User-generated content (UGC) has grown to be a significant force in brand marketing in the digital era. Content created by your customers or fans and shared with others is commonly referred to as user-generated content. This can include posts on social media, images, videos, reviews, and more. Using UGC to its fullest potential can revolutionize your brand by fostering a sense of community and offering relatable and genuine content.
Before diving into the “how,” it’s crucial to understand the “why.” User-generated content offers numerous benefits to your brand, including enhanced authenticity, increased engagement, and broader reach. Here we will explore the advantages of UGC and why it should be an integral part of your marketing strategy.
Your brand advocates are the heart and soul of your user-generated content strategy. Learn how to identify and engage with your most passionate customers, fans, and influencers. Discover ways to identify your most active supporters and how to approach them for collaboration.
Create a User-Friendly Environment
To encourage user-generated content, you need to make it easy and appealing for your customers to participate. This chapter delves into the importance of user-friendliness, offering tips on designing a seamless user experience that motivates users to create and share content.
Craft Engaging Campaigns
To jumpstart UGC, you must create campaigns that resonate with your audience. This chapter guides you through the process of crafting engaging campaigns, from brainstorming ideas to execution, and provides real-world examples of successful campaigns that have gone viral.
Select the Right Platforms
Every social media platform has its unique strengths and user demographics. In this chapter, we’ll discuss how to choose the right platforms for your UGC strategy, based on your target audience and the type of content you want to generate.
Implement Effective Hashtag Strategies
Hashtags are the linchpin of user-generated content campaigns. Learn how to develop a strategic hashtag approach that boosts discoverability, encourages participation, and ensures consistency across your content.
Leverage the Power of Contests and Giveaways
Contests and giveaways are excellent incentives for UGC. Discover how to create effective contests and giveaways, set rules, and select prizes that motivate users to participate enthusiastically.
Build Trust and Credibility
Credibility is key in encouraging user-generated content. This chapter focuses on building trust with your audience, including tips for honest reviews, transparency, and responding to criticism in a constructive manner.
Recognize and Showcase UGC
Showcasing user-generated content can inspire more users to contribute. This chapter offers guidance on recognizing and sharing UGC effectively, from acknowledging contributors to curating content that aligns with your brand’s image.
To refine your UGC strategy, you need to measure and analyze its effectiveness. Learn about the essential metrics and tools for evaluating the impact of user-generated content on your brand’s growth and visibility.
Legal and Ethical Considerations
User-generated content comes with legal and ethical considerations. This chapter provides insights into copyright issues, permissions, and the responsibilities of using UGC while respecting creators’ rights.
User-generated content is a dynamic and indispensable element of modern brand marketing. By understanding its power, engaging brand advocates, creating a user-friendly environment, and implementing effective campaigns, you can harness the potential of UGC to build a vibrant and engaged brand community. This guide equips you with the knowledge and tools to encourage user-generated content successfully, paving the way for authentic, relatable, and community-driven brand marketing.
Okay, imagine this: You’re at the store, and you buy a cool gadget, let’s say a brand-new smartphone. You’re super excited when you walk out of the store with the shiny box in your hand. But what happens after you open the box, and the newness wears off? That’s what we’re going to talk about today—how companies keep you excited about their stuff even after you’ve bought it. It’s like a secret sauce they use to make you feel happy and keep coming back for more.
Say Hello to Loyalty Programs
Have you ever seen those cards that some stores give you to collect stamps for every coffee you buy? When you collect enough stamps, you get a free coffee. Well, that’s kind of like a loyalty program. Companies offer you rewards or discounts if you keep buying their stuff. It’s like a little thank-you for being a loyal customer.
Exclusive Clubs and Memberships
Think of this like being a member of a super special club. Some companies offer exclusive clubs or memberships where you get access to things that others don’t. It’s like being a VIP. You get early access to products, special events, and sometimes even unique products just for being a member. It’s their way of saying, “Hey, you’re awesome, and we want to treat you like a rockstar.”
Stay Connected with Newsletters
Imagine if you could get all the inside scoops about your favorite products and brands right in your email. That’s what newsletters are all about. Companies send you emails with updates, news, and special offers. It’s like having a friend who tells you about the best deals and exciting news.
