Musings From Deepak @ DSG Consumer Partners #86

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 DSGCP at @dsgcp.

Purpose-Led Brands Can Reshape the Consumer Goods Industry if They Can Scale — www.bain.com

A fantastic report co-authored by long-term DSG Consumer Partners partner Verlinvest and my prior firm Bain & Company. Their consumer survey showed that more than 70% of consumers are willing to pay a reasonable premium (approximately 10%–25%) for sustainability. Purpose-led brands typically gain traction by creating issue awareness. This drives consumer interest in their products, spurs retailer demand, and attracts and motivates high-quality employees. All of these factors lead to better growth.

Dabur acquires majority stake in Badshah Masala for Rs 587.52 crore (US$71m) — brandequity.economictimes.indiatimes.com

This translates to a sales multiple of 4.5x and EBITDA multiple of 19.6x expected FY23 financials. The sauces and seasoning category continues to be a very attractive target for strategics and financial investors given double digit growth and increased consumption. DSGCP portfolio company Veeba is one of the leading brands in this category.

Youvit’s mission to build Southeast Asia’s premium supplement brand: Why we made our follow-on investment — dsgcp.com

DSGCP first invested in Youvit in 2017. Since then, COVID-19 has reinforced what we had underwritten in our original investment thesis where there would be a transition from purely curative to preventive actions on the part of consumers. Despite the challenging operating environment with COVID-19, Youvit showed resilience and has delivered 7 consecutive quarters of revenue growth.

Whole Foods Forecasts Top 10 Food Trends for 2023 — media.wholefoodsmarket.com

Whole Foods Market’s Trends Council unveiled their top 10 anticipated food trends for 2023 in the retailer’s eighth-annual Trends predictions.