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Pernod Ricard India achieves robust growth, raking in over INR 25,000 Crore in FY23

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Pernod Ricard
Pernod Ricard (Representative Image)

Pernod Ricard India, a spirits manufacturer, has posted a revenue of over INR 25,000 for the fiscal year 2022-23, indicating a 10% annual growth. Despite owning popular brands such as Absolut, Chivas Regal, and Glenlivet, the company witnessed an 8% decline in profit, totaling INR 1,340.22 crore in FY23, compared to the INR 1,457.98 crore profit in FY22.

According to financial data obtained from the business intelligence platform Tofler, the company’s consolidated revenue from operations in FY23 reached INR 25,039.47 crore, representing a 10.1% increase compared to INR 22,741.40 crore the previous year.

According to the data, Pernod Ricard India paid a cumulative excise duty of INR 13,112.61 crore in FY23, marking an increase of nearly 2% from the INR 12,857.74 crore recorded in the previous year.

Pernod Ricard reported that the total tax payment for the fiscal year 2022-23 amounted to INR 19,002 crore, constituting approximately 76% of its revenue from operations. This payment encompassed both direct and indirect taxes and duties directed towards the central and state governments.

In the fiscal year 2022-23, Pernod Ricard India recorded a total income of INR 25,152.66 crore, reflecting a 9.54% increase from the previous year’s figure of INR 22,960.67 crore.

United Spirits Ltd (USL), under the control of the British spirits manufacturer Diageo, continues to dominate the rapidly expanding Indian market, boasting a consolidated revenue from operations amounting to INR 27,815.4 crore.

The total income for United Spirits Ltd (USL), encompassing other revenues, reached INR 27,888.5 crore in the fiscal year 2022-23.

Pernod Ricard India operates as a wholly-owned subsidiary of Pernod Ricard South Asia, which, in turn, functions as a subsidiary of the French spirits manufacturer.

Pernod Ricard’s extensive global portfolio features more than 200 premium brands, including iconic names like 100 Pipers, Chivas Regal, The Glenlivet, Absolut, Havana Club, and Jacob’s Creek. Additionally, the company owns Indian Made Foreign Liquor (IMFL) brands such as Blenders Pride, Imperial Blue, and Royal Stag.

After the United States, India stands as the second-largest market worldwide for Pernod Ricard.

In a recent statement, Jean Touboul, the Managing Director of Pernod Ricard India, mentioned that he expects a threefold jump in sales within the country by the next decade. He pointed to factors such as macroeconomic tailwinds, a favorable demographic dividend, and the growing premiumization in both Indian Made Foreign Liquor (IMFL) and imported brands as key drivers for this expected growth.

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

“We are growing faster with the tailwinds in macroeconomics, in demographic and India being the most populous country on earth, I am personally convinced that yes, we will be the market number one in Pernod Ricard at some point,” he said.

However, Touboul also added, “I just cannot tell you if it will be in 10 years, 15 years, that is not easy to predict but my conviction is that yes, one day India will be the market number one for Pernod Ricard.”

“Currently, the IMFL (Indian-Made Foreign Liquor) brand of Pernod Ricard contributes close to 95 per cent of its volumes and above 80 per cent of our net sales,” he added.

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India’s upscale restaurants grapple with longer dining hours amid post-pandemic revival

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restaurant
(Representative Image)

The resurgence in the hospitality industry presents a fresh hurdle for India’s upscale restaurants. With patrons increasingly savoring the in-dining experience, the average duration spent at a table has extended by approximately an hour. This extension has led to a decrease in table turnover, prompting some establishments to implement time slots.

“Dine-in demand has been very robust. An average 50 minutes for a weekday lunch has now become one-and-a-half hours or one hour and forty-five minutes,” said Anjan Chatterjee, managing director of Speciality Restaurants, which owns the chains Mainland China and Oh! Calcutta. “For dinner, it can run up to two hours or even some more.”

According to restaurant owners, this shift occurred following the easing of pandemic-induced intermittent shutdowns and restrictions on operating hours.

“A two-course meal of the main course and desserts have turned into a four-course meal, with drinks and after-meal coffee,” said Saurabh Khanijo, managing director of fine-dine Asian cuisine restaurant Kylin.