Customer Support – Your Lifesaver
Sometimes, things don’t go as planned, and you need help. Customer support is like your superhero when you’re in trouble. Companies have teams of people ready to answer your questions and solve your problems. They want to make sure you’re happy, even after you buy their stuff.
Games, Contests, and Challenges
Have you ever seen a contest on a cereal box where you can win a cool prize? Well, companies do similar things to keep you engaged. They create fun games, challenges, and contests to keep you excited. You can win prizes, get discounts, and have a blast while using their products.
Fun on Social Media
Social media is like a big playground where companies hang out. They post funny videos, cool pictures, and interesting stuff about their products. You can chat with them, ask questions, and even get sneak peeks of new things they’re working on. It’s like having a conversation with your favorite brand.
How-To Guides and Tutorials
Sometimes, products come with all sorts of buttons and features that you don’t know how to use. That’s where how-to guides and tutorials come in. Companies create videos, articles, and guides that show you how to get the most out of your purchase. It’s like having a personal teacher for your new stuff.
So, there you have it! Keeping customers excited after they buy stuff is like a big, fun game for companies. They use loyalty programs, exclusive clubs, newsletters, customer support, games, social media, and how-to guides to make sure you stay happy and engaged. It’s not just about selling you something once; it’s about building a long-lasting relationship. So, the next time you open that shiny new box, remember that the excitement doesn’t end there; it’s just the beginning of a fun journey with your favorite brands.
In the fast-paced world we live in today, our mobile devices have evolved into more than just tools for communication; they have become the portals to our culinary journeys. From ordering our favorite meals, discovering new recipes, to exploring the latest food trends, our smartphones and tablets have become indispensable companions in the realm of gastronomy. For businesses operating within the food industry, harnessing the power of these digital interactions isn’t just a necessity; it’s an opportunity to engage, delight, and retain customers.
User-Centric Mobile App Design
The foundation of any successful mobile food experience is a user-centric design. Your mobile app or website should be intuitive, easy to navigate, and visually appealing. Ensure that users can quickly find what they need, whether it’s a menu, order options, or cooking instructions. The use of high-quality images and well-organized content can entice users to explore your offerings.
Seamless Ordering and Payment
One of the primary reasons people turn to mobile apps for food-related activities is the convenience of ordering and payment. Make sure the ordering process is seamless and hassle-free. Implement various payment options and consider features like saved addresses and payment methods to simplify repeat orders.
Personalization and Recommendations
Leverage data to provide personalized experiences. Analyze users’ preferences and behaviors to recommend dishes or offer promotions tailored to their tastes. Personalization can create a sense of exclusivity and keep customers coming back for more.
Interactive Cooking and Recipe Apps
For food-related businesses, sharing recipes can be a fantastic way to engage customers. Create interactive cooking apps that guide users through recipes step by step, complete with videos, images, and timers. This not only promotes your products but also provides valuable content that users will return to.
Gamify Food Discovery
Gamification is an innovative way to make food discovery exciting. Consider creating interactive food-related games or challenges within your app. For example, users could earn rewards for trying new dishes or sharing their culinary creations on social media. These gamified elements can boost user engagement and loyalty.
Virtual Reality (VR) and Augmented Reality (AR)
Embrace emerging technologies like VR and AR to enhance the mobile food experience. AR can be used to provide immersive menu experiences, allowing users to see how dishes will look on their table. VR can transport users to virtual dining experiences, fostering a deeper connection to your brand.
Social Media Integration
Social media and food go hand in hand. Ensure your mobile app or website integrates seamlessly with popular social platforms. Users should be able to share their culinary experiences, reviews, and images directly from your app, creating a buzz and attracting new customers.
Loyalty Programs and Rewards
Implementing a loyalty program can keep users engaged and loyal to your brand. Offer rewards, discounts, or exclusive access to frequent customers. Loyalty programs not only foster customer retention but also encourage word-of-mouth recommendations.
Real-Time Updates and Alerts
Keeping customers informed about their orders is essential. Provide real-time updates on the status of their delivery or pickup. Push notifications can be used to alert users to special promotions, new menu items, or nearby restaurant deals.
User Feedback and Continuous Improvement
Encourage user feedback and actively seek ways to improve your mobile experience. Regularly update your app or website based on user suggestions and changing trends in the food industry. Being responsive to customer needs can set you apart from the competition.
