India Unjunking A USD 30 billion appetite for health food March 2022 - Avendus
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India Unjunking A USD 30 billion appetite for health food March 2022
India Unjunking: A USD 30 Bn appetite for Health Food Page 2 Table of Contents 01. Executive summary 03 02. Health and Wellness F&B – a large market opportunity 07 03. Themes driving growth in the Health and Wellness F&B category 13 04. The winning formula 19 05. We believe this is the decade for Health & Wellness F&B in India 23 06. Annexure 1: The way we look at H&W food market – Select sub-segments 27 07. Annexure 2: Global success stories 32 08. The Avendus advantage 37
India Unjunking: A USD 30 Bn appetite for Health Food Page 3 Executive summary
India Unjunking: A USD 30 Bn appetite for Health Food Page 4
Health & Wellness (H&W) focused F&B market in India will
be USD 30 Bn by 2026 growing at CAGR of 20%
Health & Wellness is one of the most attractive
markets in F&B in India
Market size1 (in USD Bn)
20%
CAGR
CAGR: 20%
30 Health F&B is growing at 20% CAGR
(~1.5x of the total packaged F&B
market growth)
31%
11%
10
India USA
Large headroom for growth given low
health food penetration2: 11% in India
CY20 CY26P vs. 31% in USA
Indian H&W food market is set to exponentially grow, driven by the following factors
Change in the attitude and increase
Rising disposable income leading to
in the number of health-conscious
increased spending capacity
consumer post covid
Rise in e-commerce; reduced barrier
Rising demand from millennials
to entry
1. Only includes packaged F&B products and excludes fresh foods
2. Health food penetration refers to % of Health F&B market within overall packaged F&B
Source: Avendus Analysis; Euromonitor. CapIQ
India Unjunking: A USD 30 Bn appetite for Health Food Page 5
Structural shift in consumer purchasing behaviour &
preferences driving innovation & strategies
Consumer driven themes Supply side themes
Mindful eating – Large F&B majors are
Emergence of digital
Consumers are Innovation in targeting health foods
as a means of product
searching for plant-based space with an organic
discovery and
functional and healthy alternatives or inorganic growth
purchase
ingredients strategy
Basic products Animal-based Offline Health food launches
e.g. Hershey
e.g.
e.g. Snack zero sugar
e.g. Cow milk Traditional
bars chocolate
FMCGs
launch
Added superfoods Vegan (Plant-based) D2C or omnichannel Acquisition
e.g. Berries, e.g. Hershey’s
nuts & seeds e.g. Almond e.g. New-age acquisition of
energy / Milk brands nutrition bar
protein bars maker ‘ONE’
• Superfoods that • Increase in the • Increasing need for • Large F&B
offer maximum number and convenience led to companies are
nutritional benefits engagement adoption of digital targeting better-for-
and have minimal capability of vegan distribution and you positioning by
calories have gained influencers among emergence of new launching +
prominence the internet-savvy platforms acquiring health
• There is greater young generation • D2C has eliminated food brands
acceptance of • Companies are entry barriers with • Health and wellness
immunity-boosting increasingly labelling digital becoming an categories, though
supplements and their food items important channel small, are growing
functional foods ‘vegan’ and for product faster than the
‘veganisable’ discovery and overall market
purchase
Source: Avendus Research
India Unjunking: A USD 30 Bn appetite for Health Food Page 6
Inflection point for Health Food in India
Multiple success stories of large value creation in Health & Wellness brands globally
Market cap1 USD 4.0 Bn USD 3.7 Bn USD 3.6 Bn USD 10 Bn+
EV / Sales multiple1 5.8x 8.5x 3.8x 6–7x2
Valuation of H&W players are higher than traditional peers
driven by key success factors
• Large market led by shift towards healthier alternative of packaged food
• Faster growth rate demonstrating market acceptance
We believe that this is ‘The Decade for H&W Food in India’
• Strong health food brands can horizontally expand and capture high consumer
wallet share and scale fast
• US health food market witnessed an inflection point in M&A and public market
transactions since 2015
• We believe similar trend will follow in India with significant transaction activity
and consolidation in the sector in the coming decade
1. Market data as of Feb 3, 2022
2. Expected valuation in the proposed IPO
Source: Avendus Analysis; CapIQ
India Unjunking: A USD 30 Bn appetite for Health Food Page 7 Health and Wellness F&B – a large market opportunity
India Unjunking: A USD 30 Bn appetite for Health Food Page 8
Global Health and Wellness F&B:
USD 1.1 Tn market by 2026
Health and wellness F&B is a massive global market…
Health and Wellness F&B market
(USD Bn)
CAGR: 5.7% 1,077
CAGR: 2.8%
774
674
CY15 CY20 CY26E
…with emergence of a wide spectrum of products
Naturally • Minimally processed natural food and beverages
healthy • Organically grown and free from man-made
& Organic chemicals
Functional • Naturally enriched or fortified foods
food and • Low in sugar/salt and high in nutrients
Better-for-you • Free from allergen like lactose, gluten etc.
