Deepak's Musings #135: The tale of two Indias

Premium versus mass market

Author

Deepak Shahdadpuri
January 29, 2024

All things consumer & insurgent brands. What I am currently reading, thinking about, and reflecting upon. You can follow me on Twitter at @dishahdadpuri or follow DSG Consumer Partners at @dsgcp.

p.s. You can click on any of the summary links to read the full article from its source.

Farmley

The tale of two Indias

Recent reports confirm what we have been seeing in our portfolio: premium brands are flying off the shelves, but mass-priced products remain relative stragglers. This also reiterates what was published in the Goldman Sachs report “Affluent India” published in early Jan 2024.

India's consumption landscape: Premium trumps mass market

Hindustan Unilever said its premium portfolio expanded more than two-and-a-half times the mass segment over the past few quarters.

Will Vietnam be the fastest-growing market for CPG brands in ASEAN?

Vietnam has all the ingredients to make it one of the most exciting markets for CPG businesses, including insurgent brands. DSG Consumer Partners has two investments in the country: men’s basic-wear apparel brand Coolmate and education business Marathon Education.

Few countries are better placed than Vietnam to get rich

When Vietnam started opening up in the mid-1980s, annual income per head was half of Kenya’s. On the back of pragmatic and increasingly pro-business policies, it has since grown six-fold to $3,700.

Is the better-for-you soda movement a fad or a long-term opportunity?

The New Yorker looks at the huge growth of sales and brands pitching a better-for-you soda. What does the future hold?

The Probiotic-Soda Shoppe

We’ve pumped our sodas so full of probiotics that your gut will overdose on bacteria.

Farmley’s focus on building one of India’s leading healthy snacking businesses

Outlook India looks at how DSG Consumer Partners portfolio company Farmley moves from the B2B business where it started to a more brand-centric B2C health snacking business. Farmley established five farm-gate processing units close to its produce sources to maintain control over product quality. It works directly with over 5000 farmers, sourcing cashews from Mangalore, Makhana from Bihar and raisins in Sangli and importing almonds from California, walnuts from Chile and dates from the Middle East.

With Rs 150 Crore Annual Recurring Revenue, Farmley Eyes Global Expansion, Expansion Of Offline Stores

Last month, the snacking brand raised $6.7 million in a funding round, adding to the $9 million it had previously raised

CPG MNC Colgate-Palmolive bullish on India

Colgate aims to improve performance by increasing thColgate aims to improve performance by increasing the consumption frequency through core products, driving premiumisation with science-based innovation, expanding distribution of personal care portfolio and improving product assortment with the help of technology.

Colgate Bets on Rural Recovery to Drive Up Volumes

The trends shaping the $1.8 trillion global wellness market

McKinsey just released a survey on the global wellness market which is a must-read for anyone who wants to better understand how consumers are looking at this category.

The trends defining the $1.8 trillion global wellness market in 2024

Our latest Future of Wellness survey finds that consumers are taking greater control over their health—and expect companies to provide effective, science-backed solutions.

What does 2024 hold for the alcobev industry

Food Dive looks at the trends and changing consumer behaviour, including continued growth in the no-and-low alcohol segment, and how this will shape the industry.

Booze or bust: How 2024 will reshape alcohol

As tastes evolve and people imbibe less, producers are revamping their portfolios with strategic investments in new categories and nonalcoholic offerings.

L’Oreal’s Vismay Sharma speaks to FinanceAsia about the opportunities in South Asia Pacific, Middle East and North Africa

L’Oreal is the world’s largest global beauty company with annual sales crossing US$40 billion. They are also an LP in DSGCP. In this wide-ranging interview, Vismay shares his views on sustainability, digitisation, AI, beauty tech, and broader consumer trends.

Exclusive interview: Vismay Sharma, president of L’Oréal SAPMENA

Sharma shares his insights on the potential of his unconventional geographical zone, how the region is promoting sustainability and how the global cosmetics and beauty firm is leveraging data and tech in a market ripe for disruption.

Select funding & deal news

Leading Non-Dairy Creamer Brand Nutpods Acquired by CPG Investor

Amid a flurry of plant-based M&A activity, US non-dairy coffee creamer brand Nutpods has been acquired by CPG investment arm MPearlRock.

Scalp And Hair Brand Jupiter Secures $3M To Expand Distribution And Merchandise | Beauty Independent

Jupiter's funding round was led by Willow Growth Partners, with participation from Springdale Ventures and SWAT Equity Partners.

Wind Point’s Targeted PetCare acquires pet-treat business Pet Brands

Pet Brands is a supplier of private-label and branded dog and cat treats including jerkies, soft chews, dental chews, purees and bones.

Timeline Nutrition Raises $66M for Longevity Supplements

Science-backed anti-aging gains steam.

Irish mushroom coffee start-up OYL gets boost in funding

Venrex has invested in James McCormack’s specialist beverage company

Newme raises Rs 45 crore in seed funding from Fireside Ventures

Newme, an affordable Gen Z-focused fashion brand has secured Rs 45 crore ($5.4 million) in seed funding led by venture fund Fireside Ventures.

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