Dunzo’s dark store operations grind to a halt as off-roll employees demand July salaries

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August 16, 2023

Cash-strapped Dunzo, a quick commerce start-up, is now confronted with an additional obstacle. Off-roll employees at the company’s dark stores in Bengaluru have ceased operations following a delay in receiving their July salaries, sources reveal.

The issue began to simmer at the beginning of the week when a number of off-roll workers in the city suspended their tasks, insisting on receiving their salaries for the month of July.

Mainly responsible for packing groceries and delivering them to assigned partners in Dunzo Daily service, the off-roll employees play a key role in the process.

“There have been nearly 70 off-roll employees of the dark stores whose salaries have also not been released,” said one of the sources on the condition of anonymity.

“We have built a hybrid network of stores for Dunzo Daily, which is a combination of dark stores and partner stores. This network is dynamic and continues to evolve. Where it makes business sense for us to have partner stores, we will switch to that model. We are live in more than 95 per cent of our geos in Bengaluru, except in a couple of areas where we are transitioning to partner stores. We should be operational in these areas soon,” said a Dunzo spokesperson.

The company, headquartered in Bengaluru, now operates dark stores in just a few locations, all within its home market of Bengaluru. This number has significantly decreased from its previous count of around 250 stores spread across the nation.

“Dunzo had nearly 250 stores all over the country, but right now it has come down to single digits,” said another source.

This development arises amidst the financial challenges confronting the quick-commerce entity, which has implemented cost-cutting measures including the layoff of approximately 300 employees.

In the previous month, SnackFax had disclosed that the company had postponed salary payments for both its current and former employees until September 4. Additionally, the company has shifted its focus from business-to-consumer to business-to-business operations, with the introduction of Dunzo for Business.

Also Read: Dunzo4Business to e xtend operations, eyes entry into 10-15 new cities in the coming months

In its most recent funding round, Dunzo secured $75 million through convertible notes, with participation from its current investors, Google and Reliance Retail.

According to market intelligence firm Tracxn, Reliance Retail, the company’s largest shareholder, possesses approximately 25.56 percent ownership, while Google holds around 18.53 percent of the shares.

As of May 2022, Dunzo held a valuation of $757 million and has accumulated $497 million in equity investments up to the present, according to data from Tracxn.

Scanty rainfall devastates cardamom production, prices poised to skyrocket to record levels

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August 16, 2023

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The prices of cardamom are skyrocketing to unprecedented heights due to the significant lack of rainfall causing turmoil in the Idukki district of Kerala. This region is the primary hub for cardamom cultivation in the country.

On average, prices have surged twofold to approximately INR 2,000 per kilogram compared to a couple of months earlier. The highest price for top-tier quality has surged to around INR 3,000 per kilogram. This scenario harks back to a situation four years ago, during which average prices exceeded INR 4,000 per kilogram, and the peak price soared to INR 7,000 per kilogram due to the absence of the south-west monsoon rains.

Reports indicate that rainfall in various regions of the Idukki district, the central area for cardamom cultivation, has fallen short by 30 to 50 percent up to this point.

“The harvest began towards the end of last month and the production looks to be 30 to 40 percent short because of poor rainfall from June. If it rains towards the end of this month or in September, we may get some good crop by December, but the current damage cannot be set right,” said K K Saseendra Babu, MD of Vandanmedu Green Gold Cardamom Producer Co. Ltd.

He estimates that the overall cardamom output in the nation might decrease to approximately 15,000 tonnes, down from the 25,000 tonnes recorded last year. The reduced quantity of leftover stock has also played a role in propelling the surge in prices.

Currently, consumption is subdued, and considering the prevailing prices, it remains uncertain whether there will be an uptick as the festival season commences after September. The peak of domestic sales typically occurs during the Durga Puja-Diwali period. The restrained demand might curtail the escalation of cardamom prices until the festival season initiates.

“The pattern of consumption has changed after the Covid pandemic. The market has become price sensitive, and the demand is for cheaper, lower quality cardamom. The total annual domestic consumption could have fallen to 25,000 tonnes from around 35,000 tonnes,” Babu said.

While the prices offer profitable returns for the cultivators, they are unable to capitalize on this opportunity due to the scarcity of remaining stock. Since prices reached unprecedented heights in 2019, cardamom cultivation has expanded to encompass additional areas within the Idukki district as well as in Tamil Nadu. Large-scale curry masala producers, who purchase in bulk, procured a certain quantity when prices were lower.