• Dairy, meat and other food products derived from
Plant-based
plants or cultures
Source: Euromonitor, Avendus analysis
India Unjunking: A USD 30 Bn appetite for Health Food Page 9
Indian Health & Wellness F&B:
USD 30 Bn market by 2026
Market size1 (in USD Bn)
186
88
Total Packaged
F&B Market
30
Health focused 10
F&B Market
CY20 CY26P
Health focused F&B 11% 16%
as % of total F&B
01 H&W F&B is growing at 20% CAGR (~1.5x of the total packaged F&B market growth)
Health-conscious consumers in India 2x increase in Health F&B spending per
increasing from 108 Mn in CY20 to capita by health-conscious consumers by
176 Mn in CY26 CY26
Large headroom for growth given low health food penetration as % of total packaged F&B :
02 11% in India vs. 31% in USA
1. Only includes packaged F&B products and excludes fresh foods
Source: Euromonitor, Avendus estimates
India Unjunking: A USD 30 Bn appetite for Health Food Page 10
Significant growth will be witnessed across categories;
‘Healthy Snacking‘ will lead market expansion1
Market size (in USD Bn)
30
CAGR
Category (CY20-26) Key Constituents
Baby milk powder, Healthy
Others NA confectionary/ Ice-cream
etc.
Juices; Green tea; Sports
Beverages 19.7% drinks; Other beverages
Malt-based drink powder;
Nutritional
11.6% Protein powder; Meal
powders
replacements
Healthy edible oil; Breakfast
cereals; Plant-based
10
Staples 18.7%
alternatives; Other cooking
ingredients
Healthy milk; Yogurts; Milk-
alternatives; Other dairy
Dairy 24.5%
products
Savory snacks; Healthy
Snacks 25.2% biscuits; Fruit snacks; Snack
bars; Trail mixes
CY20 CY26P
1. Snacking in this context refers to any food eaten in between meals as the number of eating occasions during the day have increased amongst consumers
Source: Euromonitor, Avendus estimatesIndia Unjunking: A USD 30 Bn appetite for Health Food Page 11
Market expansion in India driven by multiple growth levers
Increased awareness Increasing spending capacity
% of households with disposable income greater than
USD 15,000
18%
108 Mn 35 Mn 70%
9%
# of Health- # of children Indians say they
conscious consuming health will focus on
consumers in foods due to improving overall
India health-conscious health post-COVID
parents by prioritizing In CY20 In CY26E
dietary changes
Moving towards mindful eating – foods with
With rising disposable income, health-oriented
specific benefits beyond general wellness &
spending is taking a larger wallet share
nutrition
Demand from millennials E-commerce penetration
Number of online shoppers in India (in Mn)
300
Mn
150
440 Mn
Mn
Total number of
millennials in India In CY20 In CY25E
currently
E-commerce demand to come from tier-II and III cities in
India
Large millennial population with high Broader reach enables smaller health and
disposable incomes who are willing to spend wellness brands to grow; distribution is no
on health more a distinguisher
Source: Euromonitor, Habbit 2021 survey, Redseer report, Avendus research and analysisIndia Unjunking: A USD 30 Bn appetite for Health Food Page 12
Increased consumption occasions of health food during the
day replacing square meals
1 2 3
Increase from traditionally 4 Reduction in portion size for Higher share of health food
to now 5+ eating occasions each meal in the diet
Replaced three square
meals by taking multiple Consume snacks two to
64% healthy snacks 47% three times a day1
throughout the day1
Take special note of the
brand, packing, and
Consume snacks even
27% at night1 85% nutritional value while
purchasing RTE snacks1
1. Secondary research: Survey conducted by a market research company on 3,000 people over the age of 18.
Note: Avendus Analysis.India Unjunking: A USD 30 Bn appetite for Health Food Page 13 Themes driving growth in the Health and Wellness F&B category
India Unjunking: A USD 30 Bn appetite for Health Food Page 14
Interesting themes driving the exponential growth in the
Health F&B category
Mindful eating – Consumers are
01 searching for functional and
natural healthy ingredients
Consumer driven
themes
Innovation in plant-based
02
alternatives
Emergence of digital as a
03 means of product discovery and
purchase
Supply side
themes
Large F&B majors are targeting
health foods space with both
04
organic and inorganic growth
strategiesIndia Unjunking: A USD 30 Bn appetite for Health Food Page 15
Mindful eating – Consumers are searching for
functional and naturally healthy ingredients
Traditional players have been strengthening ingredient focused product portfolio
Launched Ratio – keto
friendly products
Acquired
Invested in a US kale snacks superfoods-based
maker Rhythm Superfoods snacks brand
Launched nesQino to
personalize superfood drinks
Launched
Acquired biggest global buyer superfood granola
of goldenberries range
65% of global consumers are more concerned with immunity because of COVID-19.
