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Time of India
2 days ago
- Business
- Time of India
Concerns rise over hygiene standards in dark stores amid quick commerce boom
Several packaged food companies have raised complaints about shoddy and unhygienic conditions in some dark stores from which quick commerce companies despatch purchases to consumers. Nearly a dozen have written to the platforms in the last two-three months, raising urgent concerns about lapses in storage and handling at the stores, citing specific violations. Dark stores are large warehouses that stock products for quick delivery. This comes as government authorities, including the Food and Drug Administration (FDA) and the Food Safety and Standards Authority of India (FSSAI), are stepping up surprise inspections and audits at the thousands of dark stores mushrooming all over the country. Many of the companies did not want to be identified while confirming that they'd made complaints. 'We supply the freshest stock to our quick commerce partners complying to more than 70% shelf life and temperature guidance on categories like cheese,' said Varun Berry, managing director of biscuits, bakery and dairy maker Britannia Industries . 'Beyond this point we expect them to ensure best hygiene practices and FMFO (First Manufacturing First Out) in the last-mile delivery. With rapid expansion, we will need to work very closely with them to ensure no slip-ups happen. Companies making daily essentials, staples and premium grocery products have been reporting swift growth on quick commerce platforms compared with neighbourhood stores or modern trade. The pace of growth ranged from 50% to 100% in FY25. A senior executive at a large frozen foods company said odour transfer was one of the issues that had to be addressed. 'We noticed that agarbatti sticks were being stored close to our frozen snack packs at the dark stores of a large platform. This runs the risk of migration of odour, so we immediately asked them to rectify the storage,' said a senior executive at a large frozen foods company. 'Ultimately, it's our brand that's the direct consumer interface and we can't let that suffer. Various large companies such as HUL , ITC , Britannia, Tata Consumer Products , PepsiCo, Amul, Parle Products, Coca-Cola, Mother Dairy and KRBL have also been introducing exclusive premium packs of teas, ice-creams, cookies, snacks, frozen foods and staples for sale only on quick commerce channels. 'We've asked all the platforms to urgently step up routine audits on their own,' said Vikram Agarwal, managing director of Cornitos snacks maker Greendot Health Foods, which gets nearly 20% of its annual sales from quick commerce platforms now. 'The matter is even more concerning in case of franchised dark stores.' Earlier this week, the Maharashtra Food and Drug Administration (FDA) suspended the food business licence of a Zepto dark store in Dharavi after discovering safety and hygiene violations such as fungal contamination and unsanitary storage conditions during an inspection. 'Hygiene protocols are nonnegotiable, and consumer trust remains sacrosanct, regardless of how or where the product is purchased,' said Kunal Sharma, head of marketing and business head, modern trade and ecommerce at the listed KRBL Ltd, which makes India Gate basmati rice. 'All platforms and partners must maintain rigorous hygiene and safety standards, and regulatory guidance from the FDA and FSSAI play a vital role in reinforcing these benchmarks.' FSSAI has stepped up audits at dark stores across cities, including the metros, tier-2 and smaller markets. 'As quick commerce revolutionises last-mile delivery, it brings new challenges where cold chain integrity and hygienic handling are absolutely non-negotiable,' said Srideep Kesavan, chief executive at Heritage Foods , which makes dairy products such as milk, flavoured milk and butter. 'Dark stores, which anchor this model, must reflect the standards consumers expect; strengthening hygiene protocols in quick commerce is essential to safeguard consumer trust.' Swiggy Instamart, Zepto and Blinkit did not respond to queries.
