HUL’s exit from the ice cream segment raises critical questions about its future direction. Under CEO Rohit Jawa, the company faces the challenge of rediscovering its pre-liberalisation spirit of independence and innovation. Meanwhile, Unilever’s global CEO, Hein Schumacher, is busy reshaping the multinational giant by streamlining portfolios, optimizing operations, and focusing on premium offerings.

The ice cream business has long been an outlier in HUL’s portfolio. While brands like Ben & Jerry’s have faced political controversies globally, the overall category has delivered sluggish growth, with sales increasing by just 2-3% last year—one of the weakest across Unilever’s product divisions. Challenges such as a fragmented cold chain infrastructure, seasonal demand fluctuations, and low synergy with HUL’s core distribution network have made ice cream a tough segment to scale profitably.

Selling mass-market products like Surf and Lux by the carton is one thing, but building and maintaining a cold chain backbone for ice cream distribution is an entirely different challenge. Moreover, ice cream’s EBITDA margins and returns on capital employed remain among the lowest across HUL’s product categories.

While HUL trims its portfolio, industry rivals like ITC, Marico, Britannia, Dabur, and Godrej have largely stayed away from the complexities of the ice cream market. Nestlé, on the other hand, strategically offloaded its Häagen Dazs business to a joint venture with a private equity firm in Europe and the US.

For HUL, the spin-off represents not just an exit but an opportunity to refocus on its core strengths in personal care and home products. The move also signals the need for bold decisions across its broader portfolio, which spans everything from mayonnaise to premium skincare brands.

As HUL pivots towards a leaner, more agile business model, the onus is on Rohit Jawa to reignite the company’s innovative spirit and strategic agility. The path forward will require a delicate balance between nurturing high-growth categories and maintaining profitability in a challenging market landscape.

While the ice cream exit may melt away from its books, HUL’s next steps will be closely watched by investors and industry stakeholders eager to see if the FMCG giant can reclaim its position as a leader in strategic innovation.

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Shah highlighted the adaptability of the dairy sector, which has allowed it to thrive despite challenges like fluctuating raw milk prices and inflationary pressures. India’s milk production reached 239.30 million tonnes in 2023-24, reflecting a 3.78% growth, albeit slower compared to previous years.

Shah attributed the slowdown in production growth to rising feed costs, supply chain disruptions, and limited access to modern farming techniques. Despite these hurdles, India’s dairy sector has outpaced global growth rates, recording a Compound Annual Growth Rate (CAGR) of 10.7% between 2018 and 2023, with projections indicating a CAGR of 14% from 2024 to 2032.

Parag Milk Foods has capitalized on this momentum through product diversification and innovation. While traditional offerings like Gowardhan Ghee and Go Cheese remain household staples, premium products such as Pride of Cows have gained popularity among urban consumers seeking purity and traceability. Additionally, the company’s Avatar whey protein brand has tapped into the growing market for health-focused, functional foods.

Fluctuations in raw milk prices continue to pose challenges for the industry. Shah revealed that Parag Milk Foods mitigates these risks through long-term farmer partnerships, fair pricing mechanisms, and advanced supply chain technologies like SAP HANA, which optimize procurement and reduce wastage.

Technology is playing an increasingly critical role in boosting efficiency and scalability within the dairy industry. Tools such as predictive analytics, IoT-enabled sensors, and AI-driven farm management systems are helping improve milk yields, streamline supply chains, and minimize environmental impacts.

With growing consumer demand for adulteration-free dairy products, Parag Milk Foods has implemented rigorous quality control measures across its supply chain. Shah emphasized the importance of sustainable farming practices and transparency in building consumer trust.

Despite broader challenges in the FMCG landscape, India’s dairy sector remains a strong performer, driven by innovation, adaptability, and a sharp focus on consumer needs. As demand for value-added and health-centric dairy products continues to rise, the sector is well-positioned for sustained growth in the coming years.

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Hot on its heels, Dosa secured the second spot with 23 million orders, underscoring its enduring popularity across the country. Meanwhile, Bengaluru set a unique record, with one enthusiastic customer spending ₹49,900 solely on pasta, indulging in nearly 55 Alfredo dishes, 40 Mac & Cheese plates, and 30 servings of spaghetti.

