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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.

  • Oriental Kopi Targets Indonesia and Japan for Overseas Expansion

    Oriental Kopi Targets Indonesia and Japan for Overseas Expansion

    Malaysian cafe operator Oriental Kopi plans to open outlets in Indonesia and Japan, extending its domestic kopitiam model into two major regional consumer markets.

    Founder Calvin Chan established the brand after noticing a shortage of Malaysian food chains while traveling across China, Taiwan, and Hong Kong for his former mobile phone business.

    Currently operating outlets in Kuala Lumpur shopping hubs, the chain relies on halal certification to anchor its entry into foreign markets.

    Targeting Indonesia and Japan

    The company relies on halal certification to support its international expansion, particularly in Muslim-majority Indonesia where regulatory compliance dictates consumer adoption. Japan represents a secondary target where the brand intends to introduce Malaysian breakfast fare, including traditional coffee brews, pastries, and localized street dishes, directly into urban shopping centers.

    Chan previously ran a mobile phone business across mainland China, Taiwan, and Hong Kong. That travel schedule exposed a notable imbalance: while Japanese, Thai, and Vietnamese operators maintained broad real estate footprints across commercial districts, Malaysian operators remained largely absent.

    Operational Hurdles in Foreign Real Estate

    Entering overseas consumer markets tests the unit economics of traditional kopitiam formats. Unlike quick-service beverage stalls that occupy small mall kiosks, full-service coffee and dining concepts require extensive kitchen exhaust systems, larger floorplates, and higher front-of-house headcount. In high-rent hubs, maintaining competitive price points while serving labor-intensive dishes creates immediate margin pressure.

    Supply chain reliability forms the other primary risk. Exporting signature pastry crusts, spice pastes, and beverage bases while satisfying local import standards demands established central commissary arrangements or reliable local manufacturing partners. Without localized sourcing, shipping costs can erode operating margins before store-level profitability stabilizes.

    The Regional Casual Dining Playbook

    Regional operators built cross-border networks over the past decade by standardizing recipes into shelf-stable bases and striking joint ventures with master franchisees. Taiwanese tea brands proved that suburban mall developers across Asia actively seek high-traffic casual dining brands to drive footfall away from e-commerce.

    Oriental Kopi established its initial operational footprint within Kuala Lumpur’s primary shopping malls, drawing domestic consumer queues for signature egg tarts and white coffee before attempting overseas export.

    Next Steps for International Openings

    Management must now secure local operating partners or direct retail leases to finalize its debut overseas store sites.

  • Karnataka Raises Nandini Milk Prices by ₹8 per Litre

    Karnataka Raises Nandini Milk Prices by ₹8 per Litre

    Karnataka raised retail prices for its Nandini milk brand by ₹8 per litre on Thursday, with the revised rates taking effect from November 1.

    The price revision transfers ₹7 per litre directly to dairy farmers, while milk cooperative unions take the remaining ₹1 per litre to absorb operating costs.

    Chief Minister DK Shivakumar defended the decision by the state cabinet, which approved the adjustment after requests from dairy farmers and the Karnataka Milk Federation (KMF).

    Breakdown Across Product Variants

    The standard Nandini Shubham pack containing 4.5% fat rises to ₹60 per litre from ₹52. Even at the adjusted level, government pricing data places Shubham below the ₹62.80 average recorded across 10 other states included in the comparison.

    Toned milk now costs ₹54 per litre, up from ₹46. Homogenised toned milk increases from ₹47 to ₹55, while homogenised cow’s milk shifts from ₹50 to ₹58. Nandini Samruddhi, meanwhile, moves to ₹63 per litre from its earlier price of ₹55.

    The price revision applies to all Nandini milk varieties, including toned, homogenised and premium options across the state.

    How Karnataka Compares Nationally

    Even after the increase, Karnataka’s Nandini Shubham milk will remain cheaper than comparable 4.5% fat milk varieties in most states covered by the comparison. Telangana and Andhra Pradesh sell equivalent dairy grades at ₹68 per litre, leaving Karnataka ₹8 cheaper per litre after the adjustment.

    Punjab, Odisha, and Chhattisgarh retail similar packs at ₹66 per litre, while Gujarat and Rajasthan charge ₹64. At ₹60 per litre, Nandini Shubham matches the prices charged by Bihar’s Sudha milk and Goa Cooperative milk. Tamil Nadu’s state-backed Aavin 4.5% milk lists lower at ₹46 per litre, though prices in that state vary by variant and cooperative union.

    Supply Chain Cost Pressures

    Shivakumar noted that milk prices in Karnataka remained lower than in several neighbouring states, adding that the price gap had contributed to milk being diverted to other states. Raising local prices helps prevent dairy farmers from incurring losses amid rising production and transportation costs.

    “The price has been increased to prevent losses to farmers. The government is helping farmers, and farmers are important to us,” Shivakumar told reporters, as per PTI.

    “If there are farmers, we can drink milk. Otherwise, is it possible to drink milk,” he said.

    The chief minister cited higher input costs for plastic packaging, diesel, and petrol, which have pushed up transportation expenses.