Economic Times
2 days ago
- Business
- Economic Times
Concerns rise over hygiene standards in dark stores amid quick commerce boom
Several packaged food companies have raised complaints about shoddy and unhygienic conditions in some dark stores from which quick commerce companies despatch purchases to consumers. Nearly a dozen have written to the platforms in the last two-three months, raising urgent concerns about lapses in storage and handling at the stores, citing specific violations. Dark stores are large warehouses that stock products for quick delivery. This comes as government authorities, including the Food and Drug Administration (FDA) and the Food Safety and Standards Authority of India (FSSAI), are stepping up surprise inspections and audits at the thousands of dark stores mushrooming all over the country. Many of the companies did not want to be identified while confirming that they'd made complaints. 'We supply the freshest stock to our quick commerce partners complying to more than 70% shelf life and temperature guidance on categories like cheese,' said Varun Berry, managing director of biscuits, bakery and dairy maker Britannia Industries. 'Beyond this point we expect them to ensure best hygiene practices and FMFO (First Manufacturing First Out) in the last-mile delivery. With rapid expansion, we will need to work very closely with them to ensure no slip-ups happen. Companies making daily essentials, staples and premium grocery products have been reporting swift growth on quick commerce platforms compared with neighbourhood stores or modern trade. The pace of growth ranged from 50% to 100% in FY25. A senior executive at a large frozen foods company said odour transfer was one of the issues that had to be addressed.'We noticed that agarbatti sticks were being stored close to our frozen snack packs at the dark stores of a large platform. This runs the risk of migration of odour, so we immediately asked them to rectify the storage,' said a senior executive at a large frozen foods company. 'Ultimately, it's our brand that's the direct consumer interface and we can't let that suffer. Various large companies such as HUL, ITC, Britannia, Tata Consumer Products, PepsiCo, Amul, Parle Products, Coca-Cola, Mother Dairy and KRBL have also been introducing exclusive premium packs of teas, ice-creams, cookies, snacks, frozen foods and staples for sale only on quick commerce channels.'We've asked all the platforms to urgently step up routine audits on their own,' said Vikram Agarwal, managing director of Cornitos snacks maker Greendot Health Foods, which gets nearly 20% of its annual sales from quick commerce platforms now. 'The matter is even more concerning in case of franchised dark stores.'Earlier this week, the Maharashtra Food and Drug Administration (FDA) suspended the food business licence of a Zepto dark store in Dharavi after discovering safety and hygiene violations such as fungal contamination and unsanitary storage conditions during an inspection.'Hygiene protocols are nonnegotiable, and consumer trust remains sacrosanct, regardless of how or where the product is purchased,' said Kunal Sharma, head of marketing and business head, modern trade and ecommerce at the listed KRBL Ltd, which makes India Gate basmati rice. 'All platforms and partners must maintain rigorous hygiene and safety standards, and regulatory guidance from the FDA and FSSAI play a vital role in reinforcing these benchmarks.' FSSAI has stepped up audits at dark stores across cities, including the metros, tier-2 and smaller markets. 'As quick commerce revolutionises last-mile delivery, it brings new challenges where cold chain integrity and hygienic handling are absolutely non-negotiable,' said Srideep Kesavan, chief executive at Heritage Foods, which makes dairy products such as milk, flavoured milk and butter. 'Dark stores, which anchor this model, must reflect the standards consumers expect; strengthening hygiene protocols in quick commerce is essential to safeguard consumer trust.' Swiggy Instamart, Zepto and Blinkit did not respond to queries.
Time of India
2 days ago
- Business
- Time of India
Concerns rise over hygiene standards in dark stores amid quick commerce boom
Several packaged food companies have raised complaints about shoddy and unhygienic conditions in some dark stores from which quick commerce companies despatch purchases to consumers. Nearly a dozen have written to the platforms in the last two-three months, raising urgent concerns about lapses in storage and handling at the stores, citing specific violations. Dark stores are large warehouses that stock products for quick delivery. This comes as government authorities, including the Food and Drug Administration (FDA) and the Food Safety and Standards Authority of India (FSSAI), are stepping up surprise inspections and audits at the thousands of dark stores mushrooming all over the country. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Knee Pain After 50? Try This Before Reaching for Pills Read More Undo Many of the companies did not want to be identified while confirming that they'd made complaints. 'We supply the freshest stock to our quick commerce partners complying to more than 70% shelf life and temperature guidance on categories like cheese,' said Varun Berry, managing director of biscuits, bakery and dairy maker Britannia Industries . 'Beyond this point we expect them to ensure best hygiene practices and FMFO (First Manufacturing First Out) in the last-mile delivery. With rapid expansion, we will need to work very closely with them to ensure no slip-ups happen. Live Events Companies making daily essentials, staples and premium grocery products have been reporting swift growth on quick commerce platforms compared with neighbourhood stores or modern trade. The pace of growth ranged from 50% to 100% in FY25. A senior executive at a large frozen foods company said odour transfer was one of the issues that had to be addressed. 