Cal-Maine Foods has entered into an agreement to purchase assets from its American counterpart, Fassio Egg Farms.
In a stock exchange filing, publicly-traded Cal-Maine stated that the deal encompasses “practically all of the assets connected to the commercial shell egg production and processing business of Fassio Egg Farms, Inc.”
Cal-Maine is poised to acquire commercial shell egg production and processing facilities capable of accommodating around 1.2 million laying hens, primarily raised in cage-free environments. Additionally, the assets encompass a feed mill, fertilizer production facilities, and land situated in Erda, on the outskirts of Salt Lake City, Utah.
This signifies Cal-Maine’s first publicly-announced acquisition since the appointment of Sherman Miller, a seasoned industry veteran with over two decades of experience, as President and CEO in September of the previous year.
“We are excited about the opportunity to expand our market presence in Utah and the western United States with the proposed acquisition of these assets from Fassio,” Miller said.
“The additional production capacity, especially for cage-free eggs, will enhance our ability to serve our valued customers in this important market area.”
Terms were not disclosed. Cal-Maine said it expects to close the transaction “in the next few weeks”.
Cal-Maine asserts its position as the foremost producer of fresh shell eggs in the United States. In July, the company reported a remarkable 77% surge in its annual net sales, totaling $3.14 billion for the year ending on June 3rd. This surge in sales occurred during a 12-month period characterized by a significant increase in egg prices due to the outbreak of highly pathogenic avian influenza in the United States.
The annual operating income amounted to $967.7 million, a substantial increase from the $143.5 million recorded the previous year. Meanwhile, the net income attributable to Cal-Maine reached $758 million, a notable rise compared to the $132.7 million reported in the prior year.
The company is slated to announce its first-quarter financial results for the current fiscal year on October 3rd.
Olam Food Ingredients (Ofi) has substantially increased the capacity of its dairy production facility located in Johor, Malaysia. This expansion also encompasses the enlargement of its Dairy Ingredient Excellence Centre (IEC).
Additionally, the company has initiated the operation of a new milk powder drying unit while further extending the integrated IEC, catering to customers in the Middle East, Africa, and Asia.
According to Ofi, the improvements made to the processing facility in Johor are expected to more than double the annual production volume of functional dairy ingredients and fat-filled milk powder. This enhancement is intended to empower Ofi’s customers to create innovative applications on a larger scale.
The expanded IEC now includes newly furnished laboratory spaces equipped with cutting-edge R&D equipment, specifically designed to assist customers in pursuing customized, tailored, and cost-effective solutions for applications in beverages, bakery, and frozen dairy desserts.
Sandeep Jain, who serves as the Managing Director and CEO of the dairy division at Ofi, noted that there is a rapidly increasing demand for nutrition-rich, functional dairy ingredients, particularly in the Middle East and Africa.
“Building on our strategy to provide localized, customized food and beverage products that will appeal to local customers, the expanded capabilities in Malaysia enable us to co-create products that are focused on health, taste and convenience,” Jain commented.
“Furthermore, the expanded plant has been designed around food safety and operational excellence. This includes an automatic and ergonomic raw material feeding system and an advanced depalletising system, ensuring consistent product quality.”
By closely collaborating with Ofi’s Singapore Customer Solutions Centre and integrating across its extensive network of 15 innovation centers worldwide, the enhanced capabilities of the IEC will enhance collaboration with brands, grocery retailers, and foodservice companies.
Delhi government will carry out specialized enforcement drives two weeks before each major festival, with the aim of ensuring that only quality eatables are available in the market.
The government’s food and safety department has instructed safety officers to consistently gather samples, conduct analyses, and confiscate any food items suspected of being adulterated. On Friday, the department issued explicit directives to the safety officers, emphasizing the need for vigilance.
The department announced that these initiatives will commence citywide 15 days in advance of festivals such as Navratra, Dussehra, Diwali, Christmas, Holi, Eid, and Rakshabandhan.
According to the order, the food safety officers will “collect samples of various food items, excluding sweets, ghee, paneer, khoya, and milk products, which are commonly consumed during the festive season, for analysis.”
Furthermore, the directive instructed all officers to compile a list of 20 formal and 20 surveillance samples for analysis, as well as to confiscate any food items and consumables that appear to be adulterated and unsafe.
Guiltfree Industries Ltd has now entered the highly competitive Indian ethnic snacks market (Representative Image)
Guiltfree Industries Limited, a fast-moving consumer goods (FMCG) company with a focus on food, and a part of the RPSG Group led by Sanjiv Goenka, disclosed on Sunday that it has received a GST demand notice totaling INR 39.14 crore. The company informed the stock exchanges that this show-cause cum demand notice was issued by the Kolkata zone office and encompasses both interest and penalty charges.
The company received the tax notice due to allegations of product misclassification.
