miller Lite without breaking any resolutions. Beer Mints may be a little unexpected, but we’re confident our fans will love their great taste along with the surprising note of spearmint.”
Starting January 12th, with a subsequent release on January 19th, Beer Mints will be available for online purchase for a limited period. Priced at $5 per tin, each containing 40 mints.
Mango Lassi, a popular dairy beverage from North India, widely enjoyed throughout the country during the summer, has been honored with the title of the best dairy beverage in the world by the popular food and travel guide TasteAtlas in the 2023-24 awards.
Mango Lassi presents a revitalizing fusion of yogurt (dahi) and ripe mango. Typically infused with cardamom, water, and sugar, this concoction can be elevated by incorporating soaked saffron strands, giving rise to the delightful Kesar Mango Lassi.
Social Media Frenzy: Celebrating Mango Lassi Supremacy
The online community couldn’t stop raving about the delicious Mango Lassi. Within the comment section of TasteAtlas’ award announcement post, a social media user hailed it as “Lassi supremacy,” while another added that Mango Lassi is “the best of the best.”
The flavor of this lassi may differ depending on the chosen mango variety, with a social media user noting that the “finest one is crafted from Alphonso.”
Reading about this delectable Indian beverage, a user mentioned, “missing India and Indian delicious food and beverages so much.”
The comments section serves as evidence that people from all around the world love Mango Lassi. A Mango Lassi fan wrote, “I’m not even Indian, but I have Indian friends, and I always ask for this.”
A teacher from Brazil recounted the delightful experience of crafting different lassi flavors.
“I was teaching about India to my students (we’re Brazilian), and there was this recipe. We decided to make it, and then we used the lassi for other combinations. Banana lassi, strawberry lassi… so good!”
Lassi, a traditional Indian smoothie originating from the pre-refrigeration era, involved farmers from Punjab blending milk with sugar and curd, storing the mixture in clay pots. This delightful beverage is ideal for combating summer heat, rejuvenating the palate, and hydrating the body.
Lassi is available in a diverse range of sweet and salty flavors. Mango lassi claims the top spot on the list of Top 16 Dairy Beverages in the World for 2023-24 by TasteAtlas, with the classic Punjabi lassi securing the fourth position. In addition to Mango lassi, other variations include Meetha (sweet lassi), Salted lassi, Bhang lassi, and Mint lassi. Sweet lassi also proudly ranks as the 5th best dairy beverage globally. Securing three titles in the top dairy beverages worldwide is a testament to the incredible and widespread love for Punjab’s lassi, not only within India but across the globe.
In an effort to promote sustainable solutions for addressing climate change, SLMG Beverages Pvt Ltd, the Coca-Cola bottler in India, intends to allocate over INR 100 crore towards sustainability, safety, and environmental initiatives this year.
Of the total investment, INR 75 crore will be dedicated to sustainability, while INR 25 crore will be allocated for quality, as stated by the company.
S N Ladhani, Chairman and Managing Director at SLMG Beverages Pvt Ltd, said, “Sustainability is core to our business strategy to respond to current and future challenges, while creating positive change for the planet.”
“Our water, packaging and climate goals are interlinked. By creating a circular economy for packaging, we will minimise our carbon footprint,” Ladhani said in a statement.
In line with Coca-Cola’s global initiative to create a “World Without Waste,” SLMG endeavors to attain net-zero carbon emissions by 2050. This ambitious objective underscores the company’s commitment to taking a pivotal role in addressing climate change and diminishing its environmental impact.
SLMG intends to install an extra 20 Reverse Vending Machines (RVMs) in Agra, supplementing the current count of 12.
The company expressed its commitment to powering 70 percent of its electricity consumption with solar energy.
The company is reducing its ecological footprint and emphasizing clean energy solutions through planned capacity expansions in Ayodhya (15 MW), Unnao (5 MW), and Chhata (2.5 MW), as stated in the announcement.
EV Fleet Growth: SLMG Beverages Aims for 10,000 Vehicles by 2027
SLMG aims to increase its electric vehicle (EV) fleet from 2,000 to 5,000 by 2025 and further to 10,000 vehicles by 2027.