    Procurement Demands and Transport Fares

    Dairy farmers and unions had initially sought an increase of ₹12 to ₹15 per litre, but the government settled on ₹8 following stakeholder consultations. Shivakumar said the demand for a price revision had been pending for the past couple of years.

    State authorities also indicated that state transport bus fares could be revised in the coming days, as the government continues to assess operational costs.

  • Torikizoku Opens First Philippine Branch in Metro Manila

    Torikizoku Opens First Philippine Branch in Metro Manila

    Torikizoku opened its first restaurant in the Philippines on Oct. 12, introducing its grilled-chicken dining format to Metro Manila. The Japanese operator plans to expand across metropolitan shopping malls as it pushes beyond its home market.

    Targeting Metro Manila Malls

    The company selected the Philippine capital region for its initial location, tailoring its yakitori concept to urban consumers. The format relies on shopping mall foot traffic, competing for everyday dining spend alongside established casual restaurant chains.

    Philippine consumers consume substantial volumes of poultry, led by homegrown fast-food chains and local barbecue specialists. Breaking into this dining segment requires Torikizoku to price competitively against domestic players while maintaining the uniform skewered-chicken menu that built its domestic reputation in Japan.

    Regional Expansion Strategy

    Japanese food-service chains face saturated domestic conditions and an aging population in Japan, prompting operators to pursue Southeast Asian metropolises. Torikizoku follows a path carved by Japanese ramen and beef-bowl brands seeking new revenue in consumer-heavy regional capitals.

    For mall landlords, adding branded Japanese dining concepts drives tenant diversity and pulls younger dining demographics into property assets. Torikizoku must manage imported seasoning supplies and fresh domestic poultry distribution to keep margins steady across international borders.

    Building Southeast Asian Footprints

    The Manila launch follows Torikizoku evaluating markets across East and Southeast Asia to replicate its high-volume, low-margin business model abroad. Securing prime mall commercial space remains the primary constraint for fast-food operators scaling across Greater Manila.

    Local operations will test consumer reception to Japanese-style yakitori as regular mealtime dining rather than evening drinking fare. Torikizoku has not yet disclosed unit targets for subsequent store openings across Metro Manila.

  • United Spirits Popular Liquor Sales Fall 22.7% to Rs 181 Crore

    United Spirits Popular Liquor Sales Fall 22.7% to Rs 181 Crore

    United Spirits posted a 22.7 per cent drop in net sales value for its popular liquor segment to Rs 181 crore during the second quarter of FY2027.

    The Diageo-owned alco-bev giant reported the decline on Wednesday, attributing the drop to increased taxes on non-local brands in Maharashtra and excise duty changes in Karnataka.

    Overall net sales value across the company nonetheless climbed 2.8 per cent to Rs 3,258 crore for the quarter, bolstered by growth in its premium and luxury liquor portfolios.

    State Levies Hit Entry Shelves

    Maharashtra created a regulatory split by establishing a preferential framework for Maharashtra Made Liquor. The state instituted a separate category for locally produced spirits with lower duty rates, while hiking excise duties on standard Indian-made foreign liquor. The tax gap handed domestic distillers an immediate retail edge across neighborhood bottle shops.

    Karnataka simultaneously overhauled its excise slabs. The southern state began shifting its tax collections from product retail value toward alcohol content, compressing the total number of pricing bands. The revision squeezed manufacturer realizations and stalled distribution volumes across lower-priced labels.

    Premium Labels Cover the Margin Gap

    Higher-margin spirits filled the gap created by the mass-market pullback. The Prestige and Above portfolio advanced 6.3 per cent in net sales value in the second quarter, aided by flavoured Smirnoff line extensions, the market relaunch of J&B Scotch, and broader gains in its luxury portfolio.

    The shift insulates Diageo from local excise volatility in low-margin categories. Premium spirits buyers absorb periodic tax increases far better than daily-wage or price-conscious consumers, allowing the company to defend total top-line numbers even when provincial tax boards target cheaper bottles.

    Distillers Diverge on Mass Brands

    State-level alcohol policy in India forces beverage manufacturers to pick a lane. Distillers with heavy mass-market footprints must either accept lower factory-gate realisations when local governments protect domestic producers or abandon low-margin distribution entirely. Several domestic rivals continue to chase mass volume through localized bottling units, but the economics look increasingly precarious under content-based excise systems.

    United Spirits has steadily reallocated capital toward upper-tier bottles, leaving low-margin labels exposed to state tax shifts. Distributors and liquor store operators now face a clear split: thin margins on commoditised local booze or higher ring sizes on imported and premium Indian-made bottles.

    Exports and Local Regulations Cool First-Half Momentum

    Prestige and Above net sales value grew 7.8 per cent over the full first half of financial year 2027. That performance lifted company-wide half-year net sales value by 4.2 per cent to Rs 5,961 crore.

    Management reported that stronger demand for local innovations was partially curbed by regulatory barriers in Maharashtra and logistics friction within export operations. Total volumes would have tracked higher without the supply interruptions overseas.

