Global packaged food companies cited India as a significant growth driver, citing recovery trends fueled by improved consumer attitude in the September quarter, following the second pandemic wave. Double-digit growth Mondelez International, the creator of Cadbury chocolates and Oreo cookies, reported double-digit net sales growth in the September quarter for its India operation, noting that rising countries such as India are “attractive development engines” for the firm.
Dirk Van de Put, Chairman and CEO of Mondelez International, stated, “I believe what we’re seeing is an increase in consumer confidence in markets such as India and large parts of Latin America…. they’re seeing the vaccine roll out, they’re seeing life return to normal. They are more confident about their own money, which is reflected in their spending. At the same time, they spend more time at home, which is advantageous to our categories.”
BRIC countries
“The BRIC nations, in particular, are quite robust, with double-digit growth in India and Brazil and high single-digit growth in China and Russia,” Van de Put noted.
According to the company’s management, India had double-digit sales growth in the chocolate category and mid-single-digit revenue growth in the biscuit category.
During an investor call last week, Suresh Narayanan, Chairman & Managing Director, Nestle India, stated that India has been one of the company’s fastest growing markets over the last three years. According to the firm, India’s sales growth (from all Nestle brands marketed in India) in 2018, 2019, and 2020 was higher than that of markets such as the United States, China, Russia, and Japan.
Markets recovered
Due to the relaxation of mobility limitations and the speedier recovery of out-of-home channels, PepsiCo’s India subsidiary achieved double-digit organic sales growth in the third quarter. On the investor call, the company’s management indicated that areas such as India, the Middle East, and Africa were “difficult last year,” but that these companies are now “coming back,” showing recovery tendencies.
Omni-channel growth
Coca-Cola noted that expanding and rising markets such as India, Russia, and Brazil drove unit case volume increase in the September quarter. According to the report, fruit-drink brand Maaza performed well, and Coca-Cola and Thums Up saw growth in the country as a result of strong marketing activations. The company’s management stated that it “strongly contributed in the rebound by concentrating on affordability and omni-channel development.”
Brian Smith, President and Chief Operating Officer of The Coca-Cola Company, who is on a visit to India, said in a recent statement, “India is a key growth market for the Coca-Cola system internationally. The macroeconomic fundamentals, together with the people’s resilience and entrepreneurial drive, offer the ideal conditions for growth. As a result, we have prioritized investing in sustainable brands in order to win in the market while simultaneously making a positive effect in the lives of the people and communities we serve.”
“We are in a terrific position to capitalize on this amazing momentum in India by seizing the right opportunities, doing the right things, creating value for the Coca-Cola Company and our bottling partners, and delighting our customers and consumers,” he said.