INNOVATION & STRATEGY: RE-ENGINEERING THE SALES & DISTRIBUTION SYSTEM IS THE NEED OF THE HOUR FOR FMCG BRANDS
TRIBUTE Mahashay Dharampal Gulati: The Legend that Shaped India’s Foodscape
GROCERY TECH 2021 As retailers ring in the new December 2020 year, they’re laser-focused Volume 14 • Number 12 on e-commerce logistics Rs 100 www.indiaretailing.com CENTER STORE SOLUTIONS Six ways that grocers can grow in 2021
Ease of access to Customers across multiple CATEGORY WATCH Technology, Innovation and channels Invention are Transforming the Spice is our USP Industry Kunaal Kumar Managing Director, Modern Bazaar
01_Cover DEC 20.indd 1 12/29/2020 8:11:41 PM
December 2020 • Volume 14 • Number 12 • Pages 60 EDITOR’S NOTE
EDITOR-IN-CHIEF: Amitabh Taneja EDITORIAL DIRECTOR: R S Roy While the worst (read year 2020) seems PUBLISHER: S P Taneja to finally coming to an end, we are still in uncharted territory and businesses EDITORIAL will need to be much more careful about EDITOR IN CHARGE: Surabhi Khosla ASSISTANT EDITORS: how they approach the future. The pandemic has transformed the grocery Sandeep Kumar Shivam Gautom retail industry radically. Consumers are much more technologically empowered now and this is ushering in a new CREATIVES normal for the FMGC industry that experts believe to be permanent. ART DIRECTOR: W Pawan Kumar Verma As is apparent by now, innovation and technology has become DY. ART DIRECTOR: Deepak Verma indispensable for business continuity. PRODUCTION In this issue we look at how brands and retailers from the Spices SR. GENERAL MANAGER: Manish Kadam category are utilizing emerging technology and clever marketing strategies SUPPORT to re-dress production, supply & distribution processes as well as come SR. GM ADMINISTRATION: Rajeev Mehandru up with innovative ways of building consumer confidence.
ADVERTISING Inside you will find a slew of industry leaders who expatiate on the innovations and strategies they have utilized for their respective brands, BUSINESS HEAD & ASSOCIATE PUBLISHER: Lokesh Arora E: [email protected], M: +91 9999033612 so that you can adopt them in your own capacities to help stabilize our businesses now and fortify it for the times to come. DELHI: Wishing you all a very happy new year 2021! Hope that the upcoming ASST. GENERAL MANAGER: Ekta Roy year prove to be progressive and prosperous for your family as well as MUMBAI your business. REGIONAL HEAD (WEST): Santosh Menezes For FAQs pertaining to shift in market dynamics, consumer sentiments ASST. MANAGER: Kratika Singh and on all things related to FMCG retail, do log on to our website, https:// BENGALURU www.indiaretailing.com/. REGIONAL HEAD (SOUTH): Suvir Jaggi MANAGER: Ashraf Alom KOLKATA REGIONAL HEAD (EAST): Piyali Oberoi Amitabh Taneja Editor-in-Chief FOR ADVERTISING QUERIES, PLEASE WRITE TO E: [email protected] All feedback welcome at [email protected]
All material printed in this publication is the sole property of Stagnito Media, 111 Town Square CONSUMER CONNECT & SUBSCRIPTION Place, Suite 400 Jersey City, or Images Multimedia Pvt. Ltd. or both, and each of them have DEPUTY MANAGER: Priti Kapil copyrights on their respective materials. All printed matter contained in the magazine is based on information provided by the writers/authors. The views, ideas, comments and opinions E: [email protected] expressed are solely of the writers/authors or those featured in the articles and the Editor and Printer & Publisher do not necessarily subscribe to the same. Printed & published by S P Taneja on behalf of Images Multimedia Pvt. Ltd. Printed at Modest Print Pack (P) Ltd., C-52, DDA Sheds, Okhla Industrial Area, Phase 