Deepak's Musings #150 ☕ Did you know that in the US, 67% of adults drank coffee in the past day

💄 McKinsey & Co: Key imperatives for CPG companies to succeed

This McKinsey report has a lot to unwrap, but it is a must-read for everyone building consumer brands, EVERYONE on this chat. This is focused on the large CPG companies, and data is primarily from the Western markets, but underlying themes are valid and relevant in India and SEA.

The megatrends that disrupted the last decade are still playing out, and as a result, CPG companies must rise to the challenges they face.

Download the full report here: https://mck.co/45uPes3

🇮🇳 India will be the next large luxury market

In this report, BDA Partners argues that India today represents only 5% of the global luxury spend, but it’s suddenly seeing explosive growth. BDA contends that India’s luxury market is set to more than triple by 2030, driven by a growing consumer base and increasing wealth, particularly from HNIs.

I agree.

⚽ Will Mas+ by Messi stand the test of time?

Mas+ is described as “positive hydration” but is a functional sports beverage that contains electrolytes, minerals, vitamins and antioxidants for all intents and purposes. Can Messi’s name ensure success and longevity? We will have to see how this plays out.

🏃🏽 Sales of better-for-you products have risen in the last five years, with urban India leading the shift

The Economic Times article discusses how Indian food companies are increasingly catering to consumers' growing demand for healthier food options. With rising awareness about health and wellness, there is a significant shift towards nutritious and health-oriented products. Companies are innovating and expanding their portfolios to include items like low-fat, low-sugar, organic, and natural foods.

🎦 Portfolio Spotlight: EazyDiner X PVR INOX

EazyDiner’s partnership with PVR INOX will allow movie enthusiasts to use PayEazy; customers can now enjoy their favourite snacks at a discounted price, adding more value to their cinema experience.

🥜 Portfolio Snapshot: The Farmley Case Study

Get an inside perspective into one of India’s leading health-snacking brands: Farmley.

☕ Did you know that in the US, 67% of adults drank coffee in the past day - more than any other beverage, including water?

What is driving consumption? What can we learn from the age and demographics of consumers? What can we extract as more consumers in India and Southeast Asia drink coffee more regularly? According to the report, in the US, younger consumers—particularly in the 25-29 year-old range, which account for two-thirds of category sales—are driving growth within specialty coffee.

A very US-centric report with tons of data. Full report available at https://lnkd.in/dhgu6V9N

👜 Bain & Co: Personal Luxury Goods Market to Slow in 2024

Amid global turmoil, including wars in Ukraine and Gaza, the report analysis presents two scenarios for market growth in 2024. The optimistic scenario, fueled by a stronger-than-expected Chinese market, predicts growth between 4% and 6%. The realistic scenario anticipates a slowdown in mature markets like the U.S. and a slower recovery in China, resulting in flat to 4% growth.

Download the full report here: https://bit.ly/BainAltagamma

🍦 Go Zero closes new funding round

DSG Consumer Partners portfolio company Go Zero closes a new funding round co-led by internal investors Saama Capital, V3 Ventures and DSGCP. DSGCP first partnered with exactly a year ago in June 2023 and its been a privilege to watch what Kiran Shah and his team have achieved in only 12 months. Go Zero is an integral part of our playbook to seed and create the next generation of healthy snacking brands alongside Farmley, Epigamia, Pip & Nut and Kind Kones.

🍾 India is a key lever in the growth of the global alcohol market

While global beverage alcohol struggled up 1% in volume in 2023, India enjoyed 5% growth. Spirits in India posted 12% growth, beer was up 38%, wine was up 19% and RTDs up 40%

🌶️ Ethnic food brands are booming in the USA

I was in NY last month and had the opportunity to visit several retail outlets, from Whole Foods to Sephora to Ulta to ethnic grocers in Chinatown, Little Korea, and others. I will focus on the food and beverage category. Ethnic is king. At least in NYC. Americans are not only trying but are regularly purchasing products which only 10 years ago they would have found alien. Mexican had already become mainstream but today, most Americans are purchasing kim chi, bhan mi, sambal belacan, fish sauce, tempeh and everything in between.

The brands I found were a mixture of made-in-US brands and ethnic brands imported by consolidators servicing these ethnic grocers. But as more items become mainstream and are available at Whole Foods, Fairways, Wegmans, and more, I see an opportunity for insurgent brands to tell a different story. Everiday, an ethnic condiments business and DSGCP portfolio company, launched in the USA in May. Let us see how this plays out.

📰 Select funding & deal news

Funding and deal news that caught my attention this week