  • Coles Falls Behind Rival Woolworths as Sales Grow 2.2 per Cent

    Coles Falls Behind Rival Woolworths as Sales Grow 2.2 per Cent

    Coles Group booked first-quarter revenue of $11.2 billion, trailing primary rival Woolworths as shoppers cut spending across grocery aisles.

    Total sales rose 2.2 per cent year-on-year for the opening quarter of fiscal 2027, falling short of the 4.7 per cent expansion delivered by Woolworths over the same stretch.

    Supermarket Volumes Under Inflationary Squeeze

    Supermarket operations at Coles lifted 2.7 per cent on a comparable basis, an outcome that lagged domestic price rises. Headline inflation hit 4.3 per cent in the twelve months through September, according to data from the ABS. With grocery price tags climbing faster than overall register revenue, underlying sales volumes shrank across the store network.

    Customers managed stretched household budgets by splitting their weekly grocery shopping across multiple chains. Shoppers pursued weekly promotions, relied more heavily on loyalty incentives, and selected store-brand goods over premium labels. Leah Weckert, managing director and chief executive of Coles Group, pointed to structural shifts in weekly shopping habits across the country.

    “While supermarket sales growth remained in line with the prior quarter, we know household budgets are under pressure, and customers are shopping more deliberately across retailers and channels,” Weckert said.

    Digital Channels Outpace Physical Stores

    E-commerce delivered the fastest sales momentum across the business, rising 22.9 per cent during the three-month period. Digital grocery orders proved popular among households seeking to monitor running totals and avoid impulse purchases at the shelf edge. The private label range Exclusive to Coles also added sales volume as shoppers turned away from costlier branded goods.

    Elevated operating expenses offset that digital expansion. Coles informed market analysts that higher diesel and transport fuel costs pushed distribution overheads higher across its supply chain. Regional geopolitical tension added shipping volatility, limiting the earnings use the retailer could extract from top-line revenue gains.

    The Margin Gap Widens Between Chains

    Woolworths established a clear sales advantage by generating $19.4 billion during the corresponding quarter. Capturing 4.7 per cent revenue growth allowed the largest grocer to absorb fixed supply chain costs more effectively than Coles. Scale provides Woolworths with superior margin protection when negotiating trade discounts from food manufacturers and logistics contractors.

    Coles faces tough commercial trade-offs leading into the peak December quarter. Matching Woolworths on promotional discounts risks sacrificing retail gross margin, while leaving prices unchanged risks surrendering foot traffic to rival stores. Price competition will compress supplier rebates across fresh produce and packaged groceries through the end of the year.

    Earlier Performance and the Road to December

    Supermarket sales growth tracked at the same modest level recorded during the prior quarter. Household wallets tightened through winter as high interest rates and elevated electricity tariffs reduced discretionary household expenditure across metropolitan areas.

    Focus shifts to the Christmas trading stretch, which historically accounts for the largest share of annual grocery operating profits. Coles plans to adjust its promotional pricing program over the coming weeks to defend customer retention before the half-year fiscal 2027 audit.

  • Robinsons Retail Opens First Little Marketplace Store in Boracay

    Robinsons Retail Opens First Little Marketplace Store in Boracay

    Robinsons Retail Holdings, Inc. (RRHI) expanded into convenience retail on Oct. 30 with the opening of its first Little Marketplace store at Henann Crystal Sands Resort in Boracay.

    Located in Station 1, the beachfront outlet operates daily from 7 a.m. To 10 p.m., condensing the group’s upscale supermarket format into a smaller footprint tailored for both residents and visitors.

    The pilot store carries specialty groceries, ready-to-eat meals, fresh food, beverages, and travel essentials alongside a Pick & Grill counter for on-site meat preparation and an alcohol-serving bar.

    Combining Groceries With Foodservice

    The concept departs from standard Philippine convenience chains, which lean almost entirely on ambient packaged goods, single-serve snacks, and basic hot counters. By embedding prepared food service into a small space, the company wants to turn quick grocery stops into sit-down dining occasions that lift basket sizes well above typical convenience tickets.

    Store operations draw inventory directly from the supply lines of The Marketplace, the group’s full-line gourmet supermarket banner. The pilot relies heavily on tourists willing to spend metropolitan supermarket rates while staying on an island where logistics add substantial distribution costs.

    Pressures on Island Logistics

    Operating a premium fresh food counter on Boracay carries operational friction that mainland supermarkets rarely encounter. Chilled meats, draft beer kegs, and perishable ingredients require consistent cold-chain transport over sea freight, leaving margins exposed to shipping disruptions and power fluctuations.

    Robinsons Retail is betting that beachfront location inside a major resort complex offsets those overheads through bar sales and premium markups.

    Extending The Marketplace Brand

    The parent firm built The Marketplace around upscale urban centers, stocking imported specialty lines, cheeses, and butchery products for middle- and upper-income households. Little Marketplace strips out the center-store dry goods and broad household categories of those full-sized supermarkets, retaining only high-turnover pantry items, alcohol, and fresh proteins.

