A segregated cocoa supply chain will enable Mars to gain better visibility into its suppliers, farming organizations, and individual farmers. This will enhance its ability to support these stakeholders in advancing respect for human rights and environmental preservation.

Over the next five years, Mars plans to collaborate with cocoa suppliers to establish the necessary infrastructure, processes, and systems to:

Source Cocoa Exclusively: Procure cocoa only from farms participating in the programme or meeting approved certification standards, ensuring physical segregation from other sources.

Process Segregated Cocoa: Convert the segregated cocoa into ingredients while maintaining their physical separation from other cocoa sources.

Deliver to Factories: Supply segregated cocoa ingredients exclusively to Mars factories for use in chocolate and finished products.

Harper McConnell, global vice president of cocoa sustainability at Mars, stated, “The move to a segregated global cocoa supply chain is a significant undertaking that builds on our years of investment in our responsibly sourced cocoa programme. It will enable us to target interventions providing more focused support for cocoa-growing communities in our supply chain. This ambition is part of a holistic, long-term approach by Mars to contribute towards the development of a modern, inclusive, and sustainable cocoa ecosystem around the globe.”

Milestone in the ‘Cocoa for Generations’ Strategy

The segregated cocoa supply chain marks a critical milestone in Mars’ ‘Cocoa for Generations’ strategy. Supported by a $1 billion investment over ten years (2018–2028), this strategy aims to:

Develop a modern, profitable, and highly productive cocoa farming system leveraging scientific innovation.

Promote inclusivity, ensuring women and children have access to opportunities for prosperity.

Create a sustainable cocoa supply chain that responsibly manages planetary resources and builds resilience against environmental stresses.

Additionally, this effort aligns with Mars’ broader environmental goals. It contributes to tackling deforestation and achieving Net Zero greenhouse gas (GHG) emissions across its value chain by 2050, with a target to halve emissions by 2030 as outlined in its Net Zero Roadmap.

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Zomato’s Bistro, Swiggy’s Bolt, and Zepto’s Zepto Cafe are leading the charge, offering lightning-fast deliveries through different approaches. While Zomato and Zepto rely on in-house kitchens for quick meal prep, Swiggy partners with well-known chains like Starbucks and McDonald’s to deliver meals faster.

This surge in quick commerce, which initially focused on groceries and essentials, has now expanded to the food sector. Elara Securities’ senior VP Karan Taurani noted, “Quick commerce has turned consumers into more impulsive buyers, and rapid food delivery enhances user experience.” Platforms like Zepto were early adopters, delivering items like groceries and electronics at unprecedented speeds, and are now extending that model to food.

The competition is fierce. Zepto Cafe, which launched 10-minute food deliveries in 2022, handles 30,000 orders daily and is adding 100 new outlets every month. Meanwhile, Zomato’s Bistro and Swiggy’s Bolt are expanding rapidly, with Swiggy’s service now covering over 400 cities. Additionally, Ola’s Dash and Magicpin’s. MagicNOW has joined the race, while Tata-owned BigBasket plans to enter soon.

India’s online food delivery market is forecasted to double to $15 billion by March 2029, according to a report by JM Financial. Despite this growth, the sector still has room to expand, with online delivery services currently penetrating only 11% of the market, compared to 40% in China and 58% in the U.S.

The rush for speed has triggered debates about food quality and health impacts. Critics argue that quick deliveries might encourage the consumption of processed, unhealthy food. Shantanu Deshpande, founder of Bombay Shaving Company, remarked, “We are facing an epidemic of poor nutrition, and now we have 10-minute deliveries promoting food high in palm oil and sugar.”

In response, companies have assured that quality won’t be sacrificed. Zomato clarified, “At Bistro, we are not microwaving processed frozen food. We prepare fresh dishes using ingredients sourced from central kitchens.” Zepto’s Shashank Shekhar Sharma emphasized their commitment to quality through controlled environments, rigorous staff training, and routine inspections.

Delivering meals quickly in India’s crowded and often chaotic traffic poses significant challenges. Karan Taurani noted that maintaining consistency with a limited menu will be a hurdle. Despite this, companies are optimistic. Swiggy’s CEO Rohit Kapoor described Bolt as “a big bet” during a recent earnings call, adding, “Consumers just love things faster.”

As India’s appetite for speed grows, the race for 10-minute food deliveries is poised to redefine the future of the country’s food industry.

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In response to media reports suggesting that the coffee chain was planning to withdraw from India, Tata Consumer Products Ltd. (TCPL), Starbucks’ joint venture partner, termed the claims “baseless.” Tata Starbucks, a 50:50 joint venture between TCPL and Starbucks Corporation, currently operates over 470 stores across 76 cities in India.

“Starbucks is fully committed to the Indian market. Any statements suggesting otherwise are false,” Tata Starbucks stated.