Final Thoughts:
Crafting irresistible mobile experiences in the world of food is not just a necessity but an art. In a digital age where convenience and engagement are paramount, leveraging these strategies can be the key to success for food-related businesses. User-centric design, seamless ordering, personalization, interactive content, gamification, cutting-edge technologies, social media integration, loyalty programs, real-time updates, and continuous improvement are all vital components of a successful mobile food experience. By embracing these strategies, you can make the digital journey from menu exploration to the first delicious bite an unforgettable adventure for your customers.
Parma-based startup Dreamfarm has secured €5 million ($5.3 million) to develop its portfolio of plant-based cheeses.
Giampaolo Cagnin, the entrepreneur and founder of Italiana Ingredienti, Campus, and Hi-Food, along with Francesco Mutti, the owner and CEO of the tinned tomato producer Mutti, contributed to this investment.
Cagnin said, “We invested in the project because we believe that it [has the ability to revolutionise the sector], thanks to important innovations in the technological field and an attractive and very recognisable branding on the shelf.”
Dreamfarm has reported that a portion of the funding has been allocated for the construction of a production facility in Sala Baganza, Parma. This facility has been equipped with advanced technology designed to enhance the efficiency of the start-up’s patented production process.
After investing two years in research and development to create a patented technology for manufacturing their plant-based cheeses, Dreamfarm introduced their inaugural products in May. These offerings consist of a plant-based cheese spread and a vegan mozzarella alternative that is stored in a preservative liquid.
The plant-based mozzarella has received an ‘A’ Nutri-Score, signifying the highest possible rating on the European nutritional labeling scale.
Dreamfarm has outlined its intentions to utilize the remaining funding for the expansion of its distribution network both within Italy and internationally. Additionally, the start-up has committed to directing resources toward research and development to facilitate the expansion of its product range.
Its product offerings can be found at niche retailers in Italy and Barcelona.
Established in 2021, the company was co-founded by Maddalena Zanoni, who previously served as the head of Alpro and Provamel (both owned by Danone) in Italy, Greece, Cyprus, and Malta. Mattia Sandei, formerly an R&D researcher at the functional ingredients group Campus, also co-founded the company.
In April 2023, Giovanni Menozzi assumed the role of CEO, bringing his experience as an angel investor at Heroes, a developer of consumer brands.
According to his LinkedIn profile, Cagnin took on the role of chairman and angel investor in the company in April.
Speaking on the start-up’s portfolio and future plans, Menozzi said, “The Dreamfarm alternative to mozzarella is an innovative product, with less than 1% saturated fats and which is therefore increasingly aimed at that large segment of consumers [who are] attentive to aspects related to sustainability and nutritional profile but who do not want to [give] up the goodness of a typically Italian product.
“The [plant-based cheese] sector is growing rapidly and we are convinced that we can have our say on a global level with the type of products we have and will continue to develop.”
Honasa Consumer Ltd, the holding company of the D2C unicorn Mamaearth, closed the trading session on Tuesday (November 7) at INR 337.15 on the BSE, marking a 4.06% increase from its listing price.
The new-age technological startup had a relatively uneventful debut on the Indian bourses today. With its shares opening at a 2% premium at INR 330 on the NSE, Mamaearth’s shares began trading at INR 324 on the BSE.
The IPO’s price band was established between INR 308 and INR 324.
Mamaearth’s stock surged nearly 5% to reach INR 340 in intraday trading, before retracting some of the gains and eventually settling at a 4% increase above the IPO price.
On the NSE, the shares concluded the trading session at INR 337.3, marking a 2.21% increase from the listing price.
Mamaearth’s current market capitalization is $1.3 billion.
Established in 2016 by Ghazal and Varun Alagh, Honasa Consumer operates multiple beauty and personal care brands such as Mamaearth, The Derma Co., Ayuga, Aqualogica, and Dr Sheth’s. The company submitted its draft red herring prospectus (DRHP) in December of the previous year.
The IPO experienced an oversubscription of 7.61 times, primarily driven by significant demand from qualified institutional buyers (QIBs).
The initial offering consisted of newly issued shares valued at INR 365 crore along with an offer for sale (OFS) component of 4.12 crore shares. Nonetheless, the company’s FY23 loss of INR 151 crore has sparked concerns in certain circles regarding the stock’s prospects in the near to medium term.