    Executive leadership identified tourism hubs as the primary testing ground for the condensed model, citing shifting habits among travelers who want convenience without downgrading from gourmet grocery offerings.

    “We believe this format addresses growing demand for premium yet accessible retail and dining experiences,”

    Said Christine Tueres, RRHI managing director for food segments, big formats.

    Next Steps for the Pilot

    RRHI framed the Boracay location as an operational test before rolling the format into other domestic tourist corridors and lifestyle developments. Executives have not released capital expenditure figures or specific store count targets for Little Marketplace.

  • Singapore and Australia Pull Bomberry Chocolates over Metal Contamination

    Singapore and Australia Pull Bomberry Chocolates over Metal Contamination

    Food safety authorities in Singapore and Australia ordered the withdrawal of four Bomberry chocolate fruit lines across supermarkets and specialty stores due to potential metal contamination.

    The alert targets 150g packages carrying best-before dates up to and including 20 January 2028, pulling inventory off shelves across both markets simultaneously.

    The affected products include Bomberry Natural Blueberries coated in dark chocolate as well as white and milk chocolate, alongside Natural Raspberries coated in white and dark chocolate and white and milk chocolate. Australian manufacturer Atomic Changes trades under the Bomberry brand name, producing the entire affected batch lineup domestically before distribution.

    Cross-Border Distribution Network

    In Australia, the recalled confectionery cleared through national supermarket networks including Woolworths as well as digital retail channels. The cross-border exposure surfaced when the Singapore Food Agency directed gourmet grocer and distributor Little Farms to pull matching Australian stock from its retail stores and warehouse inventory.

    Retail buyers stocking imported specialty confectionery operate on tight turns and long product shelf lives. A best-before window stretching to January 2028 indicates these products entered supply chains recently, meaning unsold stock sits directly on store gondolas rather than deep inside institutional cold storage.

    For boutique retail operators like Little Farms, premium imported confectionery builds basket size. Foreign contamination recalls cut straight into supplier trust, triggering mandatory reverse logistics where retailers bear the initial cost of clearing display floor stock and processing consumer returns at point of sale.

    Regulatory Enforcement and Line Traceability

    The Singapore regulator initiated its domestic recall as a precautionary action following an alert from Food Standards Australia New Zealand. Both agencies instructed shoppers who bought the confectionery to avoid consuming it and to seek medical assessment if already ingested.

    Industrial metal contamination in coated confectionery typically points to mechanical failure during enrobing, panning, or bulk fruit sorting upstream. Food processors relying on automated continuous-flow lines face extensive clean-downs and sensor recalibrations once foreign matter slips past packaging metal detectors.

    Food Standards Australia New Zealand posted the primary national notice before Southeast Asian import inspection channels picked up the manifest details. Singapore frequently acts as the primary regional landing hub for Australian packaged consumer goods, making local agency intervention standard protocol when Australasian recalls escalate.

    Supply Pipeline Exposure

    The immediate operational burden now rests on inventory auditing across physical grocery aisles and third-party delivery hubs. Woolworths and Little Farms must verify warehouse isolation while retail point-of-sale systems lock barcodes to prevent accidental consumer checkout.

    Atomic Changes faces supplier credit adjustments and disposal documentation mandates across every market that received shipments. Retailers handling premium imported snacks will reassess batch acceptance protocols for dry ambient goods arriving through Southern Ocean shipping corridors.

    The recall remains active across all retail endpoints in Australia and Singapore as distributors complete stock reconciliations for the 20 January 2028 production run.

  • Sanku Maots’Ai Invests RMB 200 Million in Smart Factory

    Sanku Maots’Ai Invests RMB 200 Million in Smart Factory

    Sichuan Sanku Maots’ai Brand Management spent RMB 200 million on a 22,000-square-meter automated plant to support international store expansion across more than 20 countries.

    The investment delivers an annual production capacity exceeding 40,000 tons of specialized broths and seasoning bases, anchoring a store network that spans 300 cities.

    Announced this week in October 2026, the industrial manufacturing setup underpins the chain’s move to scale standardized Sichuan maocai across China and global markets.

    Centralized bases replace skilled kitchen labour

    The company strips complex cooking tasks out of franchised outlets by manufacturing core seasonings centrally. Stores receive shelf-stable or cold-chain flavor packs, including traditional beef-fat hot pot bases, ginger-lemon broths and tomato profiles, eliminating the need to employ specialized chefs on site.

    Kitchen staff complete operational training in six days. Headquarters supplies pre-portioned seasoning packets while local franchisees manage raw ingredients, basic assembly and front-of-house service under strict workflow templates.

    Digital systems link store-level ordering directly to central warehouse inventory, standardizing recipes across disparate markets where culinary skills vary widely. Cold-chain freight agreements and pre-cleared customs documentation handle international replenishment.

    The fast-casual race to cut store payrolls

    Fast-casual Chinese dining chains are racing to strip out back-of-house labor costs to survive tight retail margins and rapid store rollout schedules.