1, New Delhi – 110020 and published by S P Taneja from S-61A Okhla Industrial Area Phase – 2, New Delhi.110020 Editor : Amitabh Taneja In relation to any advertisements appearing in this publication, readers are recommended to GROCERY GROUP PUBLISHER: make appropriate enquiries before entering into any commitments. Images Multimedia Pvt. Ltd. John Schrei does not vouch for any claims made by the advertisers of products and services. The Printer, GROCERY GROUP EDITORIAL DIRECTOR: Mike Troy Publisher and Editor-in-Chief of the publication shall not be held for any consequences in the event of such claims not being honored by the advertisers. EXECUTIVE EDITOR: Gina Acosta MANAGING EDITOR: Copyright Images Multimedia Pvt. Ltd. All rights reserved. Reproduction in any manner is Bridget Goldschmidt prohibited. All disputes are subject to the jurisdiction of competent courts and forums in Delhi/ SENIOR DIGITAL & TECHNOLOGY EDITOR: Abby Kleckler New Delhi only. Progressive Grocer does not accept responsibility for returning unsolicited manuscripts and photographs. CONTRIBUTING EDITORS: Lynn Petrak and Barbara Sax For subscription related queries, email to: [email protected] For feedback/editorial queries, email to: [email protected] visit us at www.imagesgroup.in CORPORATE OFFICERS CHIEF EXECUTIVE OFFICER: Jennifer Litterick Images Multimedia Pvt. Ltd. (CIN:- U22122DL2003PTC120097) CHIEF FINANCIAL OFFICER: Jane Volland Registered Offi ce: S-61 A, Okhla Industrial Area Phase 2, New Delhi 110 020, CHIEF INNOVATION OFFICER: Tanner Van Dusen Ph: +91-11-40525000, Fax: +91-11-40525001 Email: [email protected], Web: www.imagesgroup.in CHIEF HUMAN RESOURCES OFFICER: Ann Jadown Mumbai: 3/116, Marol Co-Operative Industrial Estate, Marol, Andheri (East), Mumbai 400059 EXECUTIVE VICE PRESIDENT, EVENTS & Ph: +91-22-28508070 / 71, Fax: +91-22-28508072 CONFERENCES: Ed Several Bengaluru: 523, 7th Cross, 10th Main, (Jeevanbhima Nagar Main Road), HAL 3rd Stage, SENIOR VICE PRESIDENT, CONTENT: Joe Territo Bengaluru 560 075, Ph: +91-80-41255172/41750595/96, Fax: +91-80-41255182
4 December 2020 PROGRESSIVE GROCER
02_Mast PG DEC 20.indd 4 12/29/2020 8:07:26 PM Contents Volume 14 • Number 12 40
40. Innovation & Strategy FMCG Brands: Re-Engineering the Sales & Distribution System is the Ease of access to Need of the Hour customers across multiple channels 42. Industry Event is our USP Live Masterclass With Chef Saransh Goila At The IHE Expo Virtual — Kunaal Kumar Hospitality Show Cover Story 32 MD Modern Bazaar’s 43. MINTEL CATEGORY INSIGHTS Feminine Hygiene and Sanitary 8. Editor’s Pick 22. Paras Spices: Spicing up with Protection Food, beverage & non-food products innovation 24. KBM Foods Private Limited: 44. Center Store Solutions Technology & Innovation at Heart Six ways that grocers can grow in 2021 8 26. Kwality Foods: Doing it Right with Innovation & Technology 49. Nielsen Research 28. Old Touch Spices: Pushing Limits Average American household’s Through Innovation spending on health and beauty products 30. Shubh Food Industries Pvt. Ltd.: Harnessing The Power of Innovation 50. Payment Solutions How the pandemic and loyalty can help 12. Market Update food retailers get a fi rmer handle on The latest news and industry updates 30 transactions 18. CATEGORY WATCH — FMCG INNOVATION Technology, Innovation and Invention 50 are Transforming the Spice Industry 18 38. TTributeribute MMahashayahashay Dharampal GulatiGulati ThThee LLegendegend thatthat SShapedhaped IndiaIndia’s’s FFoodscapeoodscape 54. Grocery Tech 2021 E-Commerce Logistics Fulfi llment 38 Prophecy 20. Rakesh Group: Using Technology & Innovation to Produce Authentic 58. Research & Analysis Flavours Fresh Take on Fruit