The company has stated that it is in the process of preparing a suitable response to address the concerns outlined in the show-cause cum demand notice.
Guiltfree, a subsidiary of the RPSG Group, entered the fast-moving consumer goods (FMCG) sector during the 2017-18 fiscal year, with a primary emphasis on Western snack products.
In a strategic maneuver, Guiltfree Industries Ltd has now entered the highly competitive Indian ethnic snacks market.
Cote d’Ivoire, the world’s leading producer and exporter of cocoa, is eager to venture into the Indian market for the direct promotion of cocoa and cocoa-derived products. The regulatory body for this sector is scheduled to visit India next month to explore these opportunities.
The Cocoa regulatory authority, Le Conseil du Cafe-Cacao, is not only seeking market access for cocoa products in India but is also actively seeking investors and partnership opportunities for cocoa processing within Cote d’Ivoire. Presently, a significant portion of the cocoa produced in Cote d’Ivoire, also known as Ivory Coast in West Africa, is distributed through intermediaries and third parties, resulting in reduced returns for farmers.
“Until now, our colonisers (France) built a system of dependency on Europe for cocoa trade. But we are open to selling our products to other countries. We are ready to sell directly to Indian manufacturers,” Cocoa regulator Le Conseil di Cafe-Cacao Managing Director Yves Brahima Kone said in an interview.
”We are going to India in November and meet potential partners and government leaders to explore direct marketing of cocoa. We will be able to sell cocoa products or semi-finished products,” he said.
When questioned about the possibility of discussing the substantial import duties on cocoa, the regulatory authority confirmed that it is indeed one of the topics scheduled for discussion.
“It is going to be a win-win situation for both sides,” he said.
The regulator noted that the rising consumption of cocoa products in India will play a pivotal role in shaping the trade strategy during discussions with Indian leaders. This marks the first visit by the cocoa regulatory authority from Cote d’Ivoire to India, a country that imports approximately 1 lakh tonne of cocoa products, with the aim of promoting the cocoa trade.
Currently, Cote d’Ivoire is placing a stronger emphasis on the processing and transformation of cocoa into products such as cocoa powder and cocoa butter, among others. This strategic shift is aimed at ensuring better returns for farmers and expanding the cocoa economy. To this end, Cote d’Ivoire has set a yearly domestic production cap at 2.5 million tonnes.
“We are promoting processing of the commodity (as value addition will get us more income) before selling it. We are looking for partnerships and setting up processing facilities,” said Coulibaly Siaka Minayaha, Chairman of the Board of Directors of Le Conseil du Cafe-Cacao.
He mentioned that the nation’s goal for the current year is to attain a processing level of 49 percent. In order to promote cocoa processing, the regulatory authority has implemented various measures to organize farmers and create cooperatives for small-scale growers, he further explained.
The regulatory authority also mentioned that the country is currently in the process of aligning with European standards concerning sustainability, deforestation, and child labor. Michel Arrion, the Executive Director of the International Cocoa Organization (ICCO), emphasized that India is an emerging market for cocoa consumption, primarily used in chocolate manufacturing, and should consider becoming a member of this inter-governmental body.
Out of the global cocoa production totaling 5 million tonnes, Cote d’Ivoire alone annually produces about 2-2.5 million tonnes and exports nearly the entire quantity, including value-added products like cocoa butter. Cote d’Ivoire, situated in West Africa, conducts cocoa harvesting twice a year, with the first crop being harvested from October to March, and the second from April to September.
Jollibee has opened its first drive-thru in Singapore, conveniently situated at the Caltex Jurong Spring station, marking its 20th restaurant in the country.
The restaurant will be the first of its kind for the fast-food giant, boasting an AI-assisted drive-thru and dynamic menu boards that will offer a variety of product selections.
“This milestone coincides with our 10th anniversary in Singapore, during which time we have expanded from a single outlet in Lucky Plaza to 20 stores across the country, growing our consumer base from serving primarily Filipinos, to now serving the mainstream Singaporean market who compose a predominant majority of our customers today. We are grateful for the Singaporean community’s continued support, and we look forward to expanding further in the country and the greater EMEAA region,” Dennis Flores, President of Jollibee Europe, Middle East, Asia and Australia (“EMEAA”) said.
Following the recent debut of its 10th location in Malaysia at the Kuala Lumpur International Airport, Jollibee continues its expansion by introducing Singapore’s first drive-thru. In the first half of 2023, the Jollibee brand has globally inaugurated 38 stores, with 23 of them located outside the Philippines.
In a country where pizza parlors are as ubiquitous as street vendors, The Pizza Bakery has managed to captivate the hearts and taste buds of India. This extraordinary feat is the result of an enchanting combination of passion, dedication, and an unyielding pursuit of excellence. What truly sets The Pizza Bakery apart in a market saturated with pizza options is its signature Neapolitan-style pies, each delivering an authentic taste of Naples with every irresistible bite.
