On Friday, Tesco, the supermarket conglomerate, announced its intention to decrease the presence of branded products in crucial product categories within its convenience stores. This move comes in response to financially strained individuals in Britain showing a growing preference for more affordable store-brand options.
As the cost-of-living crisis enters its second year, Britons are actively searching for ways to save money and navigate the challenging financial situation.
Industry data reveals that UK consumers encountered a persistent grocery inflation rate of 14.9% in July. Additionally, they have been contending with a series of 14 consecutive interest rate hikes since December 2021.
Tesco, the largest food retailer in the UK, has announced a comprehensive revamp in its network of over 2,000 Express convenience stores. This initiative involves substituting more than 50 essential everyday products with more affordable alternatives, a significant portion of which will be from the store’s own-brand range. Some of these replacements will be priced at less than one-third of the cost of the products they are replacing.
“The move comes in response to the supermarket’s internal shopping data, which shows that price-conscious customers are increasingly turning to own-brand products,” Tesco said.
Data released by market researchers NIQ in May 2023 revealed that sales of store-brand products in British supermarkets have surged at a rate twice as fast as that of branded goods.
As part of the new range of store-brand products, Tesco will introduce its penne pasta priced at 85 pence ($1.08) and smooth peanut butter priced at 1.85 pounds. These items will be available at half the cost of the previous branded alternatives previously stocked.
Likewise, bags of Tesco frozen garden peas will be priced at 1.65 pounds, offering an almost 40% reduction in cost compared to the branded product they are replacing.
Tesco said the new products will be delivered to stores in the next two weeks, with the change-over complete by the end of August.
In June, Tesco said Britain’s food inflation had peaked. ($1 = 0.7865 pounds)
A prominent direct-to-consumer (D2C) company specializing in daily breakfast and morning essentials, Doodhvale, is thrilled to announce the appointment of Aman J Jain as the CEO and Co-Founder, marking a significant stride towards a new era of growth. With his extensive expertise in business leadership, innovation, and technological advancement, Aman is poised to steer Doodhvale with unwavering agility, foster innovation, and deliver exceptional customer service.
This strategic decision to bring in new leadership is a testament to Doodhvale’s unwavering commitment to ongoing progress and development. The infusion of fresh perspectives, insights, and knowledge is in perfect alignment with Doodhvale’s mission to consistently surpass customer expectations and revolutionize the accessibility and experience of essential products.
Taking the helm as CEO and Co-Founder at Doodhvale, Aman J Jain arrives armed with a rich reservoir of expertise and a visionary outlook, fortified by an MBA from IIM Bangalore and a B. Tech. from IIIT Hyderabad.
His multifaceted professional journey spans pioneering responsibilities in a range of domains, including P&L Management, revenue management, operations, product and technology, HR, and M&A. Aman has been a driving force behind the triumphant initiation of ventures like OYO Townhouse, the inception of OYO’s acclaimed loyalty program – OYO Wizard, and the execution of multi-million dollar acquisitions. His strategic consultancy tenure with Accenture Strategy and BCG serves to further enhance his aptitude in steering Doodhvale toward its future endeavors.
Sanjay Jain, Co-Founder and CTO of Doodhvale, said, “We’re thrilled to welcome Aman J Jain as Co-Founder and CEO. His robust leadership and market acumen, coupled with his track record of nurturing startups in India’s evolving landscape, will drive Doodhvale’s growth. Aman’s commitment to innovation and customer-centricity align seamlessly with our D2C dairy and essential product focus. Under his astute leadership, Doodhvale is poised for substantial expansion, targeting threefold growth this year. His leadership promises innovation, increased visibility, and elevated customer experiences.”
Aman J Jain, CEO of Doodhvale, said, “I am honored to be a part of both the esteemed leadership team and the dedicated community of hardworking, committed team members at Doodhvale. Together, we are charting a course of innovation and growth. Doodhvale signifies more than just dairy – we prioritize quality and values. We are catalysts of change, seamlessly blending technology and tradition to create innovative, pure products. With our exceptional team, I am eagerly looking forward to propelling Doodhvale forward and realizing our visionary goals.”
Extending its reach across the Delhi-NCR region, Doodhvale, led by Aman, is positioned to propel exponential expansion and establish itself as a pioneering force in the domain of direct-to-consumer dairy and indispensable products.