“This is the biggest shift we have seen after Covid.” According to Riyaaz Amlani, managing director at Impresario Entertainment & Hospitality, which owns restaurant chains Social and Smoke House Deli, the frequency of customers too has increased.

“On an average, there’s a 15 percent increase in frequency and 15% increase average per cover,” said Amlani, attributing the trend to the inherent desire to socialise and grow one’s network, instead of being closeted at home.

As per industry executives in the hospitality sector, certain restaurants have opted to designate specific time slots and seating arrangements for their customers.

“There are restaurants that have started imposing a time limit, as some people are over-staying,” said GS Kohli, owner of Pritam Group of Hotels & Restaurants, which operates Tori and Grandmama’s Cafe, among other restaurants.

“You try making a booking at any of the fine-dining restaurants and they tell you clearly that you only have an hour or an hour and half,” said Kohli. “You can’t blame them…If a restaurant is open from, say, 7:30 pm to 12.30 am for dinner, it has to do 2-2.5x the turnover.” Then there are overhead costs to deal with.

“Extended dining hours also means lights and air-conditioners stay on. We are contemplating putting up signs like restricted lunch hours in our restaurant, like in Europe. But given the Indian hospitality culture, we are hesitant,” said another gourmet restaurant owner who runs outlets in Bengaluru, Delhi-NCR and Goa. He requested not to be named.

In the previous fiscal year, the food services market in India experienced a 53% decline, as reported by the National Restaurant Association of India (NRAI). This significant downturn led to the closure of over 25% of food business operations. Although the NRAI’s report for the current year is pending, individual restaurant chains have indicated a positive trend for the ongoing year, signaling potential recovery in the sector.

Zorawar Kalra, who serves as the managing director of Massive Restaurants, overseeing establishments such as Farzi Cafe and Masala Library, reported that December has emerged as the most successful month of the year. During this period, there has been an increase in the size of dining groups and higher average spending per customer. Pradeep Shetty, the president-elect of the Federation of Hotels & Restaurants Association of India and Hotel & Restaurant Association (Western India), highlighted a significant shift in dining habits. He noted that the frequency of people dining out has surged, rising from approximately once a month in pre-pandemic years to two or three times in a fortnight now.

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Hip-hop icon Badshah dives into hospitality with new dining ventures in Chandigarh

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Badshah

Badshah, the prominent Indian rapper and heavyweight in the hip-hop scene, is entering the hospitality arena. He has joined forces with Babita Puri Gupta and Udayveer Gupta to unveil three establishments in the central hub of Chandigarh‘s Sector-26.

Badshah’s foray into the culinary world encompasses Sago Spice Symphony, an upscale Indian dining establishment; Seville, a Continental Lebanese restaurant; and Sidera, a subterranean pan-Asian cocktail bar. Encompassing 9,000 square feet, this venture is designed to appeal to food enthusiasts with a wide range of tastes.

Sago Spice Symphony exudes a warm, family-friendly atmosphere through its use of terracotta, gold, and marble accents. Seville captures Spanish vibes with rustic chandeliers and an open-sky roof. Meanwhile, Sidera caters to the post-dusk crowd, featuring leather elements, LED lights, and a backlit marble and onyx bar.

Curated by chefs hailing from various regions in India, the menu offers a fusion of both traditional and contemporary dishes. Badshah’s personal selections from the menu feature classics like Mapo Tofu and innovative offerings like Multani Bhuna Paneer. The cocktail menu takes an experimental turn with concoctions such as Grecian Glaze and Temple Run, and there’s even a signature drink named after Badshah himself.

Expressing his passion, Badshah stated, “I love food as much as I love music. Excited to jump into this new adventure and bring something different to the table.”

Udayveer Gupta, the venture’s co-founder, aims to blend cultural influences, saying, “I want to showcase my global experiences through great food and a unique dining vibe.”

Beyond the rhythms, Badshah boasts a business track record that includes investments in a Mumbai nightclub, involvement in Punjabi films, and the establishment of BADFIT, his clothing line. With this recent venture, Badshah is offering more than just music—infusing Chandigarh’s food scene with a blend of tradition and modernity.

