Agri-fintech startup KiVi raises INR 15 crore in seed funding round

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October 13, 2023

Agrosperity Tech Solutions Private Limited’s agri-fintech startup, KiVi, has successfully closed its seed round, securing INR 15 crore in funding. The funding round was led by Caspian Leap for Agriculture Fund, with participation from Piper Serica Angel Fund, YAN Angel Fund, Impact Innovators and Entrepreneurs Foundation, among other notable investors. KiVi, incubated at IIT Madras Research Park, is dedicated to fostering farmer development and its name, KiVi, represents “kisan vikas.”

Sharing details about the seed round and the way forward, Mr. Joby C O, Founder & CEO said, “We are excited to welcome our first institutional investors who share KiVi’s vision to make agriculture a livelihood of choice by enabling credit, commerce and distribution to the farmgate ecosystem.”

In addition to Mr. Joby, a seasoned expert in rural leadership, KiVi’s founding team comprises Padmakumar K, Rajendra Kumar, Salil Nair, and Manoj Ramaswamy. Together, they contribute a wealth of expertise in various areas, including rural lending, agricultural commerce, rural technologies, and fundraising.

The farmgate ecosystem includes farmer households and agricultural entrepreneurs like input retailers, output aggregators, farmer producer organizations, and equipment renters. Despite offering substantial prospects for credit and commerce, the formal markets have not adequately served this ecosystem due to the absence of solutions tailored to the distinct characteristics of its stakeholders. Key challenges such as seasonal cash flows, the lack of formal income and land ownership proof, fragmented land ownership, and the traditional lenders’ inability to create a cost-effective delivery model and engage in adjacent commerce opportunities are the gaps that KiVi aims to bridge.

Joby further added, “KiVi enables timely, affordable and scale-based credit as well as commerce from the farmgate to the processor. We accomplish this by leveraging our technology and last mile transaction capability. Our technology platform assembles and integrates the latest technologies in identification, validation, consent, evaluation and monitoring to provide a seamless experience to all stakeholders. Our last mile capability provides the customer relationship interface that is critical to serve the agri and rural customer base.”

KiVi’s offerings have received early validation, with 80% of its customers accessing agricultural-specific loans for the first time. Furthermore, 60% of these customers have reported an increase in their income, and the company has achieved an impressive net promoter score of 77. Additionally, KiVi has formed strategic partnerships with prominent lending institutions.

KiVi currently operates in both Tamil Nadu and Bihar, facilitating over 1,500 farmers in accessing credit. They have also introduced MSME loan products for agricultural entrepreneurs and enabled commerce and trade finance for commodities such as wheat, paddy, and maize.

“We are excited about our investment in KiVi. The agri fintech space is ripe for innovation and disruption, though having many challenges, including the perceived risk with agri credit. We believe that KiVi, led by Joby, has the right blend of people with rich experience of rural financial services and agriculture to make this happen,” said Emmanuel Murray, Investment Director at Caspian Leap for Agriculture Fund.

“KiVi is cultivating a vital solution for the farmgate ecosystem bridging the gap between borrowers and lenders. We are excited to support a company with a visionary management team and their commitment to addressing one of the most critical challenges for the future of agriculture and rural economies,” said Abhay Agarwal, Principal at Piper Serica Angel Fund.

“The investment will help KiVi to build a robust technology platform for scale-up, increase the last-mile presence across many districts, strengthen the product and risk capabilities and obtain an NBFC license.” Joby concluded.

Riding the Wave: Harnessing Market Trends to Accelerate Brand Growth

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October 13, 2023

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Staying ahead of the curve is frequently the key to success in the fast-paced world of business. Brands that can foresee and capitalize on emerging trends gain a substantial competitive advantage as markets grow and customer tastes fluctuate.

1. The Trend-Spotter’s Mindset

To ride the wave of market trends, businesses must cultivate a mindset of trend-spotting. This involves a keen awareness of the ever-changing business landscape. Stay attuned to industry news, consumer behavior, and technological advancements. Attend conferences, webinars, and seminars to connect with trendsetters and gain insights into emerging developments.