However, The Pizza Bakery is more than just a pizza joint; it’s an immersive gastronomic journey. It’s about savoring the rich flavors of thoughtfully chosen ingredients, inhaling the enticing aroma of wood-fired sourdough crusts, and relishing the pleasure of indulging in a culinary masterpiece crafted with love and dedication.
Beyond the delectable offerings, The Pizza Bakery’s commitment to quality is nothing short of remarkable. The establishment’s consistent recognition, including winning the Times Food Awards for ‘Best Pizza’ in both 2022 and 2023, attests to the fact that their devotion to excellence has not gone unnoticed.
Recently, in an interview with Snackfax, Nikhil Gupta, Co-Founder of The Pizza Bakery, shared the inspiring story of how he and his brother Abhijit built this thriving pizza bakery from the ground up, starting with just one location in Bangalore. In addition to their pizza venture, they have also ventured into another culinary realm with ‘Paris Panini,’ a brand delivering gourmet-style street French food.
Here are the edited excerpts..
SnackFax: How is Consumer Behavior changing in terms of dining preferences? Are consumers becoming more inclined towards dining out and ordering in rather than staying at home? And, specifically, what are your thoughts on the importance of freshness when it comes to enjoying food, such as Napolean pizza?
Nikhil Gupta:I believe that COVID-19 has significantly transformed consumer behavior, including within our own company. Before the pandemic, our primary focus was on dine-in services, with delivery accounting for only a small portion of our business. However, when COVID-19 struck, we had to adapt and became primarily a delivery-oriented establishment for the majority of the year.
Even as we move beyond the pandemic, there has been a notable shift in people’s comfort levels with having items delivered to their homes. Whether it’s through platforms like Swiggy, Zomato, Dunzo, Zepto, or others, consumers have grown increasingly accustomed to the convenience of home delivery. This shift has effectively transformed the market into a more delivery-centric one.
He added, “There’s truly nothing quite like the experience of savoring a piping-hot pizza fresh out of the oven. The unmatched freshness and texture are hard to replicate, especially considering that deliveries usually take around 20 minutes, which can slightly diminish the pizza’s texture and taste. Nevertheless, people are generally accepting of this trade-off because of the sheer convenience of having it delivered right to their doorstep.
However, if you’re trying pizza for the first time, I would highly recommend visiting the pizzeria in person. There’s just no substitute for the unparalleled delight of enjoying a pizza at its freshest, right from the outset.”
SnackFax: What’s your approach to ensuring scalability and maintaining ingredient consistency, especially when dealing with highly specialized cuisines?
Nikhil Gupta: Today, there’s a growing demand for premium-quality food, but when you invest in premium products, you rightfully expect them to meet high standards. However, on the producer’s side, various challenges persist. The key question today revolves around who is willing to offer the highest salaries to ensure top-notch nutrition. With elevated nutrition levels, the significance of training becomes paramount. Simultaneously, integrating technology is essential to streamline processes, especially when working with a less skilled labor force.
SnackFax:As a Founder, contemplating the opening of the next outlet necessitates a careful consideration of both the financial aspects and consumer retention. How do you approach this qualitatively?
Nikhil Gupta:Expanding to a new city brings forth an entirely new set of challenges. Currently, I believe we have numerous untapped opportunities right here in Bangalore, our home base. We have a substantial presence in this city with approximately 500 employees, making it more manageable to address and further solidify our company’s stability. Once we’ve achieved that, we’ll explore opportunities in other cities with promising prospects for our business.
Furthermore, at the end of his remarks, Nikhil also highlighted the brand’s agility. This agility doesn’t involve blindly chasing every trend but rather entails a continuous reassessment of their food offerings. They take customer feedback seriously and make weekly changes to their menu based on these insights.
Moreover, recognizing the growing trend towards health-conscious choices in 2023, The Pizza Place is also taking steps to incorporate vegan items into their menu. They aim to introduce a comprehensive range of vegan products. In each slice, The Pizza Bakery shares a piece of their passion, inviting you to embark on a culinary journey unlike any other. In India, The Pizza Bakery is beloved not only for its pizzas but also for its unwavering dedication to craftsmanship, quality, and, most importantly, the joy of sharing the finest sourdough pizza ever crafted.
On Sunday, Prime Minister Narendra Modi made a significant announcement by establishing a National Turmeric Board, addressing a longstanding request from stakeholders in the industry.
“Today I am announcing a major decision related to this (turmeric) from the land of Telangana. Considering the needs and future prospects of turmeric farmers, the Centre has decided to constitute the National Turmeric Board for their benefit,” Modi said after laying the foundation stone of various projects at Mahabubnagar in Telangana.
