Century Pacific Group, Inc. (CPG) and JE Holdings (JE), companies headquartered in the Philippines, have acquired the ownership stake held by Singapore’s sovereign wealth fund GIC in Shakey’s Pizza Asia Ventures, Inc. The purchase was executed through their affiliate, Arran Investment Pte Ltd.
The acquisition was carried out through a private placement, and the specific value at which the shares were acquired has not been disclosed.
GIC previously held 283 million shares, constituting a 16.8% ownership in the company. CPG acquired 185 million shares, increasing its ownership to 62%. Simultaneously, JE Holdings obtained 98 million shares, raising its stake in PIZZA to 14.9%. These shares were acquired at a price of Php 9.50 each.
CPG and JE are privately-owned firms belonging to the Po and Gokongwei families. Among the businesses within CPG’s portfolio is Century Pacific Food Inc., a prominent canned food company in the Philippines. On the other hand, JE has investments in the insurance company Maxicare.
As of now, Shakey’s boasts a global presence with nearly 2,000 stores and outlets worldwide. In its most recent earnings report, the company reported a remarkable 51% year-on-year increase in systemwide sales for the first six months of the year, and its net income nearly doubled, experiencing 96% year-on-year growth. The company has also recently revised its full-year outlook, projecting growth exceeding 30% year-on-year for both revenue and profit.
Chivas Brothers, the Scotch whiskey division of French distillery Pernod Ricard, has emphasized that the successful completion of the free trade agreement (FTA) with the UK, aimed at reducing whisky import duties, is critical and will determine the company’s fate if not concluded by the end of October.
“It’s kind of make or break if it doesn’t happen in the next few weeks. If we don’t have something substantial by the end of October, early November, it means that we need to wait for the next wave of discussion. I think it’s gone for a while because the election period is never good for any FTA,” said Jean-Etienne Gourgues, the chairman and chief executive of Chivas Brothers, which sells Royal Salute, Glenlivet and Ballantine’s.
Within the proposed Free Trade Agreement (FTA), both Scotch whiskey producers and the UK are advocating for an immediate reduction in import duties from 150% to 75% upon the FTA’s signing, followed by a gradual decrease to 30% over the course of three years. Conversely, Indian whiskey manufacturers are pushing for a more gradual reduction, aiming for a 10-year transition period to bring the duty down to 50%.
“We are definitely hopeful because it will be a very good thing for the development of whisky in India. It has to be a level field, and today any Indian whisky can be exported to the UK with zero tariff. But the opposite isn’t true, and this is providing a huge barrier to get super high-end quality of malt in India,” said Gourgues.
Pernod holds the title of being the largest whiskey producer in the nation, commanding a significant 25% share of the market. This stronghold is bolstered by renowned brands like Royal Stag, Imperial Blue, and Blenders Pride. Additionally, as the world’s second-largest distillery, Pernod also possesses the distinction of owning India’s top-selling scotch, 100 Pipers, with an impressive annual sales volume exceeding 1.5 million cases.
Nonetheless, the company, which achieved a remarkable 13% sales expansion in the last fiscal year, is not exclusively banking on the Free Trade Agreement (FTA) to fuel its growth strategy in India, a market that has surpassed France to become the world’s largest scotch importer in terms of volume. In terms of value, the United States remains the company’s most significant scotch market, followed by France and India. Chivas underscores the pivotal role of India in its global inventory forecasting and planning, particularly for malt varieties that require years of aging. In fact, the company even encountered supply constraints due to the surging demand in India, necessitating the shipment of products from other markets to meet this demand.
“When we design any forecast, we always look at India first because of the size, interest for the category and the size of the population. It is good to have demand which outstrips the supply. But then the challenge is how can we keep on servicing those consumers,” added Gourgues.
“India is one of the most difficult if not the most difficult market to operate, because of all the different regulations and excise by state, and this is quite unique in the world. Even in terms of FTA, it’s at the federal level, not at the state level. So even if FTA is going to happen or not, the way it’s going to learn from the state level to the federal level is another story.”