6 December 2020 PROGRESSIVE GROCERR
03_Contents PG DEC 20.indd 6 12/29/2020 8:53:36 PM CATEGORY WATCH FMCG INNOVATION
has delivered a VUCA disruption like never Technology, before. Since the pandemic hit, the entire retail industry has been evolving by the day. Just Innovation and like the shifts in societal and economic order, the COVID-19 pandemic has brought about 20 signifi cant changes in consumer behavior. Invention are Consumers across the world have changed in massive proportions and are continually Transforming the developing newer habits, compelling brands and retailers to continually bank on innovation 20and new age technology to explore newer business models. Spice Industry While it is true that the food and grocery industry was spared of the horrors that non-essential retailers A LOOK AT HOW INCREASING RELIANCE were faced with during the crisis, this industry too ON TECHNOLOGY, CREATIVE INNOVATIONS was infl uenced by the pandemic and the subsequent ACROSS MANUFACTURING, PRODUCT lockdown. Even though things have stabilized now, the CONCEPTUALIZING, MARKETING, AND fear of the contagion continues and businesses across the OPTIMIZED BUSINESS MANAGEMENT FMCG segment are compelled to make major overhauls PROTOCOLS HAVE BECOME THE NEW NORM both in the way they manufacture and retail their products. OF THE INDIAN SPICE INDUSTRY POST THE Just like other FMCG segments, the Indian spice COVID-19 PANDEMIC.… industry was no exception to this reality, and has witnessed signifi cant disruption over the past few months. By Progressive Grocer Bureau As a result, businesses operating in this segment have been compelled to streamlined their brand portfolio, and continually innovate in all aspects of their operations - right from product development and in-store services to marketing strategies, so as to appeal to consumers, who have now become more discerning than ever before.
18 December 2020 PROGRESSIVE GROCER
Category Watch Introduction_Spices (2 pgs).indd 18 12/29/2020 8:13:46 PM CATEGORY WATCH FMCG INNOVATION
Ever since its inception, the Rakesh Group has emphasized on producing only premium quality products without compromising on taste, texture, and aroma. To ensure this, the company adheres to a series of meticulously formulated processes. All spices are made from the purest of ingredients sourced from fi nest of crops and are manufactured under very strict quality surveillance. The company has also installed indigenous labs that conforms to international standard quality checks to produce avant-garde spices. To further aid the company in achieving this, the Rakesh Group has armed itself with the latest in technology and machinery. Today, it boasts 9 state-of-the-art manufacturing units that are furnished with newfangled machinery and technology Rakesh Group: 2 high-effi ciency Cryogenic Grinding plants with installed manufacturing Using Technology & capacity of 4 tons per hour ensure that there is no loss of volatile oil or fl avouring Innovation to Produce components in spices produced Heat Drying Treatment Mechanised cleaning and sorting of Authentic Flavours spices to ensure purity EVER SINCE ITS INCEPTION, THE RAKESH GROUP HAS High-End Magnets to eliminate ferrous EMPHASIZED ON PRODUCING ONLY PREMIUM QUALITY contamination PRODUCTS WITHOUT COMPROMISING ON TASTE, TEXTURE, In-house capacities of microbiological OR AROMA, AND TO ENSURE THIS, THE COMPANY ADHERES and physical analysis TO A SERIES OF METICULOUSLY FORMULATED PROCESSES… Air conditioned mezzanine fl oors for packing By Progressive Grocer Bureau The Group has recently launched a