– June Lin, VP, Global marketing for health & wellness at ADM
Growing acceptance within Indian Indian companies have positioned their
consumers products across super foods and natural
healthy ingredients
Preventive healthcare:
• Lifestyle ailments, immunity boosting, Millets Quinoa
and image body concerns is driving the
increasing need for functional and
naturally healthy ingredients
Ayurvedic ingredients: Green tea Oats and Muesli
In India, Ayurvedic superfoods like
Turmeric, Amla have been widely accepted.
• Traditional brands like Dabur, Patanjali
bet big on Ayurveda
• New age companies such as Kapiva,
Akiva are building their presence Dark chocolate Goji berries
While Ayurveda remains strong, Indian
market is witnessing many emerging
superfood ingredients
Source: Avendus Research.India Unjunking: A USD 30 Bn appetite for Health Food Page 16
Innovation in plant-based alternatives
US is the largest plant- 1. Globally – Organic innovation + M&A
based market globally at
USD 7 Bn with plant-based
dairy and meat constituting acquired acquired
63% and 20% respectively1
Vegan
Growing opportunity in KitKat Platform offering
plant-based products in Plant-
plant-based solutions
Plant-
India …. based Pea-based based
yogurt milk; nutrition
Large consumer base of coffee Plant-based US bar
‘Flexitarians’: lattes etc. portfolio
About 70%² of Indian
population is ‘Flexitarian’
2. Globally – Strategic Partnerships + IPO
– general vegetarian diet
with occasional non-veg
consumption Recent
IPOs
Favourable demographic:
Plant-based products are Partnered with Partnered with Partnered with
more appealing to the
younger generation
focusing more on
nutrition & fitness
to offer oats-based to co-develop to launch / test
options at the plant-based menu vegan burger,
outlets items nuggets, sausages
… however, need to see
how it takes off Indian players following global trends
Market adoption:
To evaluate the scalability
and acceptance for Vegan
Partnered Partnered
brands on account of high
with with
price points and consumer
preferences
Strong lobby of incumbent
players in dairy:
Unforeseen policy changes
Launched Introduced Introduced For B2B business to launch
like Sep-21 FSSAI guidelines
Plant- Plant- almond ‘Wakao
on labelling restrictions on based based milk Fest’
plant-based dairy after meat pizza yogurt offering
pressure from the powerful innovative
dairy lobby is a challenge for to introduce Vegan vegan food
the sector chicken Biryani menu
1. GFI (Good Food Institute) market research.
2. USDA Foreign Agricultural Service.
Source: Avendus Research.India Unjunking: A USD 30 Bn appetite for Health Food Page 17
Emergence of digital as a means of product
discovery and purchase
Globally, D2C/ digital first brands have demonstrated large value creation
Frozen food Plant-based Nutrition and Nutritious meal Health
products beverages supplement replacement supplements
Founded 2011 2012 2013 2013 2014
Fund raised USD 178 Mn USD 340 Mn USD 87 Mn USD 72 Mn USD 71 Mn
Valuation USD 1 Bn+ USD 500 Mn+ USD 500 Mn+ USD 500 Mn+ USD 240 Mn
Large traditional F&B majors have also started embracing the D2C channel
Launched Launched Heinz Launched Launched D2C Launched 2 D2C Leveraging its
Snacks.com and to Home service Cokestore.com confectionary brands in 2019 D2C website &
Pantryshop.com in UK selling in Australia and service (KitKat) – Joybol (protein national / local
for D2C delivery sauces, spreads, USA to sell coke in 2019 in UK smoothie bowl) partners to
of snacks, ice-creams direct products D2C & Happy Inside deliver essentials
cereals etc. to home (a cereal brand) direct to home
Similar trend witnessed in India as well
Companies use a mix of own platform Digital first distribution:
and marketplace distribution (as
sellers themselves or through 3rd party Own platform
sellers) • Useful channel for driving loyalty and retention
• Captures customer data to enable product testing and
Online business can be set up faster acceptance
(vs offline) and have lower working • However, due to lower gross margins and average order
capital cycles: As a result, many new value in food vs. other categories like personal care and
age brands are using a digital first high CAC1, own platform unit economics are inferior. Hence,
approach to start off and are adopting we believe this will only be a marginal contributor to online
omnichannel strategy as they scale sales for F&B companies
Marketplace
Omnichannel: Adding offline channel • Helps to ascertain product acceptance and market fit. Useful
to increase scale and customer reach channel to drive product discovery and repeat purchase
Source: Pitchbook, Crunchbase, Press releases; 1. Customer Acquisition CostIndia Unjunking: A USD 30 Bn appetite for Health Food Page 18
Large F&B majors are targeting health foods space
with both organic and inorganic growth strategies
Key deal
drivers
Soulboost & Driftwell –
Developing a Gluten and sugar free
Water beverages with Vegan KitKat
strong ‘Health Oreo
functional ingredients
and Wellness’
portfolio
Partnership with Beyond Multiple launches in
Cadbury Fuse Fit – Meat to product and plant-based beverages
Healthy snack bar market plant-based (e.g. pea-based milk;
protein products coffee lattes)
Aboard the
digital train
Nestle faced criticism
Aim to reduce the added
over unhealthy products
sugars level in beverages
– working on updating its
by 25% / 50% by 2025 /
Philadelphia Cream nutrition and health
2030
cheese variant with strategy
100% natural ingredients
Penetrating
new markets
Healthy
Protein Protein Healthy Plant-based Healthy
meal
bar bar snacks nutrition bar snacks
startup
Adding new
product expertise
e.g., fast growing Sport-
plant-based Healthy Healthy oriented Healthy Vitamin & supplement
proteins snacks snacks nutritional snacks brands
products
Source: MergerMarket; Avendus Research.
