As temperatures rise, major players in the beverage and dairy industries are gearing up for a summer of soaring sales. Companies like Parle Agro, ITC Foods, Mother Dairy, Coca-Cola, and Rasna are strategically focusing on low-unit packs, priced between Rs. 5 and Rs. 10, to stimulate volume growth and drive consumer demand.
According to NielsenIQ, volume growth in the food sector from October to December 2023 dipped to 5.3%, compared to 8.7% in the preceding July-September quarter.
Foreseeing robust demand this summer, these FMCG firms are optimistic about achieving a minimum of 25% year-on-year sales growth. Emphasizing the importance of smaller unit packs, Manish Bandlish, Managing Director of Mother Dairy (Fruit and Vegetable), anticipates a 25–30% surge in demand for dairy products. He highlights that these smaller packs not only enhance penetration but also cater to consumers prioritizing value and quality during the summer season.
Ravin Saluja, Director of Sterling Agro (Nova Dairy), echoes this sentiment, stressing that low-priced packs drive impulse purchases, thereby boosting overall sales and consumption during peak seasons like summer.
Anticipating a shift in consumer preferences towards refreshing dairy products such as dahi, lassi, and chaach, industry experts predict a notable uptick in demand for fresh dairy offerings.
Major beverage players like PepsiCo India and Coca-Cola India are gearing up with high-octane summer campaigns and increased production to capitalize on the seasonal demand surge. ITC Foods has also intensified its manufacturing and distribution efforts, targeting rural markets with affordable fruit juices and expanding its reach for fresh dairy products.
Analysts foresee an improvement in volume growth starting this month, attributing it to increased consumption due to a hotter-than-usual summer, election season, and projections of normal monsoons by the IMD.
In this evolving market landscape, companies are adapting their strategies to cater to price-sensitive consumers while ensuring profitability. Parle Agro, for instance, emphasizes key price points for its popular brands like Frooti and Smoodh to drive consumption in both urban and rural areas.
Bisleri International has launched affordable packs of packaged drinking water and revamped its carbonated soft drink range to enhance accessibility for consumers. Similarly, Rasna, known for its innovative smaller packs, has introduced new products like aampanna and shikanji at attractive price points to capitalize on the summer season.
With these strategic manoeuvres and a focus on affordability and convenience, FMCG giants are poised to quench the thirst of consumers and drive substantial growth in the upcoming summer months.