Mondelez ends production of reduced sugar Cadbury bars amid falling demand

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October 7, 2023

Mondelez International has decided to discontinue the production of a variant of its Cadbury Dairy Milk, which contains 30% less sugar compared to the original flagship bar.

The confectionery giant introduced these bars in 2019 as a part of its initiatives aimed at reducing sugar content in its products sold in the UK and Ireland.

Back then, the US-based company declared that the new bar marked a momentous innovation in the brand’s history and underscored the company’s ongoing dedication to contributing to the fight against obesity, particularly childhood obesity, in the UK.

Nevertheless, Mondelez has disclosed that demand for the bar had declined, despite the company’s assertion that it had made substantial investments in advertising to promote the product.

“We not only invested heavily in developing a bar that consumers told us tasted great but also in promoting it through a nationwide marketing campaign. Despite these efforts, demand for this product has dropped and we have sadly taken the decision to delist it,“ a Mondelez spokesperson said.

The owner of Oreo highlighted its ongoing initiatives to introduce “healthier” snack options within the Cadbury Dairy Milk brand, including products like the Fruitier and Nuttier bars.

In the past few years, chocolate manufacturers have aimed to introduce chocolate with reduced sugar content. Following the World Health Organization (WHO) halving its recommended sugar intake in 2015, sugar became a focal point for health advocates, medical experts, and public health organizations.

Since then, there has been mounting pressure on food manufacturers to reduce sugar content in all product categories, even in cases where this can be a formidable task, such as in the realm of chocolate confectionery. In certain markets, like the UK, manufacturers have been subject to targets, albeit voluntary ones, aimed at reducing the sugar content in their food offerings. Additionally, producers of sugary snacks such as confectionery have faced restrictions on the placement and sale of their products within retail stores.

In 2020, Nestlé ceased production of Milkybar Wowsomes, a low-sugar chocolate utilizing a “hollow sugar” process, which enabled the product to assert a 30% reduction in sugar content. This particular product was withdrawn from the UK and Ireland markets in February 2020, following two years of lackluster performance.

In July, the Swiss company introduced a novel technology designed to lower sugar levels in various food and beverage product categories. Nestlé explained that this technology utilizes an enzymatic process, effectively reducing inherent sugars in ingredients like malt, milk, and fruit juices by as much as 30%, all while preserving taste and texture with minimal impact.

Nestlé bolsters pet food production in Hungary with major expansion

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October 7, 2023

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Nestlé has announced the inauguration of two new production units at its Purina pet food factory in Hungary, resulting in a significant 66% increase in output.

This expansion will raise the annual production capacity of the facility from around 150,000 tonnes to 250,000 tonnes.

Nestlé has injected nearly Ft90 billion ($245.5 million) into this project, bringing the food giant’s total investment in the Purina pet food factory to Ft268 billion over the past 25 years.

The expansion has led to the creation of approximately 280 new job opportunities, and it will also introduce an additional 100 robots to the factory’s machinery lineup.

Situated in Bük in north-western Hungary, the factory exports a staggering 95% of its products to 50 different countries. Nestlé has characterized this plant as the “central hub” of its European pet food production.

Péter Noszek, the CEO of Nestlé’s business in Hungary, said, “As one of the largest employers in the region, the Nestlé Purina factory in Bük will create more than 500 new jobs in the city between 2020 and 2025, thanks to its vigorous development and continuous investment.”

Nestlé operates three manufacturing facilities in Hungary, including a chocolate plant located in Diósgyőr and a beverage powder facility situated in Szerencs, which also houses a sensory testing center.

In its July announcement of first-half results, Nestlé noted that its Purina Petcare division had played a pivotal role in driving the company’s organic sales growth on a global scale. The division achieved first-half sales of Sfr9.37 billion ($10.28 billion), marking an increase from Sfr8.59 billion compared to the previous year. Furthermore, the unit’s underlying operating profit for the first half of 2023 reached Sfr1.96 billion, a significant improvement compared to Sfr1.64 billion in the corresponding period of 2022.