Over the last two years, the sales of Scotch in India have seen a substantial nearly twofold increase. This remarkable growth can be attributed to the increased consumption among millennials and a burgeoning middle class that has gradually shifted toward higher-end whisky options. According to the most recent data gathered from industry executives by global alcohol market analysts IWSR, the market witnessed an impressive year-on-year growth rate of 33%, reaching a total of 7.5 million cases (each containing nine liters) in 2022.
According to a report from UBS Securities, the food delivery market in India is anticipated to have recorded a 10% sequential growth in the quarter ending on September 30. This news provides a significant boost to Zomato and Swiggy, who dominate this segment, especially considering the traditionally slow nature of this quarter.
UBS projected that Zomato experienced a month-on-month volume growth of 2% in July and 4% in August. However, this falls short of Swiggy’s volume growth, which stood at 7% and 6% for the same months, as per UBS’s analysis.
“If we extrapolate July and August data to September, we are seeing a 10% QoQ (quarter-on-quarter) growth in July-September, which could be a positive surprise to the market, given Q2 is seasonally weak (adverse monsoon-related seasonality and lack of IPL). We model Q2FY24 gross order value (GOV) growth for Zomato to grow 7% QoQ, which is better than the company’s own guidance and consensus estimates,” it said.
In the analysts’ call that took place after Zomato’s June-quarter results, the Chief Financial Officer, Akshant Goyal, had outlined the company’s goal of achieving a 25-30% growth in both the current year and the next. Zomato had previously disclosed an 11% quarter-on-quarter growth in Gross Order Value (GOV) for food delivery in the April-June period. Notably, this quarter also marked Zomato’s first-ever quarterly profit of INR 2 crore.
The UBS report also highlighted that Zomato experienced a sluggish six-month period ending on December 31, 2022, due to a slowdown in the market following the Covid-19 pandemic and a loss of market share to Swiggy.
“This, in turn, can primarily be attributed to the suspension of Zomato Gold loyalty programme and heightened focus on profitability which resulted in lower discounts (as a percentage of average order value (AOV)) and higher delivery fee passed to customers. Based on data in January-June 2023, Zomato has regained the bulk of the lost market share since the relaunch of its loyalty programme,” the report said.
In its earnings report for the June quarter, Zomato announced that the increasing popularity of its Gold loyalty program led to more frequent orders, accounting for more than 30% of its Gross Order Value (GOV) in the food delivery segment.
On Swiggy, the UBS research note said, “The data also shows a modest spike in discounts from Swiggy (up around 120 basis points over July and August) and reduction in delivery fees (down around 70 basis points over July and August), which could be Swiggy’s response to market share losses in the prior six months”.
In the year 2022, Swiggy’s losses surged by 80% compared to the previous year, reaching approximately $540 million, as reported by its investor, Prosus, in June. The Bengaluru-based company’s Gross Merchandise Value (GMV) for food delivery increased by 26% year-on-year, as stated by Prosus, the Dutch-listed subsidiary of South African technology investor Naspers.
According to the report, the delivery fees collected from consumers in India by food delivery platforms were considerably lower compared to other markets. In India, these apps levied delivery fees at the rate of 5-7% of Gross Merchandise Value (GMV), whereas in other markets, the fees ranged from 10-15%. The relatively lower delivery charges in India indicate the potential for an increase in these fees over the medium term.
“While this is not an immediate focus (as platforms emphasise market expansion), the recent introduction of INR 2-3 platform fee per order in effect allows platforms to monetise consumers. This is particularly noteworthy as almost a third of GMV is now coming from subscription programmes where consumers receive free or discounted deliveries,” it said.
Reports indicate that consumer-centric internet platforms like Uber, BigBasket’s swift commerce division BB Now, and Zepto are charging a per-order or per-booking fee as a step towards enhancing their unit economics.
According to the UBS report, these fees imposed by food delivery platforms on customers are essentially a source of increased revenue and contribute to improved unit economics. The report highlighted that Zomato’s introduction of the platform fee could directly result in a 70 basis point increase in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin as a percentage of Gross Merchandise Value (GMV).
