FMCG companies to provide distributors with flexibility in selecting pack sizes for SKUs

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October 3, 2023

FMCG companies will provide distributors with the option to choose from a variety of Stock Keeping Units (SKUs) in different pack sizes, offering greater flexibility.

Previously, the All India Consumer Products Distributors’ Federation (AICPDF) had expressed apprehensions regarding the distribution of lower-priced SKUs specifically aimed at rural markets.

The federation, in its engagement with the Ministry of Public Distribution, has requested companies to classify their products into entry-level packs, small packs, and medium to large packs to facilitate smoother distribution.

“Currently, navigating the market is fairly difficult because every brand uses a different packaging approach, frequently adapted to certain regions and locations. For instance, some brands sell cooking oil in 12-litre cartons, while others sell it in 15- or 20-litre carton sizes. We give retailers and distributors the option to order 5-pack cartons, thus improving storage and broadening the range of products available for display and sale. This strategic initiative is designed to offer our valued retailers and distributors increased flexibility. They now have the choice of selecting multiple ranges of products but in lesser quantities, simplifying storage issues, and expanding the array of products they can showcase and provide to their customers. We are now introducing smaller packaging options for some of our best-selling items such as ike gluten-free flour and IndiMix,” said Shammi Agarwal, Director of Pansari Group.

The AICPDF had mentioned issues related to pricing confusion, inventory management, and retailers’ hesitancy as key concerns.

“The difference in per-gram pricing among the numerous SKUs within the same price bracket leads to consumer confusion,” the body said in a letter.

Companies have stated that they are sticking to standardized pack sizes, which have proven to be effective in boosting product sales.

“Packaging plays an essential role in expanding our local presence In FMCG. Right from the outset, we have maintained a commitment towards ensuring the consistency and clarity of our packaging. This thoughtful approach helps prevent any doubts related to the product’s weight and pricing. Even during the challenging times of the Covid-19 pandemic, we remained firm in our decision to retain our standard pack sizes,” said Manish Aggarwal, Director of Bikano, Bikanervala Foods Pvt Ltd.

Tea production drops by approximately 4% to 177.95 Million Kilograms in August

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October 3, 2023

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Tea production across the country witnessed a decline of approximately four percent in August of this year, with the total output reaching 177.95 million kilograms. This marks a decrease when compared to the production volume in the same month the previous year, which amounted to 185.48 million kilograms.

Based on data from the Tea Board, tea production in northern India, mainly encompassing the states of Assam and West Bengal, declined to 158.04 million kilograms in the current month from the 170.97 million kilograms produced in August 2022.

In Assam, tea production volumes dropped to 99.78 million kilograms in August this year, down from 109.81 million kilograms in the same month of the previous year.

In West Bengal, production also saw a decrease to 53.65 million kilograms in August 2023, compared to 56.19 million kilograms in the corresponding month of the previous year.

According to sources within the tea industry, the decline in production in northern India can be attributed to adverse weather conditions and pest attacks.

On the contrary, there was an increase in production volumes in South India, reaching 19.91 million kilograms in August this year, compared to 14.51 million kilograms in the corresponding month of 2022.

BigBasket aims for profitability in 6-9 months, eyes IPO in 2025

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October 3, 2023

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BigBasket, the Tata Group-owned online grocery retailer, has set its sights on achieving profitability within the next six to nine months, as stated by Co-Founder and Chief Marketing Officer Vipul Parekh.

In an interview on Monday, Parekh stated, “Our slotted grocery delivery business is profitable today. Our daily business (BB Daily) is very close to profitability. Our quick commerce business (BB Now) is some distance away from profitability but we expect it to get profitable in six to nine months. The moment the quick commerce business gets profitable which is six to nine months from now, we should be completely profitable (at the company level).”

Scaling the quick commerce or instant grocery delivery business is inherently challenging due to its characteristic low order values.