The company is acquiring large electric vehicles (EVs) for distribution and warehousing to align with the worldwide shift towards sustainable transportation, as mentioned in the statement.
Avenue Supermarts, the operator of the DMart retail chain, announced a 17% rise in consolidated net profit to INR 690.41 in the third quarter (Q3) concluding on December 31, 2023. This marks an improvement compared to the net profit of INR 589.64 recorded in the corresponding period of the previous fiscal year, according to the company’s regulatory filing on Saturday.
The PAT margin for Q3 FY24 remained unchanged at 5.1%, mirroring the same percentage observed in Q3 FY23.
In Q3 FY24, DMart witnessed a 17.3% increase in total revenue, reaching INR 13,572 crore, compared to INR 11,569 crore in the corresponding period of the previous year.
As per the BSE filing, DMart reported Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of INR 1,120 crore in Q3 FY24, up from INR 965 crore in the same quarter of the previous year. The EBITDA margin remained constant at 8.3% in both Q3 FY24 and Q3 FY23.
The Basic Earnings per Share (EPS) for Q3 FY24 were reported at INR 10.62, compared to INR 9.10 in Q3 FY23, according to the filing.
Neville Noronha, CEO and managing director, Avenue Supermarts Limited, said, “Contribution from general merchandise and apparel has stabilized and trends are encouraging post Diwali.”
He further said, “This time the festive season sales were lower than expected in Non-FMCG. Within FMCG, agri-staples (ex-edible oil) are going through significantly high inflation.”
During the quarter, DMart expanded its operations by opening 5 new stores, thereby increasing the total store count to 341, as indicated in a statement.
D-Mart adheres to the Everyday Low Cost – Everyday Low Price (EDLC-EDLP) strategy. This approach focuses on acquiring goods at competitive prices through operational and distribution efficiency, ultimately providing customers with value for money by offering products at competitive prices.
PAI Partners is said to be considering the possibility of divesting its stake in Froneri, the ice-cream venture it shares with Nestlé.
The private-equity firm is reportedly in the ‘preliminary stages’ of evaluating choices for selling its stake in Froneri, as stated by sources familiar with the matter, as reported by Bloomberg.
Those same sources, who chose to remain anonymous, have suggested that PAI Partners might contemplate divesting its share in the latter part of the year. Simultaneously, there is speculation about initiating an initial public offering for the stake. Additionally, these insiders have conveyed that Nestlé is expected to uphold its interest in Froneri.
The venture is evenly divided in a 50-50 split, and sources from the news agency estimate a $10 billion valuation for PAI Partners’ share.
When reached for comment, both PAI Partners and Nestlé opted not to provide any statements.
Froneri’s Global Portfolio Expansion with PAI Partners
Established in 2016, UK-based Froneri was formed through the amalgamation of Nestlé’s European ice-cream operations with R&R Ice Cream, another UK business owned by PAI Partners.
The Froneri transaction brought together the ice cream operations of Nestlé and R&R in regions spanning Europe, the Middle East, Argentina, Australia, Brazil, the Philippines, and South Africa. Although the United States and Israel were initially excluded in 2016, three years later, the latter was also incorporated into the Froneri portfolio.
In 2019, Nestlé proceeded to divest its ice-cream operations in the United States, selling them to Froneri.
The leading global food company maintained its presence in the ice-cream business across Canada, Latin America, and Asia.
Nestlé’s Ice Cream Sales in 2022
In the 2022 financial year, Nestlé records its ice-cream sales within the ice cream and milk products segment, contributing to a total segment sales figure of SFr11.3 billion ($13.2 billion). This segment constitutes 12% of the overall group sales.
According to the company’s annual report for that year, ice cream generated SFr930 million, marking an 8.2% increase from the previous year.
In October, when Nestlé released its third-quarter and year-to-date results, the company disclosed sales within the ice cream and milk products segment amounting to SFr8.1 billion. This represented a slight decrease from the SFr8.3 billion reported in the corresponding period.
AB InBev has secured a deal for its non-alcoholic Corona Cero brand to be the global beer sponsor of the Olympic Games through 2028.
