Jan

21

Logo of Ice cream storeThis is Mumbai's best ice-cream maker . No preservatives, all natural.

Their largest selling flavour (Kesar Pista, i.e. Saffrons with Pistacchios) that must have been easily producing more than 50% of their sales was disbanded by the company. Only recently when my daughter was fuming as to why they should be stopping producing their best ice cream I realized that it must have been many years since we have been eating only this one flavour.

Perhaps they launched in 1994, just a year after I immigrated into Mumbai, that this city lapped up a small non descript store in the far off Juhu locality that was selling many different varieties of Natural ice-creams. The diversity was the USP that propelled an ice-cream company with a shoe string budget to push every other larger player out of the business.

For years, friends and relatives flying out back to their home towns have been having a Naturals thermocol box full of ice creams as a key luggage to far and wide places all over the nation.

This is a near shock. Kesar Pista is no longer going to be sold by Naturals. An enquiry at one of the nearer stores revealed that the owner of the business decided that this one flavour is killing away the sales of all other unique flavours they created. Yes, Kesar Pista is a favoured flavour for the Indian palette.

This sets one seriously wondering what a unique situation it must be where a company kills a 50% plus revenue producer as a business strategy to expand its business! There may be analogous situations with the financial markets. What does the self-perpetuating institution called the Stockmarket do when more than half of its total trading volumes get concentrated in a stock called Citibank?

What may be happening in those markets where a handful of stocks capitulate away more than half of the total market capitalisation? I would surmise such are ripe conditions for Ms. Market to build a new genre of darling stocks.


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