“While the immediate priority is to drive growth, the experience of mature markets shows consumers may be willing to pay more for delivery fees over time. Indeed, the recent introduction of Rs 2 platform fee by Zomato and Swiggy (without any visible impact on demand) demonstrates that consumers are broadly agnostic to marginal increases in costs. More importantly though, despite the delivery fee being flat as a % of AOV for Zomato (5-6% of AOV since FY20), contribution margin has improved from -11% to 5%, showing the flexibility on other revenue or cost levers,” it added.
During the current festive season sales battle, the e-commerce giants, Amazon and Flipkart, have disclosed crucial statistics, such as website traffic, and it seems that the competition is incredibly close.
Amazon recorded over 95 million customer visits on both the early access day and the first day of the Great Indian Festival 2023 sale, while Flipkart saw 91 million user visits within the initial 48 hours of the sale.
It’s crucial to emphasize that these figures do not guarantee conversion rates, and both e-commerce companies have refrained from revealing precise sales numbers or order metrics.
During the initial 48 hours of Amazon’s festive sale, over 80% of customers originated from non-metro areas. Furthermore, the e-commerce platform asserted that Prime members made purchases over 18 times the daily average within the first 24 hours of the early access sale on October 7.
Furthermore, the prominent U.S.-based e-commerce company observed that over 65% of its sellers participating in the festive season sale came from Tier II and III cities within the initial 48 hours. Additionally, they provided same-day deliveries to over a million customers nationwide.
OnePlus and Samsung continued to be the preferred smartphone brands during the initial two days of the e-commerce site’s sale. During the first 48 hours of the sale on Amazon, more than 100 OnePlus smartphones were purchased every minute.
In the meantime, Flipkart garnered over 60% of its complete order volume from Tier I, II, and III cities throughout the early access and the initial day of The Big Billion Day sale. Mobile phones, appliances, lifestyle products, beauty and general merchandise, electronics, and home items maintained their positions as the leading categories on Flipkart during the first 48 hours of the festive sale.
Lifestyle vendors on the platform saw a tenfold increase in order volumes compared to the period before the festivities, while furniture and electronics experienced eightfold and sevenfold growth, respectively.
“Flipkart also saw expansive growth in (the) Plus Visitor base with a 7X spike in orders over daily transactions. The 10th edition of Flipkart’s TBBD is a testament to the organisation’s impactful journey, marked by remarkable milestones and customer-centric innovations,” said Flipkart in a statement.
In the meantime, the cities with the most shoppers were Bengaluru, Delhi, and Hyderabad, with Mumbai, Pune, and Ahmedabad following closely behind.
On October 10, the prominent e-commerce platform Flipkart temporarily halted its grocery delivery services due to a service disruption caused by a surge in user traffic.
The two e-commerce industry leaders have been engaged in fierce competition, both in terms of marketing and efficient order fulfillment, as they vie for a larger share of customers and strive to keep up with the surging demand. Although Amazon had initially planned to launch its festive sales on October 10, it adjusted its schedule to align with Flipkart’s “The Big Billion Days” (TBBD) event on October 8.
Both companies introduced more affordable membership plans, providing their users with early access to festive sales at a cost of INR 399 per year for Amazon and INR 499 for Flipkart.
As the two e-commerce powerhouses mark a decade of festive season sales, Redseer predicts that e-commerce platforms are poised to achieve a Gross Merchandise Volume (GMV) of INR 90,000 Crores this year, representing a significant year-on-year (YoY) growth of 18-20%.
According to media reports on Tuesday, Swiggy delivery personnel in Mumbai are now into their third day of a strike. This strike has been prompted by alterations in their compensation structure, resulting in service delays and unavailability in various areas of the city.
As per the reports, Swiggy delivery riders have initiated protests in response to recent modifications in their compensation rates and an expansion of their delivery radius.
Swiggy’s delivery personnel are gig workers who receive compensation on a per-order basis and are not considered company employees.
Initial protests were started by workers belonging to the Rashtriya Karmachari Sena in Bandra, but other groups also joined in quickly, resulting in sporadic protests across Mumbai, a crucial market for Swiggy.
