Zomato shares maintain momentum, gain 1% following SVF block deal

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August 31, 2023

Shares of the foodtech giant Zomato extended their 5% rally from the prior day as the morning trade on Thursday (August 31) saw a 1% price increase. This uptick came after SVF Growth offloaded 10 crore equity shares in the company.

At 9:26 AM on the National Stock Exchange, Zomato shares were being traded at INR 100.7. Despite the initial positive movement, the company’s share price declined to INR 99.45 by 12:27 PM, just a bit below the closing price of the previous Wednesday.

To recap, SVF Growth concluded a bulk deal by divesting a 1.16% equity stake in Zomato at INR 94.7 per share on August 30th. This move led to earnings of INR 947 crore for the affiliate of SoftBank. In terms of its ownership, SVF Growth held 28.71 crore shares, constituting a 3.35% stake in the company as of June 2023.

As a result of Zomato’s acquisition of the quick commerce startup Blinkit in August of the previous year, SoftBank acquired a share in the company. Following the conclusion of the one-year lock-in period, the prominent Japanese investment entity commenced its withdrawal from the startup. Current indications from reports indicate that the Japanese technology giant is pursuing a full divestment from the foodtech giant.

Buyers in the transaction included Goldman Sachs Investments, Copthall Mauritius Investment Fund, BNP Paribas Arbitrage, Franklin Templeton Mutual Fund, Axis Mutual Fund, Kotak Mahindra Fund, Morgan Stanley Asia Singapore, and various other entities.

Throughout this year, the publicly listed food delivery behemoth has maintained a consistent upward trend. From the beginning of 2023, Zomato’s stock price has surged by 65% on the stock exchanges, surpassing the BSE and the NSE by a significant margin. The company’s shares recently achieved a fresh 52-week peak at INR 102.85, with frequent trading above the INR 100 milestone.

In the April-June quarter, the foodtech company also recorded a profit of INR 2 crore, in contrast to a loss of INR 250 crore during the corresponding period in the previous year. Additionally, there was a notable 70% year-on-year (YoY) growth in revenue, which reached INR 2,416 crore in the same timeframe.

Shifting gears to different developments, Tiger Global Management, another overseas investor in Zomato, divested its complete ownership stake of 1.44% in the company for INR 1,123.85 crore on August 28th. The shares were sold by Internet Fund III Pte Ltd through an open market transaction.

Lately, the foodtech firm has initiated the implementation of a platform fee for its customers, playing a pivotal role in bolstering its profitability. Zomato is imposing a fee ranging from INR 2 to 3 per order, contingent upon the specific city. This platform fee has been introduced initially to customers in Tier II and III towns.

After INR 100 Crore profit, SoftBank eyes full exit from Zomato

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August 31, 2023

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Japanese investor SoftBank is preparing to divest its entire holdings in the foodtech giant Zomato over the upcoming months, utilizing open market transactions. This strategic choice comes in the wake of SoftBank’s successful move earlier this week, where it reaped profits exceeding INR 100 Crore through the partial sale of its stake in the company.

According to a report by Moneycontrol, SoftBank is currently in possession of an additional 2.18% stake in Zomato, and the company is actively exploring the option of divesting this particular stake using block deals within the coming months.

At an average base price of INR 94.70 per share, SoftBank, the Japanese investor, successfully sold 10 Crore shares of Zomato. This stands in contrast to their initial acquisition cost of INR 83-85 per share. As a consequence, the per-share gains ranged between INR 10-12.

This move comes after the lock-in period for Blinkit investors concluded. These investors had obtained Zomato shares as a result of the foodtech giant’s acquisition of the quick commerce player. Notably, SoftBank, an investor in Blinkit, acquired a 3.35% stake in Zomato subsequent to the acquisition in the previous year.

As Zomato wasn’t SoftBank’s initial investment, the investor is inclined to not hold onto the stake in the company.

“For SoftBank, Zomato is just a monetary transaction, unlike Delhivery, Paytm or PB Fintech, which it entered as a direct strategic investor. So, it is looking at the deal only from a monetary perspective. It was waiting for Zomato to turn into a profitable bet and now that it has, it will look to exit the company fully as and when it gets opportunities,” the report added, quoting a source.

