Deepak's Musings #154: Leadership transitions are hard but sometimes (or often) necessary

☕ Starbucks has a new CEO….again. Leadership transitions are hard but often required

Clearly, Starbucks's BOD did not feel that Laxman Narasimhan was the right person to lead the business at this stage of the company’s journey. I am sure that over the coming weeks and months, there will be a more critical analysis of why he wasn’t the right person. At the time of his appointment, my first thought was, why have someone from CPG run a food services business?

Bottom line: all business at some point need the right leader for the needs of a business at that point of time. Some businesses are fortunate and have CEOs who are able to evolve with the business. Often, this will not be the case.

🍫 Mars snacks on Kellanova in one of CPG industry’s largest ever M&A

Based on last quarter’s earnings, this equates to about 15x EBITDA. What does this mean for the CPG industry in the short to medium term? Do we see more M&A in the coming months?

🧘🏼‍♀️ Can CPG companies adapt to the new world of healthier diets?

As CPG companies look to merge, there is a growing debate on GLP-1 drugs and healthier diets. Will the focus of their M&A move to better-for-you brands?

🐿️ Portfolio spotlight: Pip & Nut deepens and commitments to ethical and sustainable sourcing

I first met Pippa Murray in 2018. What I remember from our first meeting was her commitment to sustainability. Pip & Nut has banned palm oil from its products since day one, sources 100% of its almonds from the Californian Almond Stewardship Programme and commits to working with Food Standards Agency-accredited peanut suppliers. Businesses like Pip & Nut can be and must be a force for good.

👨🏽‍💼 Nestlé promotes Rajat Jain

Rajat Jain, the head of the foods business and leader of the Maggi brand in South Asia, is set to take on a major role within the broader Nestlé Group.

🍹 What is India drinking?

As Indian consumers seek diverse and innovative experiences, beverage companies are expanding their portfolios to include flavoured spirits, which appeal particularly to younger and urban audiences. Does this trend reflects broader changes in the Indian alcohol market, where traditional preferences are giving way to more experimental and contemporary choices, driven by evolving consumer tastes and global influences?

🍷 India’s evolving wine industry

Rajeev Samant, founder of Sula Vineyards, transformed India's wine industry by establishing Nasik as a globally recognized wine region. Samant continues to promote wine culture in India while focusing on sustainability and quality improvements.

🛒 Is the future Click & Mortar?

This article was written from the perspective of maintaining physical clinics in the healthcare industry; I believe it is relevant to many other sectors. Too many investors argue that digital-only models are constantly superior. Going back to first principles, a brand (product or service) needs to be where the consumers need it, which means omni-channel. In the same way, this piece emphasizes that in-person care remains valuable for patient trust and treatment quality; each business must balance all available channels.

The future is click & mortar.

🫘 Singing the praises for Robusta coffee: Vietnam’s Every Half Coffee

DSG Consumer Partners has partnered with Vietnam’s Every Half Coffee, whose vision is to bring speciality Vietnamese Robusta Coffee to consumers. Most of the coffee world has been focused on the Arabica bean, and Every Half wants to educate and celebrate the Robusta bean.

🫶 Collab spotlight 1: Liquid Death X Van Leeuwen

I love collaborations, and this one is super interesting.

🫶 Collab spotlight 2: Coke X OREO

Readers know that I am a fan of collabs. But I am not too sure about this one.

👠 The case for dupes

Another thing I learned from my kids is that duplicates are not counterfeits, and they are not passing off a product as another.

Unlike illegal counterfeit goods with unauthorized trademarks or logos of patented brands, these dupes are affordable, often legal alternatives to premium or luxury products. Surprisingly, they’re sometimes even favoured over their more expensive counterparts.

🏋🏽‍♀️ Are you getting enough protein?

The CPG industry is undergoing a #proteinrevolution, with unexpected items like doughnuts and sparkling beverages now being packed with protein. CPG companies I speak to say that this trend is being driven by consumers' increasing demand for healthier, high-protein diets, and it's pushing both startups and big brands to innovate in surprising ways. From protein-infused candy bars to plant-based protein drinks, the market is exploding with options that cater to the health-conscious.

🥊 iD Fresh’s growth challenges

Sorry, this story is behind a paywall, but it's worth a read.

The article argues that iD Fresh, successful for its idli/dosa batter and Malabar parotta, is under pressure to diversify ahead of its IPO. Despite several failed attempts to introduce new products, founder P.C. Musthafa is searching for another hit to boost its valuation.

As I reflect on this, does the company need to diversify? iD is strong in its niche, with challenges like increased competition and customer retention looming ahead.

🫖 Hindustan Unilever sees coffee and tea driving growth

CEO Rohit Jawa, in the latest earnings, noted that given the flat performance, Hindustan Unilever has turned to some of its other food and beverage brands to secure faster growth, most prominently its premium coffee and tea ranges.

📰 Select funding & deal news

Funding and deal news that caught my attention