The early arrival of summer has given joy to ice-cream producers, who are reporting better March sales than in the pre-pandemic era as life returns to routine and COVID-19-related restrictions are lifted. Larger market participants, such as Amul and Mother Dairy, have recorded 30-35 percent greater sales in March so far compared to the same period in 2019.
“The summers have arrived early, which is beneficial to the category.” “We saw a jump in demand in March, and while it is significantly greater than the previous two years, we are also 30-35 percent ahead of the same month in 2019,” said R.S. Sodhi, managing director, Amul brand.
Other businesses have reported even larger sales. Naturals Ice Cream, a popular Mumbai-based ice cream business, has witnessed a 150 percent increase in sales over the pre-Covid era, according to director Siddhant Kamath.
“We are certain that April, May, and June will be a banner season for us,” he added.
Summer is the peak season for ice cream firms, with most companies generating 40-60% of their total sales and 80% of their earnings during this time. These firms’ sales have suffered significantly in the previous two seasons as successive waves of the epidemic have ravaged the nation and travel restrictions have been implemented.
According to Care Ratings statistics, ice cream manufacturing in the country fell roughly 42 percent in FY21, which is also a sign of consumption given the product’s short shelf life. From FY15 to FY20, it has been steadily increasing.
Amul, for example, was only able to produce 50% of its ice cream sales in FY21 and was predicting a similar drop in FY22. However, with the recovery of demand, the year ahead appears to be brighter. Amul is the global leader in the ice cream area, claiming over 40% of the market.
Companies are sprucing up their distribution and supply networks in anticipation of a boost in demand. “Our priority is to provide consistent product availability across all of our channels,” Sodhi explained.
Companies are sprucing up their distribution and supply networks in anticipation of a boost in demand. “Our priority is to provide consistent product availability across all of our channels,” Sodhi explained.
Mother Dairy, which is controlled by the National Dairy Development Board, is also introducing new products and opening additional locations. “We want to provide around ten new goods to keep our customers interested, as well as expand into approximately 100 new communities across the country.” We will also launch a wide media campaign to increase brand awareness during the peak consumption season,” said Sanjay Sharma, business head, dairy goods.
Mother Dairy anticipates that the category’s sales would more than treble by the summer of 2021.
While offline channels account for a substantial portion of ice cream sales, firms have attempted to expand into delivery during the previous two seasons. As a result, firms like Naturals Ice Cream now get 35-40% of their sales through delivery, up from 20% before Covid. Companies are expecting a surge in takeaways and deliveries this season too.
As it prepares for the summer, Naturals Ice Cream has launched sugar-free flavours that are liked by consumers who choose for delivery, and it is also organising its inventory with a focus on seasonal bestsellers such as mango, lychee, and kala jamun.
“We estimate our sales this season to be twice as big as they were before the epidemic,” said Kamath of Naturals Ice Cream.