Category: Food

Retail News Asia is committed to providing both local and global retailers with the latest Food and Food & Beverage news throughout the Asian market. This on a daily base.

  • Beer Cartel wins international innovation award

    Beer Cartel wins international innovation award

    It takes something special to surprise the judging panel at the Miraclon-sponsored Global Flexo Innovation Awards (GFIA), but that’s exactly what the joint entry from Fathom Optics and Grace Label achieved. So much so, that they even won a Gold Award (with Highest Honors) for conversion to flexo, commitment to sustainable print and creative use of graphic design.

    In what the judges described as “a really impressive innovation,” the label for Des Moines, IA, craft beer producer, Confluence Brewery, used Fathom’s brand-new embellishment technology to render attention-grabbing full-motion 3D effects on labeling for the brewery’s ‘Wizard’ Gose-style sour ale. The effects appear to be on three different levels: text and graphics on the label surface, a ‘Northern Lights’-type effect seemingly moving within the can itself, and finally, at the top of the wizard’s staff, a rotating orb that appears to emerge from the surface of the label.

    And what made the job remarkable was the fact that all this was done without the need for lenticular lenses or a holographic foil, using Flexcel NX Plates on Grace Label’s standard flexo press using standard inks. Traditionally, the use of holographic foils or lenticular lenses for short label print runs has been cost-prohibitive, while holographic foils also raise sustainability concerns since they are typically 95% waste. FLEXCEL NX Technology makes special effects labels a viable option for brands pushing the boundaries of regular packaging designs for shorter runs, with big cost and sustainability benefits that they can take advantage of.

    Fathom Optics and Grace Label teamed up for the ‘Wizard’ label, which came about because of a friendship between the family of Tom Baran, CEO and Co-Founder of Fathom, and John Martin, owner/founder of Confluence, to whom Grace Label is an established label supplier. Founded in the mid-1970s by the father of current company president, Steve Grace, Grace Label is one of oldest and largest regional converters in the Midwest US, operating as a full-service supplier that handles every step of the design-to-delivery process. Besides the craft beer and spirits industries, Grace also serves customers in meat and agricultural foods. The company has both digital and flexo presses, with flexo printing representing 90% of their work.

    Flexcel NX Technology ‘like getting a brand-new press’
    Crucial to the success of the ‘Wizard’ project was the Kodak Flexcel NX System, which Grace Label installed in 2011. “With the ability to hold a dot and sharpen an image, it was like getting a brand-new press on some levels,” recalls Steve Grace. “The plates last longer, we set up faster, dial in color faster, and reduce our wastage. It’s been a home run.”

    Steve’s enthusiasm for FLEXCEL NX Technology was shared by Fathom Optics founders Tom Baran and Matt Hirsch: “When we realized Grace was a Flexcel NX Plate user we were delighted,” says Baran. “We’d already experienced good things with the technology, getting incredibly regular and consistent results. Compared to other systems we’ve worked with where variables come into play, it’s one cohesive system, so you know what you’ll get.”

    A fourth party to the project is creative design agency 818 Iowa, which created the original design and worked with Confluence to enhance the labels most characteristic features — the wizard, staff, and orb. Fathom then worked with Grace to bring everything to life.

    The effects are achieved by printing very fine microstructures on two interference screens. The first screen is printed on the white BOPP pressure-sensitive material, and the second screen is printed along with the other decorative inks on top of the clear lamination.

    Because the microstructures are done at a minimum of 480 LPI or higher, the 1:1 pixel-for-pixel accuracy of the Flexcel NX Plates was essential to hold lines that are 10 microns wide and spaced approximately 42 microns apart. Says Tom: “These demanding effects can be incorporated into the same plate with the traditional 2D graphics, which may be at 133-175 LPI, without difficulty. It sounds highly challenging, but so far, every UV flexo printer we’ve worked with has achieved some level of effects.”