Dinner emerged as the preferred mealtime, accounting for 215 million orders—29% higher than lunch. Bengaluru continued its love affair with Masala Dosa, clocking in 2.5 million orders, while Delhi, Chandigarh, and Kolkata stayed loyal to their regional favourites: Chole, Aloo Parantha, and Kachoris, respectively.

In the snack category, Chicken Roll took the crown with 2.48 million orders, followed closely by Chicken Momos with 1.63 million orders and Potato Fries with 1.3 million orders.

When it comes to late-night cravings, Chicken Burger stole the show with 1.84 million orders placed between midnight and 2 AM. However, Chicken Biryani remained a round-the-clock favourite, cementing its place as India’s ultimate culinary obsession.

As Swiggy’s latest report reveals, India’s food preferences continue to evolve, but the love for classic dishes like Biryani remains unwavering, solidifying its status as the ‘undisputed king of the food kingdom.’

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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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The directive, issued on December 16, mandates detailed reporting on three critical aspects: the quantity of products failing internal quality checks, the volume of expired or returned goods from the supply chain, and comprehensive records of product disposal. The disposal data must include specifics such as methods of destruction, auction details, and information about buyers or waste disposal agencies.

Food business operators (FBOs) will need to upload this information through the Food Safety Compliance System (FoSCoS) portal. While the provision for online submission is expected to be activated soon, the FSSAI has urged FBOs to start consolidating the required data in advance.

“This initiative ensures real-time monitoring of rejected and expired goods and their proper disposal, preventing any misuse for human consumption,” the regulatory body stated.

The FSSAI has also instructed all licensed food manufacturers, repackers, relabellers, and importers to maintain accurate records to avoid delays in future submissions.

The move underscores FSSAI’s commitment to enhancing transparency and accountability in the food supply chain, safeguarding public health, and minimizing risks associated with the resale of unsafe food products.

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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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Spain, the world’s largest olive oil producer, has seen its harvest improve by 77% in the 2024-2025 season. The Andalusia region alone is expected to yield about 1 million metric tons of olive oil. Coupled with strong outputs from Greece, Portugal, Tunisia, and Turkey, global production is projected to reach 3.4 million tons, up from 2.6 million tons in the previous year.

This turnaround has led to wholesale prices of top-quality Spanish extra virgin olive oil falling by about 55%, from a peak of $10,000 per ton in February to $4,250 per ton. Retail prices are expected to follow suit, with olive oil likely to drop from over €10 per liter to around €5 per liter.

For Southern Europeans, who rely heavily on olive oil in daily life, this price drop offers much-needed relief after two years of inflationary strain. In Spain, where the average annual consumption is 14 liters per person, households have spent over €450 on olive oil alone during the crisis.

Despite this reprieve, experts highlight two factors that could keep prices elevated:

1. Depleted Inventories: Global olive oil stocks hit a 57-year low in the 2023-2024 season, and it may take several years of strong harvests to replenish them.

2. Rising Demand: The popularity of the Mediterranean diet has driven worldwide olive oil consumption up by 100% over the last 30 years. Demand continues to surge in countries like the U.S., France, and the U.K., where consumption has grown 300% to 1,100% since the 1990s.

Although the immediate crisis has abated, the combination of limited supply and growing demand means olive oil prices are unlikely to fall significantly. For olive farmers, this shift could mean a sustainable livelihood after years of market volatility.

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The FDA’s final rule stipulates that water, tea, and coffee with fewer than 5 calories per serving automatically qualify for the “healthy” label. This move is backed by growing scientific evidence of tea’s antioxidant-rich profile and its potential health benefits, such as improved heart health and reduced inflammation.

In a statement, the ITA highlighted that the FDA’s decision is a significant boost for the global perception of tea, particularly Indian tea. The recognition not only underscores tea’s nutritional value but also empowers consumers to make informed choices about their beverage consumption.

“This is a pivotal moment for the tea industry,” the ITA noted in a media release. “The recognition by the FDA validates the health benefits of tea and reinforces our commitment to promoting Indian tea as a nutritious and healthful beverage choice.”

With the global demand for healthier dietary options on the rise, the ITA and its member companies are committed to maintaining high standards of quality and promoting the benefits of Indian tea worldwide. This endorsement positions Indian tea as a preferred beverage for health-conscious consumers, both domestically and internationally.

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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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