“We are not a standalone quick commerce business. We also have the daily milk business and online slotted deliveries. Since we use the same distribution centres and dark stores for all our businesses, the order volume per dark store is high which is a big advantage for us. The fixed cost per order comes down. Besides, we have private labels which lead to better gross margins,” said Parekh.

According to documents filed by the company with the Registrar of Companies (RoC) and sourced from the business intelligence platform Tofler, losses for BigBasket’s business-to-consumer (B2C) arm, Innovative Retail Concepts, surged from INR 813 crore in FY22 to INR 1,535 crore in FY23.

BigBasket is exploring the possibility of substantially expanding its offline presence.

“We are trying to figure out which is the best format for us to address the offline space,” said Parekh.

The company is mulling over the possibility of initiating preparations for an IPO in 2025.

“IPO will be a function of our profitability… I think, tentatively, 2025 is a good time to think about it,” Parekh said.

Lenders reject Space Mantra’s bid for Future Retail Ltd; NCLT extends insolvency period by 15 days

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October 3, 2023

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The lenders of Future Retail Ltd have rejected Space Mantra’s bid for the debt-ridden firm, which is currently undergoing the Corporate Insolvency Resolution Process (CIRP). Despite Space Mantra’s efforts, their Resolution Plan for Future Retail Ltd (FRL) failed to secure the required number of votes in the e-voting process conducted by the Committee of Creditors (CoC).

It was put “for the consideration of the CoC on July 19, 2023… and pursuant to the decision taken by CoC through e-voting, concluded on 30th September 2023 at 9 PM (IST), the resolution plan submitted by Space Mantra Private Limited has not been approved by CoC”, FRL said in a regulatory filing on Monday.

It further added, “In view of the resolution plan not having been approved by the CoC, the next steps would be taken in accordance with the Insolvency & Bankruptcy Code 2016.”

Space Mantra was the single bidder for FRL. According to some media reports, Space Mantra had offered around INR 550 crore, which was very close to liquidation value. It was just 2.8 per cent of FRL’s outstanding dues of INR 19,773 crore to its financial creditors.

Moreover, in another filing FRL said that the National Company Law Tribunal (NCLT) has extended the deadline to complete the CIRP for 15 days, accepting the company’s request.

“Consequently, the last date for completion of CIRP of FRL is September 30, 2023,” it said.

This is the fourth extension granted by the Mumbai bench of FRL. Earlier, the deadline to complete CIRP of FRL was September 15, which was the third extension granted by the Mumbai bench of the National Company Law Tribunal (NCLT).

The insolvency proceedings against FRL were started by the tribunal on July 20, 2022.

The Insolvency & Bankruptcy Code (IBC) mandates the completion of CIRP within 330 days, which includes time taken during litigations.

Last week, Kishore Biyani, the erstwhile promoter of debt-ridden Future Retail, has moved the Bombay High Court against the forensic audit process of the company.

In August this year, Kishore Biyani and his brother Rakesh Biyani were asked by the Bank of India to respond to findings made in the forensic audit report by BDO, a forensic auditor appointed by the leading financial creditor of FRL.

The forensic auditor had submitted its report on August 9, 2023 and Bank of India sought representation/submissions from the company over the credit facilities availed by Biyani, which was replied by the resolution professional on August 28, 2023, FRL had said in a regulatory filing.

Little Moons expands further: Second factory set to open outside London as global growth continues

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October 3, 2023

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Little Moons, the UK-based mochi ice cream desserts business, is poised to open its second factory, marking its first plant outside of London.

Founded in 2010 by siblings Howard and Vivien Wong, the company has injected an undisclosed sum into the Kettering site in Northamptonshire, England. The 50,000-square-foot facility is scheduled to commence production in the first quarter of the upcoming year.

In 2020, Little Moons inaugurated a factory in Park Royal, located in the northern part of London. The company’s headquarters are situated in Farringdon, which is also within the capital city.

According to a statement, the company has expanded its range of ice cream wrapped in mochi dough treats to Australia, achieving retail sales of A$10 million ($6.4 million) since the launch in the previous autumn.

