Fashion giant Mango sets sights on 500 new stores in global expansion strategy by 2026

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December 25, 2023

Spanish fashion giant Mango has announced ambitious plans to establish 500 new stores by 2026, strategically targeting key markets like the United States, Canada, France, Italy, the United Kingdom, and India. The family-owned retailer, positioned as a local competitor to Zara‘s parent company, Inditex, anticipates achieving record sales this year, projecting a growth of at least 12% compared to 2022, reaching over 3 billion euros.

Mango’s entry into previously unexplored territories, including the U.S. states of Texas, Georgia, and California, is anticipated to bring a substantial uplift, signifying a crucial milestone in its comeback to the American market.

As part of Mango’s comprehensive three-year strategic plan, slated to be unveiled in March, the company aims to strengthen its presence in the United States. Notably, Mango has the objective of doubling its footprint by increasing the number of stores to 40 within the next year. In 2023 alone, the company has successfully launched 130 new stores and renovated an additional 80, solidifying its footprint with approximately 2,700 outlets across 115 markets globally.

As Mango charts its course on this path of expansion, the company aims to strengthen its corporate governance by appointing four independent members to its board of directors. Notably, Marc Puig, the esteemed chairman of the Spanish cosmetics conglomerate Puig, known for overseeing iconic brands such as Carolina Herrera, Paco Rabane, and Charlotte Tilbury, is among the appointees. While Puig is not acquiring a stake in Mango, his addition brings a valuable dimension to the board.

The expansion initiative is in sync with Mango’s reentry into the United States, following two previous unsuccessful attempts, underscoring its dedication to establishing a strong presence in key global markets. In an effort to bolster its leadership, Mango will increase the size of its board to nine members starting in March. Accomplished professionals, including Jordi Canals from IESE Business School, Jorge Lucaya from AZ Capital, and Jordi Constans, a director with a diverse portfolio of national and international companies, will join the board.

Furthermore, Mango revealed that its Chief Executive, Toni Ruiz, has taken a significant stake in the company, acquiring a 5% ownership interest. These strategic maneuvers emphasize Mango’s commitment not only to attaining unprecedented sales figures but also to enhancing its corporate governance, cultivating a path of sustained success in the dynamic realm of global fashion retail.

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

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December 25, 2023

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From a rise in rural demand to increased volumes and favourable commodity prices, the FMCG industry in the country is optimistic about various factors contributing to a double-digit growth led by volume in the upcoming year, following a challenging 2023.

Less robust festive demand, a shortfall in rainfall affecting rural growth, untimely rains impacting beverage sales, and elevated commodity prices have collectively brewed a challenging market scenario this year, despite the increasing visibility of “green shoots” of recovery.

The industry, with significant growth potential, particularly in an emerging market like India, foresees 2024 as a “promising year.” Favorable input prices are expected to benefit both the Home and Personal Care (HPC) and specific food business segments.

“We expect the demand situation to improve as we enter the next financial year. We expect FMCG players to increase the pace of innovation and premiumisation and also focus on significant investment behind expanding the quality of rural distribution,” Marico MD and CEO Saugata Gupta said.

FMCG companies are anticipating an expansion of their profit margins due to a decrease in commodity inflation. This is expected to lead to increased spending on branding, the revival of promotional schemes for consumers, and a higher dividend payout to shareholders, as suggested by analysts.

Many FMCG firms pass on the advantages of reduced key commodity prices to consumers through price reductions or by increasing product quantities. Anticipating swifter growth, especially in premium and larger pack sizes, is attributed to a more robust urban market and the influence of modern trade channels.

Furthermore, industry analysts anticipate a double-digit expansion for the sector, driven by increased volumes, market share gains, and a rise in rural penetration. The resurgence of popular price packs, which gained prominence during times of high inflation, is contributing to this growth.

The Nines opens its doors in Juhu, redefining the dining landscape

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December 25, 2023

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The Nines, an innovative dining destination situated in the bustling heart of Juhu, unveils its enchantment across a spacious 14,000 sq. ft. Embracing contemporary sophistication and allure, this culinary masterpiece transforms the dining encounter, beckoning you into a domain where the allure of the number 9 commands attention, transforming every moment into a symphony of marvel.