'We noticed that agarbatti sticks were being stored close to our frozen snack packs at the dark stores of a large platform. This runs the risk of migration of odour, so we immediately asked them to rectify the storage,' said a senior executive at a large frozen foods company. 'Ultimately, it's our brand that's the direct consumer interface and we can't let that suffer. Various large companies such as HUL , ITC , Britannia, Tata Consumer Products , PepsiCo, Amul, Parle Products, Coca-Cola, Mother Dairy and KRBL have also been introducing exclusive premium packs of teas, ice-creams, cookies, snacks, frozen foods and staples for sale only on quick commerce channels. 'We've asked all the platforms to urgently step up routine audits on their own,' said Vikram Agarwal, managing director of Cornitos snacks maker Greendot Health Foods, which gets nearly 20% of its annual sales from quick commerce platforms now. 'The matter is even more concerning in case of franchised dark stores.' Earlier this week, the Maharashtra Food and Drug Administration (FDA) suspended the food business licence of a Zepto dark store in Dharavi after discovering safety and hygiene violations such as fungal contamination and unsanitary storage conditions during an inspection. 'Hygiene protocols are nonnegotiable, and consumer trust remains sacrosanct, regardless of how or where the product is purchased,' said Kunal Sharma, head of marketing and business head, modern trade and ecommerce at the listed KRBL Ltd, which makes India Gate basmati rice. 'All platforms and partners must maintain rigorous hygiene and safety standards, and regulatory guidance from the FDA and FSSAI play a vital role in reinforcing these benchmarks.' FSSAI has stepped up audits at dark stores across cities, including the metros, tier-2 and smaller markets. 'As quick commerce revolutionises last-mile delivery, it brings new challenges where cold chain integrity and hygienic handling are absolutely non-negotiable,' said Srideep Kesavan, chief executive at Heritage Foods , which makes dairy products such as milk, flavoured milk and butter. 'Dark stores, which anchor this model, must reflect the standards consumers expect; strengthening hygiene protocols in quick commerce is essential to safeguard consumer trust.' Swiggy Instamart, Zepto and Blinkit did not respond to queries.
Time of India
27-05-2025
- Business
- Time of India
Companies pause packaged food price hikes as input costs stabilise
New Delhi: Makers of grocery staples such as snacks, biscuits and tea have paused price hikes after three back-to-back quarters of 5-10% increases across pack sizes, as key commodity prices like palm oil and wheat stabilise. Executives at companies such as Britannia, Wipro Consumer, Parle Products and Bikaji Foods said they are pausing price increases. Some said they are also bringing back selective consumer promotions to boost sales even as urban demand remains under stress, their executives said. "(While) we see no price reduction or grammage increase in the next couple of quarters, there will be no more price increases for sure," Varun Berry, managing director of Britannia Industries , told ET. While the maker of Nutrichoice biscuits and Laughing Cow cheese did some strategic buying of wheat and flour, most of its commodities are priced at the same level as at the end of FY25, he said. "Flour is just slightly lower than the exit price of last year despite the wheat season," he added. Deepak Agarwal, MD, Bikaji Foods, too, said the snacks firm would not increase prices as some inflation is under control and raw material costs are reducing. "Selective consumer offerings and promotions will be reintroduced to get better market share and momentum," he added. Companies making daily essentials and grocery products had been increasing prices by 5-10% on higher raw material costs while maintaining that they withheld some of the cost pressures amid stagnating sales in cities. With food inflation expected to remain low, company executives expect their retail prices to remain steady. "Core inflation will likely remain range-bound, led by weaker commodity prices, softer growth and a stronger rupee," HSBC Research said in a report released on Monday. This, it said, is a relief for consumers and "may fuel the purchasing power of households." Anil Chugh, president, food business, at Wipro Consumer Care , said the overall food inflation is expected to remain in the region of 3-4% in the coming two quarters. "This is because of commodity prices stabilising, expected good monsoon and companies taking cautious approach to price increases," he said. Wipro Consumer Care makes Nirapara ready-to-cook foods and Granamma snacks. "For 3 quarters, prices were increasing," said Mayank Shah, vice president at Parle Products. "Now the hikes have been paused as some commodities are stable. Some key commodities are still higher than a year ago, but what's happened is that the rate of inflation has come down for now." The food inflation rate dropped to 1.78% year-on-year in April 2025, compared to a year-on-year Consumer Food Price Index of 10.87% in October 2024, according to government data. "Going forward, we expect tea pricing/ tea costs to soften rather than pricing going up (if the tea crop is normal). So, therefore, margins will come back," Sunil D'Souza, managing director, Tata Consumer Products , said in a quarter four post earnings call. NielsenIQ in its January-March quarter update earlier this month had said the FMCG industry grew 11% year-on-year by value, driven by a 5.6% price hike. Growth of packaged foods slowed to 4.9% in the January-March quarter compared to 6% in the fourth quarter of 2024, which the report attributed to declining lower volumes in edible oils and palm oil, impacted by higher prices. The past three quarters had seen surging prices of wheat (which increased 17.4% year-on-year in the March quarter), palm oil (17.2%) and cocoa (78%).