Over the past three years, cardamom prices have maintained an average of approximately INR 1,000 per kilogram. Considering the increase in production costs, growers can only experience profits if the prices exceed INR 1,200 per kilogram.

“Apart from the decline in consumption there is also the risk of Guatemalan cardamom entering the Indian market towards the end of the year, which could impact domestic prices” pointed out P C Punnoose, CEO of Kerala Cardamom Processing & Marketing Co. Ltd. Gautemala is the biggest cardamom producer in the world and last year the country’s production was higher at around 45,000 tonnes, which helped it to dominate the export market

Guatemalan harvest usually begins around October.

India’s cardamom exports also experienced a decrease in the previous year due to the dominance of Guatemalan cardamom in the market. The cardamom exports during the year 2022-23 witnessed a decline of 30 percent in quantity, amounting to 7,352 tonnes, along with a year-on-year decrease of 36 percent in earnings, totaling INR 875 crore. In the preceding year, 2021-22, cardamom exports had achieved a remarkable high, with a quantity of 10,572 tonnes valued at INR 1,375 crore.

“Importers in Kuwait and Saudi Arabia are asking why India has suddenly increased the price. The prices are around $ 31 per kg. Even at $19 per kg earlier, we were not finding too many takers in the world market,” said Nithyanandan, partner of SPG Ramaswamy Nadar and Sons, a leading exporter.

After October, when Guatemala enters the global market, it will likely offer cardamom at a more affordable price compared to India. As a result, India might face the risk of losing its position in the Gulf market, which is a significant buyer of cardamom, to Guatemala.

Moreover, a lack of monsoon rains might elevate cardamom prices to even higher levels, impacting both domestic consumption and exports.

Kraft Heinz appoints Carlos Abrams-Rivera as new CEO in leadership transition

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August 16, 2023

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Carlos Abrams-Rivera is slated to become the Chief Executive Officer of the Kraft Heinz Co. starting from January 1, 2024. In this role, he will succeed Miguel Patricio, who has been serving as the CEO since 2019. Come January, Miguel Patricio will be transitioning to the role of Non-Executive Chair of the board, marking a significant shift in leadership within the company.

Mr. Abrams-Rivera will maintain his position as president of the North America Zone until the start of the upcoming year. Additionally, he will assume the expanded duties of being the president of the entire company.

“Carlos is the best person to lead the next phase of the company’s transformation,” Mr. Patricio said. “His strategic and innovative mindset is ideal to continue to propel Kraft Heinz forward on our path to greatness.

“Since joining Kraft Heinz in 2020, he has consistently delivered strong results in the North American retail and Away From Home businesses. Carlos’ experience in both developed and emerging markets complements our ambition for growth.”

Jack Pope, lead director of the Kraft Heinz board of directors, added, “The transition from Miguel to Carlos reflects the board’s thoughtful succession planning, and we are confident that the company will continue to accelerate growth with Carlos assuming the role of CEO. He is an experienced leader with a long tenure in the food and beverage industry who has shown consistency and excellence in execution.”

Arcadia Biosciences explores acquisition and merger opportunities after strong Q2 performance

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August 16, 2023

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Arcadia Biosciences, a food and beverage group, has indicated the possibility of pursuing an acquisition or merger with the US company.

During an earnings call to review second-quarter results, the proprietor of GoodWheat pasta and Zola coconut water deliberated the prospect of a potential acquisition of the company.

Last month, Arcadia Biosciences revealed the initiation of a comprehensive evaluation of the company’s strategies, with a primary aim of optimizing long-term value for its shareholders. To aid in this endeavor, the company has enlisted the services of Minneapolis-based investment bank, Lake Street Capital Markets. This collaboration will involve a thorough exploration of strategic possibilities, encompassing potential avenues such as acquisitions, company divestiture, mergers, asset sales, joint ventures, licensing agreements, or capital augmentation.

CEO Stan Jacot said during the call, “As we had mentioned previously, our strategic plan calls for an acquisition that would allow us to bring the GoodWheat value proposition to an existing brand in a new wheat-based category.