As the food industry continues to evolve, businesses are increasingly recognizing the immense potential and opportunities presented by Tier-2 and Tier-3 markets. These smaller cities and towns have their distinct culinary traditions, preferences, and market dynamics. To tap into these markets and cater to the unique tastes and demands of the local audience, food businesses must mould their recipes accordingly.
Tier-2 and Tier-3 offer immense growth opportunities for businesses. However, to tap into the potential of these markets, it is essential to adapt recipes to cater to the tastes and preferences of the local audience.Tier-2 and Tier-3 markets play a significant role in the food industry for several reasons.
These markets have a substantial population base, often comprising smaller cities and towns, which translates into a large consumer market. This presents an opportunity for food businesses to tap into a broader customer base and increase their market reach.
Tier-2 and Tier-3 markets often have distinct culinary traditions and preferences, which differ from metropolitan areas. These markets value their local cuisines and have a strong affinity towards traditional flavours and ingredients. Adapting recipes to cater to these regional tastes allows food businesses to connect with the local audience and build a loyal customer base.
Moreover, Tier-2 and Tier-3 markets are witnessing economic growth and rising disposable incomes, resulting in an increased propensity to spend on dining out and food experiences. This presents an opportunity for food businesses to capture this growing consumer demand and establish themselves as go-to destinations for dining and culinary experiences.
Expanding into Tier-2 and Tier-3 markets allows food businesses to diversify their customer base and reduce reliance on a single market segment. This diversification strategy helps mitigate risks associated with market fluctuations and enhances the overall stability and sustainability of the business.
Understanding the unique traits of Tier-2 and Tier-3 markets is crucial for food businesses looking to expand their reach and cater to a wider consumer base. Here are some key characteristics of these markets:
1. Population and Consumer Base: Tier-2 and Tier-3 markets are typically characterized by a substantial population base, although smaller in comparison to metropolitan areas. These markets may consist of several towns, semi-urban areas, or growing suburbs. The population in these areas may have specific demographics, cultural backgrounds, and spending patterns that influence their food preferences.
2. Culinary Traditions and Local Tastes: Tier-2 and Tier-3 markets often have strong culinary traditions and a deep-rooted connection to their local flavours. Consumers in these markets have a preference for traditional and regional dishes, which hold cultural significance. Adapting recipes to incorporate these local tastes is essential to resonate with the target audience and build a loyal customer base.
3. Economic Factors: Economic factors in Tier-2 and Tier-3 markets vary based on the region and local industries. While some areas may experience rapid economic growth and rising disposable incomes, others may have a slower pace of development. Understanding the economic landscape of each market helps businesses tailor their pricing strategies and offerings accordingly.
4. Limited Competition: Compared to major cities, Tier-2 and Tier-3 markets often have a lower number of food establishments and limited options for consumers. This provides an opportunity for businesses to stand out and establish themselves as preferred choices among the limited competition. Strategic positioning and differentiation become key factors in gaining a competitive advantage.
5. Growing Urbanization: Many Tier-2 and Tier-3 markets are experiencing urbanization and infrastructure development, which can lead to changing consumer behaviours and preferences. As these areas progress, there is an increased inclination towards modern dining experiences, convenience, and exploring new culinary trends. Adapting recipes to meet these changing expectations can attract a growing customer base.
6. Value for Money: Tier-2 and Tier-3 markets often prioritize value for money and affordability. Consumers in these areas may be more price-sensitive and seek quality products at reasonable prices. Offering cost-effective yet flavorful menu options can resonate well with the target audience and drive customer loyalty.
Understanding these characteristics of Tier-2 and Tier-3 markets lays the foundation for effectively adapting recipes and developing strategies to cater to the specific needs and preferences of these markets.
Here is a quick comprehensive guide on “How to mould your recipes to resonate with Tier-2 and Tier-3 markets”, enabling you to succeed and thrive in these dynamic environments.
1. Understanding Tier-2 and Tier-3 Markets
Tier-2 and Tier-3 markets refer to smaller cities and towns with distinct cultural and culinary identities. These markets boast a rich diversity of tastes and preferences, driven by regional traditions and local ingredients. Recognizing the unique characteristics and opportunities in these markets is crucial for effectively moulding your recipes.