Time of India
26-05-2025
- Business
- Time of India
Companies pause packaged food price hikes as input costs stabilise
New Delhi: Makers of grocery staples such as snacks, biscuits and tea have paused price hikes after three back-to-back quarters of 5-10% increases across pack sizes, as key commodity prices like palm oil and wheat stabilise. Executives at companies such as Britannia, Wipro Consumer, Parle Products and Bikaji Foods said they are pausing price increases. Some said they are also bringing back selective consumer promotions to boost sales even as urban demand remains under stress, their executives said. "(While) we see no price reduction or grammage increase in the next couple of quarters, there will be no more price increases for sure," Varun Berry, managing director of Britannia Industries , told ET. While the maker of Nutrichoice biscuits and Laughing Cow cheese did some strategic buying of wheat and flour, most of its commodities are priced at the same level as at the end of FY25, he said. "Flour is just slightly lower than the exit price of last year despite the wheat season," he added. Deepak Agarwal, MD, Bikaji Foods, too, said the snacks firm would not increase prices as some inflation is under control and raw material costs are reducing. "Selective consumer offerings and promotions will be reintroduced to get better market share and momentum," he added. Companies making daily essentials and grocery products had been increasing prices by 5-10% on higher raw material costs while maintaining that they withheld some of the cost pressures amid stagnating sales in cities. With food inflation expected to remain low, company executives expect their retail prices to remain steady. "Core inflation will likely remain range-bound, led by weaker commodity prices, softer growth and a stronger rupee," HSBC Research said in a report released on Monday. This, it said, is a relief for consumers and "may fuel the purchasing power of households." Anil Chugh, president, food business, at Wipro Consumer Care , said the overall food inflation is expected to remain in the region of 3-4% in the coming two quarters. "This is because of commodity prices stabilising, expected good monsoon and companies taking cautious approach to price increases," he said. Wipro Consumer Care makes Nirapara ready-to-cook foods and Granamma snacks. "For 3 quarters, prices were increasing," said Mayank Shah, vice president at Parle Products. "Now the hikes have been paused as some commodities are stable. Some key commodities are still higher than a year ago, but what's happened is that the rate of inflation has come down for now." The food inflation rate dropped to 1.78% year-on-year in April 2025, compared to a year-on-year Consumer Food Price Index of 10.87% in October 2024, according to government data. "Going forward, we expect tea pricing/ tea costs to soften rather than pricing going up (if the tea crop is normal). So, therefore, margins will come back," Sunil D'Souza, managing director, Tata Consumer Products , said in a quarter four post earnings call. NielsenIQ in its January-March quarter update earlier this month had said the FMCG industry grew 11% year-on-year by value, driven by a 5.6% price hike. Growth of packaged foods slowed to 4.9% in the January-March quarter compared to 6% in the fourth quarter of 2024, which the report attributed to declining lower volumes in edible oils and palm oil, impacted by higher prices. The past three quarters had seen surging prices of wheat (which increased 17.4% year-on-year in the March quarter), palm oil (17.2%) and cocoa (78%).