    For shopping mall landlords and commercial operators, chef-free formats sharply lower exhaust ducting and grease-trap buildout expenses. Operators can open in smaller footprints with cheaper utility loads, compressing payback periods even in high-wage overseas hubs.

    The operational risk sits squarely in the cross-border supply channel. When an overseas franchise relies entirely on proprietary soup bases shipped from Sichuan, any regional customs hold-up or cold-chain disruption halts dining room service immediately, leaving zero room for local ingredient improvisation.

    Building out from regional Sichuan roots

    Founded in 2008, Sanku Maots’Ai built its initial domestic footprint on quick-service maocai, a single-portion Sichuan stew closely related to traditional hot pot. Domestic operations expanded through low-cost franchise packages across lower-tier Chinese cities before the company restructured its back-end infrastructure.

    The RMB 200 million plant commitment marks a formal shift from basic regional franchising to an industrial supply model engineered for export compliance and container-load distribution.

    Franchise teams are now adapting baseline menus for individual overseas territories, balancing standardized Sichuan spice levels against local dietary rules while keeping core factory deliveries unchanged.

  • Minor Food Targets 4,500 Outlets by 2029 in Global Franchise Push

    Minor Food Targets 4,500 Outlets by 2029 in Global Franchise Push

    The Minor Food Group Plc plans to expand its network to more than 4,500 food and beverage outlets by 2029, leaning on franchise partnerships to drive cross-border growth. The conglomerate currently runs more than 3,000 stores across 27 countries, meaning the plan requires adding roughly 1,500 locations over the next five years.

    About two-thirds of the group’s current footprint remains concentrated in Thailand. Roughly half of the existing 3,000 outlets run under franchise agreements, and Chief Development Officer Thunyachate Ekvetchavit said the majority of future openings will use the franchise model rather than direct company ownership.

    Targeting High-Density Offshore Hubs

    Management is directing international development toward Indonesia, Vietnam, South Asia and the Middle East. These markets offer favourable consumer demographics and rising discretionary spending on casual dining, giving established multi-brand operators room to scale without committing massive capital expenditure to real estate leases.

    By shifting the capital expenditure burden to local franchisees, Minor Food lowers its exposure to commercial property cycles across volatile emerging markets. The model mirrors the playbook long deployed by global fast-food giants, yet it shifts the primary execution risk directly onto franchisee balance sheets and local supply chain logistics.

    Building Domestic Traffic and Retail Partnerships

    On its home turf, Minor Food is deepening ties with commercial landlords and fuel retailers to secure steady customer footfall. Recent arrangements pair the company with CP Axtra Plc, which operates wholesale brand Makro and hypermarket chain Lotus’s, alongside PTT Oil and Retail Business Plc to place restaurant brands into petrol stations and roadside convenience hubs.

    These tie-ups give the operator captive traffic in non-traditional retail real estate while domestic mall footfall fragments across Bangkok. Securing perimeter retail locations inside high-traffic grocery nodes and highway forecourts shields store margins against rising inner-city commercial rents.

    Scaling Bonchon and Launching Chicho Ramen

    Cross-border scale gained momentum following the acquisition of Bonchon International, which gave the group full control of the Korean fried chicken franchise. Minor Food plans to expand Bonchon into Europe, the Middle East and wider Asian territories, using the established global recognition of the brand to enter territories where its legacy Western fast-food franchises face saturated competition.

    Back in Bangkok, the group is launching a new proprietary concept named Chicho Ramen on 30 October at Lotus’s Sukhumvit 50. Minor Food plans to scale Chicho Ramen to between 90 and 100 stores within three years, seeking to contest a local ramen sector dominated by a single major chain alongside fragmented independent shops.

    Managing Commodity Pressures

    Cost pressures remain contained across the restaurant system despite ongoing geopolitical frictions affecting global shipping routes. Raw material expenses across the supply chain rose about 3 per cent, while logistics costs increased only marginally, cushioned by hedging programs and bulk-purchasing contracts across regional vendors.

    The immediate operational test arrives with the debut of Chicho Ramen on 30 October, which will show whether Minor Food can build another domestic mass-market chain from scratch while hunting master franchisees across the Middle East and Southeast Asia.

  • Sunscreen Reforms Proposed After 16 of 20 Products Fail SPF Tests

    Sunscreen Reforms Proposed After 16 of 20 Products Fail SPF Tests

    Australia’s Therapeutic Goods Administration is overhauling sunscreen testing rules, requiring brands to conduct repeated SPF verification and lodge data before products reach retail shelves.

    The regulatory shift follows testing conducted last year that discovered 16 out of 20 popular sunscreen formulations failed to deliver their claimed sun protection factor.

    Consumer advocacy group Choice, industry body Accord Australasia and the Australian Sunscreen Association have backed elements of the framework while demanding that the TGA scrutinise the compliance costs and supply availability before codifying the rules. Under the proposed regime, personal care manufacturers must test finished shelf formulations rather than base batches, repeating trials across the stated shelf life of the product.