2. Market Research and Data Analytics

Incorporate thorough market research and data analytics into your brand’s strategy. Leverage these tools to gather critical information about customer preferences, competition, and economic shifts. Advanced analytics can identify patterns and emerging trends, allowing you to make informed decisions.

3. Adaptability and Innovation

Successful businesses are not afraid to pivot and innovate in response to emerging trends. Stay open to change, and be willing to modify your product offerings or business strategies to align with market shifts. Embrace a culture of innovation, where employees are encouraged to generate fresh ideas and experiment with new approaches.

4. Consumer-Centric Approach

Understanding the needs and preferences of your target audience is paramount. Keep your finger on the pulse of consumer behavior, and actively seek feedback from your customers. Use this information to tailor your offerings and provide personalized experiences that align with market trends.

5. Invest in Technology

Technology is often at the forefront of market trends. By investing in the latest tools and software, your brand can gain a competitive edge. For example, adopting e-commerce solutions, mobile apps, and AI-driven customer service platforms can help you stay ahead of the curve.

6. Social Media and Content Marketing

Leverage social media platforms and content marketing to engage with your audience and stay relevant. These channels are excellent for sharing updates, promoting new offerings, and participating in conversations related to market trends. An active online presence helps position your brand as a leader in the field.

7. Collaboration and Partnerships

Consider collaborations and partnerships to tap into market trends. Collaborating with influencers, complementary businesses, or industry experts can help your brand gain exposure to new audiences and remain on the cutting edge.

8. Sustainable and Ethical Practices

Sustainability and ethical practices are no longer just trends; they’re becoming industry standards. Brands that embrace eco-friendly and socially responsible practices can not only align with emerging market trends but also build stronger connections with conscious consumers.

9. Agile Planning and Strategy

An agile approach to planning and strategy allows businesses to pivot quickly in response to market trends. Rather than rigid long-term plans, develop adaptable strategies that can accommodate changing circumstances and opportunities.

10. Continuous Learning and Education

Invest in the education and development of your team. Employees who stay informed about market trends and industry developments are invaluable assets in navigating the evolving business landscape.

Harnessing market trends is about more than just staying up to date; it’s about actively engaging with the business environment and seizing opportunities for growth. By adopting a trend-spotter’s mindset, conducting thorough research, staying adaptable, and prioritizing customer-centric approaches, your brand can ride the wave of market trends to accelerate growth and secure a competitive edge in an ever-evolving marketplace. Remember, successful businesses are those that not only respond to change but proactively shape it.

Tech-Forward Strategies: Leveraging Cutting-Edge Technologies for Brand Success

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October 13, 2023

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Businesses that embrace and use cutting-edge ideas enjoy a huge competitive advantage in a world where technology evolves at breakneck pace. The potential to improve brand performance are limitless, ranging from artificial intelligence to blockchain and virtual reality.

Artificial Intelligence (AI) and Machine Learning

Artificial intelligence isn’t just a buzzword; it’s a game-changer for businesses of all sizes. Machine learning algorithms can analyze vast datasets, enabling you to understand customer behavior, preferences, and trends like never before. These insights empower your brand to offer personalized experiences and more targeted marketing efforts, ultimately boosting customer engagement and loyalty.

AI-driven chatbots and virtual assistants also enhance customer service by providing instant, around-the-clock support. These smart tools can answer questions, assist with purchases, and offer tailored recommendations, ensuring customers have a seamless and satisfying experience.

Blockchain Technology

Blockchain isn’t solely associated with cryptocurrencies like Bitcoin; it has transformative potential for various industries. Its decentralized, secure, and transparent nature makes it ideal for supply chain management, ensuring the authenticity and traceability of products. Consumers increasingly value the origin and authenticity of the products they purchase, and blockchain technology can provide the transparency they seek.

Additionally, blockchain’s smart contracts simplify agreements and transactions, reducing the need for intermediaries and streamlining business operations. This technology enhances trust and reliability, which are pivotal for brand success.

