🍫 Nutella Buys Your Breakfast

👋 Friday Feeling

It's Friday, and while the stock markets cooled off, deal-making and drama definitely didn’t. From billion-dollar cereal buyouts to a desi COO at Apple navigating tariff trouble, today's brew is packed with news that's crispier than a fresh dosa. Let’s dig in before the weekend begins 🫖👇

🫖 Chai Shots

• 🥣 Ferrero Buys WK Kellogg for $3.1 Billion: Nutella maker Ferrero has cracked open a breakfast takeover, acquiring the iconic WK Kellogg—home to Froot Loops and Frosted Flakes—in a $3.1B deal. The goal? Expand deeper into U.S. grocery shelves. More in the Big Brew 👇

• 📉 Reliance Shares Cool Off After Stellar Run: After rallying 24% in 2025, RIL shares dipped nearly 6% from their highs amid delays in Jio and Retail IPOs. Short-term sentiment has turned cautious even though long-term green energy bets remain intact.

• 👩‍💼 Priya Nair to Lead HUL as First Woman CEO: HUL has named Priya Nair—currently heading Unilever’s global beauty biz—as its next CEO. She takes charge Aug 1, with analysts expecting her to drive innovation amid sluggish urban demand and rising digital competition.

• 💸 BYJU’S Sues Dubai Partner Over Unpaid Revenues: The edtech firm’s resolution professional filed a ₹1,597 Cr suit against its UAE partner for allegedly holding back Middle East revenues. It’s the latest twist in BYJU’S troubled insolvency journey.

📈 Market Masala

• 📉 Sensex, Nifty Slip as IT Stocks Drag Markets: The indices ended in the red, with Sensex down 346 points and Nifty falling 121. Tech stocks bore the brunt, while realty and metals resisted the fall. Analysts expect more volatility as earnings season kicks off.

• 📉 JPMorgan May Cut India’s Bond Weight in EM Index: The bank is mulling a cap reduction from 10% to 8.5% for top issuers, including India. This could divert some global debt flows to higher-yielding markets like Brazil and South Africa.

• 🧪 India Plans Rare Earth Incentives: In response to China’s export curbs, India is drafting a scheme to boost local production of rare earths—critical for EVs, smartphones, and defense. Private players and PSUs are expected to benefit.

• 🤖 Google’s AI Ad Tools Land in India: Google has brought its AI marketing suite—including Smart Bidding and AI Max—to Indian marketers, thanks to the repeal of the 6% digital ad levy. Local businesses like Cashify are already seeing better conversions.

• 📺 Zee Shareholders Shut Down Goenka Family’s Fundraising Plan: Zee Entertainment’s plan to raise ₹2,237 Cr through preferential warrants was blocked after only 59.5% of shareholders voted in favour—short of the required 75%. The move was aimed at boosting the Goenka family’s stake from just under 4% to over 18%, but proxy advisors raised red flags around dilution and lack of transparency.

🌎 Global Masala

• 📈 Nvidia Powers Record Rally, Then Markets Stall: Nvidia hit a $4T valuation and lifted the S&P and Nasdaq to record closes. But investors are cautious as Trump’s tariffs spread and economic data remains mixed.

• 🛰️ Bharti & UK Gov Back Eutelsat’s $1.8B Raise: Bharti Space and the UK government are investing heavily in Europe’s satellite network to take on Starlink. India’s stake drops, but strategic influence remains intact.

• 📈 European Stocks Stay Hot Despite Tariff Tantrums: European markets extended their winning streak to a fourth day, shrugging off rising global trade tensions. The STOXX 600 closed up 0.5%, with London’s FTSE 100 jumping 1.2% to a new record, while France’s CAC 40 ticked up 0.3%. Germany’s DAX slipped 0.3%, bucking the trend.

☕ The Big Brew: Ferrero’s Breakfast Coup — Why Your Choco Spread Maker Wants Your Cereal Bowl

🍫 Italy’s Ferrero — the company that gifted us Nutella, Ferrero Rocher, and Kinder Joy — is diving spoon-first into the American breakfast bowl. It just announced a $3.1 billion deal to acquire WK Kellogg, the U.S.-based maker of nostalgic childhood cereals like Froot Loops, Frosted Flakes, and Rice Krispies.

So why is this big news in India? Let’s pour the milk and break it down:

• 🥣 The deal gives Ferrero a serious seat at the breakfast table, helping it move beyond sweets into everyday staples — a smart hedge as global consumers shift eating habits post-COVID.

• 📉 WK Kellogg spun off from Kellogg’s core business in 2023 and has been struggling with falling demand and backlash over artificial dyes. It became ripe for takeover after its valuation slipped to around $1.5 billion.

• 🏗️ For Ferrero, the deal is part of a broader takeover spree — the Italian company already gobbled up Nestlé’s U.S. chocolate unit and the Blue Bunny ice cream business. This latest purchase cements its status as a packaged food powerhouse.

• 🌍 Back home in India, it hints at two trends:

  • The global appetite for Indian consumers is only growing — especially in the packaged food and FMCG space.

  • Indian brands eyeing global expansion should note: even legacy food empires are pivoting quickly, acquiring where they can’t innovate fast enough.

• 🏙️ Interestingly, Ferrero will keep WK Kellogg’s HQ in Battle Creek, Michigan — the spiritual home of American cereal — even as it adds this brand to its international empire.

What does this mean for me?

If you love your Ferrero Rocher and your Corn Flakes, this union might just be your dream breakfast. But for India’s booming D2C food brands, the lesson is bigger: the global packaged food scene is undergoing rapid consolidation — and there’s never been a better time to position for scale or exit.

🚀 Startup Scoop

• 🧼 Clean Fanatics Bags ₹16.7 Cr Seed Round: The premium home services startup raised $2M led by Inflection Point Ventures. Funds will help grow into civil renovation and expand tech for smoother bookings and services across India.

• ⚖️ Pocket FM Drags KuKu FM to Court for ₹85.7 Cr: Pocket FM accused KuKu FM of copying its audio series, thumbnails, and episode formats. The Delhi HC restrained new episodes and asked for financial disclosures, as the rivalry between the audio platforms heats up.

• 🍬 Flipkart Launches Leap Ahead 4.0 for Startups: Flipkart Ventures is back with the latest version of its accelerator, offering $500K in funding for startups in AI, drones, and quick commerce. Previous cohorts have scaled quickly with Flipkart’s backing.

🧠 Chai Break Trivia

Did you know that Kellogg’s was the first company to ever put a prize inside a cereal box? 🏆🥣

Back in 1909, they tucked a free book into boxes of Corn Flakes — kicking off a trend that would shape breakfast tables (and bribe kids into eating breakfast) for generations. So next time you reach for the cereal, remember... the real treasure might be inside the box! 😄📦

🔮 What’s Brewing Next

• 📉 Global Bond Flows Watch: If JPMorgan’s index tweak goes through, India could see a shift in global investor allocations.

That’s your news brew for the week! From Nutella-fied cereal shelves to desi executives in global hot seats, it's been one wild ride. Take a deep breath, steep your chai, and enjoy your weekend. See you Sunday for another cup of Masala Chai ☕🗞️🇮🇳