Weekly Industry Update with one kilogram of joy
FMCG roundup covers Reliance’s push in India’s north and west, Zomato’s significant Q3 profit fall, P&G’s legal troubles over greenwashing, and Lindt’s price hikes in response to rising cocoa costs, along with FMCG brands making an impact at the Maha Kumbh Mela.
21 Jan 2025 | 462 Views | By WhatPackaging? Team
Reliance steps up distribution push as FMCG vertical grows
Reliance will expand its operations in the northern and western regions of India. This includes brands like Campa, which recently disrupted the cola market in the country through competitive pricing.
The group is doing something right somewhere. The Reliance Retail Q3 results show PAT jumps 10%; and YoY to Rs 3,458 crore, plus revenue advancements by 7%.
WhatPackaging? has learnt the total store count is at 19,102 with an area under operation at 77.4 million sq/ft.
Blinkit, FMCG giants set shop in mela area
The Maha Kumbh Mela has been a hotbed for millions of pilgrims globally. Brands are taking the opportunity to set up kiosks to help serve the devotees. This includes entities such as Blinkit, Reckitt’s Dettol, and ITC.
Team WhatPackaging? has learnt from reliable sources that FSSAI has rolled out comprehensive measures for food safety at the Maha Kumbh and has deployed mobile food-testing labs, plus appointed officers to safeguard food safety.
As per government sources in the Uttar Pradesh government, there is a possibility of 35-40 crore people attending the Maha Kumbh, and an investment of Rs 7,000 crore has been made in Prayagraj and the Maha Kumbh.
Zomato Q3 results plummet
According to business portals, food delivery app Zomato reported a 57% drop in their net profit for the third quarter of FY25. The company’s share price has dropped by almost 11% after this. Its revenue rose by 64% and is valued at Rs 5,405-crore.
Meanwhile, Blinkit (Zomato's quick commerce arm), reported an EBITDA loss of Rs 103 crore for Q3. Contrariwise, the group has opened 1,007 stores and aims to reach 2,000 stores by December 2025.
Moral of the story: On the one side it is price wars and on the other hand, slow and steady growth.
Procter & Gamble accused of greenwashing
P&G owns Charmin, an American brand of toilet paper. A class-action lawsuit was proposed, accusing the company of sourcing most of the required wood pulp for Charmin from Canada’s boreal forest. This is an important biological ecosystem. The consumers involved in the class action have reportedly called the logging and cutting practices at odds with the company’s commitment to environmental conservation. Notably, the company has a campaign, “Keep Forests as Forests.”
WhatPackaging? has a take: Companies are becoming increasingly craftier in their green efforts to pose as more climate-friendly than they are. With the kind of brain power and lawyer power they possess, it’s tough. As a result, we are going to see a retreat from environmental targets.
Lindt hikes prices to combat increasing cocoa costs
Swiss chocolatier Lindt & Spruengli has been staving off the all-time high costs of cocoa to its customers. The company is expected to raise the prices even more this year. Reportedly, however, this has not been an off-putting factor for customers, who continue to buy chocolates in abundance. The company reported almost 8% organic growth last year.
As the office-wit shared with Team WhatPackaging? cocoa prices are up by five times since 2023, and he is now going to invest in four hectares of land in Nigeria and harvest cocoa. At 15 million Naira per ton, it has better returns than bitcoin.
With inputs from agencies.