Little Moons reported a group turnover of £64.5 million ($78.6 million) for the 18 months ending on December 30, 2022, as compared to £25.5 million in the 12 months ending on June 30, 2021.

In the United Kingdom, Little Moons provides its products to major supermarkets such as Tesco, Sainsbury’s, and Morrisons. Additionally, the company has expanded its presence beyond the UK, with its products distributed by retailers in France, Germany, Austria, Switzerland, Denmark, Italy, Norway, Spain, and Croatia.

New Zealand is scheduled to join the list this coming autumn.

Last year, Little Moons entered into a minority interest sale with the US-based private-equity firm L Catterton, the details of which, including the amount and extent, were undisclosed.

According to documents submitted to Companies House in London, the company reported an adjusted EBITDA of £8.5 million over the 18 months ending in December, marking an increase from £6.9 million in the preceding 12 months.

However, the net profit declined to £1.5 million from £4.8 million.

“The UK and European ice-cream markets are very competitive and the trading environment places pressure on suppliers to deliver high-quality products at competitive prices,” the filing read.

“The business is executing a strategic programme, which includes building a new factory to expand our production capacity to satisfy growing consumer demand.

“The business will continue to focus on sales growth through deepening distribution with existing retail partners in grocery and out-of-home and expanding our presence in international markets.”

Meati Foods confident in achieving $1 Billion sales goal by 2025 despite slower demand for alternative proteins in the US

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October 3, 2023

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Despite the decelerating demand for alternative-protein products in the US, Meati Foods maintains its confidence in reaching its $1 billion sales goal by 2025.

Based in Boulder, Colorado, the company has recently secured additional funding following its $150 million Series C funding round in July. They have introduced a direct-to-consumer service to complement their existing retail presence in Sprouts, Whole Foods Market, and Meijer.

Tyler Huggins, Co-Founder and CEO of Meati Foods, mentioned that the company’s assortment of mycelium-based meat alternatives, including chicken breast, breaded chicken cutlets, steak, and seasoned carne asada steak, can also be found in “several thousand foodservice establishments.”

Huggins clarified that there is no shortage of demand whatsoever, stating, “We definitely have a billion dollars worth of interest.” This comment was made in response to questions about the feasibility of the $1 billion target set by President Scott Tassani last year.

“We continue to build out our commercial platform as rapidly as we possibly can and are setting ourselves up for unprecedented growth. We’re being as aggressive as we possibly can.”

In June, Meati Foods disclosed staff reductions, although Huggins remained discreet about sharing additional details.

He countered, “We’ve set very ambitious and mission-driven goals. That path is a winding path. In the early days, it was all about speed, growth and getting to market and getting product out there in a substantial way and we’ve achieved that. We’re making difficult calls now to establish a sustainable business model.”

Huggins asserted that taste serves as the foremost factor distinguishing Meati Foods in a market experiencing a slowdown in sales growth. The co-founder, along with Justin Whiteley, who established the company in 2019, highlighted the products’ distinctive attributes, including their nutritional composition (comprising 95% to 97% mushroom root or mycelium) and their texture.

“It just shows you that the demand is there, the market is there. People want alternatives. They want diversity in their diet. It’s just got to be good tasting and it’s got to be real whole food,” he said.

“We’re not out there saying you’ve got to remove animals from the supply chain. We’re saying, yes, we believe in a regenerative, sustainable ethical food system for sure. But we also believe in diversity in our food system that includes both animals and non-animal-based products.”

Meati Foods, based in Thornton, Colorado, where it runs an expansive ‘mega ranch’ complete with in-house mycelium production, is experiencing substantial retail expansion. According to Huggins, the company’s operations are divided roughly 60-40 between brick-and-mortar retail and foodservice, reflecting its rapid growth.

“We recently launched a D2C platform, which is a great way to get product out there and see what people will like,” he said. “And then, from there, if we find one SKU works really well, we can roll that out through foodservice and retail.