Organic InorganicIndia Unjunking: A USD 30 Bn appetite for Health Food Page 19 The winning formula
India Unjunking: A USD 30 Bn appetite for Health Food Page 20
What drives valuation for Health food companies?
LARGE POTENTIAL ADDRESSABLE OPPORTUNITY IN PACKAGED F&B
• Driven by increasing shift towards healthier alternatives; represents an
opportunity for exponential future growth
BRAND DOMINANCE AND MARKET ACCEPTANCE
• Purpose driven positioning (healthy, clean label, vegan) especially
appealing to millennials and health aware GenZ
• Faster growth vs traditional players demonstrates product market
fit with brand acceptance and trust
INNOVATIVE MARKETING AND CONTINUOUS CUSTOMER
ENGAGEMENT
VALUATION
DRIVERS • Clear communication strategy to convey the brand identity and
proposition
• Use social media, digital influencers and 360-degree marketing
to build deep connect with the customers
OPEN MINDED AND AGILE DNA
• Flexible distribution models – ‘Omnichannel’ Go-to market approach
• Iterative product development and continuous experimentation
PLATFORM FOR FUTURE GROWTH
• Leverage the brand trust, customer understanding and agile supply chain to add
product offerings and scaleIndia Unjunking: A USD 30 Bn appetite for Health Food Page 21