At the helm of The Nines, Suved Lohia, the Managing Partner in collaboration with Brilliant Hospitality, brings a wealth of expertise and passion to the culinary landscape. He states, “I am thrilled to unveil a culinary haven where passion meets innovation. The Nines isn’t just a restaurant; it’s a symphony of flavors, a celebration of global influences, and a contemporary masterpiece. We invite you to embark on a journey where each dish tells a story, and every moment is infused with the magic of the number 9. It’s more than dining; it’s an experience crafted with love, and we can’t wait to share this culinary adventure with you.”

Spanning 14,000 sq. ft., The Nines seamlessly combines the finesse of modern European bistro with a contemporary flair. The art deco interiors not only display a fusion of meticulously crafted design but also entice you to explore distinctive areas – the lively Green Room, where nature’s beauty takes center stage; the ethereal Skylight Bar, bathed in natural sunlight and moonlight for an elevated unwinding experience; the commodious Private Dining Room (PDR) with multiple entry points and a scenic balcony, encouraging leisurely interactions; and the majestic Dome, radiating grandeur with an expansive bar, DJ console, and VIP area.

High Liner Foods names Paul Jewer as President and CEO

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December 23, 2023

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High Liner Foods has appointed Paul Jewer as the company’s President & CEO, effective immediately.

Having assumed the role of interim Chief Executive in September 2023, Jewer will now officially hold the position of President and CEO of the company on a full-time basis.

In August, High Liner Foods announced that its now former Chief Executive, Rod Hepponstall, would step down as President and CEO “effective on or before” 2 January 2024.

Before undertaking his current role, Jewer held the position of Chief Financial Officer at High Liner Foods from February 2014.

Robert Pace, High Liner Foods’ chair of the board of directors, said, “We believe that Paul is the right candidate to lead the company as the organisation embarks on its next exciting chapter”.

“Over nearly ten years as CFO, Paul has had a significant impact on the organisation, and more recently he has demonstrated the strength of his steady leadership as interim CEO. The board and I have full confidence in Paul and the management team as they lead our ambitious growth agenda.”

Jewer added, “I am incredibly honoured by today’s appointment and appreciate the confidence that the board of directors has placed in me. We have some exciting work ahead of us, and I know that we have the right strategy and people in place to build upon the solid foundation that has been built for nearly 125 years.”

“I look forward to continuing to work with the High Liner team as we deliver on our purpose, Reimaging Seafood to Nourish Life, creating value for all of our stakeholders.”

The company will “immediately commence” a search for a replacement for Jewer in the role of CFO.

Upstart brands gain ground as Nike’s powerhouse labels face setback, analysts warn

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December 23, 2023

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Nike is starting to witness a decline in market share, as noted by analysts on Friday. The sportswear giant is facing competition from emerging sneaker brands such as On and Hoka. Following a downward revision in its annual sales forecast, Nike experienced an 11% drop in its stock value. To counter this trend, analysts recommend that Nike invest in revitalizing its styles and introducing more innovative designs.

Attributing the subdued forecast to prudent consumer spending, the primary manufacturer of the Air Jordan 1 shoe announced on Thursday a $2 billion cost-saving initiative. This signals a strategic shift towards prioritizing profitability over mere sales growth.

Continue Exploring: Nike adapts to shifting market dynamics: Yearly sales outlook revised, shares drop 11%

European competitors Adidas and Puma both saw declines of 5% and 7%, respectively, in their closing stock prices. Simultaneously, shares of Lululemon and Under Armour experienced drops of around 1% and 4%.

“Nike needs increased and improved marketing investments while HOKA, On and Lululemon are scaling further with increased customer acquisition and retention,” TD Cowen analysts said after downgrading the stock to “market perform” from “outperform”.

Additionally, Nike announced that it anticipates incurring employee severance costs ranging from $400 million to $450 million in the ongoing quarter. However, the company did not provide details on the exact number of jobs that would be affected.