The Thornton site can accommodate further manufacturing expansion and is operating at a run rate of “tens of millions of pounds of product”, Huggins explained.

“Our goal has always been impact and that requires scale. We went for it and it’s been paying off,” he added.

For now, Meati Foods remains focused on the US despite international interest with a key requisite of offering value to the consumer.

“We just provide such nutrient density. I would argue we are a great value and a great price comparison,” Huggins said when asked how the business positions on price to real meat.

“We’re a whole new category of meat that provides you with a much better nutritional profile than anything else out there in the market. And dollar to dollar, you get better nutrition.”

Meati Foods will use the new funding to try to foster further growth and expansion, along with entering new retail and foodservice partnerships. Last year, the company’s total external capital injection was $228m before the addition to the Series C financing.

“We’re definitely on a rapid ramp right now and just continue to support that growth,” Huggins said.

Oddlygood extends portfolio, buys Swedish vegan brand Planti from Kavli Holding

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October 3, 2023

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Oddlygood, the plant-based dairy company primarily owned by Finland’s dairy powerhouse Valio, has acquired the Swedish vegan brand Planti from Kavli Holding, a Norwegian company.

The deal was completed on September 30th, with no financial specifics disclosed.

Under this agreement, Oddlygood will assume ownership of the Planti brand along with its associated intellectual property rights. Planti’s product lineup encompasses plant-based substitutes for milk, yogurt, and crème fraîche.

As a component of the acquisition, Valio has gained ownership of Planti’s manufacturing facility located in the Finnish city of Turku.

Kavli, the owner of brands such as its eponymous cheese, Korni flatbread, and Castle McLellan pâté, expressed its intention to concentrate on different product categories.

A spokesperson confirmed that the Turku factory will maintain its production of the same Planti product range.

According to the spokesperson, Valio plans to “sustain the development of Planti’s existing product lineup and intends to expand it within Oddlygood’s key markets. There are no immediate alterations planned for Planti’s product offerings.”

Valio introduced the Oddlygood brand in 2018. In May 2021, the company announced its plans to separate this business and seek a co-investment partner. By the close of the year, Mandatum Asset Management disclosed an investment of €25 million in the venture.

“Planti’s portfolio complements our existing offering and strengthens our market position, especially in spoonables and cooking,” Niko Vuorenmaa, the CEO of Oddlygood, said in a statement.

“This [deal] fits right into our strategy in which we, with the support of our owners Valio and Mandatum Asset Management, are actively pursuing opportunities to grow through acquisitions like this one.”

Oddlygood, headquartered in Helsinki, specializes in producing plant-based beverages, yogurts, baking items, and desserts. The company reported a turnover of €23.5 million ($24.6 million) in the year 2022.

Kenneth Hamnes, group CEO of Kavli Holding, said the company wanted to put its attention elsewhere. “To sell Planti is a strategic decision we have considered thoroughly, aiming to focus on other categories in our business,” Hamnes said.

“We have been waiting for the right match and buyer profile who has the capacity and ambition to develop Planti.”

In 2022, Valio, the majority owner of Oddlygood, recorded net sales of €2.24 billion, reflecting a notable 15.7% growth compared to the previous year, 2021.

The operating profit declined by 32%, amounting to €44.6 million. Valio’s net profit also saw a decrease of 28.7%, reaching €26.3 million.

Crisis Control 2.0: How to Safeguard Your Brand’s Reputation in the Social Media Age

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October 3, 2023

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A brand’s reputation might be its most important asset in today’s hyper-connected world, when news travels at the speed of light and social media platforms function as the modern town square. This asset, however, is more fragile than ever before. The emergence of social media has heralded a new era in crisis management, known as Crisis Control 2.0.

Social media platforms have democratized communication, allowing individuals and organizations alike to amplify their voices. While this presents opportunities for engagement and marketing, it also creates the potential for rapid reputation damage in the face of a crisis.

1. Preparedness is Key

The first rule of Crisis Control 2.0 is preparedness. A crisis can strike at any moment, and having a well-defined crisis management plan in place is essential. This plan should include clear roles and responsibilities, an escalation process, and predefined messaging guidelines.