Globally health food brands command richer valuation v/s
traditional players
Operates 2 health
#1 player in Leading player in
#1 player in brands for bars,
alternative proteins oat-based dairy
Greek yoghurt snacks & protein
segment alternatives
beverages
Expected IPO
USD 3.7 Bn USD 4.0 Bn USD 3.6 Bn
Valuation
Market Cap/ > USD 10 Bn
Valuation
USD 466 Mn1 USD 584 Mn1 USD 1,500 Mn2 USD 1,056 Mn1
Revenue
8.5x 5.8x 6–7x 3.8x
Company
EV/Sales
1.1x 2.5x 2.5x 3.0x
Traditional
Peers
1. LTM Revenue.
2. CY20 revenue.
Source: Avendus Research. CapIQ, Market data as of Feb 3, 2022India Unjunking: A USD 30 Bn appetite for Health Food Page 22
Traditional F&B majors have increased appetite for H&W
brands and have been paying top dollar for marque assets
that add ‘Better-For-You’ positioning
Significant increase in M&A activity in H&W space in the recent years driven by traditional
F&B players
M&A trends in Health & Wellness F&B Top Strategic Buyers by deal count
111 #5
85
#5
#4
27
21 16 #4
13
#3
CY15 CY16 CY17 CY18 CY19 CY20
# of deals # No. of acquisition between CY15–CY20
Large M&A deals of marquee assets by traditional F&B companies in the past 5 years
#1 pure-play One of the UK’s #1 selling Better-For-You One of the
leader in global largest clean cereal brand snack brand: fastest growing
nutrition and label snack 2nd largest protein bar brand
supplement brand worldwide popcorn player in in USA
USA
Deal Value
5,750 4,000 1,700 1,503 1,000
(USD Mn)
EV/
3.1x 5.6x 4.6x 4.0x 2.9x
Revenue
Source: MergerMarket; Company announcements.India Unjunking: A USD 30 Bn appetite for Health Food Page 23 We believe this is the decade for Health & Wellness F&B in India
India Unjunking: A USD 30 Bn appetite for Health Food Page 24
Decade for Health & Wellness F&B in India
India H&W food is
expected to become
USD 30 Bn market
by 2026 growing at a
CAGR of 20%
Opportunity to
horizontally expand and
capture high consumer
wallet share to achieve
success
Indian health food
market is at an inflection
point w.r.t. deal activity;
lagging the USA market
by 5 years
We can expect significant value creation & deal activity in India over the next decadeIndia Unjunking: A USD 30 Bn appetite for Health Food Page 25
In order to capture the massive opportunity, companies need
to employ a ‘Horizontal’ expansion or ‘Platform’ playbook
Companies can leverage the brand acceptance / trust as a ‘H&W/clean label’ brand &
customer understanding to add new product categories
Constant product innovation engine Constant customer engagement with the brand
1 2 3
Ensure customer retention: Add more customers with Capture more wallet share
Sticky customers drive focused brand building through increased order
repeat sales efforts value and purchase frequency
5 years
Hence
Now
5 years
back
Energy & Muesli Peanut Oats
protein bars Butter
New
products
Greek Yogurt
Plant- Beverages / Cheese &
based smoothies & spreads
Dairy deserts
Source: Avendus Research.India Unjunking: A USD 30 Bn appetite for Health Food Page 26
Indian market ripe for strategic deals and IPOs in this decade
In recent years, US market has seen rise in M&A
India has been observed to follow the USA health
transactions in the health foods space, along with
foods market trends with a lag of 5 years
few IPOs
In India, since 2010, many brands have been seeded with PE/VC funding. With such brands
reaching adequate scale and demonstrating brand strength, we expect spike in transactions
and value creation in the coming decade
Emergence of new-age brands Inflection point for M&A and public
& interest from PE/VC market transactions
M&A IPO
2021 2022E
2019 2022E
2017 2021
2016 2019
2005 Stage 1 2015 Stage 2
+ 5 years + 5 years
2010 Stage 1 2020 Stage 2
Emergence of new-age brands Inflection point in India with M&A and public
& interest from PE/VC market transactions expected to spurt in the
next decade
2021
2021
Source: MergerMarket; Private Circle;; Avendus Research.India Unjunking: A USD 30 Bn appetite for Health Food Page 27 Annexure 1: The way we look at H&W food market – Select sub-segments
India Unjunking: A USD 30 Bn appetite for Health Food Page 28
The way we see Health and Wellness F&B market in India
We have listed out categories where innovation is taking place, driven by scaled new-age
brands
‘Traditional’ categories
‘Emerging’ categories with emerging niches Plant-based alternatives
Categories that have Emerging niches in matured New plant-based alternatives
emerged in recent years and food categories driven by of traditional food ingredients
have gained popularity innovations from new-age
brands
Plant-based
Bars Dairy
meat
Plant-based
Spreads & dips Beverages
milk
Other plant-
Protein Breakfast
based
supplements cereal
alternatives
Trail mixes &
Healthy snacks
Superfoods
Ayurvedic
Kid Snacks
Supplements
Beverages include Juices, Tea and Malt-based drinks.India Unjunking: A USD 30 Bn appetite for Health Food Page 29
‘Emerging’ categories
[xx] Fund raised till date (USD Mn)
Trail mixes & Protein
ARR (USD Mn) Bars Spreads Kids Snacking
Superfoods supplements
[11] [50] [6] [80]
Greater than
USD 7 Mn
[3] [2] [35]
[7] [1] [1] [1]
Less than
USD 7 Mn
[4]
[1]
Source: Company filings, Avendus research, Pitchbook
Note: Excludes brands owned/acquired by large FMCG companiesIndia Unjunking: A USD 30 Bn appetite for Health Food Page 30
‘Traditional’ categories with emerging niches
[xx] Fund raised till date (USD Mn)
Ayurvedic Healthy Breakfast
ARR (USD Mn) Dairy Beverages
Supplements snacks cereals
Green tea
[55] [40] [15] [18]
Greater than
USD 7 Mn Juices
[33] [15] [11]
[2]
Frozen Yoghurt
[7] [4]
Less than
USD 7 Mn Green tea
[3] [2] [2]
[2]
Source: Company filings, Avendus research, Pitchbook