At the same time, early investors in the company, several of whom opted for the OFS route to sell their shares, reaped substantial profits from the IPO.
Rohit Bansal and Kunal Bahl, the cofounders of Snapdeal, gained close to 101 times returns on their initial investment at the higher end of the IPO listing price, INR 324. Meanwhile, actor Shilpa Shetty realized returns of approximately 7.74 times on her investment.
Conversely, Mamaearth marks Peak XV’s fourth investment in the country within the last six months since its separation from Sequoia, known to potentially yield returns of 10 times or more.
The festive season in India brings with it an air of excitement, joy, and celebration. It’s a time when families and friends come together, and homes are adorned with lights, colors, and the sweet aroma of traditional sweets and delicacies. It’s a time when gifts are exchanged, and gratitude is expressed for the love and togetherness that defines these special moments.
And what’s a celebration without a toast to life’s most beautiful moments? This Diwali, as you light up your homes and hearts, we bring you a curated selection of the finest beverages and gift ideas that will elevate your festivities to a whole new level.
Indri Diwali Collector’s Edition 2023:
When it comes to premium Indian single malts, Indri is a name that demands attention. Produced by Piccadily Distilleries in India, Indri has been making waves across the globe, earning recognition at the Whiskies of the World Awards with the prestigious Best in Show, Double Gold award for their Diwali Collector’s Edition 2023. This accolade is a testament to the quality and growing popularity of Indian single malts.
The Indri Diwali Collector’s Edition is a peated single malt crafted with meticulous attention to detail. Made from Indian six-row barley and distilled in traditional copper pot stills crafted in India, it’s matured in PX Sherry Casks for an extended period amidst the sub-tropical climate of North India. The result is a whiskey that tantalizes the senses with notes of smoke, candied dried fruits, toasted nuts, subtle spices, oak, and bittersweet chocolate.
What sets the Indri Diwali Collector’s Edition apart is its exclusivity. With limited availability, it’s a symbol of sophistication and refinement, available exclusively in Haryana.
Sorrentina Chip and Dip Box:
Whether you’re looking for the perfect gourmet gift for the festive season or hosting an intimate gathering, Sorrentina Chip and Dip box will be the perfect choice. Packed with 3 crackers and best dips, this box is a sure-shot way to impress.
Each element in the gourmet box is handcrafted in small batches, using only the freshest ingredients and authentic Italian recipes. The crunchy crackers, crostini, and grissini paired with the delicious flavors of the Italian-style hummus and pestos will definitely put you in a festive mood with each bite. Available at Sorrentina website, it’s a delightful option for those who appreciate gourmet delights.
Ballantine’s 7 Bourbon Barrel Finish:
The latest addition to the Ballantine’s range, Ballantine’s 7 Bourbon Barrel Finish, offers the perfect marriage of Scotch whisky depth with the sweet influence of bourbon. Aged for seven years and finished in bourbon barrels, this whiskey brings a unique touch to the iconic Ballantine’s character.
Enjoy it in an Old Fashioned with a dash of orange bitters to enhance the sweet notes, or savor it neat or on the rocks. For an extra refreshing experience, mix it with premium cola when enjoying quality time with friends and family.
Jacob’s Creek Sparkling: Chardonnay Pinot Noir
Jacob’s Creek Sparkling Chardonnay Pinot Noir is an epitome of elegance. With a palate highlighting lemon and citrus fruit, finishing with a delicate and refreshing acidity, it pairs perfectly with soft cheeses and is a delightful addition to your festive gatherings. The wine’s bouquet offers an aromatic blend of lemon, citrus, and red apple, with hints of bread and nougat.
Jacob’s Creek Unvined – Riesling:
For those seeking a health-conscious alternative, Jacob’s Creek Unvined – Riesling (Non-Alcoholic Wine) offers the perfect solution. With flavors reminiscent of sweet baked apples and stone fruits, this non-alcoholic wine boasts crisp acidity.
Its aroma features notes of apples and apricots with floral undertones, making it an ideal accompaniment to pickled herring or lightly spiced dishes. Embrace a guilt-free celebration this Diwali with this delightful and refreshing option.