The company reported a 12% increase in revenue to ₹1,218.06 crore for FY24. However, losses widened to ₹79.97 crore, up from ₹24.97 crore in FY23, primarily due to expansion-related expenses. Advertising and promotional costs rose 26.8% to ₹43.20 crore, while royalty payments amounted to ₹86.15 crore, according to data from business intelligence platform Tofler.

TCPL’s Managing Director and CEO, Sunil D’souza, emphasized that the focus remains on scaling up the Starbucks brand in India rather than immediate store profitability. “Store profitability is not an issue. As we scale, we know we can generate profits,” D’souza told PTI in November.

Starbucks, which entered India in October 2012, continues to expand despite challenges posed by operating costs and competition from local alternatives. The reaffirmation of commitment from Tata Starbucks highlights the coffee giant’s long-term vision for the Indian market and its growth potential.

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The new plant will be located on a 12-acre site in Sikanderpur, Bihta, and is expected to commence operations by mid-2027. The facility will focus on producing a range of sweets, namkeens, bhujia, and other snacks, reflecting the company’s commitment to meeting growing consumer demand.

Haldiram’s Vice President, Sanjay Singhania, shared the details during the Bihar Business Connect 2024 summit. “We are excited to invest Rs 300 crore to set up this manufacturing plant. This facility will enhance our production capabilities and generate employment opportunities in the region,” he said.

The state government’s investor summit has attracted MoUs worth Rs. 1.8 lakh crore this year, significantly surpassing last year’s Rs 53,000 crore. The move underscores Bihar’s emergence as a business-friendly destination for major investments.

Established in 1937 in Bikaner, Rajasthan by Ganga Bhishen Agarwal, Haldiram is now one of India’s largest packaged snack and sweets companies, with a presence in over 80 countries. The business, promoted by the Agarwal family, operates across Delhi, Nagpur, and Kolkata.

This latest investment is expected to not only strengthen Haldiram’s production network but also contribute significantly to the local economy, providing a boost to employment and the packaged food sector in Bihar.

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In a regulatory filing, Gopal Snacks confirmed the safety of its personnel and reassured stakeholders that no data loss or IT system disruptions occurred due to the blaze. “The safety of Gopal Snacks team members always remains its highest priority,” the company stated.

To mitigate the impact of the fire, Gopal Snacks has ramped up production at its Modasa and Nagpur facilities. The company is also collaborating with third-party manufacturers to meet any additional demand and ensure continuity in supply.

Gopal Snacks assured that all assets at the Rajkot plant are fully insured and the insurance provider has been notified. The company is currently assessing the damage and working to restore operations at the Rajkot facility as quickly as possible.

“We are working diligently to restore operations at the Rajkot I facility at the earliest,” the company said in its filing.

Despite the disruption, Gopal Snacks remains confident that the incident will not significantly affect its long-term operations or financial performance. The company’s swift response and contingency measures aim to minimize any prolonged impact.

This incident comes amid a broader trend of increased safety measures in the manufacturing sector, highlighting the importance of operational resilience in the face of unforeseen challenges.

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Moon Beverages, owned by the Sanjeev Agrawal-led MMG Group, already manages bottling operations in Delhi, parts of Uttar Pradesh, the North-East, and select regions of West Bengal. The MMG Group is also the operator of McDonald’s outlets in North and East India.

“This business transfer marks a significant decision for HCCB,” said Juan Pablo Rodriguez, CEO of HCCB India. “It ensures the right level of investments can be undertaken in all parts of the business while bringing both scale and contiguity.”

The latest divestment follows a similar move earlier this year, where HCCB transferred bottling operations in several northern and eastern territories to franchise partners Moon Beverages, SLMG Beverages, and Kandhari Global Beverages. These moves are designed to optimize operational efficiency and ensure targeted investments across key markets.

HCCB, which serves over 23 lakh retailers and more than 2,300 distributors, operates 13 manufacturing plants across India. The company’s product portfolio includes popular beverages like Coca-Cola, Thums Up, Sprite, Limca, Minute Maid juices, Maaza, Kinley and Dasani water, and Schweppes soda.

With the acquisition of the Jharkhand bottling operations, Moon Beverages continues to solidify its position as a key Coca-Cola franchisee. This expansion enhances Moon Beverages’ operational reach and supports the strategic goal of achieving seamless distribution and supply chain efficiency across contiguous regions.

Coca-Cola’s move to a franchise-focused model underscores its commitment to agility and scalability in emerging markets, where competition from regional beverage brands and new players like Reliance Consumer Products is intensifying.

The strategic realignment aims to boost growth and maintain Coca-Cola’s competitive edge in India’s rapidly expanding beverage market.

