DS Group and Laderach place big bets on India’s expanding luxury market, unveil cold chain investment

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September 1, 2023

Swiss luxury chocolate manufacturer Laderach, which recently opened its inaugural chocolate boutique at the prestigious DLF Emporio mall in New Delhi, is joining forces with its Indian partner, DS Group, to capitalize on the swiftly evolving luxury market and expand their presence in one of Asia’s most substantial economies.

Rajiv Kumar, Vice Chairman of DS Group, announced the group’s commitment to establishing a dedicated cold chain infrastructure to support their luxury chocolate enterprise.

“We recognise evolving consumer preferences and believe that there is ample opportunity for growth. The luxury segment is growing so that’s a very big opportunity,” he said.

Laderach has made its entry into India through an exclusive partnership with DS Group, a company that also manages other high-end retail brands such as L’Opera and Les Petits.

Elias Laderach, executive board member and chief creative officer of Laderach, said, “We are very confident of the Indian market, the big cities and the consumers here.”

DS Group’s portfolio encompasses various sectors, encompassing packaged products featuring confectionery and spice brands like Catch and Pulse, as well as ventures in hospitality and luxury retail, among others.

Kumar stated that the Indian confectionery market is estimated at approximately INR 23,000 crore, with chocolates comprising the dominant category, commanding nearly 60% of the market share. He further noted that the per capita chocolate consumption in India stands at 140 grams, significantly below the global average of 900 grams, highlighting the substantial potential for growth in this sector.

Laderach has outlined its expansion strategy, which entails the establishment of five to seven stores in India within a two-year timeframe, in addition to distributing its products through the company’s dedicated e-commerce platform.

According to Bain & Co, the current value of the personal luxury goods market is approximately $3.5 billion, experiencing a growth rate of 18-20%. Meanwhile, in India, the entire luxury goods market is valued at around $16 billion and is expanding annually at a rate of 15-16%, as reported by Bain & Co.

Burger King China teams up with Telpo for cutting-edge self-ordering kiosk experience

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September 1, 2023

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Burger King China (Representative Image)

Telpo, a prominent smart POS hardware provider headquartered in China, has collaborated with AliPay, the top-tier payment platform, and the renowned QSR chain, Burger King, to introduce an advanced self-ordering kiosk. This innovation aims to enhance and simplify the self-service ordering and payment experience for customers.

Presently, Telpo kiosks are extensively utilized in the Chinese branches of Burger King.

Customers have the option to independently place their orders and complete the checkout process, resulting in time savings and a more convenient, expedited ordering experience. Additionally, self-order kiosks offer customers an interactive and engaging ordering experience, adding to the overall enjoyment of the process.

During periods of reduced customer traffic, self-order kiosks can showcase restaurant updates and advertisements on their screens.

Furthermore, the self-order kiosk K20 (formerly known as TPS781) incorporates a 3D structured light camera, achieving an impressive 99.9% accuracy in face recognition. To ensure utmost customer privacy, this kiosk is equipped with advanced living body recognition technology, effectively eliminating the possibility of fraudulent photos, videos, or deceptive actions.

Blue Tokai Coffee Roasters brings back the coveted ‘Producer Series’ for its fourth edition

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September 1, 2023

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Blue Tokai Coffee Roasters, India’s foremost specialty coffee brand, announced the launch of their much-anticipated special coffee collection, the Producer Series, marking its fourth installment.

True to its name, the Producer Series pays homage to the innovative efforts of India’s visionary coffee producers, as they explore creative processing techniques to create unique coffee varieties.

These exceptional coffees are grown in limited quantities, undergo various experiments at the farm level, and are carefully roasted by Blue Tokai’s in-house experts to enhance their extraordinary fruity and floral qualities, all before they are delivered to customers’ hands.

Over the past decade, Blue Tokai has been engaged in extensive collaborations with over 70 coffee producers in India, with the aim of showcasing the country’s finest coffees to a worldwide audience.

The Producer Series acts as a platform that not only highlights these enduring partnerships but also symbolizes the growing fascination with coffee experimentation and the ever-expanding community of specialty coffee enthusiasts in India.

Similar to Blue Tokai’s other roasted coffee offerings, ‘Producer Series 2023’ will be available in a range of grind options, ensuring their compatibility with any preferred brewing method that consumers may choose.