Brancott Estate Sauvignon Blanc:
Brancott Estate Sauvignon Blanc is a beautifully balanced wine, bursting with zesty aromas of pink grapefruit, melon, and gooseberry. Pair this delightful wine with delicate seafood, white meat dishes, fresh green salads, or lighter cheeses like brie and edam.
YU Foods x Hardik Pandya Festive Gift Box:
Inside this box, you will find a carefully curated collection of exclusive Hardik Pandya memorabilia, designed to celebrate the achievements and charisma of this incredible cricketer. From an autographed jersey and mug to personalized merchandise like a wristband, every item has been handpicked to bring you closer to the spirit of the game and the rise and conquer theme.
Available exclusively on BinkIt and SpiceJet, this hamper includes an autographed jersey and mug, a tricolor wristband, and a thoughtful selection of snacks, embodying the spirit of the game. Additionally, there’s a personal note from Hardik Pandya, making this collection a heartfelt tribute to his inspiring journey.
Campo Viejo Tempranillo:
From the heart of Spain, comes Campo Viejo Tempranillo – a wine that enchants the palate with its soft and fresh character. Its rich nose is packed with intense aromas, and its flavor profile includes notes of red fruit, vanilla, and cocoa.
This Spanish wine pairs beautifully with pasta, poultry, grilled chicken, vegetables, fresh light cheeses, and small bites.
‘Seagram’s Longitude 77’ Indian Single Malt Whisky:
Crafted in small batches in Dindori, Nashik (Maharashtra), ‘Seagram’s Longitude 77’ pays homage to the spirit of India and reimagines luxury and sophistication. With a rich and mellow flavor profile, notes of oak, vanilla, and a subtle hint of fruit, it’s a unique addition to your Diwali celebrations. The pack features a symbol that represents the best of India, making it a collector’s item. Available in Mumbai and Goa, the price is available upon request.
Absolut Limited Edition Pack:
Vodka lovers, rejoice! Absolut’s latest limited-edition bottle, designed by multidisciplinary artist Osheen Siva, is not just a feast for your taste buds but also a treat for your eyes. This bottle celebrates self-expression through art, design, and creativity, while retaining the same smooth taste Absolut is known for.
Whether you prefer it straight or mixed, Absolut is versatile and has an exceptionally smooth mouthfeel. This limited edition, available on request, celebrates the multifaceted identities that define the youth of India, making it the perfect gift for those who appreciate both art and a great drink.
Sorrentina’s Taste of Italy Hamper:
Let your festive gifts this season be an embodiment of love, appreciation, and an adventure for the taste buds with Sorrentina’s ‘Taste of Italy’ Gifting Hamper. Offering a symphony of authentic Italian flavors, this hamper promises to elevate the festive spirit to an exquisite Italian soiree with every handpicked product like the gourmet truffle chips, the savory Sicilian spiced nuts, the finest varieties of pasta, the artisanal Herbed Crostini, and many more.
Available at Sorrentina Website, this hamper is a culinary journey that anyone would cherish.
Camikara 12YO:
Camikara, India’s first pure cane juice rum, stands out as a truly exquisite creation. Not only is it the first Indian rum to win a gold medal at the prestigious IWSC Awards 2023, but it also follows an age-old Indian rum tradition by being naturally aged in ex-bourbon barrels for 12 years. This limited edition contains no added sugar, flavor, or color, and it’s bottled at a strength of 50% ABV.
As the festive season approaches, these exquisite beverages and gift ideas are here to make your celebrations truly memorable. Whether you choose to savor the finest in Indian single malts, raise a toast with Spanish wines, or surprise your loved ones with thoughtfully curated gift hampers, this Diwali is bound to be filled with joy, warmth, and unforgettable moments. Cheers to a spectacular Diwali!
Organic dairy startup Akshayakalpa is currently in advanced discussions with A91 Partners to secure a substantial $25 million (INR 200 crore) in funding. This development marks yet another notable growth-stage deal in recent weeks, underscoring the resurgence in overall funding activity.
The company, which offers a platform for users to order milk and various dairy products, is aiming for a post-investment valuation in the range of $75-80 million, according to an individual familiar with the situation. The deal, which could be the 17th growth-stage transaction in the past month, is expected to be concluded and formally disclosed in the coming weeks, the source added, requesting anonymity.