    In the craft beer business, competition for shelf space and consumers’ attention is fierce, so imaginative, impactful labelling is hugely important for a small, independent brewery such as Confluence. In the case of the award-winning label, the ‘Wizard’ branding of the Gose-style sour ale opened all sorts of creative possibilities, with the favored option a multi-dimensional, moving 3D image that would capture shoppers’ attention as they walk by, and further engage them as they pick up the can and rotate to explore the image further.

    Traditionally, such an effect is achieved using either holographic foils or lenticular lenses, but the short label print runs made both too expensive. In addition, there are sustainability concerns with holographic foils since they are typically 95% waste, while the lenticular approach presented the further complication of the lens orientation being incompatible with the direction in which the labels are applied to the can.

    Confluence didn’t know it at the time, but the answer lay 1,300 miles to the east in Somerville, a suburb of Boston, where the Fathom Optics founders, Tom and Matt, was marketing their groundbreaking new approach to embellishment, Fathom Effects. The technology came out of the partners’ PhD work at the Massachusetts Institute of Technology.

    “The idea behind Fathom Effects is software-based, not materials science-based,” explains Tom. “The foundation of it is to take large-scale computational algorithms and use them to change the way materials interact with light. We compute complex interference patterns that can be printed on the front and back surfaces of film. They’re not interference patterns, like in holograms, but signal interference, as in moiré.”

    If the technology behind Fathom is relatively complex, for end users adding special effects it is remarkably straightforward. Designers simply drop files into Fathom Designer, a free online tool, where they assign motion and depth effects which can be previewed and shared with other stakeholders.

    After two years making the technology robust enough for long flexo runs, Tom and Matt settled on primary labels, shrink sleeves and product authentication as their primary markets. Says Matt: “We realized there are brands wanting totally custom packaging appeal but for whom the traditional holographic and lenticular solutions are too expensive. We differ in that we deliver 1-bit TIFF files to production sites — unlike holographic foil, where if you want a customized design, you have to order a truckload of film. On shrink sleeves, for example, with Fathom Effects there’s no additional cost — you’re just printing both sides of the film.”

    He adds, however, that Fathom Effects is also gaining traction with larger brands, simply because it’s a software-based technology. “Large multinational consumer product groups often don’t want to get into new things because the qualification process for a new material can take months, even years. But because our technology uses the same substrates, inks and flexo presses, no qualification process is required, and they can get to market faster. And, as we’re not adding a dissimilar material, like a lenticular lens or a hologram, there’s a sustainability advantage because recycling or reuse is easier. All these factors add a whole new level of acceptance.”

  • Cinnabon to launch into Sydney

    Cinnabon to launch into Sydney

    US cinnamon scroll chain, Cinnabon, is reportedly set to open its first store in Darling Square, later in the year.

    The Seattle-based bakery chain opened its first Australian outpost back in 2020, making its debut in Brisbane thanks to a licensing deal with Queensland import business Bansal Foods.

    Cinnabon is famed for its fresh cinnamon scrolls, which are cooked in-store every half-hour for customers. It is this reputation, combined with a lack of immediate competition in Australia, that attracted Bansal to the chain.

    “You have world-famous doughnuts, you have world-famous burgers but there’s no world-famous scroll brand in Australia,” Bansal Group co-owner Gaurav Bansal said. “Their frosting and cinnamon make them different from any other brand that people can’t imitate.”

    Cinnabon Australia has already built up a strong foundation, opening five locations across Queensland, and one in Victoria, within the last two years.

    While the upcoming Darling Square location may be the first Sydney store on the cards, it certainly won’t be the last. Further expansion across NSW has been promised, with a plan to roll out 15 stores over the next five years.

  • CUB gets fruity testing new beer sub-category

    CUB gets fruity testing new beer sub-category

    Carlton & United Breweries (CUB), part of Asahi Beverages, has released a new beer range with fruity flavours called Sungazer and Empire.

    The new brews feature malted barley, hops, yeast and water and offers a lager-like finish on the palate. Flavours in the Sungazer range include Watermelon, Raspberry and Mango while Empire offers Strawberry & Lime and Orange & Mango.