“There are many categories in the grocery aisle where our proprietary wheat can provide significant differentiation, and we believe there is a tremendous opportunity to scale our business faster by purchasing an existing brand in a different category that already has broad shelf placement and established distribution.

“While we have narrowed the field of target acquisitions, we have also received several inquiries from parties interested in a larger merger, so we feel that this is the right time to explore the myriad of options with an objective banking partner, especially after closing of the second quarter of 2023 in an excellent cash position,” he added.

Jacot further stated the company’s objective to secure placement for GoodWheat in 3,000 retail stores by year’s end.

In the upcoming quarter, Arcadia Biosciences plans to implement price reductions for GoodWheat pasta as part of its strategy to maintain competitiveness.

Jacot said margins are likely to slide slightly, “It just is going to be kind of more like mid- to low-20s versus mid- to high-20s.”

The company is to wind down its SoulSpring CBD and ProVault recovery brands to focus on GoodWheat and Zola.

Arcadia Biosciences reported revenues of $1.4m for the quarter, down 64% on the previous year’s $3.9m. A year earlier, revenues included sales of GoodWheat grain and body care products that no longer are part of Arcadia’s portfolio.

However, the California-based company had net income of $823,000 this quarter compared to a net loss of $3.9m in the second quarter of 2022.

Over the first six months of the fiscal year, Arcadia sustained a net loss of $8.6m, which compared to a net loss of $8.3m in the corresponding period a year earlier. Six-month revenues of $2.9m were down 59% from $7.1m.

Burger King India hits 400 store milestone, continues expansion

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August 16, 2023

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US-based Burger King has marked a notable milestone in India by unveiling its 400th outlet in the country, according to an announcement by the company.

In a social media update, Restaurant Brands Asia, the operator of Burger King franchises in India, a prominent quick service restaurant (QSR) company, shared that they have successfully launched their 400th store in Siliguri, West Bengal. This achievement comes after nine years of the company’s operations in India.

“Today, we are elated to announce the 400th Burger King restaurant in India. As we mark this important milestone, we can proudly say that we’re just getting started,” said Restaurant Brands Asia in a LinkedIn post while sharing the visuals of the new store.

Established in 2013 through a collaboration between real estate investment firm Everstone Capital and Burger King Corporation, Restaurant Brands Asia, previously recognized as Burger King India Ltd, holds the role of the master franchisee for Burger King across India and Indonesia. The primary objective behind its inception was to introduce Burger King restaurants to the Indian market.

In 2014, Burger King initiated its presence in India with the inauguration of its inaugural restaurant at Select Citywalk Mall, New Delhi. The Miami-headquartered quick-service restaurant (QSR) chain accomplished a significant feat by establishing its 100th outlet in Jalandhar in 2017. Following this achievement, the company reached another milestone in 2019, proudly announcing the opening of its 200th store. Demonstrating its versatility, Burger King introduced the BK cafe format in 2021 with the launch of BK cafe at Churchgate, Mumbai.

Established in 1953 under the name Insta-Burger King, this restaurant chain originated in Florida. However, due to financial challenges faced by Insta-Burger King in 1954, its acquisition was undertaken by David Edgerton and James McLamore, franchisees based in Miami. Subsequently, the company was rebranded as ‘Burger King’.

Lately, several quick-service restaurant (QSR) enterprises have been celebrating significant achievements in their retail expansion endeavors throughout the nation.

This month, American fast food restaurant chain Wendy’s, operated by cloud kitchen operator Rebel Foods launched its 100th outlet in India in Ahmedabad, Gujarat.

A week ago, Culinary Brands celebrated a remarkable achievement as the sandwich chain Subway, under its management in India, reached a milestone by inaugurating its 200th COCO (company-owned company-operated) store across the country.

During the month of July 2023, Pizza Hut, the American pizza restaurant chain, which is overseen by Sapphire Foods India Ltd – a franchisee operator under Yum! Brands responsible for managing KFC, Pizza Hut, and Taco Bell establishments across India, Sri Lanka, and the Maldives – celebrated the inauguration of its 300th store in India.

Artistry meets gastronomy: Cumulus by SMOOR elevates dining at The Museum of Art & Photography in Bengaluru

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August 16, 2023

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The Bengaluru Museum of Art & Photography (MAP) now presents Cumulus, an outdoor culinary experience in collaboration with SMOOR, seamlessly blending the realms of art and gastronomy.