    Mandatory Testing Shifts Before Shelf Placement

    Brands currently sell sunscreens in Australia without lodging baseline laboratory data with the regulator prior to retail distribution unless specifically ordered to produce records. The updated rules eliminate that gap by forcing suppliers to lodge certified testing dossiers with the TGA ahead of retail launch.

    Laboratory evaluation protocols will also change to accommodate in vitro testing methods conducted on plates rather than relying solely on human volunteer skin trials. The TGA confirmed human testing protocols will remain compulsory for specific categories, including water-resistant claims, to prevent degradation under real-world conditions.

    The regulator decided against establishing an open public registry of brand testing results. Officials cited commercial confidentiality, trade secret protections and the risk that technical testing metrics would confuse shoppers.

    Supply Chain Friction for Beauty and Personal Care Brands

    RetailNews Asia sees this regulatory clampdown reshaping procurement margins for pharmacy chains, beauty retailers, and contract manufacturers across the Asia-Pacific region. Australia represents the strictest suncare compliance market in the southern hemisphere, and Australian compliance frequently serves as the quality benchmark for brands exporting into Southeast Asian retail networks.

    Suppliers face sharp operational cost increases as testing requirements expand from one-off formula verifications to continuous stability batches. Independent indie brands and cross-border beauty labels using third-party contract packagers will bear the brunt of these overheads, creating shelf consolidation in major retailers such as Coles, Woolworths, and chemist chains.

    Fallout from Sunscreen Recalls

    The regulatory overhaul stems from an industry crisis when independent testing showed severe disparities between front-label claims and actual barrier performance. One mineral sunscreen labelled SPF 50+ registered a protection score of just SPF 4 during laboratory trials, triggering a recall of the product alongside 19 sister formulations built on the identical base matrix.

    While products like Mecca Cosmetica’s To Save Body SPF 50+ recorded matching protection levels of SPF 51 in the same trial, the wider category suffered severe reputational erosion. The TGA’s chief medical adviser, Professor Robyn Langham, explained that investigations revealed multiple systemic factors behind failing batches rather than isolated formulation errors.

    Australians expect the SPF on the label to be backed by robust evidence. These proposed reforms put that expectation at the centre of sunscreen regulation.

    Next Regulatory Steps and Compliance Milestones

    The TGA will review submissions from retail and chemical industry groups regarding cost burdens before finalising the regulatory timetable. Consumer advocates continue to demand that the regulator institute an independent government-run batch testing programme rather than relying exclusively on company filings.

    Beauty retailers and FMCG distributors operating across Australia and regional export markets are now auditing supplier dossiers ahead of the binding implementation dates.

  • Mom’s Touch Signs Master Franchise Deal for 50 Stores in Kazakhstan

    Mom’s Touch Signs Master Franchise Deal for 50 Stores in Kazakhstan

    South Korean fast-food brand Mom’s Touch signed a master franchise agreement with Shin-Line Group to open more than 50 restaurants across Kazakhstan over the next decade. The chain plans to launch its first flagship restaurant in the country before the end of 2026.

    The partnership gives Mom’s Touch exclusive development rights in Kazakhstan and includes territorial rights to expand into neighboring Kyrgyzstan. Shin-Line Group will oversee local real estate selection, operations and distribution across both Central Asian territories.

    Central Asian Franchise Structure

    Seoul-based Mom’s Touch, established in 1997, built its domestic business on made-to-order fried chicken and its core Thigh Burger sandwich. The master franchise framework shifts development risk and store capital expenditure directly onto Shin-Line Group, letting the Korean franchisor draw recurring royalty streams without funding store buildouts directly.

    Central Asia has emerged as an active proving ground for international fast-food chains seeking territory outside crowded East Asian capitals. For food and beverage operators in the region, teaming up with Shin-Line provides an existing logistics foundation in frozen foods and distribution that solves supply chain friction for quick-service poultry and bakery supplies.

    Supply Lines and Regional Risk

    Entering Kazakhstan requires managing long cold chains and securing quality poultry that matches parent company specifications. Franchisors taking this route depend entirely on the balance sheet and execution speed of their master franchisee, especially when consumer spending fluctuates against local currency pressures.

    Rival Korean food brands have focused primarily on Southeast Asia and North America to scale their offshore footprints. Taking a chicken concept into Central Asia tests whether Korean casual dining menus can secure repeat traffic against incumbent American burger giants already operating in major Kazakh hubs.

    Ten-Year Development Horizon

    The Korean quick-service brand spent recent years consolidating its domestic market presence before accelerating international franchise deals. Moving through local master partners has become its default model for international expansion, minimizing balance-sheet liabilities while testing brand appetite in emerging consumer markets.

    Attention turns to the exact launch date and location of the initial flagship store scheduled before the close of 2026. The pace of the subsequent rollout toward the 50-unit target will determine when Shin-Line exercises its development rights across the border in Kyrgyzstan.

