Demand for rice saw a slight uptick this week, with buyers favoring the comparatively more economical offerings from India, while elevated prices in Vietnam and Thailand led to a slowdown in trading activity.
“Buyers have started making purchases. Indian rice is cheaper even after paying 20% exports duty,” said a New Delhi-based dealer with a global trade house.
In August, India implemented a duty on parboiled rice, which will remain in effect until October 15th.
Even though there was increased demand from Asian and African countries, the prices for India’s 5% broken parboiled rice variety remained steady at $525-$535 per metric ton for the third consecutive week.
A senior official at the agriculture ministry in neighboring Bangladesh has announced their aim to harvest 17 million tonnes of rice this year, a notable increase from the 14 million tonnes harvested last year. This news provides a measure of relief amid the fluctuations in the global market.
Vietnam’s 5% broken rice continued to be priced at $610-$620 per metric ton, with no change from the previous week.
“The market appears to be stable after the recent volatilities triggered by Indian ban in July,” a Ho Chi Minh city-based trader said.
The present prices are sufficiently favorable for farmers to achieve profitability. However, trading activity remains subdued as traders are biding their time, anticipating further stabilization in the market, according to the trader.
Initial data indicates that between September 1st and September 29th, there were plans to load 294,100 metric tons of rice at Ho Chi Minh City port, with the majority of it destined for Indonesia, Malaysia, the Philippines, and Turkey.
The prices of Thailand’s 5% broken rice have fluctuated, expanding to a range of $590-$607 per metric ton, compared to the $605 price of the previous week. Traders have attributed this variability to shifts in exchange rates.
The baht dropped to its lowest level in more than 10 months due to concerns about the country’s fiscal outlook.
A trader based in Bangkok mentioned that buyers have reduced their purchasing activity due to the elevated prices.
According to another trader, the introduction of new supply into the market in October has the potential to lead to further price reductions.
Pizza Hut is planning to embark on an aggressive expansion campaign across China in the next three years. This strategic move is part of Yum China Holdings Inc.’s ambitious growth strategy, which was announced during the company’s recent 2023 Investor Day in Xi’an, China.
After a successful revitalization program that bolstered the brand’s foundations and shortened the payback period for new establishments, Pizza Hut is now primed for swift expansion. With the goal of opening 400-500 net new stores annually between 2024 and 2026, the brand plans to more than double its growth rate from the previous three years while still maintaining a robust store payback period of approximately 3 years.
Pizza Hut’s initiatives are integral to the reinvigorated “RGM 2.0” strategy introduced by Yum China, the parent company overseeing various restaurant brands such as KFC, Taco Bell, and others in the region. During its Investor Day event, Yum China unveiled an overarching objective of reaching a total of 20,000 stores by 2026, all while achieving a double-digit Compound Annual Growth Rate (CAGR) for Earnings Per Share (EPS) between 2024 and 2026. Additionally, they plan to distribute $3 billion to investors during the same period through quarterly dividends and share repurchases.
Having established its presence in China since 1990, Pizza Hut stands as a prominent leader in the country’s casual dining sector. The brand currently manages 3,072 stores spanning across more than 650 cities. Notably, Pizza Hut commands a dominant position in all of its primary categories, including pizza, steak, and pasta, with an impressive record of over 100 million pizzas and 20 million steaks sold within the past 12 months.
Pizza Hut General Manager Jeff Kuai commented, “As an absolute leader in the sector, our slice of the market is bigger than the next nine brands combined. Despite our leading position, there is still tremendous opportunity for us to gain an even larger share of the market.”
The brand’s strategy for expanding its presence involves both enhancing store density in existing cities and venturing into new ones. China presents extensive untapped markets for Pizza Hut, with over 1,200 cities hosting KFC but not yet featuring Pizza Hut, emphasizing the potential to utilize Yum China’s infrastructure and resources for expansion in these areas. Pizza Hut is achieving increased penetration through adaptable store models. One such model is the satellite store, characterized by a smaller dining area, a focus on off-premise occasions, and a lower initial capital expenditure. This model boasts a quicker 2-year payback period compared to traditional stores. Additionally, the brand is experimenting with a fast-casual store model designed to offer faster and more streamlined service while enhancing labor efficiency.
Apart from extending its reach, Pizza Hut has dedicated efforts to enhance its core menu selections. Specifically, the brand has been strengthening its identity as a “pizza specialist” by introducing product enhancements and fresh flavor varieties. Notably, the Super Supreme Pizzas and Durian Pizzas have garnered significant popularity among consumers. In the first half of 2023, pizza sales witnessed a remarkable 56% increase compared to the corresponding period in 2019.