Virtual and Augmented Reality (VR/AR)

Virtual and augmented reality are taking immersive brand experiences to the next level. Retailers, for instance, can offer customers virtual store tours, allowing them to browse and interact with products as if they were physically present. This bridges the gap between online and in-person shopping, enhancing customer engagement and conversions.

AR apps enable customers to visualize how products will fit into their lives before making a purchase, whether it’s trying on clothing or seeing how furniture fits in their living space. By integrating these technologies, your brand can offer unique and engaging experiences that set you apart from the competition.

Internet of Things (IoT)

The IoT connects everyday devices to the internet, opening up opportunities for brands to gather valuable data and provide enhanced services. Smart appliances, wearables, and even vehicles can be integrated into your brand’s ecosystem. For example, a fitness brand can create an IoT-enabled fitness tracker that syncs with a mobile app to provide real-time health insights, motivating customers to stay engaged with the brand.

Moreover, IoT devices can monitor product usage and performance, allowing for predictive maintenance and customer support. By proactively addressing issues, your brand can establish itself as a reliable and customer-centric choice.

Data Analytics and Big Data

The ability to collect and analyze vast amounts of data empowers brands to make informed decisions, tailor marketing efforts, and identify new business opportunities. Big data analytics enables you to uncover patterns and insights that might otherwise remain hidden. These insights can inform product development, marketing strategies, and customer service improvements.

To maximize the potential of big data, consider implementing business intelligence tools and data analysis platforms. These tools will help you make data-driven decisions and stay ahead of industry trends.

Tech-forward strategies are not just trends; they’re pivotal for brand success in today’s fast-paced digital landscape. Embracing cutting-edge technologies like AI, blockchain, VR/AR, IoT, and data analytics can differentiate your brand, enhance customer engagement, and drive innovation. By staying at the forefront of technological advancements, your brand can not only meet but exceed customer expectations, leading to lasting success and growth in an ever-evolving business world.

Speak and Be Heard: Techniques for Amplifying Your Emerging Brand’s Message

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October 13, 2023

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It is not enough to have a fantastic product or service in today’s competitive business market; you must also guarantee that your brand’s message reaches your target audience loud and clear. This might be a difficult process for developing firms, but with the correct strategies, you can magnify your message and stand out in the market.

1. Define Your Unique Value Proposition

Before you can amplify your brand’s message, you must clearly understand what makes your brand unique. What sets you apart from the competition? What problem does your product or service solve? Your unique value proposition (UVP) should be concise and compelling, and it forms the foundation of your messaging.

2. Identify Your Target Audience

Successful messaging starts with knowing who your ideal customers are. Define your target audience by demographics, psychographics, and behavior. Understanding your audience’s needs, preferences, and pain points allows you to craft messages that resonate with them.

3. Create a Memorable Brand Story

People love stories, and a well-crafted brand story can set the tone for your messaging. Your story should reflect your brand’s values, mission, and personality. Make it engaging and authentic, and ensure it highlights your UVP.

4. Build a Strong Online Presence

In today’s digital age, your online presence is pivotal to brand awareness. Create and maintain a professional website and establish a presence on social media platforms that are relevant to your target audience. Consistent branding and engaging content are key.

5. Leverage Content Marketing

Content is king in the modern marketing landscape. Regularly produce high-quality content that provides value to your audience. This could be blog posts, videos, infographics, or podcasts. Use content to showcase your expertise and reinforce your brand’s messaging.

6. Social Media Engagement

Don’t just post content on social media; engage with your audience. Respond to comments, answer questions, and participate in discussions. Social media is an excellent platform to connect with potential customers and build relationships.

7. Leverage Influencer Marketing

Consider partnering with influencers in your industry or niche. Influencers can help amplify your message to their followers, lending credibility and exposure to your brand. Ensure that the influencers align with your brand’s values and target audience.

8. Invest in Search Engine Optimization (SEO)

If you want your brand to be discovered online, you need to invest in SEO. Optimize your website for search engines, use relevant keywords, and create high-quality, shareable content. Appearing in search results can significantly boost your brand’s visibility.

9. Email Marketing

Email marketing remains a powerful tool for amplifying your message. Build and segment your email list, and send targeted messages that address your audience’s specific needs and interests. Use email marketing to nurture leads and convert them into customers.