Enhancing the cultural fabric of MAP, Cumulus emerges as a refined al-fresco dining destination nestled against the picturesque panorama of central Bengaluru. With the commitment to heighten patrons’ senses, Cumulus embarks on a voyage of taste and creative stimulation, becoming a distinctive thread in the museum’s narrative.

Derived from the ethereal expanse of the skies, Cumulus seamlessly fuses the allure of digital ingenuity with the magnificence of the culinary realm. Much like MAP’s extensive collection finds its home in the cloud, Cumulus presents a captivating array of delectable dishes, each possessing its own distinct and delightful essence.

“At Cumulus, we strive to create a symphony of flavours where art and cuisine come together. Every eating experience is an extraordinary work of art because of our combination of lovely flavours and textures that reflect the brilliance of the treasures on display at the Museum of Photography. We sincerely hope that the diners genuinely love what we have to offer as much as we enjoyed bringing the restaurant to life,” shared Vimal Sharma, Founder-Director & CEO, SMOOR.

Within Cumulus’ menu, an orchestrated fusion of Continental and Asian culinary traditions takes center stage. Meticulously curated, each dish harmoniously unites to create an amalgamation of exquisite flavors that accumulate into a delightful symphony for the palate.

Abhishek Poddar, Founder-Trustee at the Museum of Art & Photography, added, “Cumulus represents the seamless union of two passions – art and culinary excellence. We invite you to partake in an exceptional dining experience in the centre of MAP with SMOOR, where the canvas of flavours and the clouds above combine art and creativity.”

Foreign liquor brands gain ground in Uttar Pradesh as imported offerings soar; local breweries face stiff competition

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August 16, 2023

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Alcohol enthusiasts in Uttar Pradesh are increasingly favoring international brands, as a multitude of foreign companies are eagerly vying for the attention of patrons seeking alcoholic beverages within the state.

In the current fiscal year, the tally of registered liquor brands in the state has surged to 3,854, marking the highest count to date.

According to an official spokesperson, the government recorded the registration of 3,106 distinct alcoholic products in the preceding fiscal year.

As foreign liquor brands (including whisky, vodka, rum, and gin) continue to establish a stronger presence in the retail sector, local premium brands are encountering robust competition. The count of imported overseas liquor brands offered in Uttar Pradesh has surged from 199 in the previous fiscal year to 573 in the current period.

Likewise, producers of non-Indian wines have expanded their product offerings, and foreign beer manufacturers have also diversified their selections.

Over the span of a year, the quantity of imported wine and beer products has risen from 305 to 445 and from 34 to 41, respectively.

Officials have attributed the enhanced situation, characterized by a broader array of choices for end consumers, to the fortification and adaptability of the annual excise policy.

“We also have the full support of the state government to implement measures that improve the ease of doing business,” said excise commissioner Senthil C. Pandian.

The excise department also achieved elevated revenues by facilitating a greater number of brand registrations, resulting in a year-over-year (YoY) revenue escalation from INR 18.12 crore to INR 20.92 crore.

With the aim of enticing a higher influx of international enterprises, the department opted to eliminate the prerequisite mandating foreign brand registrants in Uttar Pradesh to provide an authorization letter from the principal importer.

“Till March 31, 2023 an individual or entity interested in marketing a foreign brand had to approach the principal exporter to authorise him/her to sell the product in UP. It was a pointless exercise which made no sense and was struck down. Anybody having ‘imported liquor – bottled in origin licence’ could register the brand. That is why we see a sudden rush of foreign brands this year,” said the officer.

The proliferation of hard liquor brands appears to have impacted the demand for brews, presenting challenges that beer manufacturers must now navigate.

Spokesperson of AB InBev India, the company owning beer brands, said, “During the last few years, industry-friendly rationalisation of excise tax slabs has fuelled the growth of the beer industry in the state. However, the growth of the beer industry recently has not been in line with the growth of country liquor and hard spirits in Uttar Pradesh. Duty increase on beer earlier this year along with certain technical issues on the excise portal last month, led to the surge in consumption of country liquor and hard spirits nudging consumers towards high alcohol strength beverages.”

The beer industry experienced a reduction in volume during the summer months, attributed to elevated taxes and adverse weather conditions in April.

SmartSoda ventures into functional RTD market with innovative drinks

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August 16, 2023

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SmartSoda has made its foray into the ready-to-drink market with the introduction of the Brilliant Life Drink.