  • Coca-Cola Raises Full-Year Profit Target on Resilient Emerging Market Demand

    Coca-Cola Raises Full-Year Profit Target on Resilient Emerging Market Demand

    Coca-Cola raised its annual profit forecast on Tuesday, Oct 27, projecting comparable currency-neutral earnings per share to grow at least 9 per cent in 2026. The beverage giant previously targeted full-year earnings growth between 7 per cent and 8 per cent.

    Third-quarter revenue rose 7.4 per cent to US$13.38 billion, topping analyst projections of US$12.92 billion compiled by LSEG. Adjusted earnings per share reached 91 cents, ahead of the 88 cents consensus estimate.

    Emerging Markets Drive Global Volume

    Global unit case volumes increased about 5 per cent during the three months ended Oct 2. Volume expansion in India, China, Mexico and Brazil supported the overall gain, compensating for flat demand in North America.

    Shoppers in Asian markets continued buying core trademark sodas alongside zero-sugar varieties. In Western markets, the company leaned on pricing actions and package tiering, selling smaller, cheaper entry packs alongside higher-priced products such as fairlife milk, Topo Chico, and Coca-Cola Cherry Float.

    Divergence From Snack and Beverage Rivals

    The volume momentum widens the gap between Coca-Cola and competitors such as PepsiCo, which has struggled with softening snack sales in the United States. While North American consumers cut discretionary packaged foods, beverage intake remained stable across both developed and developing retail channels.

    For retailers and convenience store operators across Asia, the numbers show sustained foot-traffic demand for impulse cold-drink categories. Bottlers face higher inventory values, but turnover rates for core carbonated brands have held up better than non-essential ambient grocery items.

    Packaging Pressures and Input Volatility

    Operating margins face persistent headwinds from volatile industrial packaging markets. Rising commodity costs tied to the US war in Iran pushed aluminum and PET plastic expenses higher throughout the year.

    The company warned in July that container input costs had climbed past internal budgets. Those packaging increases continue to pinch margins even as net pricing gains shield headline top-line performance.

    Pricing Trajectory Into Year-End

    Coca-Cola’s stock has risen about 33 per cent in 2026, heading toward a third consecutive annual gain despite broad retail belt-tightening and geopolitical shocks. Shares traded marginally lower in premarket deals following the release.

    Management must now navigate final-quarter price elasticity across developing Asian cities as regional currencies shift against the dollar. The final quarterly filing will show whether volume gains in India and China can outpace elevated resin and can costs through December.

  • Bao Brings 7-Outlet London Chain to Singapore with Pop-Up Stall

    Bao Brings 7-Outlet London Chain to Singapore with Pop-Up Stall

    The founders of London restaurant group BAO will open a temporary pop-up in Singapore on Nov. 11, introducing a new concept called BAO Fast Foods (BFF) to Southeast Asia for the first time.

    BFF is a new concept, separate from BAO’s London restaurants. It is being launched with Singapore hospitality firm The Lo & Behold Group at New Bahru mall, 46 Kim Yam Road, #01-10. Trading runs through Dec. 28. BAO founders Shing Tat Chung, Erchen Chang, and Wai Ting Chung are behind the project.

    The Format at New Bahru

    The ground-floor pop-up is part fast-food joint and part convenience store. Shelves carry packaged snacks imported from Taiwan, including instant noodles and crisps, alongside grab-and-go chilled items such as egg mayonnaise sandwiches and salads.

    Hot orders will focus on Taiwanese-inspired items such as fried chicken and beef noodles. The format is built around faster turnarounds and a smaller footprint than the sit-down restaurants BAO operates across central London.

    Testing Asian Demand

    Western hospitality brands frequently expand eastward by franchising proven casual-dining concepts. BFF reverses that flow: a concept created by London-based founders, selling Taiwanese-inspired food in an Asian market where street stalls and convenience chains already offer cheap alternatives.

    Singapore offers a bilingual market with high retail rents and sophisticated consumer spending. The local partner, The Lo & Behold Group, has an established footprint across lifestyle developments in the city.

    Path from London Market Stall

    Chung, Chang and Wai Ting Chung started BAO more than a decade ago as an outdoor stall at Netil Market in east London. The business expanded into seven permanent dining sites across London neighbourhoods. In June, Chung and Chang also ran a one-month pop-up in Taipei.

    Next Steps

    The Singapore pop-up closes on Dec. 28. Chung pointed out the lack of Taiwanese concepts competing against global burger and fried chicken chains across the region.

  • Tata Consumer Profit Rises 16% as Salt and New Lines Offset Flat Tea

    Tata Consumer Profit Rises 16% as Salt and New Lines Offset Flat Tea

    Tata Consumer Products posted a 15.6 per cent increase in consolidated net profit to ₹470.14 crore for the September quarter, driven by higher salt volumes and faster momentum in packaged foods.

    Consolidated revenue climbed 14 per cent to ₹5,661.13 crore, matching analyst projections of ₹5,583.2 crore on revenue and ₹469.2 crore on earnings.

    Operating profit grew 18 per cent to ₹794 crore. Operating margins widened by 40 basis points to reach 14 per cent. Underlying volume growth in the core domestic branded business registered at 11 per cent, softening slightly from 13 per cent in the prior quarter. Price revisions took effect across key staples, lifting tea prices by 8 to 10 per cent and salt prices by 6 per cent compared to the first quarter.