So far in 2023, Nestlé has revealed its plans to invest in expanding production across its range of product categories in several key markets, including Italy, Egypt, Brazil, and India.

Canada’s top retailers commit to pricing overhaul amid rising grocery costs

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October 7, 2023

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Canada’s leading five grocery retailers have committed to addressing their pricing practices, as announced by a government minister.

François-Philippe Champagne, the Minister of Innovation, Science, and Industry in Canada, stated that the retailers are “fulfilling their commitment to assist in initiatives aimed at stabilizing food prices.” This comes after discussions last month involving the government, grocery stores, and manufacturers.

In a statement issued yesterday (5 October), Champagne said, “Canadians can expect to see actions such as aggressive discounts across a basket of key food products that represent the most important purchases for most households, price freezes and price-matching campaigns.”

Last month, the Canadian Prime Minister, Justin Trudeau, issued a warning, stating that taxes could be imposed unless grocery retailers took steps to “stabilize” food prices.

The Canadian government also expressed its intention to implement measures aimed at enhancing competition throughout the economy, with a particular emphasis on the grocery sector.

Champagne has unveiled plans for the establishment of a new Consumer Affairs Office featuring a dedicated “grocery task force,” the introduction of a revised grocery code of conduct, and improved accessibility and availability of data related to food prices. He also mentioned that the Competition Bureau would soon be endowed with increased authority to address these concerns through amendments to the Competition Act.

He said, “The cost of groceries has risen drastically over the past years, and Canadians are struggling to put food on their tables. Canadians are rightfully frustrated by this situation and we are implementing solutions to bring relief to them.

“Our government is hard at work to make life more affordable and increase competition that would expand choices for Canadians. I will continue to keep a close eye on Canada’s largest grocery chains, the food processors and other industry actors to make sure that the price of food in Canada will be stabilised. It’s just the beginning.”

In August, grocery inflation in Canada stood at 6.9%, which marked a decrease from the 8.5% recorded in July. Meanwhile, the all-items inflation rate remained at 4%.

Sylvain Charlebois, a professor specializing in food distribution and policy at Dalhousie University in Halifax, pointed out that Champagne has overlooked numerous chances to provide immediate assistance to consumers.

“While the plan does offer certain benefits to consumers, such as discounts and price-matching policies, it predominantly reinforces the status quo in the industry, with many of the mentioned measures already in practice,” he said.

“For those currently grappling with economic challenges at the grocery store, immediate relief from the federal government may not be forthcoming. However, there is hope that these strategic measures will ultimately pave the way for a more equitable and affordable food landscape for all Canadian citizens.”

Mayfair opens its doors in Dwarka, transforming New Delhi’s culinary and nightlife scene

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October 7, 2023

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Mayfair Dwarka, a recent entrant into the cityscape of New Delhi, infuses a sense of timeless elegance into the neighborhood. Nestled in the heart of Dwarka, this establishment has swiftly risen to prominence, challenging the established venues in Delhi and injecting a lively nightlife into the vibrant locale of Dwarka.

This café provides a contemporary reinterpretation with the goal of immersing you in the atmosphere reminiscent of London.

Its menu showcases a fervent enthusiasm for culinary exploration, uniting a wide array of gastronomic experiences from across the globe.

The café menu spans an extensive variety of cuisines, encompassing Indian, Italian, Continental, Arabic, comfort food, Asian flavors, and beyond, ensuring it caters to a diverse range of tastes.

Mayfair Dwarka adopts an all-day dining concept designed to captivate individuals of all age groups, presenting a wide range of culinary options to choose from.

The beverage selection at Mayfair Dwarka is renowned for its distinctive flavors inspired by various moments and locales in London’s history.

Apart from its delectable cuisine and drinks, Mayfair Dwarka also boasts live entertainment, featuring performances by celebrated artists.