With 83,700 employees as of the end of May this year, the company did not promptly respond to an inquiry regarding comments on the impending job cuts. It’s worth noting that in 2022, Nike had a workforce of 79,100 employees.

The company unveiled plans to simplify its product assortment, increase automation, and scale product innovation in the women’s and Jordan categories, as well as on products priced below $100, particularly in the running category.

“I think it makes sense for them to focus on fewer number of products that can resonate stronger with consumers. And doing so will help them not only manage their inventory, but also their profitability,” Raymond James analyst Rick Patel said.

A minimum of six brokerages reduced their price target on Nike, and two downgraded the stock.

“While we think this (cost-saving plan) is a positive shift, it will take time to scale newness and innovation, and a soft macro will further pressure results in the meantime,” Piper Sandler’s Abbie Zvejnieks said. The brokerage cut its price target to $107 from $112.

Trading at $109.35, Nike shares, which have experienced a roughly 5% increase this year, carry a forward price-to-earnings ratio for the next 12 months of 30.01. In comparison, Adidas has a ratio of 44.48, a common benchmark for valuing stocks.

Confederation lauds Gujarat’s move to allow liquor sales in GIFT City, hails decision as progressive for state economy

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December 23, 2023

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The confederation of alcohol beverage producers in India on Saturday said they welcomed the Gujarat government’s decision to allow liquor sale in GIFT City.

The Confederation of Indian Alcohol Beverage Companies described the decision as “progressive,” stating that it would significantly enhance the state’s economy and attract global companies.

On Friday, the Gujarat government allowed the sale and consumption of alcohol in some form in the Gujarat International Finance Tec-City (GIFT City) area.

A Liquor Access Permit will be given to all the employees or owners working in GIFT City through which they will be able to consume liquor in hotels/restaurants/clubs offering “Wine and Dine”, the official order of the state government said.

“The true significance of this step lies in the underlying acknowledgement that alcohol is an essential part of relaxation and social bonding in the modem world. This move sends a strong signal to the world that the GIFT City is a modern liberal place, ready to do business like other major global centres,” said Vinod Giri, Director General of the confederation.

“It will not only give a major boost to the hospitality sector within the GIFT City but also attract major companies and quality workforce from across the globe. We will see a major boost to business and job opportunities post this move. It will give a fillip to the liquor industry as well as help the government to earn tax revenues. This move will go a long way in further boosting the state’s economy,” Giri added.

Talking about Bihar, which is a dry state, Giri said the stringent prohibition of alcohol consumption destroyed industry and enterprise in Bihar.

“We just hope that the Bihar government takes cues from Manipur and now Gujarat to start dismantling prohibition. Constricting measures like prohibition has no place in a modern, self-aware, liberal world,” Giri noted.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) is the apex body of the Indian Alcoholic Beverage Industry. Its members include major Indian companies that manufacture and market their product range in India and abroad.

It represents the wide and inclusive interests of the Indian industry.

Jalandhar’s culinary landscape to transform with new modern food street hub

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December 23, 2023

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Soon, the residents of Jalandhar will have the opportunity to savour modern and hygienic street food at a single location, as the administration has commenced the process of identifying a suitable spot for establishing a contemporary Food Street hub. Leading a meeting on December 22, Deputy Commissioner (DC) Vishesh Sarangal has directed the Jalandhar Municipal Corporation (JMC) to furnish a detailed report outlining the location and other necessary requirements for the establishment of the Food Street hub.

He mentioned that the Food Street will be established in a clean, well-ventilated, and pollution-free zone. He further noted that it will be a designated vending area officially sanctioned by the municipal corporation.

He mentioned that the area would have access to shared amenities such as clean water, parking, lighting, sanitation, and waste disposal systems. Additionally, he stated that street food vendors would receive training from the Ministry of Skill Development and Entrepreneurship. Sarangal emphasized that every street food vendor, assistant, or food handler would undergo fundamental hygiene training. Furthermore, they would receive support in obtaining licenses and registration from the FSSAI.