Food delivery platforms set for massive user growth by 2030, CLSA predicts

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September 1, 2023

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food delivery app — (Representative Image)

Estimates from CLSA suggest that the number of monthly active users on food delivery platforms like Zomato and Swiggy is poised to increase by over two-fold by the fiscal year 2030.

According to a note from the brokerage dated August 31, despite adopting conservative estimates and limiting the target audience to households with a disposable income exceeding $10,000 (approximately INR 8.2 lakh), the number of users is expected to more than double.

“We believe profitability of the online food delivery industry has well and truly been established, and its current duopoly nature is likely to help sustain take-rates,” it said.

It noted the concerns around user growth, specifically the volatility in Zomato’s monthly transacting users over the past four quarters. “In our view, these concerns were largely due to a reduced presence in cities, some slowdown in discretionary demand and clear prioritisation of profitability over growth.”

CLSA stated that if online food delivery platforms maintain consistent penetration across income brackets and increase their market coverage from 85% to 90% of the target audience, this would result in an 11% compound annual growth rate (CAGR) in user numbers over the next six years.

Further, a major tailwind for the sector in the second half of the current fiscal would be the Cricket World Cup set to be held in India. “It should aid demand for online food delivery, as seen in other developed nations during sporting events. We remain positive on the online food delivery space,” it said.

The brokerage has issued a ‘buy’ recommendation for Zomato Ltd., setting a target price of INR 99.6 per share, offering a minimal upside compared to its current market price.

PepsiCo makes a comeback in Indonesia with $200M snack manufacturing facility

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September 1, 2023

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PepsiCo, the prominent American company known for snacks and beverages, is preparing to resume snack manufacturing operations in Indonesia. This move comes two years after the company concluded a previous joint venture in the region.

PepsiCo has initiated the construction of a new production facility in the locality of Cikarang, situated in West Java. With a projected long-term investment of approximately $200 million, the company aims to foster the growth of the Indonesian market.

PepsiCo’s choice to re-enter the snack market in Indonesia was facilitated by investment incentives offered by the Indonesian government.

In early 2021, PepsiCo exited its snacks joint venture in Indonesia, selling its minority stake to local partner PT Indofood CBP Sukses Makmur. PepsiCo did not disclose the reason behind its decision to withdraw from the venture.

During their partnership, the collaboration yielded popular snack brands such as Lay’s, Cheetos, and Doritos for the domestic market. However, as per the conditions outlined in the sales agreement with their joint venture partner, PepsiCo and its affiliated entities committed to refraining from producing, packaging, selling, promoting, or distributing any rivaling snack food items in Indonesia for a duration of three years.

PepsiCo expects to commence snack production at the newly established facility by early 2025, marking the commencement of manufacturing activities a year after the agreed-upon period of inactivity.

The new facility established by the US company highlights a more comprehensive vision, emphasizing the importance of local talent, leveraging indigenous raw materials, and reinforcing the domestic value chain.

It added, “With its rapidly expanding economy, dynamic demographic profile and evolving consumer needs, Indonesia presents unparalleled opportunities, particularly in the F&B sector.

“Recognising this potential, the Indonesian government has shaped policies to cultivate a vibrant investment climate. Aligning with this favourable landscape, PepsiCo Indonesia has reaffirmed its long-term investment commitment to the country.”

PepsiCo has pledged to source most raw materials for its snacks, including corn and palm oil, from sustainable sources and to use renewable power sources.

Once ready, the new West Java manufacturing plant will span 60,000 sq m, dedicated to the production of snacks.

Asif Mobin, CEO of PepsiCo Indonesia, said, “In Indonesia, our expansion signifies more than growth – it represents our commitment to the country, its sustainability objectives, and the communities we serve.”

Nestlé expands plant-based portfolio with shelf-stable options under Maggi Veg label in Chile

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September 1, 2023

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Nestlé has broadened its selection of plant-based items by introducing shelf-stable products in Chile under the Maggi Veg label.

Included in this lineup is Nestlé’s inaugural shelf-stable plant-based minced meat option.

Nestlé’s recent offerings feature options that blend vegan “mincemeat” with flavorful seasonings, suitable for creating dishes such as tacos, empanadas, or spaghetti bolognese, along with a lentil-based soup.