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French food group Boncolac acquires British foodservice supplier Cakesmiths

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Cakesmiths

Boncolac, the French food conglomerate, has acquired yet another British company by securing the foodservice supplier Cakesmiths.

The transaction, sealed for an undisclosed sum, was announced in conjunction with Boncolac’s new corporate name – Onoré. Bristol-based Cakesmiths specializes in supplying sweet and savory snacks to coffee shops in the UK and directly to customers online.

Onoré currently possesses two UK enterprises. In 2022, the company acquired the macaron supplier Mag’M. Earlier this year, it secured the savoury-pastry business Proper Cornish. Since 2022, Waterland Private Equity has held the majority ownership of the group.

A representative from Waterland Private Equity stated that Onoré is acquiring the complete ownership of Cakesmiths, with the entire management team of Cakesmiths reinvesting significantly into Onoré. The details of this investment have also not been disclosed.

As per a statement issued by Waterland Private Equity, Onoré’s annual sales are approximately €200 million ($219.4 million).

In the statement, Onoré CEO Alexandre Vigneron said, “Our ambition is to be the reference manufacturer of frozen specialty food for pastries and snacking products worldwide.”

A year and a half ago, LDC, the investment branch of the UK’s Lloyds Banking Group, made a substantial investment in Cakesmiths. As part of its arrangement with Onoré, LDC is now divesting. LDC stated that Cakesmiths achieved a remarkable “164% increase in revenue and a 260% rise in EBITDA over a two-year span” since the initial investment, though specific details were not disclosed. During this period, Cakesmiths expanded its workforce from 110 to “over 200,” according to LDC.

Cakesmiths CEO Chris Ormrod, who is to stay in his role, said: “Demand for our amazing cakes shows no sign of slowing and we’re now perfectly positioned to share them with more people around the world as part of Onore.”

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TowerBrook Capital Partners acquires majority stake in renowned deli meats producer Demakes Enterprises

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Demakes Enterprises

Investment firm TowerBrook Capital Partners has successfully acquired a majority stake in Demakes Enterprises, a prominent deli meats producer based in the United States.

The specific financial details were not revealed.

Established in 1914, Demakes Enterprises, situated in Massachusetts, was under the management of fourth-generation family proprietors.

The company produces various items, including deli meats and sausages, under brand names like Old Neighborhood and Thin N’ Trim. Additionally, it serves as a private-label supplier.

As outlined in the agreement, the Demakes family will maintain a “significant minority stake” in the company, according to a statement.

CEO Andrew Demakes will remain in his current role, while Elias and Timothy Demakes, serving as VP of Sales and VP of Plant Operations, will also retain their positions.

“TowerBrook is an ideal partner for Demakes given the firm’s track record of scaling family-owned businesses and significant knowledge of the food space,” Andrew Demakes said in a statement.

“My brothers and I look forward to partnering with TowerBrook to build upon the legacy of the company by expanding the reach of our distribution channels and bringing our high-quality, innovative protein products to more customers across the US.”

TowerBrook has previously invested in the consumer sector, with notable holdings including the US distributor KeHe and the ready-meals business Kevin’s Natural Foods. The buy-out firm successfully divested Kevin’s to Mars earlier this year.

Michael Recht, managing director of TowerBrook, said “combining the [Demakes Enterprises’] core strengths with our experience scaling and growing consumer brands will foster an exciting phase of expansion both organically and through targeted acquisitions in coming years”.

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The Every Company launches world’s first hen-free liquid eggs

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Liquid egg

The Every Company has unveiled its Every Egg, touted as the world’s first liquid egg made without the use of hens, at an exclusive event in New York City.

The development of Every Egg spanned nine years and involved yeast fermentation as the key method, culminating in the creation of the product by the company.

According to Every, their product is designed to mirror the culinary flexibility of conventional eggs and can seamlessly substitute in a 1:1 ratio across numerous applications. Each serving provides eight grams of protein, with zero cholesterol, saturated fat, or artificial flavors.

The product, created through precision fermentation, features egg protein that closely mimics its traditional, animal-derived counterpart. This development occurred entirely without the use of animals. The company expresses its aspiration to usher in a future where consumers can savor eggs without the inherent process variability, disease risk, and significant environmental impact associated with animal agriculture.