    The company says the beers are low in bitterness with “a subtle maltiness” and strong fruit flavours. The brands built on the beverage giant’s existing innovation, particularly with products like Carlton Zero.

    CUB GM of marketing Nicole McMillan said Fruity Beer is a ground-breaking innovation that will help CUB and bottleshops keep pace with evolving consumer tastes.

    “Drinkers have told us they love the tradition of enjoying a beer with mates but increasingly want sweeter flavours and low bitterness in their beverages.”

    She added the brand is committed to growing the beer market in Australia and attracting a new demographic of beer lovers.

    Though the brew is not traditional, McMillan said the brands’ other popular offerings such as Victoria Bitter and Carlton Draught “aren’t going anywhere”.

    The new range is now on sale in major bottleshops in 300ml cans with a 4.2 per cent ABV.

  • Flash Coffee, Ageless Galaxy Streetwear to launch capsule collection

    Flash Coffee, Ageless Galaxy Streetwear to launch capsule collection

    Tech-powered coffee chain Flash Coffee has collaborated with lifestyle brand Ageless Galaxy Streetwear to unveil the ‘Push’n Boundaries’ collection.  The collection features five items including three streetwear-style tees, a metal pin and a sticker pack. These will be sold in Singapore, Indonesia, Thailand, Taiwan, Hong Kong and South Korea.  According to Flash Coffee, the partnership was the idea of Ageless Galaxy CEO Tamish Aswani and Flash Coffee’s CEO and co-founder David Brun

    The collection features five items including three streetwear-style tees, a metal pin and a sticker pack. These will be sold in Singapore, Indonesia, Thailand, Taiwan, Hong Kong and South Korea.

    According to Flash Coffee, the partnership was the idea of Ageless Galaxy CEO Tamish Aswani and Flash Coffee’s CEO and co-founder David Brunier. Both seek to empower people to push their boundaries in everything they do by developing a collection that embodies the philosophies of both brands.

    The two companies say the tees in the collection are made with 100 per cent cotton. The white, and black and white, tees go well with a variety of outfits, while the striking yellow long-sleeve tee has ink that changes colour when exposed to sunlight, turning from white to pink.

    Launched in 2020, when Asia’s coffee industry was hit by the first Covid-19 pandemic, Flash Coffee has operations in six markets across Asia – Singapore, Indonesia, Thailand, Taiwan, Hong Kong, and South Korea. The Singapore-headquartered chain has received investment from Rocket Internet, Delivery Hero, White Star Capital, Global Founders Capital and Conny & Co.

    Ageless Galaxy, which was established in 2013, is an Indonesian lifestyle brand offering streetwear clothes inspired by outer space exploration. The brand opened its first brick-and-mortar store in Jakarta in 2020.

  • Cafe Amazon plans 150 stores in Saudi Arabia

    Cafe Amazon plans 150 stores in Saudi Arabia

    Thailand’s Café Amazon has launched in Saudi Arabia, opening its first store in the region at Riyadh’s InterHealth Hospital.

    PTT Oil and Retail Business (PPTOR), which operates the Café Amazon coffee shop chain, said it is targeting expansion to 150 stores in Saudi Arabia by 2032.

    Marking the opening of the Riyadh store, Jiraphon Kawswat, CEO of PPTOR, highlighted the potential of the retail market in Saudi Arabia, especially the growth of premium coffee outlets which she noted as being driven by increasing consumer demands.

    Project Café Middle East 2019 forecast Saudi Arabia to be the fastest growing market in the Middle East (9.6%), exceeding 2,600 outlets by 2023.

    In October 2021, PPTOR said it plans grow its Café Amazon coffee chain to 1,000 international stores by 2025, a downgraded target from an earlier goal to reach 5,800 stores globally by 2025.