Joint Commissioner Puneet Sharma mentioned that a team of officials had been constituted to identify a suitable location for the Food Street hub, and a report would be prepared in this regard.

The development is viewed as an effort to appease vendors who have been expressing their dissatisfaction with the police, the JMC, and the district administration.

Earlier, a significant number of roadside vendors and pushcart owners had gathered outside the District Administrative Complex to protest against notices served by the Police Commissionerate. The notices directed them to remove their carts from footpaths and roads citing traffic concerns. Vendors alleged that the move was adversely impacting their livelihood.

PepsiCo to establish mega snack production site in Vietnam with $90M investment

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December 23, 2023

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PepsiCo plans to allocate approximately $90 million towards the establishment of a new snack production facility in Vietnam.

The upcoming facility will be constructed within the expanded Dong Van I Industrial Park in Ha Nam province, spanning an area of 80,000 square meters. The initiative aims to deliver over 23,000 tonnes of PepsiCo snack brands annually to both the Vietnamese and Cambodian markets.

The construction is slated to begin in early 2024 and is projected to conclude by the latter half of 2025.

The proprietor of the Doritos brand has a workforce of approximately 13,000 individuals spread across 14 plants and distribution centers in Vietnam.

Nguyen Viet Ha, general manager of PepsiCo Foods in Vietnam, said, “Despite the general economic difficulties after the Covid-19 pandemic, PepsiCo Foods Vietnam has made remarkable strides. We hope that the new factory project will contribute to promoting economic development, help Vietnamese people through difficulties, and bring long-term benefits to society.”

In a released statement, the company specified its commitment to invest in ingredient sourcing in Ha Nam and northern provinces. This initiative aims to enhance its potato contracting system through the implementation of “regenerative agro practices and digital technology.”

In March, PepsiCo rolled out its Greenhouse accelerator program in the Asia-Pacific (APAC) region, marking the fourth geographic area where the U.S. food and beverage giant has rolled out this initiative.

The program, initially launched in Europe in 2017 and later extended to North America in the subsequent year, aims to assist entrepreneurs whose products advocate for sustainability and the circular economy.

The Greenhouse accelerator is set to provide ten selected candidates with $20,000 along with access to a business development program, facilitating the acceleration of their venture’s growth.

Successful startups enrolled in the program will have access to PepsiCo executives who will offer assistance in areas including corporate structuring, fundraising, product development, supply chain management, and customer acquisition throughout the duration of the program.

Berlin’s KoRo secures backing from Triodos Fund, positioning itself for further European expansion

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December 23, 2023

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The Triodos Food Transition Europe Fund recently acquired a minority equity stake in the Berlin-based food brand KoRo as part of the company’s Series B extension round.

This investment is in line with KoRo’s goal to establish itself as Europe’s premier brand for transparent, high-quality, and reasonably priced food. Among the investors participating in KoRo’s Series B extension round earlier this year were Five Seasons, HV Capital, Partech, SevenVentures, Haub Legacy Ventures, and Associated British Foods.

Established in 2014, KoRo originated as an online store, launching with detergent as its first product. The company’s initial vision focused on delivering products online at equitable prices, emphasizing larger volumes, straightforward design, and the removal of intermediaries from the supply chain.

Today, KoRo has evolved into a company valued at over €100 million, specializing in food and serving more than 1.4 million customers across 17 countries. While maintaining its online presence, KoRo is expanding into retail and is currently available in over 9,000 stores.

KoRo stands out with its emphasis on cost-effective bulk packaging and a wide variety of snacks. Noteworthy offerings encompass the date and hazelnut spread, alongside numerous other food products.

Committed to sustainability, the company offers the majority of its products in bulk packages to reduce packaging waste compared to traditional retailers. KoRo aims for a short supply chain, minimising intermediaries, and offers a variety of snacks with no added sugar.

According to KoRo’s analyses, their snacks contain, on average, 29% less sugar, 41% more fibre and 29% more proteins than established alternatives. Over 50% of their assortment is vegan, and more than half of their products are organic.

KoRo says it is positioned for further growth, with plans to expand its online and retail presence across Europe in the coming years. The company aims to strengthen its brand and enhance logistical operations to meet the growing demand for sustainable, high-quality food.