Delivery executives claim their base pay remains at INR 20 while their delivery radius increased from 4 km to 6 km, as per the reports.
The total compensation for delivery executives includes the base pay as well as additional amounts to account for travel expenses and other factors.
Due to the protests, many users in the city have been facing issues with orders on the Swiggy app.
“@SwiggyInstamart @Swiggy It has been more that 2.5 hours since my order on instamart. The support person says there are no delivery people( in central Mumbai, BKC ) and dont know how much more time it will take. But the thing that bothers me is restaurant orders are working BAU?,” a user wrote on X.
“Why is the Swiggy instamart app not working since two days in Versova area, Mumbai? It shows we’re currently closed since yesterday @Swiggy @SwiggyInstamart @SwiggyCares,” another user said.
One more user mentioned: “Whats wrong with Swiggy Instamart in Vasai. Its closed since yesterday morning”.
Ferrero India has broadened its range of sweet packaged foods within the Kinder brand, a significant contributor to its overall revenue. On Tuesday, the company introduced Kinder Shoko-Bons Crispy, marking its entry into the rapidly expanding snacking category.
Amedeo Aragona, Marketing Head for the Indian Subcontinent at Kinder Brands, stated, “India offers a huge opportunity for brand Kinder with its young demographics and growing disposable incomes. With the launch of Kinder Shoko-Bons, which is a more sophisticated product, we are hoping to expand the consumer base of the brand to bring older kids as well as parents into the fold.”
Furthermore, the company has been increasing the distribution of the brand into non-urban areas.
“Post-Covid we have been focusing on sales transformation to expand distribution of brand Kinder to even rural regions. We are also seeing premiumisation trends gaining traction in India. So retailers are keen to stock up on the Kinder portfolio even in smaller towns. We expect smaller towns and rural regions to contribute significantly to the brand’s sales in the coming years,” he added.
E-commerce, particularly fast commerce, has become a substantial avenue for the brand’s growth, according to Aragona.
The company emphasized that Kinder Schoko-Bons Crispy is produced at the Baramati facility in Maharashtra, using locally sourced raw materials accounting for over 98% of the composition.
India is one of the fastest-growing markets for brand Kinder. In a statement, Rudolph Sequeira, Managing Director of Ferrero India said, “India is one of the important markets for Ferrero globally, and the expansion underlines Ferrero’s focus to build on its tropical portfolio. We are delighted to expand the Kinder portfolio, with a unique innovation that is successfully made-in-India.”
Kinder Schoko-Bons Crispy is now being offered in “Shareable Packs,” with prices starting at INR 40 and available in 4 and 12-piece packs.
The brand is also roped in celebs Karishma Kapoor, Subhashree Ganguly and influencer Sneha Reddy for the new launch, which will be supported by a 360-degrees marketing communications campaign. “Along with TV and digital presence, the brand will adopt a mass media approach as well,” it added.
Apparel Group, the company behind the Tim Hortons restaurant chain, announced on social media that the brand has now established a presence in more than 300 locations across GCC (Gulf Cooperation Council) countries and India.
“300 stores strong and still brewing success! Apparel Group’s beloved brand Tim Hortons celebrates reaching over 300 stores across GCC and India, serving up delicious moments one cup at a time. Here’s to many more years of warmth, community, and memorable taste!,” said Apparel Group India in a LinkedIn post while sharing visuals of various stores.
In August 2022, Tim Hortons made its entry into India by inaugurating two outlets in the National Capital Region (NCR). This expansion was facilitated through an exclusive master franchise agreement with AG Café, a joint venture entity owned by the retail conglomerate Apparel Group and Gateway Partners, an emerging markets alternative investment manager.
At present, the coffee retailer has a presence in more than 22 stores across the nation, spanning cities such as Bengaluru, New Delhi, Chandigarh, Gurugram, Noida, Ludhiana, Patiala, Bathinda, and Mumbai.
Tim Hortons has ambitious plans to launch more than 120 stores in India within a span of 36 months. The chain is actively strategizing its entry into markets such as Pune, Surat, and Ahmedabad.