In August of the previous year, Zomato completed the acquisition of the quick-commerce player for INR 4,447 Crores. The shares obtained were subjected to a 12-month lock-in period. Apart from SoftBank, two additional VC firms, namely Peak XV and Tiger Global, also acquired Zomato shares through the Blinkit acquisition.

On Monday, investment firm Tiger Global concluded its involvement with Zomato by divesting 12.24 Crore shares, representing a 1.44% stake, through open market transactions. The shares were sold by Tiger Global’s Internet Fund III Pte Ltd in several segments, achieving an average share price of INR 91.01. The total value of these transactions, as per BSE bulk deal data, amounted to INR 1,123.84 Crores.

In the first quarter of the fiscal year 2023-24, Zomato recorded a consolidated profit after tax (PAT) of INR 2 Crore, marking a significant improvement from the net loss of INR 186 Crore reported in the same quarter of the previous fiscal year.

In the first quarter of the fiscal year 2023-24, the gross order value (GOV) of Zomato’s food delivery business amounted to INR 7,318 Crore, demonstrating growth compared to the INR 6,425 Crore recorded in the corresponding quarter of the previous fiscal year.

Sid’s Farm announces marginal price revision for premium A2 Buffalo Milk

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August 31, 2023

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Sid’s Farm, a premium D2C dairy brand based in Telangana, has announced a marginal revision in the retail price of its A2 Buffalo Milk. The amended pricing, set at INR 60 per 500 ml pouch, is slated to take effect on August 31, 2023, across the company’s app and other distribution channels. This adjustment will exclusively impact supplies starting from September 1, and it’s important to note that the cost of other product variants, as well as the cow milk offerings by the company, will remain unaffected by this decision.

The pricing of A2 Buffalo milk has been facing prolonged strain owing to the inadequate availability of buffalo milk, and there are no immediate indications of this pressure easing. Sid’s Farm has noticed a significant rise in the expenses associated with raw buffalo milk, partly due to the stringent quality criteria maintained by the company throughout the stages of milk sourcing and processing. Despite the considerable escalation in procurement costs, Sid’s Farm remains committed to restricting the upward adjustment of prices to the lowest feasible extent, all in consideration of its esteemed customers.

Dr. Kishore Indukuri, Founder of Sid’s Farm, acknowledged the prevailing inflationary challenges faced by the dairy industry this year. He said, ”While we empathize fully with our customers considering the little additional financial burden, we are certain that our quality conscious customers would understand our predicament and continue to support us in our continued efforts to supply only real unadulterated antibiotic-free milk to them. It may not be one of the best times for the industry considering the continued surges in raw milk prices, but we will certainly keep our standards intact with the several thousand tests that we conduct every day on our milk.”

A2 Buffalo milk boasts an abundance of A2 beta-casein protein and is devoid of A1 beta-casein protein, a combination that amplifies its nutritional benefits. Sid’s Farm’s A2 Buffalo Milk is endowed with elevated proportions of protein, fat, essential nutrients, and lactose. These attributes contribute to a sense of satiety, facilitating weight management and regulation of body fat.

Since 2016, Sid’s Farm has been at the forefront of championing pure and healthy milk and dairy products. The company ensures the highest quality of milk and dairy items through stringent regulations and rigorous testing protocols. To counteract the possibility of micro-level adulteration, detailed assessments for substances such as urea, sugar, glucose, starch, peroxide, baking soda, caustic soda, formalin, melamine, and three classes of antibiotics are conducted at every container/can level.

Moreover, Sid’s Farm maintains strict monitoring of milk’s fat and solids-not-fat (SNF) content, using the Methylene Blue Dye Reduction Test – a recognized gold standard for evaluating the quality of raw milk.

With a cutting-edge laboratory in place, the company performs more than 6,500 daily tests to guarantee that its clientele exclusively receives completely pure, untainted milk and dairy offerings. The company’s unwavering dedication to excellence is clearly reflected in its scrupulous focus on particulars and unending efforts to establish unparalleled standards within the sector.

