June 18, 2020
One of the top ice cream brands of southern India, Dairy Day, is all set to introduce a new range called Dairy Day Plus that has two new variants of chyawanprash and haldi ice creams. With a rigorous trials and error, the ice cream manufacturer’s RnD team worked ceaselessly for 30 odd days to perfect the flavours for both the products.
Ice creams getting healthier
Amid the COVID-19 pandemic, to build our immune system and make it even stronger, some big players are offering customers “immunity-boosting” flavours. One such southern player, Dairy Day which are Karnataka-based are launching chyawanprash and haldi flavoured ice creams for their customers.
Chyawanprash is an Ayurvedic preparation of various herbs and roots amalgamated into a tasty health supplement, while haldi, curcumin or turmeric is a spice having antiseptic qualities commonly used in culinary and medicines.
This launch is a development towards the wake call from the ice cream sector witnessing a reduction in sales during the virus crisis. The strict nationwide lockdown placed ice cream industry in deep waters. The summers of 2020 left ice cream industry lamented and business loss on its peak March-June season, that shells out 40-45 percent of the sector’s annual sales. The ice cream industry estimates that its losses could be as high as Rs. 4,000 – Rs. 5,000 crore this year.
This has not dampen the spirits of the manufacturers, giving way to innovative flavours, and is looking forward to give more immunity-boosting flavours as the coronavirus pandemic refuses to budge and subsides in the country.
“This is the first time in the ice cream industry that haldi is being used,” said A. Balaraju, co-founder of Dairy Day.
“We conceived this concept during the lockdown since everyone now wants to boost immunity, and in Indian culture, haldi and milk are traditional immunity boosters,” he said.
The Haldi ice cream includes haldi (turmeric), pepper and honey as sweetener among its other ingredients, while the chyawanprash ice cream includes branded chyawanprash along with dates. Understanding the nature of ingredients involved, the company said it will price these products about 30 percent higher than its other variants; Rs 20 for a 60 ml cup and Rs. 220 for a 700 ml pack.
Dairy Day sells its 150 SKUs (Stock Keeping Units) and 30 flavours through more than 30,000 retailers across Karnataka, Tamil Nadu, Maharashtra, Goa, Telangana, Andhra Pradesh and Puducherry.
The company, which saw an annual turnover of Rs. 300 crore in FY20, is prepared and has braced itself for the impact on business from the lockdown, but strongly believes it has strong financial holds to tide over the crisis.
“The annual sales of ice cream industry is Rs. 12,000 – 14,000 crore, and 40 percent of annual revenue comes from Q1 of the fiscal year. So there has been a big impact from the lockdown,” said MN Jagannath, co-founder, Dairy Day.
“Dairy Day has raised funds from private equity and we have strong financials. There is a loss but we will be able to overcome it as soon as normalcy comes in,” he added.
A gradual upward shifts in sales have started picking up for the industry over the past few weeks, especially out-of-home consumption, since the lockdown has eased in metro cities like Bengaluru.
“In Karnataka, we are seeing 60-70 percent of usual sales. But on an average, we are doing less than 50 percent across all seven states we are present in,” Jaganath said.
The crisis has pushed the company to pursue on online sales, which currently stands just to 5 percent, applicable in a limited number of cities. The company is aiming to take its online distribution ratings to 20 percent.
For now, the ice cream industry is counting on its immunity-boosting flavours to boost its sales. For customers, there will be a whole new and healthier range of flavours. And according to the Dairy Day founders, will offer an easier solution for mothers to give their children a spoonful of chyawanprash and haldi ice cream which otherwise is a tasking job.