Every’s co-founder and CEO, Arturo Elizondo, said, “By decoupling the egg from the chicken, Every Egg is going to change the way we think about one of the most ubiquitous foods on the planet. For nine years, my dream has been to build a food system humanity can be proud of.”

The groundbreaking innovation was unveiled through a collaborative product launch with chef Daniel Humm, presented to culinary visionaries, chefs, and creators at Humm’s renowned 3-star Michelin restaurant, Eleven Madison Park.

Humm commented, “Eggs are a universal staple in every kitchen, and this is the first time we’ve crafted an event menu around a novel food product. When we prepared an omelet using Every Egg, the taste and versatility was all but indistinguishable from hen eggs. We are excited about the potential of Every Egg to transform the food landscape.”

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Sodexo to launch the UK’s first 24/7 automated food court for healthcare workers

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Sodexo

Sodexo, a foodservice company in partnership with Worldline and SV365 Technologies, is set to launch the UK’s first round-the-clock automated food court for healthcare workers.

Worldline specializes in payment services, whereas SV365 Technologies provides solutions tailored to the food service industry.

Sodexo, along with its partners, will conduct trials and introduce the 24/7 Deli at the Royal Stoke University Hospital in Stoke-on-Trent.

Sodexo UK and Ireland Health & Care strategy and marketing director Simon Lilley and Sodexo UK product innovation head Militsa Pribetich-Gill stated, “As a strategic partner to many NHS hospitals, it is important for us to continue to innovate and to provide new and exciting initiatives such as the 24/7 Deli.

“Through our new automated retail solution, we’ll be able to play our part every day, by serving frontline teams, visitors and patients.

“Together with Worldline, we are happy to provide an innovative and smooth end-to-end user experience, from nutrition – our core competence – through user-friendly kiosk distribution all the way to payment.”

Equipped with touchscreen ordering and cashless payment systems, the 24/7 Deli aims to deliver a smooth and convenient dining experience for both staff and visitors.

Going forward, the companies have plans to expand the concept across relevant Sodexo sites and segments.

Worldline vending and adjacent markets head Nicolas Dejonghe stated, “We are delighted to be working with our partners at both SV365 Technologies and Sodexo.

“Our collective expertise has enabled us to bring a truly refreshing outlook to self-service kiosks within the healthcare sector, providing new services, meeting the latest customers’ expectations while improving the well-being of staff and visitors.

“This 24/7 Deli project shows how much self-service can be reinvented with smart concepts, combining appealing self-service machines, smooth digital payments, varied product offerings and creative merchandising.”

Earlier this year, Reed’s School in Cobham, Surrey, awarded Independents by Sodexo an additional five-year catering contract in the UK.

For over five decades, Sodexo has been providing catering and hospitality services at the school.

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Jumia redefines strategy by halting food delivery services across Africa

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Jumia

African e-commerce platform Jumia has opted to discontinue its food delivery service, Jumia Food, in Algeria, Ivory Coast, Kenya, Morocco, Nigeria, Tunisia, and Uganda, as reported by Tech Crunch.

After conducting a strategic review, Jumia determined that the business is not in harmony with its existing operational landscape and the prevailing macroeconomic conditions in its markets.

The company will discontinue its food delivery services across these markets by the end of this month.

The decision is part of the company’s plan to optimize capital and resource allocation to achieve profitability.

Since early 2022, the company has been actively working to reduce its costs. It halted food delivery services in Egypt, Ghana, and Senegal, and discontinued logistics-as-a-service in all markets except Nigeria, Morocco, and Ivory Coast.

The company implemented a cost-cutting measure by discontinuing Jumia Prime across all markets.

Although the company managed to decrease its losses, the food delivery segment has never attained profitability.

Tech Crunch quoted Jumia CEO Francis Dufay as stating, “The more we focus on our physical goods business, the more we realise that there is huge potential for Jumia to grow, with a path to profitability.

“We must take the right decision and fully focus our management, our teams and our capital resources to go after this opportunity. In the current context, it means leaving a business line which we believe does not offer the same upside potential — food delivery.”

The company will shift its focus to its physical goods delivery business and sustain its JumiaPay operations across all markets.