one- he Rakesh Group’s respected position in the Indian of-a-kind Food Zone in Kanpur, adding yet spice segment is a testimony of their labour of love, another feather in its already decorated of more than three decades. What started as an cap. This ultra-modern hub sprawls across obligation to offer authentic Indian fl avors has today more than 15 impressive acres and is home transformed into a behemoth that dictates industry to 5 manufacturing units that feature a standards, an industry giant that consumers can perfect coalesce of emerging technology trust with their eyes closed. Central to this success and profi cient manpower. story have been the organisation’s unfl inching attitude In addition, Rakesh Group has recently towards quality and a natural tendency for best in class signed a contract with AXOR – ITALY for innovation and technology. Today, the group’s main the supply of a high-tech pasta plant with brand, Rakesh, has become a household name and is trusted across the country a production capacity of more than 2 tons Tfor its range of spices (ground as well as formulated), besan and sattu, roasted per hour. gram, soya chunks, vermicelli, roasted sewai, papad, baking powder, food colours, In a tête-à-tête with Progressive Grocer, pickles, ghee, etc. Along with Rakesh, the company’s other brands – La’ Indian, Vivek Pathak, CEO, Rakesh Group, Abhivadan and Yuva – have also graduated to a position of dominance in a very recounts how the company banks on short span of time, enjoying equal demand from consumers across India. innovation and modern technology to All products that bear the stamp of the company are FSSAI, HACCP, and create authentic fl avours that exude the true ISO - 9001-2015 certifi ed. taste of Indian spices.
20 December 2020 PROGRESSIVE GROCER
CATEGORY WATCH_Profile Rakesh Masala (2 pgs) New.indd 20 12/29/2020 8:55:07 PM COVER STORY Retailer Speak
odern Bazaar was the brainchild Ease of access to of the late Vishwant Kumar. The brand started operations from customers across Vasant Vihar in New Delhi in the year 1971. Vishwant Kumar realised that there was a discerning multiple channels Mconsumer who was looking for a better and wider range of consumable products without having to travel is our USP, says abroad for them and thus Modern Bazaar was born. At that time, it was India’s first supermarket which provided the customer with a wide range of quality Modern Bazaar’s products from across the world and under one roof. Since its inception Modern Bazaar has operated as a Kunaal Kumar single store entity, however a major fire in 2004 burnt it down completely. In 2005 Kunaal Kumar, who had MODERN BAZAAR WAS ESTABLISHED IN THE YEAR joined the family business in 1991, opened a new store 1971, WHEN FOUNDER VISHWANT KUMAR REALISED – in Vasant Vihar again. Having re-established the THAT THERE WAS A DISCERNING CONSUMER WHO brand once again he then ventured out into other areas WAS LOOKING FOR A BETTER AND WIDER RANGE OF / markets and over the next few years branches were CONSUMABLE PRODUCTS WITHOUT HAVING TO TRAVEL setup at regular intervals across Delhi and Gurugram. ABROAD FOR THEM. IT WAS INDIA’S FIRST SUPERMARKET Currently there are 12 stores operating in Delhi WHICH PROVIDED THE CUSTOMER WITH A WIDE RANGE & NCR. In an exclusive interview with Progressive OF QUALITY PRODUCTS FROM ACROSS THE WORLD AND Grocer Bureau, Kunaal Kumar, Managing Director, UNDER ONE ROOF...… Modern Bazaar spoke about the brand’s strategies during the pandemic, its major customer value By Progressive Grocer Bureau proposition, and the top technologies they are looking at adopting over the next one year.