    Founded in 2002, Café Amazon is Thailand’s largest branded coffee chain. The company currently operates more than 4,000 stores across Thailand, Cambodia, China, Japan, Laos, Malaysia, Myanmar, Oman, the Philippines, Saudi Arabia and Vietnam.

    PTTOR said that the Café Amazon launch in Saudi Arabia represented the ‘first step to concretely restore diplomatic and trade relations’ between Thailand and Saudi Arabia. Political, economic and trade cooperation was agreed between the two nations in January 2022.

  • Starbucks projects profit growth from tech, stores, workers spending

    Starbucks projects profit growth from tech, stores, workers spending

    Starbucks Corp projects profits to grow between 15% to 20% per share over the next three years, a significant increase from previous guidance based on spending plans of $2.5 to $3 billion over the same period on technology, new stores and renovations, the coffee chain said on Tuesday.

    The company is introducing technology to speed up production of its increasingly popular cold beverages and send digital orders away from busy locations as it seeks to prevent U.S. cafes from being overwhelmed by orders and improve working conditions for employees, it announced during its Investor Day event.

    The Seattle-based company expects to return $20 billion to investors via share buybacks and dividends from fiscal 2023 to 2025. Wall Street analysts had largely expected earnings updates to be in line with previous guidance of 10 to 12% growth.

    A surge in digital orders, which now make up nearly a quarter of all orders, has helped the coffee chain gain market share during the COVID-19 pandemic but has also led to barista burnout and strained the physical capacity at older stores.

    The company is exploring “load balancing” technology that can send orders to stores that have capacity to actually fulfill them – instead of to stores already being slammed by drive-thru customers, for instance, Chief Technology Officer Deb Hall Lefevre said in an interview with Reuters.

    “REINVENTION” OF STARBUCKS SINCE PANDEMIC

    The pandemic changed customer behavior, leading to a deluge of mobile, delivery and drive-thru orders, as well as an increase in cold beverages and customized coffee drinks.

    Calling it a “reinvention,” the company laid out a sweeping plan spearheaded by interim Chief Executive Officer Howard Schultz, who will be replaced by Laxman Narasimhan in April.

    The plan includes new equipment to heat food faster with less plastic waste, new store designs with larger shelves for orders and additional employee benefits.

    A new system for iced coffee drinks shaves nearly a minute off the time it takes to make a Mocha Frappuccino, down to 35 seconds. Baristas would no longer need to haul a bucket of ice to the station every hour because the ice will be automatically fed into the new equipment.

    Another machine, which brews hot coffee one cup at a time instead of in bulk batches and eliminates paper filters, is being tested in Minneapolis locations and could be rolled out next year.

    Starbucks is on pace to reach 45,000 stores by the end of fiscal 2025 – or nearly eight new stores per day – it said. That includes a net new 2,000 new U.S. stores and some delivery-only locations.

    In China, it plans to nearly double the number of stores to 9,000 – or one new store nearly every nine hours.

    UNION BACKDROP

    Employees at 236 stores voted to join a union over the past year, out of Starbucks’ nearly 9,000 corporate-owned U.S. locations. Conversely, 52 stores voted against unionizing, according to National Labor Relations Board data.

    Frank Britt, brought in by Schultz to lead the company’s transformation strategy, said workers know how to solve the company’s problems because they are on the front line.

    “A lot of the concerns the partners have, whether they’re affiliated with the union or not, are valid concerns. We agree, there’s a trust deficit,” he said in an interview.

    Union members have been holding protests this week to bring attention to their demands. Billie Adeosun, a Starbucks employee since 2015 who works at a unionized location in Olympia, said on Monday higher wages were a top priority.

    The company has lifted pay to an average of nearly $17 across non-unionized U.S. locations. Starbucks says the law prohibits it from offering increased benefits to unionized workers without bargaining over them.

    “We know that these benefits or higher wages… wouldn’t even exist without unions,” said Adeosun, who makes $15 an hour. “We’ve been able to shine a spotlight on this company and show that they’re not the liberal company they claim to be.”