10. Analyze, Adjust, and Improve

Regularly monitor the performance of your marketing efforts. Use analytics tools to track website traffic, engagement on social media, and email campaign metrics. This data will help you make informed decisions and adjust your strategies as needed.

Amplifying your emerging brand’s message is a journey that requires a clear understanding of your brand’s unique value, a deep knowledge of your target audience, and a commitment to consistency and quality in your messaging. By defining your brand, engaging with your audience, and using digital marketing techniques, you can ensure that your voice is not only heard but also resonates with your customers, helping your brand stand out and succeed in the market. Remember, your brand’s message is more than just words; it’s the key to creating meaningful connections with your audience.

From One-Time Buyers to Brand Advocates: Nurturing Long-Term Consumer Partnerships

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October 13, 2023

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Building long-term client connections is the holy grail of success in today’s competitive company world. Converting one-time purchasers into brand champions may be a game changer, bringing not just repeat business but also priceless word-of-mouth marketing.

1. Deliver Exceptional Customer Experiences

The journey toward brand advocacy begins with outstanding customer experiences. From the moment a potential customer interacts with your brand, make every touchpoint memorable. Respond promptly to inquiries, provide personalized recommendations, and go the extra mile to ensure customer satisfaction. Exceptional service sets the stage for a long-term partnership.

2. Personalization is Key

Customers are more than just a transaction; they are individuals with unique preferences and needs. Personalize your interactions and offerings based on their past behaviors and preferences. Tailor your marketing messages, product recommendations, and communications to make customers feel understood and valued.

3. Loyalty Programs and Incentives

Loyalty programs are an effective way to keep customers engaged and encourage repeat purchases. Offer rewards, discounts, or exclusive access to loyal customers. These incentives not only make them feel appreciated but also incentivize them to continue doing business with you.

4. Engage in Two-Way Communication

Listening is just as important as speaking. Actively seek feedback from your customers through surveys, reviews, and social media interactions. Use this feedback to make improvements and demonstrate that you genuinely care about their opinions.

5. Provide Ongoing Value

Keep your customers engaged by offering ongoing value. This could be through educational content, helpful tips, or regular updates about your products or services. By consistently adding value, you become more than a one-time transaction; you become a trusted resource.

6. Surprise and Delight

Occasionally, surprise your customers with unexpected gifts or gestures of appreciation. These delightful surprises not only create positive associations with your brand but also encourage word-of-mouth recommendations.

7. Transparent and Ethical Practices

Transparency and ethical business practices are paramount for building trust. Customers want to know that they’re dealing with a company that values integrity and honesty. Be open about your processes, pricing, and any issues that may arise.

8. Solve Problems and Address Concerns

Mistakes happen, and issues may arise. The key is in how you handle them. Be responsive and proactive in resolving problems. Customers who see you addressing their concerns effectively are more likely to become long-term partners.

9. Stay Connected and Consistent

Maintain a consistent presence in the lives of your customers. Use email marketing, social media, or a regular newsletter to keep them informed and engaged. Consistency helps reinforce your brand and keeps you top-of-mind.

10. Encourage Advocacy

To turn customers into brand advocates, encourage them to share their positive experiences with others. Implement referral programs, ask for online reviews, or engage in user-generated content campaigns. When satisfied customers become vocal supporters, they not only contribute to your success but also inspire trust in potential customers.

Nurturing long-term consumer partnerships isn’t just a business strategy; it’s a commitment to building trust and delivering ongoing value. By providing exceptional customer experiences, personalizing interactions, and consistently engaging with your customers, you can turn one-time buyers into loyal brand advocates who sing your praises and drive long-term success. Remember, it’s not just about selling a product or service; it’s about cultivating relationships that stand the test of time.

Gourmet Lead Generation: Techniques to Attract Hungry Customers to Your Food Business

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October 13, 2023

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The culinary industry is a competitive field, and whether you own a small café or a fine dining establishment, attracting the proper consumers is critical. Lead generation in the food industry is an art that may make or break your success, just like in the kitchen, where attention to detail is key.