Speaking at the Global Turmeric Conference 2023 in Mumbai on September 27th, Hemant Patil, a Lok Sabha member representing Maharashtra’s Hingoli constituency, highlighted the persistent efforts made over several years to establish a turmeric board.
“Unfortunately, this has not happened till now,” he said. However, upon being contacted following the Prime Minister’s announcement, he expressed his appreciation for the decision and expressed the hope that the board would find its home in Hingoli. Maharashtra has consistently led the charge in advocating for the establishment of the turmeric board, given its status as the foremost producer of this prized spice in recent years.
During his speech, Modi emphasized that the National Turmeric Board would play a pivotal role in assisting farmers across various aspects, including value addition within the supply chain and infrastructure-related projects.
“I congratulate all the turmeric-growing farmers of Telangana and the country for the formation of ‘National Turmeric Board,” he said.
Highlighting the nation’s significant role as a major producer, consumer, and exporter of turmeric, he noted that the awareness of turmeric’s benefits has surged following the COVID-19 pandemic. Consequently, there has been a global increase in demand for this spice.
“Today, it is imperative that the entire value chain of turmeric, from production to export and research, is given more professional attention; and initiative needs to be taken in this regard,” the Prime Minister said, dwelling on the importance of the announcement.
India’s turmeric production stands at approximately 1.1 million tonnes, constituting an impressive 80 percent of the global output. Turmeric exports have been steadily rising and currently sit at around 1.5 lakh tonnes, with shipments gaining momentum since the onset of the pandemic.
Consumer goods companies are vigorously safeguarding their ability to explore price elasticity for their products, while distributors are striving to find order amidst the chaos.
FMCG companies generate a substantial portion of their additional – and occasionally total – sales in rural markets. Their strategy to combat inflation in these markets involves providing reduced quantities for the same price, necessitating modifications to production processes at an added expense and absorbing some of the increased costs of raw materials.
On the opposite side of the spectrum, it’s comparatively simpler to display elevated prices on larger packaging. Nevertheless, this particular market segment experiences slower growth. FMCG companies leverage consumers purchasing larger packs to subsidize the cost for entry-level buyers. Nevertheless, their aim is to encourage these entry-level buyers to upgrade to larger quantities. This is where bridge packs, providing enhanced price-to-weight value, come into play. These types of packages have proliferated since the pandemic and are causing congestion in distribution networks.
Three key factors are propelling this trend.
To begin with, the hyperinflation in commodity prices during the pandemic compelled companies to revise their stock-keeping unit (SKU) strategies.
Secondly, the decline in purchasing power compelled rural consumers to shift to lower-priced brands and smaller unit sizes.
Thirdly, the expansion of retailing formats is giving rise to a demand for a variety of packaging sizes.
Additionally, there exists a marketing necessity to provide various price options for attracting new consumers and subsequently increasing their demand for consumer products. However, safeguarding these price points has its limitations, as its repercussions become evident in terms of volume growth, a metric closely monitored by investors in FMCG companies.
Distributors are in search of a four-tier SKU structure designed to encompass vital facets of FMCG pricing strategy, including market expansion and market share retention. Meanwhile, producers must concentrate on enhancing competitiveness and refining their business models. While the sector has successfully navigated through the challenges posed by cyclical factors driving downsizing, it still grapples with enduring structural transformations. Maintaining healthy penetration levels is a pivotal FMCG metric, but it tends to suffer when the distribution network becomes overwhelmed.
Dalvir Suri, one of the Co-Founders of Dunzo, is preparing to step down from his role after dedicating more than six years to the startup. This announcement was conveyed to the company’s employees via an email from CEO Kabeer Biswas on October 1.
Suri became a part of the hyperlocal delivery platform in May 2015, when Dunzo was in its early stages, primarily accepting orders through WhatsApp. As one of the Co-Founders, he collaborated closely with Biswas, Ankur Aggarwal, and Mukund Jha.
Despite Dunzo having four Co-Founders, only Biswas holds equity in the company. The remaining Co-Founders, Suri, Aggarwal, and Jha, receive fixed salaries, which Dunzo has postponed on several occasions in the past.
Suri’s exit coincides with a challenging period for the financially-strained company, as it has been striving to maintain its operations while simultaneously navigating a fundraising process.
“As many of you are aware, Dalvir (Suri) has been taking some time off over the last few weeks, and will be moving on from Dunzo,” Biswas said in his email to employees.
During a company-wide meeting scheduled for later this week, Dunzo will update its employees about the organizational adjustments that will follow Suri’s departure.
“Dalvir (Suri) has been instrumental in building out every new line of business at Dunzo. He has been the key zero to one person from the founding team that just gets things Dun. He has been meaning to take a break for sometime now – and with six plus years spent building Dunzo, he plans to move forward to pursuing new journeys,” the email added.
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