  • % Arabica launches its first store in South Korea

    % Arabica launches its first store in South Korea

    Japanese boutique coffee group % Arabica has made its debut in South Korea with a store in Seoul.

    Located at Starfield Library, the store is % Arabica’s 125th location globally following recent first-time launches in Bali and Taiwan in August 2022.

    Opening its first store in Kyoto, Japan, in 2014, the boutique coffee group currently operates across 19 countries, with 86 stores in Asia.

    According to % Arabica’s website, the group will also soon open stores in Vietnam and the Philippines, as well as Canada, Mexico and Spain.

    World Coffee Portal forecasts the South Korean branded coffee shop to exceed 30,000 outlets by 2025. Ediya Coffee is the market leader with approximately 3,500 outlets.

  • Magnum ice cream launches new flavours

    Magnum ice cream launches new flavours

    Self-expression comes to life in many forms – from the way we indulge in our favorite treats to the way we dress, style our hair and paint our nails. Magnum ice cream, the chocolatiers of ice cream, is collaborating with female-founded, independent beauty brand, Nails.INC to launch a line of six chocolate-scented nail polishes inspired by the new Magnum ice cream Duet Bars.

    Magnum ice cream Duet Bars are the first ice cream bar to be dipped in two different types of chocolate and are available in three indulgent flavors: Almond, Chocolate and Cookie. Inspired by the Duet Bars’ chocolate layering, Magnum ice cream x Nails.INC unveils three sets of polish duos in a variety of creamy shades that encourage fans to explore their own layers and indulge in who they are through nail art.

    Meet the polishes:

    1. Almond Duet: Recreate the sweet and crunchy coating of the Almond Duet Bar with Glazed Almond, a buttery shade of light brown and Double Chocolate, a rich dark brown.
    2. Chocolate Duet: Bring the Chocolate Duet Bar to life with Raspberry Swirl, a vibrant hot pink paired with White Chocolate, a silky light pink.
    3. Cookie Duet: Inspired by the Cookie Duet Bar, this pairing comes with Crunchy Cookie, a quintessential beige and Classic Chocolate, the perfect chocolate-y brown.

    “As a nail artist, I’m always looking for over-the-top ways to express myself,” says Mei Kawajiri. “I love to incorporate sensory experience into my designs, so I was thrilled when Magnum ice cream teamed up with Nails.INC to create richly pigmented and chocolate-scented, polishes – allowing me to showcase my favorite ice cream treats through three creative, unexpected designs.”

    Fans can recreate Mei’s looks at home by heading to Amazon and nailsinc.com to purchase the Magnum ice cream x Nails.INC nail polishes for $7.99 each and their local freezer aisles to purchase Magnum ice cream Duet Bars for the Retailer Suggested Price of $4.49–$4.99.

    “As the chocolatiers of ice cream, we’re always looking to push the boundaries and release innovative products our ice cream fans crave,” said Russel Lilly, general manager of Unilever Ice Cream for total North America. “Now, we’re excited to give chocolate lovers another way to express themselves, inspired by our iconic Belgian chocolate and designed with everyone in mind.”

    This June and July, New York City, Miami and Los Angeles-area fans are invited to Magnum ice cream’s Indulgence Studio to create their own #MagnumMoments at Magnum ice cream pop-ups taking place at the stylish and award-winning Freehand hotel in New York City and Los Angeles, and the Generator hotel in Miami.

  • Tic Tac unveils tropical flavour mints

    Tic Tac unveils tropical flavour mints

    Tic Tac is expanding its Adventure line with the introduction of Tropical Adventure, featuring a mashup of four flavors: Pineapple, Passionfruit, Sweet Banana and Mango.

    “Fans love our current fruity offerings, so we’re excited to give them more of what they enjoy while introducing new flavors with our Tropical Adventure innovation,” said Dan Cutchin, VP marketing, Tic Tac North America at Ferrero USA, Inc. “Tropical Adventure is meant to act as a ‘vacation in a box,’ and we hope this mashup of vibrant flavors gives consumers a taste of paradise anytime throughout their day.”