KoRO CEO, Florian Schwenkert, said, “With this new investment, we can further strengthen our foundation and foster sustainable future growth. This will not only prepare us for exciting challenges, but also give us the freedom to drive innovation at both sustainability and product level.”

KoRo CFO, Daniel Kundt, added, Despite the uncertain economic situation, we will be able to reach sustainable growth and a turnover of over €100 million in 2023. This emphasises that our products and business offering precisely align with customers’ demands for high-quality food and transparency and that the need was not just a passing trend.”

Fund manager, Adam Kybird, commented, ‘We are very happy to welcome KoRo to our portfolio. KoRo’s commitment to more sustainable and quality food at affordable prices makes them stand out in the market. We see this as a great opportunity to enable more people pursue a diet with a lower impact for our planet. We look forward to contributing to KoRo’s growth and vision in the years ahead.”

New Zealand dairy giants Synlait and A2 Milk Co. navigate rocky waters amidst fresh pricing dispute

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December 23, 2023

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The already strained relationship between New Zealand dairy companies Synlait and A2 Milk Co. faces an increased risk of deterioration after it was revealed that a pricing dispute has been added to the existing contract row.

The ongoing contractual dispute, wherein Synlait contests A2 Milk’s authority to terminate an exclusivity of supply arrangement, has progressed to arbitration. However, in a stock exchange announcement on December 22, Synlait disclosed a fresh point of contention between the two companies.

It said, “Synlait recently entered a good faith negotiation period under the NPMSA [the Nutritional Powders Manufacturing and Supply Agreement] regarding a separate issue between the parties about pricing regarding products manufactured by Synlait for The A2 Milk Co.

“The resolution of this matter is important because it could impact the margin for certain products manufactured under the NPMSA historically and going forward.

“Synlait advises that the good faith negotiation period under the NPMSA expired yesterday. Synlait wants the matters resolved and will refer the pricing matters to a confidential binding arbitration.”

No specific information was provided regarding the precise nature of the pricing matter mentioned by Synlait.

In October, the companies mutually decided to pursue arbitration to address the termination of the exclusivity contract.

Continue Exploring: New Zealand’s A2 Milk and Synlait locked in dispute over contract termination

Synlait stated that the assessment will also consider whether the obligation to secure a minimum annual volume of product and specific priority arrangements benefiting The A2 Milk Co. under the NPMSA will no longer be in effect if the exclusivity provision under the NPMSA is determined to have been validly revoked.

The initial disagreement arose when A2 Milk, Synlait’s second-largest shareholder holding a 19.8% stake, issued written notice in September to terminate the exclusive manufacturing and supply rights previously granted to the company.

The rights encompassed stages 1 to 3 of A2’s infant-formula products, including A2 Platinum, intended for sale in China, Australia, and New Zealand.

It stated that the exclusivity agreement was terminated “because Synlait’s performance during FY-23 in terms of full and timely delivery fell below the threshold necessary for Synlait to retain such exclusive rights.”

In its latest announcement, Synlait disclosed that discussions between the companies also involve claims related to expenses linked to product services, costs of surplus or damaged packaging materials, expenses tied to new product development, lost profits due to delayed deliveries, and allegations of failure to share cost savings arising from the utilization of third-party ingredients.

The parties are taking part in negotiations to attempt to resolve these matters.

Synlait said that it remains of the view that “together both companies stand the best chance of weathering the China market dynamics”.

It continues to hold the Chinese regulatory State Administration for Market Regulation (SAMR) license which is attached to Synlait’s Dunsandel manufacturing facilities.

The license, which lasts until 2027, is for A2 Milk Co.’s Chinese-labelled infant-formula products.

Responding to Synlait’s latest statement, A2 Milk Co. said it “remains confident” in respect of all of the issues currently in arbitration.

It added, “The company is also confident in its position overall in relation to the ‘new pricing and other matters in dispute’, as noted in Synlait’s announcement and which largely relate to matters initially raised by A2 Milk Co.”.

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