In 2011, Tim Hortons made its way to the Middle East, opening the first location in Dubai.
“With over 280 stores across the GCC, we’re just getting started. Join us on our journey to become your ultimate cafe of choice, as we brew our way toward 500 stores and beyond,” said Tim Hortons – Middle East, in a LinkedIn post two weeks ago.
Tim Hortons, a multinational coffeehouse and restaurant chain based in Toronto, was established in 1964 by Canadian hockey players Tim Horton and Jim Charade. The company is currently operated globally by Restaurant Brands International Inc., boasting a network of over 5,100 restaurants across 15 countries.
Clensta, the personal care company that recently announced actor Parineeti Chopra as a Partner and Investor, has now appointed actor Sandeepa Dhar as the brand ambassador for its cutting-edge product line. Sandeepa, celebrated for her performances in a range of films and web series such as “Heropanti,” “Dabangg 2,” “Abhay,” and more, is set to play a pivotal role in targeting the youth market for the brand in India.
Clensta, supported by IIT Delhi, provides an extensive range of personal care items across diverse categories. Their dedication to blending state-of-the-art science (STAR and CRAN Technology) with sustainability has earned significant favor among consumers throughout India.
Puneet Gupta, CEO and Founder of Clensta said, “We welcome Sandeepa as she becomes a part of the Clensta team, and we eagerly anticipate her support in spreading the word among India’s informed and nature-conscious youth about our unique product range.”
In her capacity, Sandeepa Dhar will star in an upcoming brand campaign aimed at endorsing Clensta’s Skincare line on various digital platforms, including Amazon, Flipkart, Nykaa, Purplle, Meesho, and Myntra. Furthermore, Clensta’s products can be found in more than 10,000 retail outlets across India, including well-known chains like Wellness Forever, Reliance Smart, Health and Glow, Tata1MG, Combination, and others.
Parineeti Chopra, who became an investor and partner at Clensta in July of this year, additionally takes on the role of brand ambassador for the haircare and Gummies product lines. Clensta recently secured a funding of INR 75 crore in a pre-series B round, spearheaded by TradeCred and jointly supported by the Royal Family from the UAE, with the notable participation of the actress-turned-entrepreneur as one of the investors.
In the early stages of the online festival season sales on top e-commerce platforms such as Amazon, Meesho, and Flipkart, non-metro cities emerged as the frontrunners. According to information disclosed by e-tailers on Tuesday, Meesho, supported by Softbank, saw more than 80 percent of its orders during the Blockbuster Sale come from tier 2 and smaller cities in the first three days. On the first day of The Big Billion Days, Flipkart recorded over 60 percent of its orders originating from non-metro cities.
“Over 60 per cent of orders were placed from Tier 1, 2 and 3 cities,” Flipkart said in a statement citing sales data on October 7.
Amazon said over 80 per cent of customers on its platform came from non-metro cities during the initial days of its festive sale “Great Indian Festival”.
Flipkart claimed 9.1 crore visits on Day 1 of The Big Billion Days (TBBD) while Amazon registered 9.5 crore customer visits in the first 48 hours.
Both platforms saw mobile phones among the top choices for customers.
Amazon said the most preferred smartphone brands on its platform were OnePlus, Samsung, and Apple.
“Customers purchased more than 100 OnePlus smartphones every minute in the first 48 hours of the sale (2.5 times more than in 2022). Samsung drove premium phone demand, with their flagship Galaxy S Series growing 3 times over the last year,” the company said.
Amazon paid subscribers or Prime members shopped 18 times more in the first 24 hours of the sale compared to the average daily purchase.
The company claimed Prime Members purchased over 75 smartphones per second in the opening hour.
“4 out of every 5 smartphones sold in the first 48 hours were 5G ready. Amongst all smartphones sold, 75 per cent were purchased by customers coming from Tier 2 -3 cities and towns and beyond. Premium smartphones (priced above INR 30,000), witnessed 3 times growth versus last year,” the company said.
Amazon saw a rise in customer’s demand for premium gadgets.