2. Real-Time Monitoring

The speed at which information spreads on social media demands real-time monitoring. Brands should invest in social media listening tools to stay on top of conversations related to their products or services. Early detection of potential issues can be a game-changer in crisis management.

3. Respond with Empathy and Transparency

In the event of a crisis, how a brand responds matters immensely. Social media users expect prompt, empathetic, and transparent communication. Address the issue head-on, acknowledge any mistakes, and provide regular updates as the situation unfolds.

4. Activate Influencers and Advocates

Influencers and brand advocates can be powerful allies during a crisis. Engage with individuals who have a positive association with your brand and leverage their support to counteract negative sentiment.

5. Use Social Media for Good

Brands can use social media not only to manage crises but also to proactively contribute to social and environmental causes. Demonstrating a commitment to positive change can enhance a brand’s reputation and mitigate the impact of negative events.

6. Educate and Train Your Team

Your team should be well-versed in the protocols for handling crises on social media. Provide training on crisis communication, social media etiquette, and conflict resolution. It’s crucial that your entire organization understands its role in safeguarding the brand’s reputation.

7. Learn from Past Crises

Post-crisis analysis is vital. After the dust settles, conduct a thorough review of what went well and what could be improved. Use these lessons to refine your crisis management strategy.

8. Build Brand Resilience

Building brand resilience means cultivating a positive reputation that can withstand the occasional crisis. Consistently delivering on brand promises, providing excellent customer service, and actively engaging with your audience can all contribute to brand resilience.

In the social media age, a brand’s reputation is always on the line. Crisis Control 2.0 is about embracing the opportunities and challenges of this new era. It’s about being prepared, monitoring the digital landscape, responding with empathy and transparency, and using social media as a force for good. By following these principles, businesses can safeguard their brand’s reputation and emerge from crises with their integrity intact. Remember, in the age of social media, reputation is everything, and it’s worth every effort to protect it.

The Post-Purchase Journey: How to Keep Users Engaged and Delighted

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October 3, 2023

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The customer journey does not finish at the moment of purchase in today’s business landscape; it is only the beginning. Keeping people engaged and satisfied after they’ve made a purchase is an important part of developing long-term connections and maintaining brand loyalty. In this article, we will look at the methods and techniques that businesses can use to guarantee that the post-purchase journey is as engaging and pleasurable as the initial purchasing experience.

Traditionally, businesses focused most of their efforts on acquiring new customers. While customer acquisition remains essential, the real game-changer is the shift towards nurturing existing customer relationships. It’s an acknowledgment that the post-purchase journey is where brands can truly shine.

1. Seamless Onboarding and Support

The moment a customer makes a purchase, the onboarding process begins. Whether it’s a physical product or a digital service, users need guidance to make the most of their purchase. Providing clear instructions, helpful resources, and readily accessible customer support sets the tone for a positive post-purchase experience.

2. Personalized Communication

Effective communication is key to maintaining engagement. Businesses can use data and insights to personalize their interactions with customers. Sending personalized recommendations, product updates, and special offers based on user preferences and behavior shows that the brand understands and values its customers.

3. Gathering Feedback and Listening

Actively seeking customer feedback and listening to their concerns can be invaluable. Not only does it help in addressing issues promptly, but it also demonstrates a commitment to improvement. Implementing feedback-driven changes and updates can enhance the user experience and foster loyalty.

4. Loyalty Programs and Rewards

Loyalty programs are a proven way to keep users engaged and coming back for more. Offering rewards, discounts, or exclusive access to loyal customers can incentivize repeat purchases and create a sense of belonging to a brand’s community.

5. Educational Content

Providing users with educational content related to their purchase can be highly beneficial. It helps users make the most of their product or service and enhances their overall experience. Whether it’s how-to guides, tutorials, or best practices, educational content adds value and fosters trust.