These plant-based meat alternatives are crafted from soy and bear the “certified vegan” label.

“We continue launching plant-based products in many regions of the world to offer people tasty, nutritious alternatives to meat that they can enjoy with family and friends,” Torsten Pohl, Nestlé’s global head of R&D, said.

“Our new shelf-stable range also makes plant-based alternatives more accessible to a wider range of consumers in Chile. This makes them a delicious, excellent source of protein in many favourite recipes, for breakfast, lunch, or dinner.”

Nestlé currently offers refrigerated and frozen meat substitutes. Nonetheless, earlier this year, the company withdrew its Garden Gourmet meatless and Wunda alternative dairy brands from the retail market in the UK and Ireland. This strategic move aimed to prioritize its essential product range.

The brands were introduced in 2021. Garden Gourmet featured plant-based burgers, minced meat, and sausages, whereas Wunda offered a milk alternative derived from peas.

Nestlé has kept Garden Gourmet available for the UK’s foodservice sector and for distribution in various other European nations. Additionally, the company provides plant-based choices in the realms of beverages and confectionery.

In June of this year, Nestlé’s Israeli food division, Tivall, joined forces with More Foods, a vegan meat analogues producer based in Tel Aviv.

The exact nature of the partnership is unclear, although, in a joint statement, Tivall and More Foods said they would “create a portfolio of innovative, pumpkin seed, meaty products for main meals”.

The Swiss enterprise has also recently piloted ready-to-heat, shelf-stable plant-based meal kits in China that feature local recipes like Mala Xiang Guo and Curry Chicken.

Diageo breaks new ground with the release of alcohol-free Captain Morgan Spiced Gold rum

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September 1, 2023

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Diageo has introduced a non-alcoholic option for its Captain Morgan Spiced Gold rum, marking the inaugural addition of a dark spirit to the company’s collection of alcohol-free products.

Over the course of two years, Diageo’s innovation team has meticulously developed Captain Morgan Spiced Gold 0.0%, skillfully layering flavors that commence with indulgent hints of caramel, molasses, vanilla, and comforting brown spices.

Samori Gambrah, global brand director at Captain Morgan, commented, “With a resurgence of rum as a drink of choice and the global alcohol-free spirit market set to increase, Captain Morgan 0.0% is perfectly placed to not only meet growing demand but also give those looking to moderate their consumption a new alternative”.

Amanda Brown, liquid scientist at Diageo, added, “It’s been an exciting journey working on Diageo’s first alcohol-free dark spirit. When creating Captain Morgan 0.0%, we went through more than 400 recipes before we were able to capture the iconic rum and spice flavour of Captain Morgan Original Spiced Gold, but without the alcohol. Captain Morgan 0.0% has been created by layering flavours that deliver the complexity and depth that consumers know and love.”

The debut release is scheduled for September in the United Kingdom, followed by Estonia, Lithuania, and Latvia later this year. The expansion will continue across Europe in 2024. In the UK, Captain Morgan Spiced Gold 0.0% will soon grace the shelves of Waitrose, Morrisons, Sainsbury’s, Tesco, and other stores, priced at £15 as the recommended retail price.

Supermarket chain Les Mousquetaires expects prolonged high prices in France until March

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September 1, 2023

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The CEO of the supermarket chain Les Mousquetaires indicated on Wednesday that retail prices in France are unlikely to experience a significant decline until March. This statement aligns with a cautionary message from a competing group, which pointed out that French consumers are reducing their spending due to the elevated cost of living.

Thierry Cotillard, leading a group with over 3,000 stores in France, is one of the retail executives scheduled to meet with Finance Minister Bruno Le Maire on Wednesday. The agenda of the meeting revolves around deliberations on strategies to reduce prices.

Prior to the scheduled meeting, Cotillard conveyed to RTL radio that French shoppers had curtailed their supermarket purchases by approximately 5% in terms of quantities. They were also showing reduced interest in purchasing fresh items such as fish and meat. Cotillard further remarked that he foresees no positive changes in the overall pricing scenario until March.

“We are seeing more falls in the prices of raw materials than rises, we had oil and wheat and now paper. Retailers are passing on those falls to consumers with their own private label brands, but the law does not force national brands to renegotiate their prices. Some are playing ball but others don’t.”