“The company is largely present in Bengaluru and is looking to expand its operations beyond the city,” the person quoted above said.
“It has some presence in Chennai and Hyderabad, and it will look to penetrate deeper into these two cities. I don’t think as of now, there are talks of expansion beyond these cities,” they added.
Queries sent to A91 Partners and Akshayakalpa went unanswered.
If the transaction moves forward as intended, it will enable Akshayakalpa to strengthen its standing in India’s fiercely competitive dairy products market. In this market, traditional players usually dominate the landscape. Notably, competitor brand Country Delight successfully obtained a significant $108 million in a funding round just last year. Additionally, Milky Mist, another prominent dairy products brand, has reportedly been engaging in discussions with private equity firms such as WestBridge Capital to raise funds, as highlighted in media reports.
Established in 2010 by Dr. GNS Reddy and Shashi Kumar, Akshayakalpa specializes in the production of organic milk and collaborates with more than 750 farmer families, as stated by the company. Beyond its proprietary platform, the company’s products are accessible through over 2,000 retail and quick commerce outlets.
Having successfully secured its Series B funding round in September last year, the company garnered support from British International Investment (BII), a UK-based development finance institution, and the Rainmatter Foundation, in addition to continued backing from existing investors like Venture Dairy. Lok Capital is also among the company’s supporters.
Akshayakalpa’s revenue in FY22 saw a 12% growth, reaching INR 116 crore. This growth notably contrasts with the substantial 70% increase recorded in the figures during 2020-21. Nonetheless, the company successfully reduced its loss in FY22 to INR 19.4 crore from over INR 30 crore in the preceding fiscal year.
Esah Tea, an Assam-based D2C tea brand, has announced its grand expansion in Delhi. This strategic leap marks a significant milestone in the brand’s journey, bringing the rich heritage of Assam’s tea culture to the bustling capital region.
Esah Tea has established a notable presence in Delhi, encompassing key locations such as West, East, Central, and North Delhi, offering its products in over 80 departmental stores. With plans to expand further, the brand aims to extend its reach to South Delhi, Gurgaon, and Noida, ensuring accessibility for tea enthusiasts across the entire Delhi-NCR region.
This expansion aligns with Esah Tea’s ambitious mission, intending to convert more than 20,000 acres of land to organic tea cultivation in Assam. Simultaneously, they plan to onboard over 1000 local small tea growers by the year 2025.
Esah Tea’s diverse range can be found in multi-brand stores across Delhi-NCR, with specific modern outlets such as Baniya ki Dukan (BKD), Max Bazar, Kia Bazar, and Kisan Mandi showcasing the brand’s exceptional collection. Among the 10 unique product variations available, each promises a distinctive tea experience.
Moreover, the brand has introduced a line of instant chai that features tempting variants like Cardamom, Masala, and Kadak chai. Additionally, catering to the health-conscious consumer, they’ve launched the Instant Mango Turmeric Latte.
On the expansion Bijit Sarma, Founder and CEO of Esah Tea said, “Our journey, expanding from our humble beginning to Delhi-NCR and beyond, is a testament to our unwavering commitment to providing the healthiest, and the most authentic tea experience for our valued customers. As we grow, we remain resolute in our promise to provide premium, organic teas that not only taste great but also embody our dedication to eco-friendliness and healthy living.”
The standout product among Esah Tea’s offerings is the Assam Organic Gold CTC Chai. This distinctive blend presents a cup of tea with a bright yellow-brown hue, reminiscent of the original Assam Tea from the 19th century. In contrast to traditional teas that darken upon boiling, Esah’s organic variant maintains its appealing color, setting it apart.
What distinguishes the tea brand further is its meticulous approach in selecting tea blends sourced from over 150 local gardens and small-scale tea cultivators. This ensures a swift journey from the garden to the cup in just ten days, skipping intermediaries and preserving the tea’s freshness and quality.
The pricing of Esah Tea products aligns with the brand’s aim to make organic tea accessible to a wider audience. This pricing structure positions Esah Tea on par with conventional tea brands, with just a 10% premium cost. Additionally, the brand is currently offering exclusive discounts in stores.