The Brilliant Life Drink series by SmartSoda presents vitamin-enriched alkaline water, offered in three distinct varieties: Brilliant Sparkling Water, Optimize Plus Immunity, and Quantum Energy and Focus.

Within the Brilliant Sparkling Water range, you’ll find an array of three flavors: Wild Passionberry, Limone Dream, and Bright Citrus Sunshine. In contrast, the Optimize Plus Immunity collection, meticulously crafted to bolster daily immune activities through ingredients like zinc, turmeric, ginger, magnesium, and elderberry, boasts three unique flavors: Yuzu-Currant Noir, Posh Gran-Limone, and Pomelo Breeze.

Quantum, enriched with l-theanine for a natural energy boost and complemented by ginseng, guayusa, and guarana for heightened concentration, offers a selection of flavors such as Peachberry Lust, Lush Berry, and Blackcurrant Affair.

SmartSoda’s CEO, Lior Shafir, said, “Today marks an exciting milestone in our journey to redefine the wellness beverage category with the launch of our Brilliant Life Drink. Now you can enjoy SmartSoda both in the office and on the go”.

SmartSoda’s VP of business development, Alex Garson, added, “Over the past two years, we made it our mission to perfect a sparkling, functional beverage that was crafted with clean ingredients, didn’t sacrifice taste and delivered on health benefits. We analysed the market to develop a beverage that stays true to SmartSoda standards and meets consumers’ demands for a better functional beverage option.”

The SmartSoda Brilliant Life Drink will be accessible on Amazon and various foodservice distribution channels starting this upcoming autumn.

Annapurna Food Packet Scheme launched by Rajasthan CM on Independence Day

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August 16, 2023

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On Tuesday, which marked Independence Day, Ashok Gehlot, the Chief Minister of Rajasthan, inaugurated the Annapurna Food Packet Scheme initiated by the state government.

Referring to his government’s public welfare schemes, Gehlot said these are not freebies (Revdi) and are being implemented with “excellent” financial management.

He said, “My announcements are not just announcements, I have done what I have said.”

During the event, Gehlot also handed out Annapurna Food Packets to a selection of beneficiaries.

Food and Civil Supplies Minister Pratap Singh Khachariyawas and Congress state president Govind Singh Dotasra were also present on the occasion.

Every package under this initiative will comprise chickpea lentils, sugar, salt, cooking oil, red chili powder, coriander powder, and turmeric powder. Providing these food parcels to recipients at an estimated cost of approximately INR 370 per package (covering all expenditures) would lead to a monthly outlay of around INR 392 crore.

This scheme is part of Chief Minister Gehlot’s INR 19,000 crore “Inflation Relief Package”, which was announced by him to provide relief to the public from the burden of inflation.

With increased supplies, tomato prices in Uttar Pradesh fall to INR 100/kg

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August 16, 2023

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With the recent influx of new tomato supplies from Himachal Pradesh and Madhya Pradesh, the tomato prices in Lucknow have experienced a substantial decline.

In the past five days, prices have sharply decreased from INR 180 per kilogram to a range of INR 100-120 per kilogram in retail markets.

Traders anticipate a further decrease in prices within the upcoming 15 days.

According to traders, Himachal Pradesh, a significant provider to northern markets such as Uttar Pradesh, witnessed a notable surge in tomato production, escalating from 2,000 metric tonnes to 26,000 metric tonnes in August. This surge in supply resulted in a reduction in prices.

From August to October, there are expectations of substantial increases in tomato production from states such as Karnataka, Maharashtra, Andhra Pradesh, Tamil Nadu, Telangana, and Madhya Pradesh.

A wholesaler on Sitapur Road said, “Wholesale tomato price has fallen from INR 180 to INR 60 per kg in the last five days. With the arrival of Maharashtra’s crop, prices are expected to fall further. However, some retailers are still selling it at INR 120 per kg.”

Another dealer, Sonu Sonkar, said they are daily receiving 13 truckloads of tomatoes again, which had gone down to three per day in July.

Wholesalers at Dubagga Mandi said, “Many had stopped buying tomatoes due to high prices, but now the kitchen staple will be back in demand. We are expecting that by the end of the month, tomatoes will be sold at INR 60 per kg in retail.”

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