FSSAI prohibits protein binders in milk and milk products to safeguard quality and nutrition

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October 7, 2023

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The Food Safety and Standards Authority of India (FSSAI) has issued a clarification stating that the use of protein binders is strictly prohibited in milk and milk-based products. Additionally, it is emphasized that only additives listed in Appendix A of the Food Safety and Standards (Food Products Standards and Food Additives) Regulation, 2011, may be employed in the production of milk and milk products.

Virtually all dairy products possess distinctive and widely recognized textural and sensory attributes. Consequently, introducing binding agents such as protein binders to milk and its derivatives is unnecessary for altering their textural or sensory properties.

Binding agents have gained significance as a vital and necessary ingredient category for producing a diverse array of novel food products, particularly those that are semi-solid or solid in nature. Nonetheless, it’s well-known that their use can have implications for the digestibility of protein-bound substances, potentially impacting the biological and nutritional worth of milk proteins. Furthermore, protein binding also plays a role in determining the bioavailability and distribution of active compounds.

Milk protein boasts a high biological value, serving as an excellent source of essential amino acids. Furthermore, milk proteins are readily digestible and lack anti-nutritional factors often found in many plant-based proteins. Moreover, milk and its derivatives offer a diverse range of proteins, each with distinct biological functions, including antimicrobial properties, assistance in nutrient absorption, acting as growth factors, hormones, enzymes, antibodies, and immune-enhancing stimulants.

FSSAI remains steadfast in its commitment to upholding regulatory standards and guaranteeing the utmost quality and nutritional excellence in dairy products. The organization is resolute in preserving the inherent integrity and excellence of food items, placing the health and well-being of consumers as its top priority.

iD Fresh Food unveils innovative ‘Twist and Spread Butterstick’ for effortless butter spreading

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October 7, 2023

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iD Fresh Food recently introduced the Twist and Spread Butterstick, a novel product aimed at streamlining the butter-spreading process for a cleaner and more storage-friendly experience. This innovative item is now available in all major markets and is priced at INR 69 for a 50-gram pack.

Taking inspiration from the design of a glue stick, this product is shaped for rapid softening at room temperature and is refillable. As iD Fresh’s product range continues to grow steadily, the company aims to achieve a revenue target of INR 700 crore in the fiscal year 2023-2024.

“We have always taken our consumer feedback seriously, and based on that, we were keen to try something new for the Indian market. The new product is a labour of love, and I’m excited to see how our consumers respond to it,” said PC Musthafa, CEO and Co-Founder of iD Fresh Food.

Last year, it successfully raised INR 507 crore in its Series D funding round. This significant investment was led by NewQuest Capital Partners, a global private equity firm with a specific focus on the Asia-Pacific region, in conjunction with the company’s existing investor, Premji Invest. As for its market presence, the company serves over 45 cities through a robust network of 30,000 retail stores across India, the UAE, and the US.

The Bengaluru-based brand offers a wide-ranging selection of products, including Idly and Dosa Batter, Rice Rava Idly Batter, Malabar Parota, Wheat Parota, Sandwich White Bread, Wheat Bread, Home Style Wheat Paratha, Wheat Chapati, Soft and Creamy Paneer, Creamy Thick Curd, ‘Squeeze and Fry’ Vada Batter, along with customized blends of Instant Filter Coffee Liquid and Instant Coffee Powder.

Godrej Consumer Products records mid-single-digit volume growth in July-September quarter

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October 7, 2023

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Godrej Consumer Products Ltd has reported mid-single-digit volume growth in the domestic market for the July-September quarter, even in the face of challenging macroeconomic conditions and adverse weather. In their quarterly update on Thursday, the company stated, “Home Care volumes showed mid-single-digit growth, while Personal Care saw low-single-digit growth.”

The Godrej Group’s FMCG division, which acquired the Park Avenue and KamaSutra brands earlier this year from Raymond Group, has noted a sequential improvement in their performance. They are on course to meet their full-year guidance, the company stated.