The agreement, made with the International Olympic Committee (IOC), the global governing body for the Olympic Games, will encompass the upcoming three editions of the event – Paris 2024, Los Angeles 2028 (LA28), and the 2026 Milano-Cortina Winter Olympic Games.
AB InBev is set to become a global Olympic partner within the TOP (The Olympic Partners) program, the highest tier of Olympic sponsorship. The undisclosed-sum agreement represents the IOC’s first TOP partnership with an alcohol brand.
While Corona Cero will take the lead in global sponsorship, in the United States, AB InBev’s Michelob Ultra light beer brand will also sponsor the events of the Los Angeles Olympics and Paralympics.
Michelob Ultra holds a prominent position in the United States due to Constellation Brands having the rights to import and sell Corona in the country.
AB InBev chief marketing officer Marcel Marcondes said, “As we continue to invest to grow the category, we are excited to bring our beer brands to the Olympics and be a worldwide partner for these amazing events.
“Corona is one of our fastest-growing global brands, reaching consumers across 180 countries, and through this partnership, we expect Corona Cero to accelerate no-alcohol beer growth.”
The majority of global beer conglomerates derive the majority of their sales from traditional brews, yet most of these major companies are actively seeking to increase the sales of their non-alcoholic alternatives. In 2022, AB InBev disclosed its anticipation that 20% of Budweiser’s sales would be alcohol-free by 2025.
As part of the collaboration between the IOC and the International Paralympic Committee (IPC), the AB InBev partnership will encompass marketing rights for IPC events through 2028.
Jiri Kejval, the IOC’s revenues and commercial partnerships commission chair, said, “AB InBev manages some of the world’s most recognised brands. The company will be a natural addition to the TOP program, which brings together some of the world’s leading companies with a shared vision of supporting sport to build a better world.”
The Olympic Games has never formed a global partnership with a beer brand, primarily because of internal regulations discouraging the promotion of brands perceived as unhealthy. As a result, the global focus of the partnership revolves around Corona Cero, a non-alcoholic option, while the U.S. aspect centers on Michelob Ultra, known for its low-calorie content.
At the launch of the partnership, AB InBev CEO Michel Doukeris emphasized that the deal centers on Corona, citing it as the brand with “the highest reach.”
He stated, “Corona is the most global brand that we have in the company, and this is a global partnership. Corona today is available in over 180 countries worldwide and therefore it only makes sense for us to go with the brand that has the highest reach globally.”
The announcement coincided with the revelation that Michelob Ultra would serve as the exclusive sponsor of the US Olympic Team through 2028.
Mini Melts, a US-based ice cream company, has secured investment from Altamont Capital Partners, a private-equity firm headquartered in California.
Details regarding the financial aspects were not revealed.
The beaded ice-cream business, operating in Connecticut, employs a distinctive “proprietary cryogenic freezing process” for manufacturing and delivers its products through a network of more than 20 distribution centers. Altamont mentioned in a statement that Mini Melts anticipates launching “multiple new distribution centers in 2024 and plans to further enhance its fully integrated, white-glove distribution model.”
Based in Philadelphia and established in 2004, Mini Melts distributes 30 million pre-packaged ice-cream cups annually through a network of over 15,000 locations, as stated by Altamont.
“We believe the beaded ice-cream category has expandable growth potential,” Altamont principal Kabir Mundkur said in a statement.
“We are excited to invest in the brand and bring Mini Melts into more consumers’ hands while fostering new and exciting innovation in the future.”
Dan Kilcoyne, the founder and CEO of Mini Melts, will continue to lead the company and remains a significant investor in the business, along with other shareholders.
“Our partnership with Altamont will bolster our growth plans, allowing us to spread into new markets and grow with new customers,” said Kilcoyne.
“We have experienced exponential growth over the past several years and are focused on reaching across the entire country and innovating for our valued customers. We are excited to leverage Altamont’s experience scaling family-owned businesses and in multi-unit operations, food manufacturing, and distribution to support our next phase of growth.”
Mini Melts joins Altamont’s portfolio, alongside companies like Juice Plus and Tall Tree Foods.
“The fully integrated white glove distribution model is a real difference maker. It enables an entirely seamless experience for the company’s channel partners, and a better quality product for consumers,” said Altamont managing director Kevin Mason.
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