FMCG companies selling cooking oil, packaged snacks, sweets, frozen food, ice cream, and beverages are very optimistic that during this Holi their businesses will grow well after two years of pandemic-based loss due to significant mobility curbs during the pan-India spring festival.
FMCG stores, including retail chains and online grocers, are placing 15–20% higher order volumes in the run-up to the Holi week as compared with 2021, with daily COVID cases rapidly declining and states easing curbs on mobility and business hours. Holi will be celebrated on March 18.
RS Sodhi, managing director, Amul, said that this year, Holi and the summer will be a record for ice cream and beverage sales as more social events will be celebrated. He added, “Business is already up by double digits this month as compared to 2020.”
The zeal is evident even in the snack-food category.
Manish Aggarwal, director, Bikano, Bikanervala Foods, said Holi is a great opportunity for the packaged snacks and sweets category, with nearly a fifth of the traditional namkeen and sweet sales expected during this festival. “We are strategizing it very well with respect to better logistics, supply chain management, and marketing strategies,” he said.
Already, sales of packaged commodities such as edible oils, pulses, and atta climbed nearly 28% on-year in the first fortnight of February. Similarly, sales of packaged foods rose 18% due to improvements in consumer mobility and out-of-home consumption, showed the latest data from Bizom that tracks orders by neighbourhood stores.
People’s mobility has increased since the pre-Covid period in February, as per the latest data from Google. Piruz Khambatta, chairman of instant beverage maker Rasna, said business through Holi is also symbolic since it means good summer sales. “There will be growth in 2020 and 2021, but the challenge will be surpassing the 2018 and 2019 numbers,” he said.
Industry executives said companies such as Adani Wilmar, Parle Products, and ITC are increasing store level inventories to meet the surge in Holi demand next month. Grocery chains and e-grocers are also planning promotional events and sales around Holi to boost demand.