PepsiCo India expects its food business to hold on to last year’s festive momentum, powered by fresh product launches and snacking options built around modern consumer habits, a senior company executive said on Tuesday.
Saakshi Verma Menon, Chief Marketing Officer for Foods at PepsiCo India, told PTI the company expects growth similar to last year’s festive season, in line with the wider industry. To cater to different tastes during the festivities, PepsiCo is widening its portfolio across snacks, “better-for-you” products and premium offerings.
The company has also strengthened its ready-to-eat range on e-commerce platforms, making it easier for shoppers to stock up for the festive season. Its research and development teams are working on new products aimed at changing Indian taste preferences and varied consumption occasions. Alongside its core brands, Menon said, these offerings help the company serve a wider range of tastes while “continuing to bring smiles with festive snacking.”
Beverage demand also strong
The festive cheer is visible in the beverage space too. SLMG Beverages, India’s largest bottler of Coca-Cola, said it is seeing high double-digit growth this season. Sales have picked up since Navratri, and the company is sitting on a healthy pile of Diwali gift pack orders, said Joint Managing Director Paritosh Ladhani.
He expects demand to stay strong through the festive stretch, with November and December key months as consumers celebrate Diwali, Christmas and New Year.
Cost pressure lingers
Rising costs remain a worry. SLMG is dealing with higher prices for sugar and packaging materials, but is taking a wait-and-watch approach before deciding on any price changes. The company said it is putting consumer affordability first and hopes to offset commodity pressures through higher sales volumes.
The wider FMCG sector is feeling the squeeze as well. Input-cost pressures intensified in the September quarter, reversing some of the easing seen in the previous quarter. Companies absorbed part of the increase to protect festive demand, even as costlier crude-linked derivatives, packaging materials, palm oil and sugar weighed on margins.
With commodity costs still elevated, FMCG makers are likely to consider calibrated price hikes after Diwali. They will need to balance the push to restore profitability against the risk of dampening sales volumes.