As Pizza Hut’s expansion journey continues, it has set its sights on reaching a broader spectrum of consumers by diversifying its food and beverage offerings and creating more reasons for visits. The brand is gearing up to introduce a fresh line of customizable burgers. Starting in September 2023, it has also introduced premium Lavazza coffee to its restaurant offerings. Pizza Hut has expanded its range of individual-sized meals, including personal-sized pizzas, to cater to solo diners and office-goers. Additionally, breakfast options have been introduced to enhance customer service while optimizing store utilization. Furthermore, the brand is expanding its previous focus on families to better accommodate younger generations. Collaborations like its partnership with Genshin Impact, for instance, have proven appealing to many young individuals and gamers.
At the same time, Pizza Hut continues to emphasize its commitment to delivering exceptional value to its customers. The widely acclaimed “Scream Wednesdays,” “All You Can Eat,” and “Buy One Get One Free” value promotions are significant attractions for both dine-in and delivery customers. Furthermore, the brand is expanding its pricing options to cater to a broader spectrum of customers and their everyday requirements.
Pizza Hut is making substantial investments in crafting an exceptional digital customer experience, recognizing its pivotal role in future success, as roughly 92% of orders are now processed through digital channels. A primary focus is on enhancing the user interface and introducing real-time order tracking features for customers on its mobile app. Additionally, the brand is actively working to increase member visit frequency by implementing privilege programs and tailoring offers based on members’ preferences.
Kuai says, “With continuing efforts to build on our core strengths and expand into new categories, improve value for money, drive delivery growth, and enhance our digital capabilities, we are confident that Pizza Hut will generate even stronger sales momentum and enhance our leading position in the market.”
Pladis, the renowned global snacking enterprise responsible for beloved and iconic UK brands, is taking another substantial step into the snacking world by introducing two new miniature versions of the UK’s top-selling biscuit.
McVitie’s Digestives Milk Chocolate Minis have been crafted to broaden the reach of the beloved top-ranking biscuit, expanding its suitability for various occasions such as on-the-go snacking, lunchtime treats, and sharing moments. This fresh introduction will be available on supermarket shelves starting this week in a multipack configuration, with sharing pouches set to arrive later this year.
McVitie’s Milk Chocolate Digestives, currently valued at £108.8 million in retail (a growth of 23.1%), has undergone a transformation into a bite-sized rendition. This development comes on the heels of the recent introduction of McVitie’s White Chocolate Digestives, where the brand expanded its core product range to resonate with a fresh audience of shoppers.
“McVitie’s Chocolate Digestives are loved by so many households across the nation, who stock their cupboards with this biscuit bestseller time and time again,” says Aslı Özen Turhan, Chief Marketing Officer at pladis UK&I. “However, we recognise that we need to continue to evolve our range to attract new shoppers – including through our bestselling lines – by creating convenient new offerings that will appeal to a new generation of biscuit snackers.
“McVitie’s Digestives Milk Chocolate Minis does just that. Our multipack, which contains five individually wrapped snack packs and just 94 kcals per serving, is ideal for lunchbox moments, whilst our pouches are perfect for on-the-go or sharing with loved ones – at a time when the ‘togetherness’ trend is hotter than ever.”
These launches are a continuation of pladis’ strategy over the past few years, wherein they’ve expanded their primary snacking offerings by leveraging current food trends to innovate new iterations of their well-known brands.
Özen Turhan continues, “McVitie’s Rich Tea ‘The Light One’ was launched in 2022 to give shoppers even more choice on the biscuit aisle, and the product is now one of the most popular non-HFSS SKUs in biscuits.
“Meanwhile, McVitie’s White Chocolate Digestives are already worth £1M in retail, after just 6 weeks on supermarket shelves.
“We’re confident that McVitie’s Digestives Milk Chocolate Minis will follow in similar footsteps, driving a new generation of snackers to the biscuit aisle, and opening the door to new sales opportunities for retailers in the process.”
The latest McVitie’s release coincides with a period of exceptional brand visibility. Earlier this year, McVitie’s initiated the initial phase of its True Originals Masterbrand campaign, which marked its return to television screens, inspiring the nation to rediscover the joy of the biscuit break. Additional marketing endeavors, including a resurgence on TV screens, are set to commence on October 4th.
The McVitie’s Digestives Milk Chocolate Minis multipack, featuring five 19g bags at a suggested retail price of £1.25, has begun appearing on the shelves of Tesco stores. The sharing pouch variation, weighing 80g and priced at £1.25, will be introduced later this autumn. These options, along with a Price-Marked Pack (PMP), will be accessible to convenience stores and wholesalers.
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.
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