Antoine Maillet-Mezeray, Jumia’s Executive Vice President of Finance and Operations, stated that the choice to exit the food delivery sector was based on prioritizing opportunities and anticipating a return on investment.

Employees currently working in the food delivery services will be transitioned to roles within the ongoing physical goods business.

Last month, Bolt Food announced its strategic exit from the Nigerian market for specific reasons.

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Zaxby’s to debut its first restaurant in Grovetown, Georgia

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Zaxby's
Zaxby's (Representative Image)

Zaxby’s, a US-based fast-casual restaurant chain, is poised to open its first restaurant in Grovetown, Georgia, on December 18, 2023.

Situated at 5002 Steiner Way, the upcoming establishment will feature both dine-in and dual drive-thru amenities.

Tom Scott, Jennifer Cobb, Steven Stembridge, Scott Roberts, and Ashlea Lane of SSR Augusta, seasoned licensees, will own and manage the restaurant.

This marks the franchisee‘s eighth establishment in the Augusta region.

SSR Augusta market operations director Jennifer Cobb stated, “We’re thrilled to grow our presence in the Augusta area with the highly anticipated Grovetown Zaxby’s location. Since 2019, we’ve been part of the Augusta community, and this marks our first expansion in the region.

“We are delighted to welcome new guests, foster a positive work environment and offer growth opportunities to our dedicated team.

“Our commitment extends beyond the restaurant as we forge partnerships with the Girls Scouts of America, local churches and welfare groups, to demonstrate our active engagement and support of the Grovetown community.”

Spanning 3,000 square feet, the upcoming site will showcase Zaxby’s timeless white farmhouse-style architecture, complemented by modern digital menu boards.

The dining establishment has the capacity to host a maximum of 56 patrons.

The upcoming Zaxby’s establishment will generate employment opportunities for 50 individuals in the Grovetown vicinity.

Customers have the option to submit their food orders conveniently through zaxbys.com or the recently launched Zaxby’s app.

Delivery can be arranged either directly through the app or via third-party delivery platforms such as UberEats, DoorDash, and GrubHub.

In December 2023, Zaxby’s revealed the inauguration of a new dining establishment in Biloxi, Mississippi.

Located at 2441 Pass Road, Zaxby’s Biloxi venue is owned and operated by Pass Road Poultry.

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STARR Restaurants rolls out exclusive private-label Pinot Noir blend

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Pinot Noir

STARR Restaurants, a diverse restaurant group, has unveiled its first private-label wine—a 2022 vintage Pinot Noir blend.

Collaboratively crafted by STARR’s corporate wine director, Mikayla Avedisian-Cohen, and the biodynamic Brooks Wine, the latest vintage wine under the new label is both produced and bottled in Willamette Valley, Oregon, USA.

The Pinot Noir blend from the 2022 vintage is exclusively offered at STARR’s restaurants located in New York, Philadelphia, Washington DC, Miami, and Fort Lauderdale.

The process began in 2022 when Mikayla and STARR project manager Sarah Starr visited the vineyard of Brooks Wine. There, they blended and blind-tasted a range of vintages to find the ideal match for each of STARR’s range of cuisines.

This led to the development of a light-bodied Pinot Noir with a fruit-forward profile, featuring savory finish notes reminiscent of fresh cherry, red raspberry jam, and wild strawberry.

Jarreau said, “When Sarah and Mikayla joined me at the table here in Oregon, they brought their own honed palates and vast hospitality experience.

“Working together, we were able to craft a Pinot Noir of remarkable vibrancy that is both a pure expression of the 2022 growing season in the Willamette Valley and incredibly well-suited to the diversity of cuisines the STARR group offers.”

STARR will provide the Pinot Noir wine by the glass and/or bottle, depending on the location of the restaurant.

Avedisian-Cohen said, “Working alongside Claire and her team at Brooks, and honing in on every layer, was beyond impactful. It was like I was given the keys to the castle and told to ‘rearrange the furniture however you think is best.’

“With both of us bringing our different palates, Sarah and I had so much fun collaborating to create a wine for all of the STARR restaurants, and we’re pretty damn proud of the result! It’s an excellent vintage with beautiful fruit that we can’t wait to share with our guests.”

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