2. Researching Local Tastes and Preferences
To create recipes that resonate with Tier-2 and Tier-3 markets, it is essential to conduct thorough market research. Explore the culinary traditions, popular ingredients, and preferred flavours of the specific region you are targeting. This will help you identify the gaps in the market and provide insights into the tastes and preferences of the local audience.
3. Adapting Recipes
Adapting recipes involves simplifying them and using ingredients that are readily available in Tier-2 and Tier-3 markets. Adjusting flavours, spices, and cooking methods to align with local tastes is crucial. Incorporating regional ingredients and techniques will add authenticity and help create a connection with the target audience.
4. Balancing Tradition and Innovation
Finding a balance between tradition and innovation is vital when moulding your recipes. While respecting local culinary traditions, introduce innovative elements to provide a unique and memorable dining experience. Experiment with fusion recipes that blend local and global influences, offering something new and exciting while maintaining a sense of familiarity.
5. Pricing and Affordability
Considering the economic conditions and purchasing power of Tier-2 and Tier-3 markets is key when pricing your offerings. Optimize ingredient costs without compromising on quality, ensuring your prices are competitive and affordable for the local market. Offering value-for-money options and affordable meal choices will attract a wider customer base.
6. Marketing and Promotion
Crafting an effective marketing strategy is essential to create awareness and generate interest in your adapted recipes. Use local channels such as regional media, influencers, and community events to promote your offerings. Embrace digital platforms and social media to engage with the target audience and build a strong online presence.
7. Continuous Evaluation and Adaptation
Success in Tier-2 and Tier-3 markets requires constant evaluation and adaptation. Monitor customer feedback and preferences to gauge the success of your adapted recipes. Regularly review and update your menu to stay relevant and meet the evolving demands of the market. Stay connected with the local community to understand emerging tastes and trends.
Adapting your recipes for Tier-2 and Tier-3 markets is a strategic approach to tap into the vast potential of these markets. With continuous evaluation and adaptation, your food business can thrive and succeed in Tier-2 and Tier-3 markets, paving the way for long-term growth and success.
The Indian government on Friday announced its decision to release onions from its buffer stock in targeted regions with immediate effect. This move is aimed at ensuring price control until the arrival of the new onion crop in October. Exploring multiple avenues for distribution, the government is considering options such as e-auctions, e-commerce platforms, and discounted rates through state channels, utilizing retail outlets owned by consumer cooperatives and corporations.
At present, the government has stored 300,000 tonnes of onions within the Price Stabilisation Fund (PSF). This reserve has been established to address potential emergencies in case prices experience a notable surge during periods of low supply.
According to government statistics, there has been a gradual increase in onion prices. As of August 10, the nationwide retail price of this essential kitchen ingredient stood at INR 27.90 per kilogram, reflecting a modest rise of just over INR 2 per kilogram compared to the same period last year.
“We will release onion from the buffer stock immediately,” said Consumer Affairs Secretary Rohit Kumar Singh.
The details regarding the onion’s distribution have been settled following deliberations with officials from cooperative organizations like NAFED and the National Cooperative Consumers’ Federation of India Limited (NCCF) on August 10, as mentioned by him.
In an official statement, the ministry announced its intention to release onion reserves specifically to strategic markets within states or regions where retail prices are surpassing the national average. This measure will also be implemented in areas where the price escalation compared to the previous month and year exceeds the established threshold.
The government is also considering the possibility of utilizing e-auctions and retail transactions on e-commerce platforms for distribution. The volume and rate of distribution will be adjusted in accordance with price fluctuations and supply conditions, all aimed at ensuring onions remain accessible to consumers at reasonable costs, as stated.
In addition to market distribution, the government has opted to provide state governments the opportunity to procure onions at reduced rates for retail sale through their respective consumer cooperatives and corporations.
During the current year, a cumulative quantity of three hundred thousand metric tonnes of onions has been acquired for the buffer stock. If circumstances necessitate, this amount may be augmented in the future, as mentioned.