The CEO of the French retail giant Carrefour issued a cautionary statement on Tuesday, highlighting that elevated prices have compelled consumers to make substantial reductions in their expenditures on essential commodities. The CEO also advocated for a postponement of a proposed law that seeks to limit the extent of promotional offers retailers can provide.

While Europe’s inflationary impact is subsiding, France is experiencing a milder decline in prices compared to numerous other countries. This divergence can be attributed to a notable rise in food-related inflation since March, following the annual price negotiations between retailers and producers.

The government is keen to steer food inflation, which surpassed the overall French inflation rate of 5.1% in July, toward a downward trajectory. There’s a sense of caution, as these elevated levels could potentially weaken the delicate state of consumer confidence.

Brown-Forman faces tough quarter with higher input costs and lower whiskey demand

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September 1, 2023

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Brown-Forman, the maker of Jack Daniel’s, experienced a quarterly earnings disappointment on Wednesday. This was primarily due to elevated input costs and lackluster demand for their more premium whiskey offerings like Woodford Reserve and Gentleman Jack in the U.S.

The company’s shares dipped by up to 6%, hitting a two-month nadir, because its first-quarter net sales also slightly missed the predictions set by analysts.

The spirits manufacturer faced the impact of elevated input expenses, encompassing agave, grains, and wood, all while shipment volumes in the United States dropped due to wholesalers reducing their inventories.

Not accounting for exceptional items, Brown-Forman generated earnings of 48 cents per share, falling short of the projected profit of 53 cents per share, according to data from Refinitiv.

During the quarter, advertising expenditures witnessed a 19% increase, and overall costs rose by 14%, compounded by the challenges posed by a challenging labor market.

Confronted with supply chain disruptions and elevated input costs that reached their pinnacle in the previous fiscal year, the company implemented a year-on-year price hike of 2% to 3% on its spirits.

During a post-earnings call, Brown-Forman attributed a 90-basis-point increase in gross margin for the quarter to a 250-basis-point advantage resulting from increased pricing, along with a reduction in supply-chain expenses.

In the quarter under review, distributor inventories, which represent the stock held by wholesalers, witnessed an 11% decrease in the United States. This reduction played a role in the company’s net sales in the country declining by 8%.

In the quarter, its net sales experienced a 3% increase, reaching $1.04 billion, slightly below the average estimate of analysts at $1.05 billion.

However, Brown-Forman restated its yearly objective of achieving organic net sales growth within the range of 5% to 7%. The company also expressed anticipation that demand patterns will return to a more balanced state following two years of robust expansion.

Swiggy to partner with banking and telecom firms for integrated subscription plans

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September 1, 2023

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Swiggy, a major player in the food tech industry, is partnering with banking and telecom firms to introduce bundled plans incorporating Swiggy One subscriptions. Under this initiative, Swiggy has launched Swiggy One Lite, a B2B solution, through which customers purchasing telecom subscriptions and banking products such as credit cards will now receive Swiggy One as an added benefit within their package.

Swiggy One extends a range of advantages to its users, including the exemption of delivery charges across its services like the food app, the quick commerce vertical Swiggy Instamart, the restaurant reservation feature DineOut, and the hyperlocal porter service Genie. The subscription for Swiggy One is priced at INR 1,299 for a three-month duration.

Sources indicate that the ‘Swiggy One Lite’ promotion is presently active in partnership with Axis Bank.

“We are constantly looking for ways in which consumers can experience the unparalleled benefits of Swiggy. Swiggy One is the country’s only membership program offering benefits across food, grocery, dining out and pick-up and drop services. We have now launched Swiggy One Lite, a B2B offering where we are working with several large brand partners in telecom, banking among others so that their customers can experience Swiggy with Swiggy One Lite,” said a Swiggy spokesperson.

“This will include benefits such as free deliveries on food and grocery orders and exciting offers across Swiggy’s many services. Brands can bundle the Swiggy One Lite membership with their own products delighting their customers with a valuable membership program,” the spokesperson added.

Furthermore, the company has introduced a jointly branded credit card in collaboration with HDFC Bank.

This comes at a time when Baron Capital, a US asset management company, has raised the value of its stake in Swiggy by 33.9 percent to $8.54 billion from the previous quarter.

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