    Tropical Adventure will also be featured in 6- and 15-second videos on digital and social as part of the brand’s recently launched “Take A Ride on a Tic Tac” campaign. “Take A Ride on a Tic Tac” brings the refreshing experience of consuming a Tic Tac to life. It combines work from various artists, illustrators and musicians to show how Tic Tac can create refreshing moments. The Tropical Adventure videos will debut on digital and social media channels this month and features catchy tunes, illustrations and graphics to showcase all the refreshing places each flavor of Tropical Adventure can transport consumers.

    Tic Tac Tropical Adventure is available for purchase nationwide in a 1-oz. single pack and a 3.4-oz. bottle pack.

  • Nutella unveils limited-edition collection inspired by Australian locations

    Nutella unveils limited-edition collection inspired by Australian locations

    Breakfast spread brand Nutella has rolled out a new limited-edition collection featuring recipes from some of Australia’s “most loved” locations.

    The new ‘Nutella Loves Aussie Recipe’ collection features ingredients and flavours from eight landscapes in Australia such as NSW’s Bondi Beach, NT’s Outbacks, Pink Lake in Western Australia and Cardle Mountain in Tasmania.

    Azzurra Puricelli, marketing manager for Nutella, said the new collection celebrates the uniqueness of the country.

    “We’ve rediscovered what home really means in the last few years. We hope Australians can enjoy collecting these jars just as much as they enjoy a delicious breakfast with Nutella in the mornings”.

    The company has also produced a custom Lithgow label honouring the Nutella factory in Lithgow, NSW, where 8.8 million kgs of hazelnut spread are made each year.

    Recipes can be accessed by scanning a QR code on the jars.

  • Aldi opens its first Melbourne Corner Store concept today

    Aldi opens its first Melbourne Corner Store concept today

    Aldi has opened its first Corner Store concept, in Melbourne’s CBD, complete with a cafe serving barista coffee.

    The company says the store is designed for inner-city customers stocking ready-to-eat meals, fresh produce, bakery items such as cinnamon buns, croissants and baguettes, and its discounted Special Buys products. The Corner Store concept was first tested on Sydney’s North Shore, a hybrid model of part convenience store, part supermarket.

    Huw Longman, director of Aldi Corner Stores, said the new shop will meet customers’ needs in the surrounding high-density, urban area.

    “Shopping habits continue to evolve, and we are seeing a large audience of people who prefer shopping more frequently with a hyper-focus on convenience.”

    He said the store meets these needs, taking convenience and creativity and combining it with quality and savings.

    To commemorate the store opening, a unique limited-time Lazzio coffee cart pop-up will offer customers coffee for 37 cents. The coffee beans are hand-roasted in Victoria by Black Bag Roasters. Proceeds from the coffee sales will be donated to Aldi’s national charity partner, Camp Quality.

  • Brisbane coffee brand Aromas Coffee Roasters sold

    Brisbane coffee brand Aromas Coffee Roasters sold

    Queensland-based Aromas Coffee Roasters has been acquired by local Indigenous-owned company SupplyAus Holdings for an undisclosed sum.

    Aromas Coffee Roasters boasts a 47-year history, serving more than 300 locations in the state, while SupplyAus was co-founded by Adam Williams, a Wiradjuri man, and Shane Andrews, a descendant of the Mununjali people in 2018.

    SupplyAus CEO, Adam Williams, told Business News Australia, that this was a “major step to inspire other Indigenous entrepreneurs to have a go”.

    “Buying a legacy brand like Aromas shows Indigenous kids and young people that even the biggest brands are within our reach.”

    With the acquisition, the company plans to integrate some of Aromas Coffee’s operations with its own coffee portfolio – Dhuwa Coffee, which is sold in 900 Woolworths stores.

    “That’s something we are good at with the rest of our brands, so to be able to roll that through with Aromas is something we are looking forward to.”