In June and July, both NAFED and NCCF procured 150,000 tonnes each of rabi onions from Maharashtra and Madhya Pradesh. As an experimental initiative this year, onion irradiation was carried out in collaboration with the Bhabha Atomic Research Centre (BARC) to reduce storage losses. Approximately 1,000 tonnes were subjected to irradiation and subsequently stored in controlled atmosphere storage facilities.
By sourcing onions from the rabi harvest, the yearly reserves have been established to be distributed in key consumption hubs during periods of low supply. Over the last four years, there has been a threefold expansion in the size of the onion buffer, increasing from one hundred thousand tonnes in 2020-21 to three hundred thousand metric tonnes in 2023-24.
“The onion buffer has played a key role in ensuring availability of onion to the consumers at affordable prices and in maintaining price stability,” the ministry added.
The rabi onion, cultivated from April to June, contributes to 65 percent of India’s total onion production. This variety caters to consumer demand until the kharif crop is harvested between October and November.
Tim Hortons, the Canadian coffee chain, has revealed its introduction of a line of concentrated cold brew offerings within US retail outlets. These products come in four distinct flavors for customers to choose from.
Customers can now savor the Cold Brew Concentrate in a variety of flavors including Medium Blend Black, Birthday Cake, Cinnamon Swirl, and Mocha Cereal. These options allow consumers to indulge in the comfort of their own homes.
Enclosed within a 32 oz multi-serve container, every concentrate grants the convenience of eight separate portions when following the provided instructions. Whether enjoyed as a straightforward black cold brew or enhanced with the addition of water, ice, milk, or cream, the possibilities for customization are entirely at one’s discretion.
Markus Sturm, head of consumer packaged goods at Tim Hortons, said, “Consumers will love every delicious sip of our Tim Hortons Cold Brew Concentrate. The smooth taste is crafted with 100% Arabica Beans for a flavour experience inspired by the Cold Brew we have in Tim Hortons restaurants.”
The collection is currently being introduced in select Walmart stores and regional grocery outlets throughout the United States. This marks the inaugural occasion when a Tim Hortons product has achieved nationwide availability across all 50 states.
On Saturday, an official reported that law enforcement authorities confiscated a collection of food products, which comprised various types of edible oils, with an estimated value of INR 4.82 lakh. This seizure took place in a warehouse located in the Thane district of Maharashtra. The goods were discovered to have been produced and stored under suspicion of utilizing a counterfeit license.
The authorities conducted a raid at the godown located at Daighar on Thursday, and a case was registered against its four owners, he said. “A leading manufacturer of asafoetida approached the police with a complaint that the accused were manufacturing the products with a fake licence. After that, the Food and Drugs Administration (FDA) officials raided the godown,” the official of Shil-Daighar police station said.
The FDA and police authorities seized various products, including compounded asafoetida, edible gum, mustard oil, cotton seed refined oil, refined rice bran oil along with some brown liquid. They used a fake licence of the Food Safety and Standards Authority of India (FSSAI) to manufacture the products, he said.
The value of the seized goods is INR 4,82,500, he said.
A case was registered against the four owners of the godown under various sections of the Food Safety and Standards Act and also under Indian Penal Code (IPC) sections 420 (cheating), 34 (common intention), the police said.
The four accused are identified as Mahesh Sheth, Abhishek Tripathi, Anil Yadav and Mohaziddin Mohammad Iqbal Memon, they said.
L to R : Sujit Bose - Head Chef Hong’s Kitchen, Avinash Kant Kumar - President Jubilant FoodWorks, Doma Wang and Sachiko Seth, Co-founder and Chef, Blue Poppy Thakali
Hong’s Kitchen, the Indo-Chinese quick-service restaurant brand under Jubilant FoodWorks Limited, is excited to introduce its first-ever partnership with renowned chefs Doma Wang and Sachiko Seth. This dynamic collaboration presents the Tibet Food Festival, a unique culinary experience that presents a thoughtfully crafted specialized menu catering to aficionados of Indo-Chinese cuisine.
Acknowledging the shifting tastes of contemporary consumers and their increasing fondness for delectable fare, this exceptional dining affair strikes a chord with numerous individuals. The brand acknowledges the populace’s affinity for dishes hailing from the elevated terrains of northern and northeastern India. Through this inventive festival, the objective is to provide a one-of-a-kind, flavorful expedition to patrons in Delhi and the National Capital Region (NCR).