32 December 2020 PROGRESSIVE GROCER
Cover Story_Modern Bazar (4 pgs).indd 32 12/29/2020 8:19:24 PM TRIBUTE Retail Legend
Mahashay Dharampal Gulati: The Legend that Shaped
India’s Foodscape The company is one of the biggest brands of spices in the country today. THE OWNER OF MDH SPICES AND ITS ICONIC FACE, Besides being a manufacturer, DHARAMPAL GULATI, PASSED AWAY AT THE AGE OF MDH is also a distributor and 98. ACCORDING TO REPORTS, HE WAS UNDERGOING exporter of ground spices and POST-COVID TREATMENT AT A HOSPITAL IN DELHI FOR spice mixtures. It specializes in several unique traditional blends of WEEKS TOGETHER BEFORE SUCCUMBING TO A CARDIAC spices suitable for different recipes. ARREST IN THE EARLY HOURS OF DECEMBER 3, 2020. Currently, MDH has more than 60 products in its kitty and it exports to ll of us have a life to live but very few people about 100 countries, including the can afford a life that’s as inspiring and U.K., Europe, U.A.E., USA, Canada, extraordinary as Mahashay Dharampal South East Asia and others. Its best- Gulati. The life of the founder and CEO selling products include Deggi Mirch, of Mahashian Di Hatti ((MDH),), Dharampalp Gulati, is studdedudded with so manymany crowningcrowning accomplishmentshments thatthat ordinaryordinary mortalsmortals might take sseveraleveral lifetimes to achieve. The news of hihiss ddeatheath drewdrew condolencecondolence messages aandnd trtributesibutes fromfrom manymany distinguisheded pepersonalitiesrsonalities ooff tthehe countcountryry across socialal mediamedia - rightright fromfrom PresidentPresident Ram Nath Kovind, ministers, politicians and businessusiness tycoons to Bollywood superstars, everybody hailed his entrepreneurialal spiritspirit inin theirtheir eulogy.eulogy. A“He is defi nitely one of the India’s most inspiringring entrentrepreneur.epreneur. HeHe was the one who spread the fragrance of Indian spicesices inin thethe wholewhole world,”world,” sayssays Gaurav Gambhir, Managing Director, Shubhh Food Industries Pvt. Ltd.Ltd. Born on March 27, 1923, in the city of Sialkot, Pakistan, Dharampal quit school at a tender age to help his father at their shopshop MahashianMahashian Di Hatti.Hatti. The family migrated from Pakistan to India at thee ttimeime ofof papartition,rtition, anandd stayed at a refugee camp in Amritsar for a while.e. Dharampal,Dharampal, alongalong with his brother-in-law, then travelled to Delhi in searchsearch ofof work, and after a few gruelling years, during whichich he pushed his luck trying his hands at and dabbling in many things, he eventually found the spice trade, which became his calling card thereafter. With a humble beginning from a modest shop in Karol Bagh, Delhi, Dharampal Gulati laid the building blocks and the foundation of his future empire in the spice business, whose worth is multi-crore today and growing in value. As the business took off, Dharampal rented another shop in Chandni Chowk in 1953. He then decided to purchase a plot in Kirti Nagar in 1959 to start his own factory, and this led to the birth of Mahashian Di Hatti Limited.
38 December 2020 PROGRESSIVE GROCER
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ust as the holiday season was getting in gear, CVS Pharmacy offered a glimpse at the future of pay- What’s the ments in the food retail world and beyond. The drug store chain launched a service en- Proper Path abling customers to check out touch-free using PayPal and Venmo QR codes at 8,200 stores. These codes allow customers to securely pay for for Better their items without needing to touch a keypad or sign a receipt, while also being able to access Payments? multiple payment methods available in PayPal and Venmo wallets. HOW THE PANDEMIC AND LOYALTY According to CVS, this made it the fi rst national CAN HELP FOOD RETAILERS GET A retailer to integrate PayPal and Venmo QR code FIRMER HANDLE ON TRANSACTIONS. technology in its point-of-sale experience at all stand-alone locations across the country. The By Thad Rueter touch-free experience will be available to existing PayPal and Venmo customers, while new customers can sign up and link their preferred payment method, usually within minutes.
Key Takeaways Fueled by the pandemic and the associated spike in grocery e-commerce, food retailers are embracing new forms of payment. One way to eliminate food retail friction is to integrate a retailer’s loyalty program and other discounts with, for example, the digital wallet on a shopper’s mobile phone. Major food retailers like Walgreens are beefi ng up their loyalty programs as payment methods grow more numerous and digital.
50 December 2020 PROGRESSIVE GROCER
USA_Payment Solutions (4 pgs).indd 50 12/29/2020 8:43:40 PM