    Value Added Lines Expand Operating Cushion

    Packaged staples and functional beverages now insulate the group from flat demand in legacy grocery lines. The company classified 38 per cent of its domestic business as growth portfolios, which surged 40 per cent year on year. Tata Sampann, covering spices, culinary oils and packaged pulses, reported 57 per cent year-over-year growth, driven by volume. Cold-pressed oils and dry fruits generated a combined annual recurring revenue run rate of approximately ₹1,000 crore, while ready-to-drink beverages like Tata Gluco+ and Tata Copper+ grew sales 47 per cent.

    Pricing power in salt proved resilient. Salt revenue increased 15 per cent on 9 per cent volume growth. In contrast, tea revenue slipped slightly as volumes stayed flat, squeezing category turnover despite direct price hikes. That bifurcation mirrors broader supermarket trends across urban India, where branded staples capture market share from unorganised mills while mass hot beverages face spending fatigue.

    Store Footprint and International Pressures

    Joint venture Tata Starbucks generated a 15 per cent revenue increase for the three-month period, marking a multi-quarter high driven by same-store sales. The chain closed September with 505 cafes across 81 cities in India. The rapid cafe rollout places the group in direct competition with international specialty chains and domestic coffee operators bidding for high-street real estate in tier-one and tier-two retail districts.

    Overseas revenue rose 7 per cent reported, but fell 2 per cent in constant-currency terms against a demanding year-earlier base. Prolonged warm weather in the United Kingdom dampened hot beverage consumption. Cost structures face new friction as well, with tea inflation and packaging input volatility balancing out recent declines in global green coffee purchasing costs.

    Building Margins Across Packaged Brands

    Management previously transformed Tata Sampann from negative 5 per cent margins five years ago to between 14 and 15 per cent this quarter, expanding 270 to 280 basis points year on year. In the June quarter, consolidated revenue had risen 12 per cent while net profit jumped 29 per cent, showing consistent volume expansion through the current fiscal year.

    “We had seen a little bit of inflation in Capital Foods as well, and we’ve taken pricing through the quarter, which will again start to flow. So across the board, I think the whole play of price increases has yet to, manifest fully into the P&L,” D’Souza said to analysts in the post-results call.

    Executive leadership has set a target for Indian food and beverage operating margins to reach 17 to 20 per cent over the next three to five years, requiring pricing actions at Capital Foods to flow through inventory cycles without degrading supermarket sales volume.

  • CP Group Distances Senior Chairman from 4 Holy Basil Patents

    CP Group Distances Senior Chairman from 4 Holy Basil Patents

    Charoen Pokphand Group (CP) issued a statement on Saturday distancing itself and senior chairman Dhanin Chearavanont from controversial patent registrations covering four new varieties of holy basil.

    The agribusiness conglomerate responded after social media posts alleged CP and Mr Dhanin owned all holy basil varieties across Thailand, barring farmers and consumers from cultivating or selling the herb without permission.

    “That is not factual, scares people and affects the reputation of Charoen Pokphand Group and the individual mentioned,” the company stated, noting that subsidiary CPRAM obtained the 4 plant patents independently.

    Corporate Structure and IP Ownership

    CPRAM operates as a subsidiary of Stock Exchange of Thailand-listed CP All Plc. Charoen Pokphand Group holds equity in CP All, but the parent entity stated it maintains no operational authority over board decisions or intellectual property filings conducted by individual subsidiaries.

    The dispute flared after social media claims alleged CP held a commercial monopoly over holy basil, known locally as kaphrao. Rumours claimed growers faced legal penalties without corporate licensing, prompting visible pushback from herb vendors across wholesale wet markets.

    Read Across for Food Retailers and Agricultural Suppliers

    Contract farming and retail ready meal supply chains across Southeast Asia hinge on public goodwill, particularly when major conglomerates patent proprietary seeds for national staple ingredients. Operating companies in Thailand frequently develop crossbred crops to boost yields, uniform leaf sizes, and shelf life for high-volume chilled convenience meals, yet proprietary breeding quickly draws political scrutiny when perceived as corporate fencing of common culinary heritage.

    For consumer operators, food processors, and supply chain managers, the controversy demonstrates that holding standard plant variety certificates can trigger immediate brand friction at retail stalls. CPRAM pursued higher harvest yields and profit margins for partnered growers, but the conglomerate found itself forced into public damage control to prevent broader boycotts against its convenience retail channels.

    Regulatory Scrutiny on Plant Varieties

    Public pushback escalated after domestic television broadcasts featured market vendors criticising corporate control over phat kaphrao, widely treated as Thailand’s staple national stir-fry. In response, government regulators at the Department of Agriculture moved to examine the underlying registration filings covering the specific varieties held by the group’s manufacturing unit.

    The company warned that it reserves legal rights to pursue parties spreading false statements that harm group reputations or executive standing, while state agriculture inspectors conduct their formal registration review.