“In India, we witnessed weak macros and adverse weather conditions during the quarter. Despite the tough operating environment, our organic business delivered steady performance with mid-single digit volume growth,” Godrej Consumer Products Ltd (GCPL) said.

In global markets, Godrej Consumer Products Ltd’s business in Indonesia maintained its strong performance, achieving double-digit growth in both volume and value.

“Godrej Africa, USA, and Middle East (GAUM) continued its consistent performance with constant currency sales growth in mid-teens,” the company said.

However, in rupee terms, adverse currency translation impact will result in a mid-single-digit sales decline, GCPL added.

“At a Consolidated level (organic), we expect to deliver mid-single digit volume growth, double-digit constant currency sales growth and low single-digit sales growth in INR terms. Sales growth (incl. inorganic) to be in mid-single digit in INR terms,” said GCPL.

According to GCPL, this quarterly update provides an overall summary of the operating performance and demand trends during the quarter ended September 30, 2023.

“This will be followed by a detailed performance update, post the approval of the 2Q FY24 financial results by the Board of Directors,” it added.

Future Consumer Ltd defaults on INR 369.59 Crore loan repayment in July-September quarter

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October 7, 2023

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In the September quarter, Future Consumer Ltd (FCL), the FMCG subsidiary of the financially troubled Future Group, failed to meet its financial obligations, with a total default amounting to INR 369.59 crore. This default includes both principal and interest payments on loans obtained from various banks, financial institutions, and unlisted debt securities. According to a filing made on Thursday, as of September 30, FCL had also defaulted on loans and revolving facilities, such as cash credit, amounting to INR 253.95 crore from banks and financial institutions.

According to regulatory disclosure, the default amount for unlisted debt securities, including Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preferential Shares (NCRPS), stands at INR 115.64 crore for the quarter.

The total financial obligations of FCL amount to INR 468.12 crore, encompassing both short-term and long-term debts.

The filing also specifies that this comprises INR 266.80 crore in debt from banks and financial institutions, along with INR 201.32 crore from NCDs and NCRPS.

Nonetheless, FCL stated that it is actively “planning and working towards asset monetization and debt reduction throughout the year.”

FCL, which operates under the leadership of Kishore Biyani’s Future Group, specializes in the production, branding, and distribution of FMCG food and processed food items.

It was one of the 19 group companies involved in retail, wholesale, logistics, and warehousing sectors that were originally slated for transfer to Reliance Retail as part of a INR 24,713 crore deal announced in August 2020. However, this deal was later canceled in April 2022.

Bisleri sets sights on market domination with expansion of manufacturing and strategic distribution network

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October 7, 2023

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On Thursday, Jayanti Khan Chauhan, Vice-Chairperson of Bisleri International, stated that the company is expanding its production and refining its distribution network strategically to enhance product placement and achieve cost-effective market gains in the packaged drinking water industry.

Presently, the company operates 128 manufacturing facilities and is actively pursuing an expansion plan to raise the count to 150. This expansion will encompass both plants owned by Chauhan’s company and exclusive co-packers aligned with Bisleri.

Additionally, Bisleri is broadening its product range to include carbonated soft drinks (CSD) and elevating its brand Vedica Himalayan Spring Water for a premium positioning. This move complements its core business of packaged drinking water, showcasing an innovative approach.

When asked about the outlook, Chauhan said “We are definitely going to increase our distribution, scale up on distribution and manufacturing for CSD for Bisleri. This strategic placement of manufacturing units and distribution networks will make it easier and cost-effective for us to get our products to the markets”.

To strengthen its presence in the premium segment, Bisleri International announced on Thursday that it is expanding its brand Vedica into the sparkling water market.

The company aims to be a leading player in this segment, which is “very niche at the moment but growing rapidly,” said Chauhan.