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“We will prioritize these 13 anchor markets for investments, services, and capabilities to perform to their potential,” said Ramon Laguarta, PepsiCo’s global chief executive and chairman, in an internal memo dated December 10.

India joins key regions like China and the Middle East in PepsiCo’s growth blueprint. These 13 markets are expected to contribute more than 85% of the company’s projected growth. The move comes as PepsiCo trims its 2024 sales forecast and launches a global restructuring plan, effective January 1, 2025.

As part of the overhaul, PepsiCo will establish a new International Beverages Region, aligning global franchise partners under a unified management structure with profit-and-loss accountability. This includes Varun Beverages Ltd., PepsiCo’s India-listed bottling partner. The region will oversee all franchise beverage operations to accelerate international growth.

Despite facing competition from established rivals like Coca-Cola, Paper Boat, and newer entrants such as Reliance Consumer Products and Storia, PepsiCo remains optimistic about India’s potential. Soft drinks currently have low market penetration in India, providing ample opportunity for expansion.

Market research firm IMARC valued India’s snack market at ₹42,694 crore in 2023, predicting it will more than double to ₹95,521 crore by 2032. Similarly, a report by ICRIER forecasts that India’s non-alcoholic beverage market will grow to ₹1.47 lakh crore by 2030, up from ₹67,100 crore in 2019.

While PepsiCo’s US and China operations struggled in the September quarter, India delivered double-digit organic revenue growth. In the AMESA (Africa, Middle East, South Asia) region, PepsiCo’s convenient foods unit volume declined by 3%, largely due to a slump in the Middle East and Pakistan. This decline was partially offset by strong performance in India.

“Accelerating our international beverages business is a top growth opportunity for PepsiCo,” said Laguarta. “We will strengthen the management and leadership structure by increasing consumer focus, driving innovation, and distinctly managing the franchise beverage business separate from our company-owned operations.”

PepsiCo’s strategic pivot highlights India’s growing importance in the global food and beverage landscape. As the company doubles down on its investment in the region, it aims to capitalize on the rising demand for snacks and beverages in one of the world’s fastest-growing markets.

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Parle, which ranked second in 2023, claimed the top spot this year, while HUL dropped to seventh place and ITC fell to eighth. Retailers also expressed strong support for P&G and Colgate, citing reliable sales support.

The slip in HUL’s ranking is attributed to recent tensions with distributors. Last year, HUL reduced distributor margins from 3.9% to 3.3%, which drew criticism from the All-India Consumer Products Distributors Federation (AICPDF). Retailers also noted issues with product returns and stock availability.

ITC’s decline was linked to challenges in sales team retention, affecting retailer relationships. Anshul Gupta, founder and CEO of Kirana Club, highlighted that maintaining a stable sales force is crucial for consistent performance.

The survey underscores the growing importance of effective sales support and strong distributor relationships in maintaining brand loyalty among Kirana store owners.

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Following the news, Hershey’s shares surged 19% to $208.03, boosting its market valuation to $35 billion. In contrast, Mondelez shares fell by 4%, with the company currently valued at $84 billion. This marks Mondelez’s second attempt to acquire Hershey, after a $23 billion bid was rejected in 2016.

Key to any potential deal is the approval of the Hershey Trust Company, which holds voting control and supports the Milton Hershey School. Market conditions, such as rising cocoa prices and faltering demand due to price hikes, have put pressure on confectionery companies, spurring renewed merger interest.

A successful acquisition would expand Mondelez’s U.S. presence, enhancing its portfolio of brands like Cadbury and Milka with Hershey’s leading U.S. chocolate market share of 36%. The deal is part of a broader trend of strategic mergers in the food industry, following Mars’ recent $36 billion acquisition of Kellanova.

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Executives familiar with the development confirmed that the Bhartias will contribute approximately Rs. 5,000 crore themselves, while the remainder of the funding will be supported by Goldman Sachs through a special purchase vehicle (SPV). This acquisition is a strategic expansion for the Bhartias, who currently hold exclusive franchise rights for Domino’s Pizza in India through Jubilant Foodworks Ltd.

India remains Coca-Cola’s fifth-largest market by volume, with significant growth potential due to low per capita consumption of soft drinks. The US beverage giant is looking to adopt an asset-light model, similar to rival PepsiCo, which outsourced its bottling operations to Varun Beverages Ltd. The deal comes amid increasing competition in India’s beverage sector, with Reliance Consumer Products reviving the Campa brand and offering competitive pricing.

HCCB’s revenue for FY24 rose 9.2% to Rs. 14,021 crore, while net profit surged 247% to Rs. 2,808.3 crore. The company, which operates 13 factories, plans to invest $1.5 billion in capital expenditure over the next five years to enhance production capacity.

This acquisition underscores the Bhartia family’s ambitions to diversify their business interests and tap into India’s growing beverage market.

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