    Alongside, the company is currently exploring opportunities to invest in indigenous employment with the rollout of its own Aromas Cafe and also grow the brand internationally.

    SupplyAus now owns and operates a range of brands, including Bunji Workwear, SupplyAus Medical, Jingeri Office National and Aromas Coffee Roasters.

  • Aeon to bring Japan’s Komeda’s Coffee to Hong Kong

    Aeon to bring Japan’s Komeda’s Coffee to Hong Kong

    Aeon Hong Kong is set to open the territory’s first Komeda’s Coffee store next month after securing the regional franchise rights to the Japanese cafe chain earlier this year.

    Aeon Hong Kong said the Komeda’s Coffee store will be situated inside Aeon Style Huangpu and adopt Japanese traditional architecture. Komeda’s Coffee was founded in 1968 in Nagoya, considered the home of Japan’s cafe culture. As of last May, the chain has 33 international stores across Taiwan and Shanghai.

    “This new strategic cooperation is the first time that Aeon Hong Kong has joined hands with a well-known Japanese coffee chain, which may accelerate Aeon Hong Kong in the format of restaurant chain stores,” said Isao Sugawara, MD of Aeon Hong Kong.

    Established in 1985, Aeon Hong Kong operates 10 general shopping department stores, two independent supermarkets, 43 independent Living Plaza by Aeon, 25 Daiso Japan, one Bento Express by Aeon and four independent stores in densely populated areas of Hong Kong.

    The group said will continue to further expand the network of small specialty stores and deepen the strategic cooperation with Daiso.

    The first half of the year saw a 4.2 per cent growth in the group’s Hong Kong business revenue, reaching US$300 million, despite the Covid-19 disruption. The loss from this business shrank to $9.7 million from more than $13.5 million the year before.

  • Starbucks appoints Laxman Narasimhan as its next CEO

    Starbucks appoints Laxman Narasimhan as its next CEO

    Starbucks today announced that Laxman Narasimhan will become the company’s next chief executive officer and a member of the Starbucks Board of Directors. Narasimhan will join Starbucks as incoming ceo on October 1, 2022 after relocating from London to the Seattle area and will work closely with Howard Schultz, interim ceo, before assuming the ceo role and joining the Board on April 1, 2023.

    Narasimhan brings nearly 30 years of experience leading and advising global consumer-facing brands. Known for his considerable operational expertise, he has a proven track record in developing purpose-led brands. Building on companies’ histories, he has succeeded in rallying talent to deliver on future ambitions by driving consumer-centric and digital innovations. Most recently, he served as chief executive officer of Reckitt, a FTSE-12 listed multinational consumer health, hygiene and nutrition company, where he led the company through a major strategic transformation and a return to sustainable growth.

    “Laxman is an inspiring leader. His deep, hands-on experience driving strategic transformations at global consumer-facing businesses makes him the ideal choice to accelerate Starbucks growth and capture the opportunities ahead of us. His understanding of our culture and values, coupled with his expertise as a brand builder, innovation champion, and operational leader will be true differentiators as we position Starbucks for the next 50 years, generating value for all our stakeholders. On behalf of the entire Board, I am thrilled to welcome Laxman as Starbucks next ceo,” said Mellody Hobson, Independent Starbucks Board of Directors chair.

    During the transition period, Narasimhan will be fully immersed in the company, spending time with Schultz and the management team, partners and customers and gaining in-depth exposure to the brand, company culture, and Reinvention plan. This will initially include Starbucks store immersions, visiting manufacturing plants and coffee farms, connecting with partners around the globe as well as Starbucks long term business partners.

    Schultz will remain in the role of interim ceo during this transition period, following which he will continue as a member of the Starbucks Board of Directors. He will remain closely involved with the company’s Reinvention and act as an ongoing advisor to Narasimhan.