The ‘Taste Tibet’ festival commemorates the opulent flavors that have flourished in the core of Tibet. Those who relish good food can anticipate a delectable opportunity to excite their palate with a meticulous array of Tibetan delicacies. These dishes are artfully prepared to evoke the captivating vistas of the Himalayas. The festival’s focal points encompass a thoughtfully curated assortment of 12 dishes, among them Shaphalay, Shapta, and Gyuma Poli, guaranteeing a truly enchanting dining affair for everyone to savor.
Avinash Kant Kumar, President of Jubilant FoodWorks Limited, commented on the occasion “We are delighted to introduce ‘Taste Tibet’ Food Festival to our guests at Hong’s Kitchen restaurants. This offers them a chance to explore the captivating flavors of Tibet. Our chefs have been diligent in ensuring each dish truly represents the essence of Tibet cuisine. This festival embodies the rich culinary diversity that Indo-Chinese cuisine has to offer, and we eagerly anticipate sharing this experience with our patrons.”
The festival’s offerings spotlight an assortment of six vegetarian and six non-vegetarian dishes. Painstakingly crafted in distinct kitchens for vegetarian and non-vegetarian preparations, these culinary creations bring forth Tibetan flavors that have been ingeniously adapted for the taste preferences of Delhi. The ‘Taste Tibet’ Festival commences on August 12th and will be showcased across 16 restaurants spanning Delhi, Gurugram, and Noida.
Patanjali Foods on Friday experienced a nearly 64% year-on-year (YoY) dip in net profit for the quarter ending in June 2023, totaling INR 878 crore. Despite this, there was a positive trajectory in revenue from operations, which surged by almost 8% compared to the previous year, reaching INR 7,767 crore.
Expenses for the quarter climbed to INR 7,691 crore from the INR 7,038 crore recorded a year earlier.
The significant decline in net profit can be attributed to sluggish sales growth and a pronounced deterioration in operational performance.
The operating profit, computed as EBITDA (earnings before interest, taxes, depreciation, and amortization), witnessed a 57% year-on-year drop, amounting to INR 169 crore. Furthermore, the operating margin contracted by 326 basis points, settling at 2.17%.
The core edible oils segment registered a 13% decline in quarterly revenue, reaching INR 5,891 crore. Meanwhile, the food and FMCG division saw a growth of 8.2% in revenue, totaling INR 1,952 crore.
The significant decrease in EBITDA was primarily driven by an operating loss incurred in the edible oils segment. This division recorded an operating loss amounting to INR 147 crore in the quarter.
The Food & FMCG category expanded both in terms of value and volume, contributing approximately a quarter (25%) to the overall sales. Branded sales during the quarter constituted a substantial portion, accounting for around 71% of the company’s total revenue.
The company attributed the subdued conditions in the edible oil sector to a persistent decline in prices. Despite experiencing a reduction in revenue, the company managed to uphold its market share. Remarkably, there was a notable 36% year-on-year increase in volumes.
Exports turnover experienced a remarkable 128% year-on-year surge, reaching INR 162.45 crore. Branded sales, which encompass both the foods and FMCG segment as well as edible oils, totaled INR 5,527.78 crore.
Despite grappling with escalating inflation and broader macro challenges, the Foods and FMCG segment achieved an EBITDA of INR 360.80 crore, accompanied by an EBITDA margin of 18.48%. The company attributed this accomplishment to effective cost efficiency measures.
On Friday, shares of the company ended 2.2% down at INR 1,293.90 on the National Stock Exchange.
On Friday, the appellate tribunal of the bankruptcy court issued a stay on the admission of Coffee Day Enterprises Ltd (CDEL). This action came about due to a challenge presented by the promoter, Malavika Hedge. The challenge highlighted that the default, which took place during the “calm period” in March 2020 amid the global pandemic, occurred while lenders were prohibited from approaching the National Company Law Tribunal (NCLT) regarding loan defaults.
Starting from March 25, 2020, due to the spread of Covid-19, the government implemented a one-year prohibition on lenders from initiating insolvency proceedings against companies for defaults that occurred during that period.
On July 20, 2023, the Bangalore NCLT admitted CDEL to corporate insolvency, following a petition filed by IndusInd Bank, as reported by SnackFax.