“Customers shopped for 35 per cent more premium smartwatches in the first 48 hours as compared to last year. 10 Premium active noise cancelling headphones were bought by customers every minute,” the company said.
Demand for tablets during the Amazon festive sale saw 2 times growth while demand for laptops rose by more than 40 per cent as compared to last year.
Amazon said that demand for large-screen TVs witnessed a record growth of 260 per cent year-on-year.
“Customers shopped for one TV per second with 80 per cent of all orders coming from Tier 2 and 3 cities and towns. 4K TVs were the most preferred,” Amazon said.
Flipkart said that Mobiles, Appliances, Lifestyle, BGM (Beauty and General Merchandise), Electronics and Home remain the top choices for customers across India.
“Smartphones in the over INR 20,000 segment witnessed a surge in demand among Metro and Tier 2 and beyond audiences alike. Further, Lifestyle, Electronics and Beauty and General Merchandise(including Fitness) have played a key role in new customer acquisition,” the statement said.
Flipkart’s travel arm Cleartrip recorded interest of customers in travelling to non-metro cities such as Goa, Jaipur, Udaipur, Varanasi, Ooty with Goa, Kochi, Jaipur, Srinagar and Chandigarh emerging as top air travel non-metro destinations.
Meesho spokesperson said more than 80 per cent of orders on the platform originated from the tier 2 and smaller cities of India like Dhanbad, Chittorgarh, Erode, Jabalpur, Kurnool, Tezpur and Vapi.
The firm recorded more than 15 orders per second across categories such as footwear, fashion accessories as well as home and kitchen.
“More than 30,000 sellers saw over 2X growth in orders during the onset of the sale. Top selling products included sarees, watches, Bluetooth headphones and toys,” Meesho spokesperson said.
E-commerce companies were estimated to have generated a total sale of around INR 40,000 crore during the first phase of the festive season sales.
A recent report by the market research firm projects online sales during the upcoming festive season to grow by 18-20 per cent and touch INR 90,000 crore this year.
On Tuesday, PepsiCo reported that its Indian beverage unit experienced “double-digit growth” in volume during the third quarter of 2023. Conversely, its “convenient foods business” saw a “mid-single-digit” decrease in unit volume in the September quarter, as indicated in the global earnings statement from the prominent food and beverage company.
In the AMESA (Africa, Middle East, South Asia) division, which includes India, PepsiCo’s net revenue decreased by 6.43 percent, falling from USD 1.73 billion to USD 1.61 billion. This decline was primarily attributed to the depreciation of the Egyptian pound and a net organic volume decrease, although it was partially mitigated by effective net pricing.
In AMESA, Pepsico’s “beverage unit volume grew 3 per cent, primarily reflecting double-digit growth in India and mid-single-digit growth in the Middle East…” it said.
Its “convenient foods unit volume declined 3 per cent, primarily reflecting mid-single-digit declines in South Africa and India, partially offset by low-single-digit growth in the Middle East and Pakistan.”
Furthermore, the operating profit of PepsiCo’s AMESA division decreased by 11 percent.
PepsiCo’s fiscal year runs from January to December.
This primarily reflects the “impact of higher commodity costs, primarily packaging materials, sweeteners and grains, largely driven by transaction-related foreign exchange,” it added.
PepsiCo, which owns popular brands such as Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew and Quaker, posted a 6.7 per cent increase in net revenue to USD 23.45 billion for the third quarter.
On a year-to-date basis, PepsiCo has gained savoury snack share in many international markets, including China, India, and Turkey and for beverages, it gained market share in Mexico, Brazil, Turkey, China, Thailand, Egypt, and Nigeria, it added.
The New York-headquartered company said its third-quarter featured “strong, broad-based organic revenue growth”.
“The benefits from our net revenue management actions moderated as planned, while organic volume for our global beverage and convenient food businesses each posted a moderate decline,” it said.
“We believe our businesses can continue to perform well in the coming years with category growth normalising, as we have made numerous investments in our brands, manufacturing capacity, go-to-market systems, supply chain, technology, and people, to execute against our strategic framework and modernize our company,” PepsiCo Chairman and CEO Ramon Laguarta said.
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