Established in 2021, Esah Tea, initially available in just ten premium stores, has rapidly expanded its footprint to encompass over 600 stores nationwide. This presence extends to both online platforms, exclusively on Big Basket and Amazon.in, as well as offline locations in key cities like Guwahati, Delhi-NCR, Bangalore, Hyderabad, and Kolkata. The startup is gearing up for its next funding round, aiming to secure investment to realize its ambitious target of reaching 5,000 outlets across India by 2024. Beyond India’s borders, Esah Tea exports to over 10 countries, including the USA, South Korea, Abu Dhabi, and the UK. With a growing customer base of over 100,000 individuals, both online and offline, the brand’s unique strategy of offering complimentary in-store tea tastings has garnered positive feedback and encourages immediate purchases.
Economists have suggested that the recent increase in onion prices is unlikely to exert a substantial influence on October’s inflation figures. However, they warn that this upward trend in onion prices could potentially result in inflation reaching approximately 6% in the upcoming months.
During the initial week of November, onion prices surged by almost 75% in comparison to the preceding month.
“Alongside a rise in broader vegetable prices in October, we expect CPI inflation to rise to 5.3% y-o-y from 5.0% in September, with headline inflation tracking 6% in November/December, before moderating next year,” said Sonal Varma and Aurodeep Nandi, economist, Nomura.
Despite economists’ assertions that declining tomato prices will likely maintain inflation at bay in October, they warn that the scenario might deteriorate in the future.
“Daily food prices from the National Horticulture Board is indicating a 10.9% MoM rise in onion prices in October, which is being countered by a 9.3% decline in tomato prices. Potato prices are also showing a mild decline in October. Overall vegetable prices, on a CPI-weighted basis, are showing a mild positive increase on a month-on-month basis,” said Gaura Sengupta, economist, IDFC First Bank.
Onions account for 0.64% of the overall retail inflation basket, while tomatoes hold a slightly lower 0.57% weight within the inflation basket.
“Retail prices are up by 30-40% y-o-y basis, so the impact can be around 0.19-0.24% in October,” said Madan Sabnavis, chief economist, Bank of Baroda.
Nevertheless, economists argue that a recurrence of the July-August period, during which inflation exceeded the Reserve Bank of India’s upper threshold of 6%, is improbable.
“The pick-up in onion prices is due to uneven monsoon distribution, which has impacted arrivals in September and October. But the disruption in supply isn’t as steep as it was in the case of tomatoes. Seasonally, onion prices tend to rise in October and November and then decline in December or January,” Sengupta said.
The government maintains a reserve of 500,000 tonnes. As of October 28, a total of 170,000 tonnes from this stockpile had been released for sale.
“The government has swung into action, announcing export duties on onions, minimum export prices and offloading buffer stocks, although prices are yet to cool,” said Nomura economists.
Even with declining prices, food inflation maintained an average of 6.6% in September. The strain caused by elevated onion prices is anticipated to sustain high food prices.
October’s inflation data will be made available by the government on November 13th.
The Solvent Extractor’s Association of India (SEA) and the Brazilian Association of Vegetable Oil Industries (ABIOVE) have entered into a memorandum of understanding (MoU) to facilitate the import of soybean oil.
India holds the distinction of being the world’s largest importer of edible oils, bringing in approximately 15-16 million tonnes of various edible oils. This includes a significant portion of around 3.5 to 4.0 million tonnes of soybean oil, primarily sourced from Latin America.
“Brazil is one of the major suppliers of soyabean oil to India. In 2022, Brazil exported 1.4 million tonnes and in the current year till September, it has exported 1.2 million tonnes of soyabean oil to India,” said SEA in a media release.
On November 2, 2023, the Memorandum of Understanding (MoU) was signed by Ajay Jhunjhunwala, the president of SEA, and Andre Meloni Nassar, the president of ABIOVE.
Both organizations have reached an agreement to collaborate on matters related to the supply, utilization, and commerce of soybeans, soymeal, soybean oil, and other oilseeds along with their by-products.
“The objective of the MoU is to create a common platform to facilitate the joint interaction of both institutions under the governmental spheres of both countries and promoting public-private partnerships of mutual interest towards economic integration between the two countries in the oilseeds sectors, through the reduction of bilateral and multilateral trade barriers on oilseeds, oilseed products and edible oils,” said SEA.
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