The Café Coffee Day chain, originally initiated by the late founder V G Siddhartha, is under the ownership of CDEL. Shailendra Ajmera, the interim resolution professional supported by EY, refrained from providing a comment.
While IndusInd Bank asserted that the default transpired on February 28, 2020, the company contended that it took place on April 30, 2020. CDEL’s promoter alleges that the lenders altered the default date subsequent to filing the insolvency application.
The National Company Law Appellate Tribunal (NCLAT), in its ruling dated August 11, has directed the respondent (bank) to submit a response by August 25. The applicant (the promoter) has been given the opportunity to file a rejoinder by September 14. As part of the granted stay, the tribunal has set the next hearing for September 20.
As per the directive, the bank classified the accounts as non-performing loans on June 30, 2020. Subsequently, on December 7, 2020, the lender initiated the loan recall, urging the borrower and guarantor to settle the loan within a 15-day timeframe.
The borrower says that default occurred on April 30, 2020 – which is the period from March 25, 2020 to March 25, 2021 and ‘thus the petition could not have been filed.’
After providing six opportunities for the company to respond, IndusInd Bank reported the default date as February 28, 2020 to the National e-Governance Services (NeSL).
As of March 31, 2022, Coffee Day Global held a debt of INR 960 crore, encompassing an inter-corporate deposit of INR 119 crore obtained from Tanglin Development Ltd, an affiliated entity. According to the company’s FY22 annual report, it possesses 495 café outlets in 158 cities and 285 CCD Value Express kiosks.
Don’t be surprised if you notice a slight increase in the weight of your snack packs, soap bars, and toothpaste tubes. Last year, in response to significant inflation, FMCG companies had reduced the weight of retail packs for everyday necessities without adjusting their prices. However, with the recent stabilization of key ingredient prices and a decrease in packaging costs, these companies have begun to restore the original weight to the packs.
According to industry experts, the savings from reduced input costs are being transferred to consumers by reintroducing additional weight into the product packaging. This is particularly evident in product categories that are commonly priced at INR 10, INR 20, and INR 25, where frequent price adjustments can be inconvenient for consumers.
“We have put back grammage on some of our snacking brand packs as inflation cooled off for many of the commodities we use,” said Ahmed ElSheikh, president of foods and beverages major PepsiCo that makes Kurkure and Lays snacks. “We are hopeful that inflation will not escalate again, which also depends on the rains and crop cycle.”
Over the past year, the retail costs of refined sunflower oil, soya bean oil, and palmolein have witnessed a reduction of 20-25%. This drop can be attributed to a favorable harvest of edible oil seeds and a decrease in global prices for these commodities.
The expenses associated with soda ash, a vital component in the production of soaps and detergents, as well as packaging costs, have both experienced a decrease. Although the costs of wheat and sugar are still gradually rising, the inflation rate is currently lower compared to the previous year.
“Pricing changes are not always feasible in highly competitive categories. So, the optimum way to pass on benefits is by increasing weight of packs and putting back grammage,” said Mayank Shah, senior category head at biscuits maker Parle Products that competes aggressively with Britannia and ITC.
Abneesh Roy, executive director at Nuvama Institutional Equities, said besides lower cost of key ingredients such as edible oils, companies are also benefitting from a reduction in fuel and packaging costs. “Hence, for categories like biscuits, snacks, and confectionery, companies are directly increasing grammages,” he said. “For personal care categories such as soaps, detergent and shampoo, we are observing that extra grammage is being offered by way of consumer promotions.”
Jaideep Nandi, managing director of Bajaj Consumer Care, said the maker of Almond Drops hair oil and moisturising soap has increased grammage “in select packs in a few strategic markets”. Additional consumer offers have also been stepped up, he added.
Distributors have indicated that FMCG companies are reintroducing up to 10% of the product weight in certain packaged items, a weight reduction that had been implemented around the middle of the previous year. However, in most cases, these companies have not correspondingly decreased prices.
“We have not seen many price cuts in sync with reduction in costs of some commodities such as edible oils and packaging materials… But what is happening is that packs are starting to revert to the weight of what they were early last year,” said an executive of a leading Delhi-based distribution association. He requested not to be named since he is not an authorised spokesperson.
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