Weekly FMCG Update: ITC acquires 24 Mantra, Amazon joins qCommerce

ITC strengthens organic push with 24 Mantra buy
ITC acquired 24 Mantra to bolster its presence in India’s fast-growing organic food sector. With strong brand recall, a large international footprint—especially among the US diaspora—and a certified farmer network across 10 states, 24 Mantra aligns with ITC’s “Next” strategy. The INR 10,000-crore market is growing at 15–20% annually.

Comic Con shifts focus to tier-2 cities
Comic Con India is set to expand into tier-2 and tier-3 cities after reaching saturation in urban markets. With over 3,00,000 attendees in 2024, the event is eyeing cities like Hyderabad to start its next season. In conversation with a leading business portal, CEO Shefali Johnson and founder Jatin Varma emphasised fan-driven growth and regional diversification. Comic Con’s plans include international expansion and synergy with other pop culture IPs, responding to rising interest in anime, manga, and Indian legacy comic brands.

Amazon enters qCommerce fray amid speed race
Quick commerce in India is heating up with Amazon’s entry in Bengaluru, joining rivals like Zepto and Blinkit. Previously dominated by startups and food delivery apps, the sector is now seeing e-commerce majors prioritise speed over traditional R&D. Despite criticism from traders and concerns over disrupting retail, qCom remains resilient, evolving with growing demand for instant deliveries across urban pin codes. Amazon's arrival signals a new phase of competition in this fast-paced market.

Cola wars affected by tariff wars
PepsiCo faces setbacks in the cola wars as US tariffs impact its Ireland-made concentrate, incurring a 10% duty. Coca-Cola, which is produced mainly in the US and Puerto Rico, is less affected. The aluminium tariff also threatens both companies. With Pepsi losing market share and Dr Pepper overtaking it in the US, the trade war adds to its challenges. Pepsi’s bottlers, already struggling, now fear rising costs and limited competitiveness due to the uneven tariff burden.

FSSAI Moves to Clarify Dairy Analogue Labelling
The FSSAI has issued a consultation paper to address confusion around dairy analogues. The draft suggests stricter labelling — using terms like “non-dairy” or “analogue”— and ingredient disclosures to protect consumers. Hotels and caterers must also specify if plant-based alternatives are used. The move follows rising festive consumption and health concerns, aiming to improve transparency and consumer trust as plant-based products gain popularity in the Indian market.

Private labels fuel qCommerce growth in staples
Quick commerce platforms are increasingly focusing on private label offerings in categories such as staples and packaged foods, with notable traction seen by brands like Zepto’s Daily Good and BigBasket’s BB Royal. These lines deliver strong profit margins and benefit from frequent consumer purchases. However, expanding into perishables like poultry remains challenging due to logistical and shelf-life constraints. Although private labels now contribute 6–8% of qCommerce sales, platforms remain wary of overextending, mindful of user intent, advertising revenues, and operational agility.

Hit reinforces market lead
Hit continues to dominate India’s home insecticide market, commanding over 80% of the aerosol segment. Recent product innovations, including an upgraded mosquito spray and smart devices, reflect Godrej Consumer Products’ (GCPL) push to stay ahead in a competitive, fast-growing market. With North and West India driving sales and the category expanding 7–9% annually, Hit is under pressure to address rising safety concerns. GCPL is responding through rigorous testing and partnerships to strengthen consumer confidence and brand distinction.