Coca-Cola Africa appoints Sergio Vieira as new VP of Franchise Operations

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August 31, 2023

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Coca-Cola Africa has announced the appointment of Sergio Vieira as the new Vice President of Franchise Operations, South Africa. Joining the ranks at the Coca-Cola Africa Operating Unit (AOU) in Johannesburg, Vieira is set to bring his expertise and leadership to this pivotal role.

Vieira takes over from Phillipine Mtikitiki, who now serves as the Vice President of Franchise Operations, responsible for Italy and Albania.

Vieira is tasked with refining the company’s strategic orientation, fostering business growth and advancement, enhancing partnerships, and forging new connections throughout South Africa, Eswatini, and Lesotho.

Luisa Ortega, Africa Operating Unit president at Coca-Cola Africa, said, “Sergio has a critical role in creating a highly dynamic environment that drives high performance and in building the next generation of leaders. His experience and expertise are invaluable as we continue to grow and expand our operations, and we look forward to the contributions he will make to our company.”

With a career spanning more than two decades within the Coca-Cola system, Vieira became a part of Brazil’s bottler commercial team back in 2002. Transitioning in 2016, he assumed the position of Marketing Director at Coca-Cola Hellenic, Nigeria. One of his notable accomplishments includes receiving accolades for the top Growth Project in EMEA and the most outstanding Revenue Growth Management project on a global scale.

Vieira said, “I am thrilled with the appointment and with the move to South Africa with my family. The business in South Africa supports a strong brand portfolio, has a talented team, and an enviable reputation as a leader in FMCG. Coca-Cola in South Africa is well-positioned and has achieved significant strides, such as being certified as a top employer in the food and beverage category by the Top Employer Institute, strategically positioning it for far greater success in the future.”

Vieira holds a business bachelor’s degree from Brazil’s Universidade Federal de Pernambuco, with a focus on finance, marketing, and innovation.

SoSweet expands business portfolio, set to provide wholesale services to retailers

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August 31, 2023

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SoSweet, a confectionery retailer, has announced its plans to launch a wholesale venture. This initiative will grant convenience stores the opportunity to procure a wide array of products imported from both Europe and the Americas.

Presently, SoSweet runs 10 retail outlets catering to the public in the southwest of England, and there are intentions to establish additional locations within the upcoming year. The company’s achievements have been propelled by a diverse collection of over 250 items, including pick’n’mix, novelty, and international products. This inventory encompasses imports from the USA, Mexico, Turkey, and Spain.

According to SoSweet’s director, George Robinson, the achievements of the company have encouraged them to initiate a wholesale division. This new venture will extend the same products found in their retail stores to other retailers, all at “competitive prices”.

Robinson said, “Whether it’s convenience stores or other sweet shops, we’ve had thousands of enquiries that have built up from people wanting to purchase from us in a business-to-business format.

“It’s something in the pipeline. We’ve got a wholesale website built and ready to go. We’ve also got plans to offer an in-person wholesale shopping experience in North Devon, where we’re based, as there’s nothing else locally that can offer that. The opportunity is coming, but we want to make sure we can do it properly first.”

Minimum delivery terms and geographical coverage are still to be determined. Robinson said: “We’re retailers ourselves, and we know how to market and sell the products that customers will be offering. We’re already working with a logistics company, so we can offer a better service delivering to retailers rather than relying on standard couriers. We can work with haulers to do direct drops to specific areas and make sure customers receive their orders.”

Detailing the mechanics of the in-person shopping encounter, Robinson elaborated that both current and prospective customers would receive invitations to a warehouse. Here, they would have the opportunity to explore the company’s array of offerings and receive comprehensive product information. Following this, retailers can proceed to place their stock orders online for subsequent delivery.

Furthermore, the company has garnered a substantial following on the social media platform TikTok, leveraging videos and product sales within the platform’s consumer marketplace. Robinson mentioned that the company intends to leverage its expertise to assist stores in enhancing their TikTok profiles as well.

He added, “I’d like to think we can offer more services and help retailers sell more of our products through marketing on social media.”

When questioned about the company’s most popular products, Robinson pointed out a selection of items, including US-imported beverages like Fanta, Dr Pepper, Mountain Dew, along with snacks like Cheetos and Takis. He also highlighted products sourced from Mexico.