1. Create Irresistible Content

Content marketing is a powerful tool for attracting food enthusiasts. Share mouthwatering photos of your dishes on social media and your website. Consider writing blog posts about culinary tips, recipes, or food-related stories. Engaging content not only showcases your expertise but also keeps your audience hungry for more.

2. Leverage Social Media

The visual appeal of food is tailor-made for platforms like Instagram and Pinterest. Regularly post high-quality images of your menu items and engage with your audience through stories, live videos, and interactive posts. Encourage user-generated content by asking customers to share their dining experiences and tag your business.

3. Email Marketing with a Twist

Don’t underestimate the power of a well-crafted email marketing campaign. Send out tantalizing newsletters with special offers, new menu items, or upcoming events. Use personalized email subject lines and content to make recipients feel like they’re part of an exclusive culinary club.

4. Collaborate with Influencers

Influencer marketing can be a game-changer. Partner with local food bloggers, chefs, or social media influencers who align with your brand. Their endorsements can introduce your business to a wider audience of food enthusiasts eager to try new flavors.

5. Online Reviews and Testimonials

Positive online reviews can be a lifeline for your food business. Encourage satisfied customers to leave reviews on platforms like Yelp, TripAdvisor, or Google. Respond to reviews, both positive and negative, to show your commitment to customer satisfaction.

6. Offer Tasting Events and Cooking Classes

Host tasting events, cooking classes, or workshops to give potential customers a hands-on experience. These events not only showcase your culinary prowess but also allow participants to connect with your brand and develop a deeper appreciation for your food.

7. Local SEO Optimization

Ensure that your business appears in local search results. Optimize your website for local keywords, create a Google My Business listing, and make sure your contact information is consistent across all platforms. When hungry diners search for places to eat, they should find your establishment at the top of the list.

8. Savor the Power of Online Ads

Run paid online advertising campaigns on platforms like Google Ads and social media. Target specific demographics, interests, and behaviors to reach an audience that’s more likely to indulge in your culinary delights.

9. Offer Online Ordering and Delivery

Incorporate online ordering and delivery services. Partner with popular food delivery apps or create your own app or website for ordering. In an era where convenience is key, this can be a game-changer for attracting new customers.

10. Data-Driven Marketing

Track the performance of your lead generation efforts and use the data to refine your strategies. Learn what’s working, what’s not, and adjust your tactics accordingly.

Lead generation for a food business is all about capturing the imagination of foodies and enticing them to your dining tables. By creating delectable content, engaging on social media, collaborating with influencers, and optimizing for local searches, you can develop a gourmet lead generation strategy that keeps your tables full and your customers craving for more. Just as in the culinary arts, success in the food business is achieved through a blend of passion, creativity, and precision. Bon appétit!

Kapiva bolsters R&D with appointment of R Govindarajan as Chief Innovation Officer

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October 12, 2023

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R Govindarajan

In a bold strategic maneuver to champion the application of evidence-based Ayurveda within India’s retail industry, Kapiva, a prominent holistic wellness brand, is pleased to announce the appointment of R Govindarajan as its Chief Innovation Officer (CIO).

Govindarajan, a highly respected figure in the field of research and development, brings with him an impressive track record featuring 10 patents and the publication of 75 research papers in prestigious peer-reviewed journals. His illustrious professional journey has also included influential roles at renowned government research institutions such as CSIR, as well as leadership positions within the R&D divisions of well-established organizations.

Govind’s appointment at Kapiva represents a significant milestone for the brand. With over 23 years of experience in research and development, his profound expertise and leadership will empower Kapiva to enhance product quality, expand its array of Ayurvedic offerings, and elevate health outcomes for consumers.

Ameve Sharma, Co-Founder of Kapiva said, “We are delighted to welcome Govind to the Kapiva family. His extensive experience and profound knowledge of natural products and research and development perfectly align with our commitment to delivering authentic, science-backed Ayurvedic products to our consumers. Under Dr. Govind’s guidance, we anticipate making significant strides in crafting highly efficacious products, enabling us to compete effectively with conventional medical practices. Each step we take in our R&D endeavors brings us closer to redefining healthcare standards.”