Note: Excludes brands owned/acquired by large FMCG companiesIndia Unjunking: A USD 30 Bn appetite for Health Food Page 31
Plant-based alternatives
[xx] Fund raised till date (USD Mn)
Soya-based Soya-based meat Soya-based meat Soya-based meat Soya-based meat
Plant-based [4] [1]
meat
Soya-based meat Soya-based meat Soya-based meat Low fat plant protein Jackfruit meat
Plant-based
dairy
Vegan Butter &
Soy & Almond milk Cashew & Oat milk Oat milk
Cheese
[4] [2]
Other plant-
based
alternatives Plant protein
Plant-based egg Plant-based egg
isolate
[1]
Source: Company filings, Avendus research, Pitchbook
Note: Excludes brands owned/acquired by large FMCG companiesIndia Unjunking: A USD 30 Bn appetite for Health Food Page 32 Annexure 2: Global success stories
India Unjunking: A USD 30 Bn appetite for Health Food Page 33
Creator and leader of oat-based category
2001 2012 2015 2020 onwards
• Launched 1st product in • Commenced company • Expanded to UK, • Successful IPO
2001 transformational process Germany, US, Mainland • Partnership with
• Steady growth with • Focus shifted towards China and Hongkong Starbucks in US and
revenue of USD 29 Mn rapid expansion and • Strong focus on China
till 2012 scaling expanding the
foodservice and retail
channel
Strong valuation driven by robust growth, innovation and expansion strategy
Revenue (USD Mn) Valuation (USD Mn)
Gross margin 31% 2x
CAGR: 88% 3,980
421
42% 14x 2,000
CAGR: 26%
118
29 142
2012 2018 2020 Dec-16 Jul-20 Current
Innovative products Strategy
Expand consumer base Plant-based milk will
through increased continue to grow at 20% –
awareness 25% CAGR
Oatmilk Oatgurts
Multi-Channel distribution Available across 60k retail
led by proven foodservice shops and 32k coffee
strategy shops
All products are dairy-free,
Extend product offerings
Frozen Desserts gluten-free, non-GMO
through Innovation
certified and organic
Highest selling oat
Global distribution reach:
category product in UK,
Sold across 20 countries
Ready-to-go Cooking and Spreads Germany, US and Sweden
Source: Company disclosures; News articles. Market data as of Feb 3, 2022India Unjunking: A USD 30 Bn appetite for Health Food Page 34
Leading clean label snack brand worldwide
Founded in 2004, Kind Snacks was one of the first popular snacks to abstain from artificial flavors and
preservatives
Revenue (USD Mn) Key Milestones
CAGR:
26% Nov 2017 Nov 2020
1,600
Mars acquired 40% stake in Mars acquired remaining stake
CAGR:
KIND North America and 100% in KIND
42%
in Kind International
CAGR: 800
80%
197
1
2004 2013 2017 2020 Synergies
Valuation (USD Mn)
23x
5,000 Leveraging MARS’ Optimisation and Inventory management:
wide-spread scaling of Ensuring major retailers
distribution network manufacturing are guaranteed
internationally and facilities availability of the
in USA product
3x
220
66 Strategy
Dec-08 Dec-13 Nov-20
Offers whole nuts, fruits and whole grains
Distinct value
bars – no secret ingredients and no artificial
proposition
Innovative products flavors, preservatives or sweeteners
Zero compromises Offers healthy and convenient snack bars
product strategy without compromising on taste
Protein Nut Breakfast Fruit Healthy
Bars Bars & Energy Bars Grains
Bars Bars
Product Portfolio Diversified portfolio of 8+ product lines
Healthy Oatmeal Nut Kids Clusters
Strong distribution
Grains and Butter Bar KIND + MARS robust network
Granola Cereals Bars coverage
Source: Pitchbook; News articles.India Unjunking: A USD 30 Bn appetite for Health Food Page 35
Superior value creation by a global brand
Phase 1 Phase 2 Phase 3
• Category innovator in Greek yogurt • USD 750 Mn deal with TPG • Embarked on the company’s
• During 2007–13, Greek yogurt • New brand identity as a ‘food- biggest expansion ever by moving
market in US grew at 77% vs. focused wellness company’ into the plant-based (oat-based)
overall yogurt market at 9% • Launched Chobani Oats and space
Chobani Indulgent
• Expanded to Australia and UK • Expanded to Asia and Latin America • Launched Chobani
coffee and creamer
• Distribution
partnership with
USD 1,500 Mn
USD 1,000 Mn #1 #2
USD 70 Mn in Greek yogurt in yogurt
Revenue USA MS: 40% USA MS: 20%
2007 2014 2018 2021+
Valuation USD 2.5 Bn USD 7–10 Bn
(TPG round) (Target IPO valuation)
Strategy
Multi-channel marketing to
Category innovator – When Chobani Mass-distribution (accessible to all)
aggressively connect with consumers
grows, the category grows strategy
and strong focus on digital marketing
Source: Company disclosures; News articles.India Unjunking: A USD 30 Bn appetite for Health Food Page 36
Creator and leader of plant-based meat
2009 2013 2016 2018 onwards
• Founded in 2009 with a • Received funding from • USD 88 Mn net sales in • Successful IPO in 2019
mission to combat GreatPoint, Kleiner CY18 (170% YoY • PepsiCo, Yum!,
climate change Perkins, Bill Gates & increase) McDonald’s brands
• Launched 1st product in more (incl. celebrity • Expanded into Europe, added as new partners
2012 – Beyond Chicken investors) between Middle East and Africa • Launch of products in
Strips 2013–16 Chinese market
• Launched 2nd product in
2015 – Beyond Beef
Strong valuation driven by rapidly growing market, strong R&D focus and expansion strategy
Revenue (USD Mn) Valuation (USD Mn)
7x
Gross margin 30% 3,670
CAGR: 115%
407
20%
CAGR: 135%
88 550
16
2016 2018 2020 Nov-17 Current
Innovative plant-based meat products Strategy
Plant-based meat opportunity is set
1st mover advantage in a
to be a USD 100 Bn market in 15
rapidly growing market
years
Beyond Burger Beyond Beef Crumbles
Superior products than
Unlike others, Beyond Meat
competitors in terms of
products have no soy or GMO
taste and ingredients
Proprietary Technology & Process;
Beyond Beef Beyond Chicken Extend Product Offerings
R&D spend of 8% of revenue vs.