6. Surprises and Delights

Unexpected surprises can create memorable moments and foster delight. Brands can send handwritten thank-you notes, surprise gifts, or exclusive access to events or content. These small gestures can go a long way in deepening the emotional connection between the customer and the brand.

7. Community Building

Creating a community around your brand can be a powerful engagement strategy. Encourage customers to connect with each other, share experiences, and provide mutual support. Online forums, social media groups, or dedicated user communities can be platforms for this interaction.

8. Continual Innovation

Stagnation is the enemy of engagement. Businesses that continuously innovate and evolve their products or services keep users excited and engaged. Regularly introducing new features, updates, or even entirely new offerings can breathe fresh life into the post-purchase journey.

The post-purchase journey is an often-underestimated phase in the customer lifecycle. However, it’s where brands can truly differentiate themselves and create lasting bonds with customers. By focusing on seamless onboarding, personalization, feedback, loyalty programs, education, surprises, community-building, and innovation, businesses can ensure that their users remain engaged and delighted long after the initial purchase. In doing so, they set the stage for not just satisfied customers, but loyal brand advocates.

On-the-Go Delights: Navigating Mobile-First Strategies for Food Brand Success

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October 3, 2023

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Consumers are always on the move in today’s fast-paced world, and their cellphones have become vital companions in their culinary experiences. Mastering mobile-first strategy is no longer a choice for food businesses; it is a need for being relevant, engaging customers, and achieving long-term success in a volatile industry.

Mobile devices have transformed the way we interact with the world, and the food industry is no exception. From browsing restaurant reviews to ordering takeout, consumers rely on their smartphones for every aspect of their food journey. Here’s how food brands are navigating this mobile-first landscape.

1. The Rise of Food Apps

Food apps have become a staple on consumers’ smartphones. From food delivery services to restaurant finders and recipe organizers, these apps cater to various aspects of the food experience. For food brands, having a presence on these platforms is essential for visibility and accessibility.

2. Mobile Ordering and Delivery

The convenience of ordering food with a few taps on a smartphone has revolutionized the industry. Food brands that offer seamless mobile ordering and efficient delivery services are winning over customers who value speed and convenience.

3. Social Media and Visual Storytelling

Social media platforms, particularly Instagram and TikTok, have become food enthusiasts’ playgrounds. Food brands are harnessing the power of visual storytelling to showcase their offerings in mouthwatering detail. Engaging visuals and short video clips can go viral, attracting a global audience.

4. Personalized Recommendations

Mobile apps and websites are collecting valuable data on customer preferences and behaviors. This data fuels personalized recommendations, making it easier for consumers to discover new dishes and restaurants tailored to their tastes.

5. Gamification and Loyalty Programs

Gamification elements and loyalty programs integrated into mobile apps are encouraging customer engagement and repeat business. From earning rewards for frequent orders to participating in food-related challenges, these strategies keep customers coming back for more.

6. Augmented Reality (AR) Menus

Some food brands are taking mobile interaction to the next level with AR menus. Customers can use their smartphones to view interactive menus that display images, descriptions, and even 3D models of dishes, making the ordering process more immersive and enjoyable.

Challenges and Opportunities

While mobile-first strategies offer immense opportunities, they also present challenges. Data security and privacy concerns, app discoverability in a crowded marketplace, and maintaining a consistent user experience across devices are just a few hurdles that food brands must overcome.

The Future of Mobile-First Food

As technology continues to evolve, so will the possibilities for mobile-first food experiences. Voice-activated ordering, chatbots for customer support, and AI-driven meal recommendations are on the horizon. The key to success lies in adapting to these changes and staying attuned to evolving consumer behaviors.

In a world where mobile devices are the gateway to culinary exploration, food brands that prioritize mobile-first strategies are positioning themselves for success. Whether it’s through user-friendly apps, visually stunning social media content, or personalized recommendations, the mobile experience has become integral to the food journey. By navigating this landscape effectively, food brands can capture the attention and loyalty of the ever-connected, on-the-go consumer.

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