R Govindarajan, the newly appointed Chief Innovation Officer stated, “I am thrilled to join Kapiva, a brand that is at the forefront of making Ayurveda accessible and contemporary. Kapiva’s mission resonates with my own passion for research and innovation in the healthcare sector. I am eager to contribute to the brand’s growth and help establish Kapiva as a leader in holistic healthcare, enriching lives around the world.”

With a Ph.D. in natural products, Govind boasts a versatile research background, encompassing fundamental research at CSIR (Government of India) and applied research through his leadership roles at prestigious institutions, including Zydus Wellness R&D, Himalaya Global Research Centre in Dubai, and Dabur International R&D in Dubai. His contributions span across product development, analytical procedures, and both preclinical and clinical trials, predominantly within the domain of natural products. Over the course of his professional journey, Govind has been instrumental in establishing global-scale R&D facilities and offering consulting services to leading pharmaceutical and cosmetic companies.

In addition to his corporate achievements, he has made significant contributions to academia, holding positions as an Associate Professor at RAK University of Health Sciences and a visiting professor at the National Institute of Pharmaceutical Education and Research (NIPER) in Ahmedabad.

Kapiva remains resolute in its commitment to streamline, modernize, and democratize Ayurveda. Govindarajan’s presence further solidifies the brand’s pioneering stance in the holistic healthcare domain.

Paddy & Scott’s expands its reach to the Midlands with a new cafe in Lichfield

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October 12, 2023

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Suffolk-based coffee company, Paddy & Scott’s, has extended its reach to the Midlands with a new location in Lichfield.

Lichfield boasts historical connections as the ancestral home of Charles Darwin’s grandfather and the birthplace of Dr. Johnson, all set against the backdrop of its splendid, three-spire cathedral.

The Lichfield cafe showcases contemporary decor with the distinctive Paddy & Scott’s corrugated wall design. The comfortable seating and inviting ambiance create a perfect setting for patrons to enjoy their coffee, whether they choose to relax indoors or opt for an al fresco experience to soak in the lively city atmosphere.

At Lichfield, Paddy & Scott’s will be serving their renowned Muchomba coffee, a harmonious blend with hints of dark chocolate and a rich, enticing fragrance. This coffee originates from Paddy & Scott’s private coffee estate situated in Meru, Kenya.

Back in 2016, Paddy & Scott’s collaborated with the Muchomba family to bridge the gap between coffee shops and coffee producers. The brand made significant investments in farm infrastructure and partnered with local schools to facilitate long-term, sustainable improvements for the coffee-growing community.

“This is a very exciting time for us as a business. A new cafe means a new chapter. I’m thrilled our coffee will be fuelling the ambition of the Lichfield community,” Scott Russell, Founder of Paddy & Scott’s, said.

Tim Hortons partners with BAILEYS for a unique non-alcoholic menu

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October 12, 2023

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Tim Hortons, the Canadian coffeehouse chain, has revealed an exciting partnership with BAILEYS to introduce a fresh non-alcoholic menu.

Through this collaboration, Tim Hortons customers all over Canada will have the opportunity to enjoy Baileys’ non-alcoholic drinks and baked goods for a limited time starting later this year.

Tim Hortons chief marketing officer Hope Bagozzi said, “Can you think of a better pairing? We’re excited to team up to give Canadians the unmistakable flavour of Tim Hortons classics and Bailey’s that Canadians know and love.

“Since the line-up is non-alcoholic, Tim’s guests will be able to enjoy these delicious flavour combinations any time.”

Launched in 1974 in Ireland, Baileys is now owned by Diageo, a multinational alcoholic beverage company.

Diageo Canada marketing head Nadia Niccoli said, “Baileys and Tim Hortons are known for food and beverage innovations that push boundaries and this collaboration is sure to be a match made in decadence.”

This past August, Tim Hortons introduced a fresh array of Pumpkin Spice-flavored drinks along with a new doughnut.

These offerings encompass the Pumpkin Spice latte, the Pumpkin Spice cold brew, the Pumpkin Spice iced cappuccino, and the delectable Dulce Apple Fritter Dream doughnut.