Indian sweet makers assure no major price hikes amid festive season

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August 31, 2023

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Laddoos infused with ghee, soft rasgulas, chickpea flour burfis, and various other traditional sweets play a vital role during the festive period. Despite a rise in the costs of key kitchen ingredients, leading players in the sweets and snacks market like Bikanerwala, Bikaji Foods, and Haldiram’s have assured that these treats won’t excessively burden consumers’ wallets.

“This time in all likelihood prices would be in line with last year, hardly any increase,” said Manoj Verma, Chief Operating Officer at Bikaji Foods International.

Despite the prevailing high levels of food inflation, there is a silver lining for the prices of essential ingredients used in crafting traditional Indian sweets. This is expected to contribute to price stability, according to his statement. Notably, certain crucial components like dry fruits have experienced a 10-12% increase in price compared to the previous year. However, palm oil, a widely utilized frying medium during festivities, has seen a reduction in cost compared to the prior year. This factor serves as a dual benefit for both confectioners and consumers. Additionally, the price of another vital ingredient, milk, has remained consistent in the wholesale market. This stability has a positive impact on the affordability of other significant dairy products like mawa, chena, and ghee.

There has been only a slight increase in the price of sugar. Data from the Ministry of Consumer Affairs reveals that the wholesale sugar price has risen by 3.63% as of August 29, in comparison to the previous year.

Sweet manufacturers intend to absorb any minor rise in the expenses tied to their products, granting consumers some relief during the bustling festive season. This period, commencing with Onam and Rakshabandhan in August and extending through to Christmas in December, is marked as one of the most celebrated festival stretches.

“Despite industry challenges, we affirm our consumer-centric stance by opting not to implement any price hikes this year,” said Pankaj Agarwal, chief operating officer at Group Bikano, Bikanervala Foods.

German confectionery giant Katjes acquires 50% stake in Fairtrade chocolate start-up Jokolade

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August 31, 2023

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Katjes, a prominent confectionery company from Germany, has successfully obtained a 50% ownership stake in Schoko Winterscheidt, a domestic counterpart recognized as Jokolade.

Previously, Joko Winterscheidt, a German TV presenter, producer, and actor, exclusively held ownership of Jokolade, a company located in close proximity to Munich.

Katjes has stated that the objective of this deal is to enhance its presence within the chocolate industry, aiming to “guarantee enjoyment on the chocolate aisle” as they pursue further expansion.

Specifics regarding the financial aspects of the agreement have not been revealed.

Tobias Bachmüller, managing shareholder at Katjes, said, “We see it as an exciting task and a great pleasure to be able to shake up the largest and growing segment of confectionery, the chocolate market, with a lot of fun together with Joko Winterscheidt and the Jokolade team.”

“Joko should play the central role,” said Katjes.

Jokolade offers a range of five distinct chocolate bars in its portfolio. The company is committed to utilizing Fairtrade ingredients, aligning with their significant mission of achieving “100% slave-free chocolate.”

“It is a great pleasure to welcome Katjes as a partner at Jokolade,” said Winterscheidt.

“For me, the company stands for fun and responsibility. By now it should be clear to everyone that Jokolade is not a marketing gimmick that bears my name, but that it really wants to and will change something.”

In collaboration with prominent chocolate supplier Barry Callebaut, the company has established a cooperative agreement. This partnership is associated with Tony’s Chocolonely’s ethical chocolate enterprise from the Netherlands and their initiative called Tony’s Chocolonely Open Chain. Jokolade has referred to this initiative as “one of the most transparent and equitable methods for cocoa trade.”

“All cocoa beans from Tony’s Open Chain are traceable to the partner cooperatives in Ghana and Ivory Coast. Jokolade also pays a surcharge on top of the Fairtrade premium to close the gap to the Fairtrade reference price and thus create a living income for cocoa farmers,” said the company’s website.

“In addition, the open chain strengthens cocoa farmers through long-term cooperation, [provides] support in setting up professional cooperatives and programs to increase quality and productivity.”

Jokolade’s products are available for purchase at various German retailers, including Rewe, Müller, Rossmann, Budni, Famila, and Billa Plus, as well as through the company’s official online platform.