    “When I learned about Laxman’s desire to relocate, it became apparent that he is the right leader to take Starbucks into its next chapter. He is uniquely positioned to shape this work and lead the company forward with his partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets. As I have had the opportunity to get to know him, it has become clear that he shares our passion of investing in humanity and in our commitment to our partners, customers, and communities. The perspectives he brings will be a strong asset as we build on our heritage in this new era of greater well-being. I greatly look forward to our partnership over the coming months and years,” said Schultz.

    “Starbucks commitment to uplift humanity through connection and compassion has long distinguished the company, building an unrivaled, globally admired brand that has transformed the way we connect over coffee. I am humbled to be joining this iconic company at such a pivotal time, as the Reinvention and investments in the partner and customer experiences position us to meet the changing demands we face today and set us up for an even stronger future,” said Narasimhan. “I look forward to working closely with Howard, the Board, and the entire leadership team – and to listening and learning from Starbucks partners – as we collectively build on this work to lead the company into its next chapter of growth and impact.”

    Previously, Narasimhan held various leadership roles at PepsiCo, including as global chief commercial officer, where he was responsible for the company’s long-term strategy and digital capabilities. He also served as ceo of the company’s Latin America, Europe and Sub-Saharan Africa operations, and previously as the ceo of PepsiCo Latin America, and the cfo of PepsiCo Americas Foods. Prior to PepsiCo, Narasimhan was a senior partner at McKinsey & Company, where he focused on its consumer, retail and technology practices in the U.S., Asia and India and led the firm’s thinking on the future of retail.

    Narasimhan is also a trustee of the Brookings Institution, a member of the Council on Foreign Relations, served as a member of the UK Prime Minister’s Build Back Better Council, and is a member of Verizon’s Board of Directors. He holds a degree in Mechanical Engineering from the College of Engineering, University of Pune, India. He has an MA in German and International Studies from The Lauder Institute at The University of Pennsylvania and an MBA in Finance from The Wharton School of The University of Pennsylvania.

  • Branded sales boost revenue for AVL

    Branded sales boost revenue for AVL

    Australian Vintage Limited (AVL) has reported a total revenue increase of eight per cent to the end of April 2016 on the back of strong branded sales.

    The increase in revenue is a reflection on higher branded sales in the UK, Europe, Australasia, and North America, however it was partially offset by lower bulk wine sales.

    Neil McGuigan (pictured), chief executive officer of AVL, said: “Australasia/North America sales are up eight per cent on last year with bottled sales up 19 per cent and cask sales down 20 per cent. Cask sales are down due to significant pricing pressure.

    “Sales of our bottled product into UK/Europe are up 19 per cent on last year due mainly to the increased sales footprint in the UK market. Bulk sales into this market are down by 77 per cent compared to last year as we continue to focus on changing from a bulk wine producer to a branded business.

    “Sales of our three key brands, McGuigan, Tempus Two and Nepenthe continue to grow with sales to the end of April up 20 per cent on last year.

    “AVL’s commitment to quality has recently resulted in three of the McGuigan Black Label red wines being recognised in the top five selling red wines in Australia. This commitment to quality was again reinforced at the International Wine Challenge held in London where the McGuigan brand was awarded four Trophies, five Gold, nine Silver and 12 Bronze medals including the Trophy for the Best Australian White Wine of Show for the 2010 Shortlist Eden Valley Riesling. AVL will continue to push the boundaries with quality wine production and vineyard innovation to continue to enhance Australia’s reputation globally,” said McGuigan.

    Meanwhile, the company terminated its Del Rios vineyard lease and paid the $4.9 million termination fee earlier this year. This termination together with the recent expiry of other onerous third party grower contracts will provide significant savings in future grape costs.

    “The company continues to focus on increasing branded sales and at the same time improving the efficiency of the business and improving the quality of our outstanding wines. We remain confident that our core strategies are correct,” said McGuigan.

    “Subject to no material changes to the current exchange rates we remain confident that our 2016 net profit before one off items will be up 10 to 15 per cent on last year’s $7.1 million net profit after tax and before one off items.”