through R&D
>2% for established food companies
Wide distribution reach Equal share of retail & foodservice
with healthy mix of retail customers – tie ups with leading
Beyond Breakfast Sausage Beyond Sausage & foodservice customers retail chain brands
Source: Company disclosures; News articles, Market data as of Feb 3, 2022India Unjunking: A USD 30 Bn appetite for Health Food Page 37 The Avendus advantage
India Unjunking: A USD 30 Bn appetite for Health Food Page 38
Avendus Capital | Industry’s leading Consumer, Financial and
Business services practice
85+ deals worth ~USD 3.7 Bn in value since 2007
12 closures of USD 100 Mn+ value:
Sapphire Foods, Boat, Eastern Condiments, Delhivery, Eurokids, VKL Seasonings, Ujjivan, Metropolis, Mankind, TCNS Clothing
Co. (‘W’), Mayfield, Venture Infotek
17 Member dedicated team with more that 120 years of collective IB experience
Our areas of focus*
CONSUMER GOODS & SERVICES / RETAIL
Food & Beverages | Services | Apparel | Personal Care | Consumer Durables
LOGISTICS
Third Party Logistics (3PL) | Multi-modal Transportation | Freight Management | Facilities Management | Security /
Cash / Allied services
EDUCATION MEDIA
Preschool / K-12 | Higher Education | Vocational Training Publishing | TV Broadcasting & Production
Our Relationships*
*The above list is representativeIndia Unjunking: A USD 30 Bn appetite for Health Food Page 39
Demonstrated track record of delivering outcomes in the
consumer space
Have invested in Have invested in Have invested in Have invested in Has invested in
USD 150 Mn USD 1,250 Mn USD 192 Mn USD 315 Mn USD 100 Mn
Advisor to the Company & Advisor to the Company Advisor to the Company Advisor to the Company Advisor to the Company &
Existing shareholders Existing Shareholders
Aug 2021 Jul 2021 Jul 2021 Jul 2021 Jan 2021
Has acquired Has acquired Has acquired majority stake Has acquired majority stake Has invested in
USD 270 Mn USD 45 Mn Undisclosed USD 65 Mn USD 20 Mn
Advisor to the Company & Advisor to the Company & Advisor to the Company & Advisor to the Company & Advisor to the Company
Existing Shareholders Existing Shareholders Existing Shareholders Existing Shareholders
Sep 2020 Sep 2019 Sep 2019 Jul 2019 Mar 2019
Has invested in Has acquired Has invested in Have invested in Has invested in
USD 11 Mn USD 600 Mn+ USD 32 Mn USD 1,000 Mn USD 100 Mn
Advisor to the Company Advisor to Zydus Wellness Advisor to the Company Advisor to the Company Advisor to the Company
Jan 2019 Jan 2019 Dec 2018 Dec 2018 Jul 2018
Have invested in Has invested in Has invested in
USD 210 Mn USD 120 Mn+ USD 140 Mn
Advisor to the Company Advisor to the Company Advisor to the Company &
Existing Shareholders
Jun 2018 Jul 2017 Aug 2016India Unjunking: A USD 30 Bn appetite for Health Food Page 40
Market Leadership in F&B:
Largest number of deals in the industry
Have invested in Have invested in Have invested in Has acquired
USD 150 Mn USD 1,250 Mn USD 192 Mn INR 2,000 Cr
Advisor to the Company & Advisor to the Company Advisor to the Company Advisor to the company and
Existing shareholders existing shareholders
Aug 2021 Jul 2021 Jul 2021 Sep 2020
Food – Restaurants Food Delivery Food Delivery Food – Spices
Has acquired majority stake Has invested in Has acquired Has invested in
USD 65 Mn ₹ 80 Cr ₹ 4,600 Cr USD 32 Mn
Advisor to the Company & Advisor to Advisor to Advisor to the Company
Existing Shareholders Raw Pressery Zydus Wellness
Jul 2019 Jan 2019 Jan 2019 Dec 2018
Food – Seasonings Beverages – Juices Food/ Consumer Food – Restaurants
Have invested in Has Acquired Has invested in Have invested in
USD 1,000 Mn Undisclosed Undisclosed ₹ 290 Cr
Advisor to the Company Advisor to Advisor to Advisor to company &
Kancor Nilon’s existing shareholders
Dec 2018 Nov 2014 Jun 2014 May 2014
Food delivery Food – Spice Extracts Food – Pickles and Jams Beverages – Wine
Cuisine Asia
Have invested in Has invested in Has acquired assets of
Has acquired 26% stake in
₹ 105 Cr Undisclosed ₹ 90 Cr USD 120 Mn+
Advisor to Advisor to Advisor to the Advisor to
VKL Blue Foods VKL Eastern
April 2013 Dec 2011 October 2011 Jul 2010
Food – Spices Food – Restaurants Food – Spices Food – SpicesIndia Unjunking: A USD 30 Bn appetite for Health Food Page 41
About the team: Connect with us
Abha Agarwal Anshul Agarwal
Executive Director and Co-head, Executive Director and Co-head,
CFB CFB
abha.agarwal@avendus.com anshul.agarwal@avendus.com
• 15+ years of experience in executing Investment • 17+ years of experience in executing Investment