Vedica presently makes up roughly 5 percent of Bisleri International’s revenue, and the company foresees it becoming a INR 100 crore brand within the next 2-3 years.

Despite facing disruptions caused by the COVID-19 pandemic, the company has maintained a consistent annual growth rate (CAGR) of 17 percent over the past four years.

According to information obtained from the Registrar of Companies, a division of the Ministry of Corporate Affairs, Bisleri International reported a revenue of approximately INR 2,300 crore for the fiscal year 2022-23.

When asked about the performance of Bisleri International in the current fiscal, Chauhan said, “This year has been good and we are growing close to a CAGR of 17 per cent”.

The company experienced a notable rebound following a temporary downturn in sales through out-of-home channels, a crucial sector for the entire beverage industry.

Over expansion of the product portfolio, Chauhan said “We definitely will expand”.

According to Angelo George, CEO of Bisleri International, unorganized players continue to dominate the bottled water market. Nevertheless, the proportion of branded companies is on the rise.

“Now, possibly in the last couple of years, the organised market among the top four or five players has become about 45 per cent of the market,” he said, adding that our objective is to become really dominant in the organised sector by improving market share further.

George added that Bisleri holds a commanding share of over 50 percent in the organized segment of the branded bottled water market.

In the packaged water segment, Bisleri faces competition from Kinley by Coca-Cola Co and Aquafina by PepsiCo Inc.

Previously, there were reports indicating that the promoters were in the process of selling their stake in Brand Bisleri to Tata Consumer Products Ltd (TCPL). However, Tata Group’s FMCG arm later announced that it had discontinued negotiations with Bisleri regarding a potential transaction.

Tata Consumer Products Ltd (TCPL) has an existing presence in the bottled water segment through its brand, Himalayan.

Reduced tomato prices in September bring relief to consumers: Thali costs decline for both veg and non-veg options

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October 7, 2023

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Reduced tomato prices in September led to a decrease in the expenses associated with both vegetarian and non-vegetarian thalis, offering a welcome respite to consumers who were grappling with the challenges posed by rising costs.

In September, the price of a vegetarian thali dropped by 17% compared to the previous month. This significant reduction can be largely attributed to the substantial 62% month-on-month decrease in tomato prices, which fell from INR 102 per kg in August to just INR 39 per kg in September 2023, as reported by Crisil’s monthly indicator of food plate costs, the Roti Rice Rate.

Onion prices experienced a 12% month-on-month rise in September. Projections from the ratings agency suggest that these prices are likely to remain high due to the expected decrease in output during the kharif season of 2023.

The price of a non-vegetarian thali saw a 9% month-on-month decrease, primarily attributed to an estimated 2-3% month-on-month increase in broiler prices, which constitute over 50% of the total thali cost.

According to the most recent data, the Consumer Price Index (CPI) indicated a reduction in retail inflation during August due to a decline in food prices. However, it remained higher than the Reserve Bank of India’s (RBI) comfort level. In August, retail inflation increased by 6.8% annually, showing a slowdown from the 15-month high of 7.4% observed in July, providing some relief. Food inflation also decreased from 11.5% in July to 9.9% in August. Rural areas experienced a higher inflation rate at 7%, while urban areas recorded 6.6%.

The expenditure on fuel, constituting 14% of the total cost of vegetarian thalis and 8% of non-vegetarian thalis, experienced a significant 18% month-on-month decrease in September. This decline was driven by the reduced cost of a 14.2 kg cooking gas cylinder, which dropped from INR 1,103 to INR 903.

Chillies, which saw a substantial 31% month-on-month decrease, also contributed to a reduction in thali costs. The calculation of the average cost of preparing a thali at home considers input prices across various regions of India—north, south, east, and west. The monthly alterations reflect the impact on the ordinary individual’s spending. The data additionally reveals the key ingredients, such as cereals, pulses, broilers, vegetables, spices, edible oil, and cooking gas, that influence variations in the thali’s cost.

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