In May of this year, Katjesgreenfood, the venture capital division of the Katjes Group, procured an ownership share of approximately 10% in Mymuesli, a German provider of personalized muesli products.

In 2022, the company also acquired Paluani, an Italian firm renowned for crafting panettone and pandoro.

Pernod Ricard implements organizational revamp to bolster efficiency and global market agility

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August 31, 2023

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Pernod Ricard has implemented organizational adjustments with the aim of enhancing efficiency and enabling swifter decision-making, reflecting the aspirations of the owner of Jameson whiskey.

The French wine-and-spirits conglomerate, set to release its annual financial results on August 31st, has reorganized its executive team structure and refined its approach to categorizing its geographical divisions.

Pernod Ricard stated that these adjustments would not only enhance overall efficiency within the company but also foster a heightened closeness and responsiveness to the rapidly evolving global market.

The firm, which also encompasses brands like Beefeater gin and Mumm Champagne, is substituting its executive board with a nine-member executive committee.

Among its fresh members, the committee will feature Ann Mukherjee, the CEO of North America, collaborating with group chairman and CEO Alexandre Ricard to steer the company’s operations.

Philippe Guettat, currently serving as the chairman and CEO of Pernod Ricard Asia, and Gilles Bogaert, who presently holds identical positions for the company’s EMEA/LatAm division, will assume new positions within the committee. Guettat will take on the role of executive vice president for global brands, while Bogaert’s new responsibility will be as executive vice president for global markets.

Maria Pia De Caro, Pernod Ricard’s global director of operations, joins the executive committee as another fresh addition. She became part of the company at the beginning of the year, transitioning from her previous role at frozen-food group Nomad Foods.

Pernod Ricard has restructured its approach to geographical management as well. The regional divisions encompassing Asia and EMEA/LatAm have been eliminated, a move aimed at expediting execution and decision-making across all levels of the organization, as stated by the company.

The group has decided to place all its markets into ten “management entities, ensuring critical scale and fostering mutualisation”.

Mr Ricard, who has been at the helm since 2015, said, “In an increasingly complex and volatile environment, I am confident our new organisation will allow us to successfully move to a new stage of sustainable, stretched, and profitable growth, benefiting to all our stakeholders.”

Christian Porta, a seasoned Pernod Ricard veteran with over thirty years of service, is stepping into retirement. His recent role was as the managing director overseeing global business development.

Asked about the overall impact on jobs, a spokesperson added, “The idea is to adapt our governance. The removal of the two small entities in terms of headcount of Pernod Ricard LatAm and Asia is not material. It is not a financial cost exercise. The aim is to support the group’s ambition with a simplified organisation, to align structures and accountabilities across all functions.”

UK food and drink industry faces £1.4 Billion loss in past year due to severe labor shortages, reports FDF

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August 31, 2023

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A recent report indicates that the UK food and drink industry has incurred an approximate loss of £1.4 billion in the past year due to labor shortages, resulting in reduced output.

According to the State of Industry report by the Food and Drink Federation (FDF), the cost over the past year, specifically during the last quarter from July 2022, has reached £192 million.

The Food and Drink Federation (FDF) reports that the UK’s largest manufacturing sector is the food and drink industry, and it has consistently maintained higher vacancy rates compared to the broader manufacturing sector.

Approximately 57% of food and drink manufacturers exhibit vacancy rates of around 5%. Among these, mid-sized enterprises with a turnover ranging from £26 million to £500 million are disproportionately affected by the shortages. Roughly half of these businesses report vacancy rates reaching up to 10%, nearly three times higher than the national average. Vacancy rates indicate the proportion of unfilled positions within an organization during a specified time frame.

Vacant positions persistently impact a diverse array of roles within the sector, including project engineers, scientists, laboratory technologists, and plant engineering technicians. This is largely because potential recruits frequently disregard opportunities within the food manufacturing industry.

The Independent Review on Labour Shortages, published by the Department for Environment, Food & Rural Affairs (DEFRA) in June, will receive a response from the UK government in the upcoming autumn. This review examined the obstacles encountered by food and farming enterprises in their efforts to secure and maintain an adequate workforce. In anticipation of this response, food establishments are urging the government to endorse the ten recommendations presented in the review. These recommendations include actions like “Reforming the Apprenticeship Levy” and “Enhancing Access to Migrant Labour.”