Banking transactions Banking transactions
• Worked with Accenture Management consulting prior • Worked with Rothschild prior to Avendus
to Avendus
• MBA from IIM Calcutta
• MBA from S.P Jain Institute of Management Research
& C.A.
Saloni Jain Harshit Jain
Vice President, Associate,
CFB CFB
saloni.jain@avendus.com harshit.jain@avendus.com
• 12+ years of experience in executing Investment • Joined Avendus Capital in 2020
Banking transactions
• Worked with KPMG and Grant Thornton prior to
• Worked with MAPE Advisory, J.P. Morgan and Lehman Avendus
Brothers prior to Avendus
• MBA from IIM Lucknow & C.A.
• MBA from IIM Indore
Note: CFB (Consumer, Financial Services & Business Services) Vertical which is one of the 6 Investment Banking Verticals within Avendus.India Unjunking: A USD 30 Bn appetite for Health Food Page 42 Disclaimer This document is being furnished to you by Avendus Capital Private Limited for itself and its affiliates strictly on a confidential basis. The document is for informational purposes only and should not be regarded as an offer to sell, or offer for subscription, or as a solicitation of an offer to buy the securities or other investments mentioned in it. This information profile has been provided to its recipient upon the express understanding that the information contained herein, or made available in connection with any further investigation, is strictly confidential and is intended for the exclusive use of its recipient. It shall not be photocopied, reproduced and/or distributed to others at any time without prior written consent. This document is neither a prospectus nor an invitation to subscribe to securities or other investments. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. The information herein is subject to change without notice. Avendus Capital Private Limited does not represent that any information, including any third party information, is accurate or complete and it should not be relied upon without proper investigation on the part of the investor/s. Neither Avendus Capital Private Limited nor its affiliates nor any of its officers or employees accept any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents. The recipient of the material should rely on their own investigations and take their own professional advice. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Investments in securities/equity related instruments are subject to market risk. These risks could be security specific or market specific and arising from company, industry, political, economic (both domestic and global), etc, factors. Investor/s should carefully read all disclosure documents before investing and shall not make Avendus Capital Private Limited and/or its associates/employees liable for any risks/losses pertaining to any product/scheme offered by them from time to time. Past performance does not indicate the future performance of any current or future fund or strategies advised or managed by Avendus Capital Private Limited or its affiliates. Distribution of this document in some jurisdictions may be restricted or prohibited by law and regulation, and accordingly recipients of this document represent that they are able to receive it without contravention of any unfulfilled registration requirements or any other legal or regulatory restrictions. Recipients of this document in such jurisdiction should fully inform themselves about and observe all applicable legal or regulatory requirements and Avendus Capital Private Limited and its affiliates, directors, shareholders, managers, officers, employees, agents and advisors, do not accept any liability to any person in relation thereto. For the purposes of distribution within the United Kingdom, this communication is exempt from the financial promotion restriction in Section 21 of the Financial Services and Markets Act, 2000 relating to the communication of an invitation or inducement to engage in investment activity on the grounds that it is made to those persons falling within the following Articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended: Article 19 (Investment Professionals) and Article 49 (High Net Worth Companies). Any investment to which this communication relates is only available to investment professionals and high net worth companies. If you have received this document and you are not the person for whom it is intended, you should not rely on this communication or act on it.
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