Every one of the new beverages can be enjoyed either hot or cold.

As of 2022, Tim Hortons possessed and ran 5,600 stores spanning more than 14 countries, with a presence in Canada, the United States, the United Arab Emirates (UAE), and the United Kingdom.

Post Holdings strengthens its foothold in the pet food industry with Perfection Pet Foods acquisition

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October 12, 2023

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Post Holdings has expanded its presence in the pet food industry by finalizing an agreement to acquire Perfection Pet Foods, a US-based company.

In February, Post Holdings entered the US pet-food market with a significant acquisition of several pet-food brands from J.M. Smucker, valued at approximately $1.2 billion. Now, the company is poised to acquire Perfection Pet Foods for $235 million.

On October 10th, Post Holdings announced its anticipation of completing the transaction in the last quarter of 2023, aligning with the commencement of the company’s new financial year.

California-based Perfection Pet Foods, operating out of the Golden State, specializes in crafting private-label pet food and snacks while also extending co-manufacturing services. Their wide-ranging expertise encompasses the production of both cat and dog foods, catering to a diverse pet food market.

Post Holdings is poised to acquire ownership of Perfection Pet Foods’ two Visalia-based factories. The parent company of Weetabix and Peter Pan peanut butter, known for its human food brands, stated that the Perfection Pet Foods acquisition will not only enhance its manufacturing capacity for in-house pet food production but also serve as an entry point into the private-label and co-manufacturing segments of the pet-food industry.

In a subsequent communication, Nicolas Catoggio, President and CEO of Post Holdings’ Consumer Brands Division, mentioned that 250 employees from Perfection Pet Foods will become part of this division.

The company acquired six brands from its American food counterpart, J.M. Smucker, which encompassed Rachael Ray, Nutrish, 9Lives, Kibbles’n Bits, Nature’s Recipe, and Gravy Train. This transaction also included the purchase of three manufacturing facilities, with two located in Pennsylvania and one in Kansas.

Post Holdings, a prominent American food producer, primarily concentrates on its consumer portfolio, which centers around breakfast cereal, eggs, and frozen food. Additionally, the company possesses popular cereal brands like Alpen and Pebbles, and it has a presence in the egg market through products such as Easy Eggs and Abbottsford Farms.

During discussions on the second-quarter results in May, President and CEO Rob Vitale expressed a strong interest in broadening the presence of publicly-listed Post Holdings in the animal food category.

His optimism was even more evident when he presented the third-quarter figures in August, coinciding with the company’s upward adjustment of guidance for adjusted EBITDA for fiscal 2023.

At that time, Vitale mentioned that this metric was expected to reach approximately $1.18 billion to $1.20 billion by the end of the year, surpassing the previous guidance of $1.09 billion to $1.13 billion.

Post Holdings anticipates that Perfection Pet Foods will contribute approximately $25 million to adjusted EBITDA in the 12 months following the completion of the transaction.

In the third quarter ending on June 30, the company disclosed net sales of $1.9 billion, marking a 21.9% increase compared to the previous year. Operating profit also saw substantial growth, reaching $158.3 million, a 50% increase. Moreover, adjusted EBITDA experienced a robust rise of 34%, reaching $338 million.

In August, Vitale mentioned that the pet food segment added $275.3 million to the total net sales figure.

Talking about acquisition prospects for the category in May, he said, “We are open for M&A, particularly around opportunities within and without pet that have the ability to be freestanding businesses within our portfolio.

“We have a lot of opportunities as you would imagine once we became an active player in pet. But we look through a lens of both human and financial resources when we start to think about what the next step should be.”

Commenting on the Perfection Pet Foods deal, Vitale said, “Perfection Pet nicely complements our recent acquisition of several pet-food brands by enabling us to compete in additional segments and more effectively leverage the combined manufacturing footprint.”

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Artificial Intelligence (AI) and Machine Learning

Blockchain Technology

Virtual and Augmented Reality (VR/AR)

Internet of Things (IoT)

Data Analytics and Big Data