FDF director for growth, Balwinder Dhoot, said, “Significant labour shortages have cost businesses £1.4 billion over the last year, with companies being forced to leave vacancies unfilled and reduce production – all of which contributes to rising wage bills, higher prices and stifles growth, which is vital for a strong economy”.

“Investment is essential if we are to build a sustainable and resilient food supply chain which supports the economy and feeds the nation. Our members are unable to expand their operations, principally because they haven’t got the staff. We need government to work with the industry to implement all ten recommendations in the Independent Review into Labour Shortages and to deliver the Prime Minister’s commitment to grow the economy,” he added.

Mumbaikars immerse themselves in culinary excellence at ‘Wonderchef Kitchen Queen’ event with Chef Sanjeev Kapoor

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August 31, 2023

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In a recent happening, Mumbai bore witness to a truly unique culinary event named ‘Wonderchef Kitchen Queen.’ The event drew a crowd of more than 300 home chefs and food aficionados at Infiniti Mall. Attendees spanning various age groups and hailing from different corners of the city showcased their distinct, health-conscious festive dishes. These culinary creations were presented to none other than the renowned Celebrity Chef Sanjeev Kapoor, who undertook the role of judging this exceptional showcase.

The cooking competition known as ‘Wonderchef Kitchen Queen,’ orchestrated by the esteemed kitchen appliances brand Wonderchef, witnessed a remarkable gathering of home chefs. All of them competed fervently for the esteemed title by showcasing their culinary innovations, employing modern methods like air-frying, baking, and steaming. The air was filled with excitement as Chef Sanjeev Kapoor, joined by the Wonderchef experts, meticulously tasted and evaluated each pre-prepared dish. Their judgment criteria encompassed crucial aspects including healthiness, flavor, ingenuity, and visual appeal.

The contest presented a magnificent exhibition of culinary craftsmanship, and the coveted title of ‘Wonderchef Kitchen Queen’ was bestowed upon Mrs. Vaishali Poojari. Her creation, the Steamed Modak, perfectly embodied the fusion of health-consciousness and delightful flavors. Following closely, Mrs. Divya Gupta claimed the runner-up spot, astonishing the judges with her adept crafting of cakes and cookies — a true testament to her culinary inventiveness and expertise.

Reflecting on the event, Chef Sanjeev Kapoor said, “The ‘Wonderchef Kitchen Queen’ cooking contest showcased the remarkable culinary talents of our participants. It was inspiring to witness their dedication to both health and innovation, which are the two essential aspects of modern cooking.”

The crowned winner, Mrs. Poojari, while expressing her elation, said, “Participating in ‘Wonderchef Kitchen Queen’ has been a personal milestone for me. Chef Sanjeev Kapoor’s feedback has inspired my culinary passion and drive.”

Beyond his position as the astute evaluator, Chef Sanjeev Kapoor generously shared his priceless wisdom and individualized advice with the participants. This mentorship facet underscored the event’s dedication to nurturing culinary zeal and advocating for healthful cooking techniques.

Central to the event was the commemoration of health-conscious home cooking, a principle that echoed through every dish showcased. The evaluation standards covered Health Quotient, Flavor, Originality, and Display, mirroring the participants’ commitment to creating dishes that not only satisfied taste buds but also aligned with mindful culinary approaches.

Founded in 2009 by serial entrepreneur Mr. Ravi Saxena and Chef Sanjeev Kapoor, Wonderchef stands as the forefront brand in top-notch cookware and high-end kitchen appliances, empowering individuals to effortlessly prepare nutritious and delectable meals. Boasting a diverse portfolio of more than 600 products, Wonderchef’s influence spans across every corner of the nation, facilitated by a robust omnichannel distribution system that includes the engagement of over 70,000 women entrepreneurs, 25 exclusive brand outlets, and a presence in excess of 12,000 retail establishments. The brand’s global presence is on an upward trajectory, spanning around 25 countries across five continents.

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