Ice cream makers get cold feet, delivery boys come to the rescue
The global pandemic has melted the ice-cream business to such an extent that players have latched on to e-commerce firms such as Dunzo and Zomato, to ward off losses. But, dominant ones are still wary of taking this approach, while the Indian Ice-Cream Manufacturers Association is seeking relief from the Centre to bail it out from the current crisis.
By : migrator
Update: 2020-05-25 19:39 GMT
Chennai
Nationally, ice cream sales were hit by 96 pc, says Harish Bijoor, Brand expert, who conducted a webinar on the ice-cream industry informs us cold chain products are hit badly – chicken, mutton, fish, ice cream, in that order.
Partial operations have begun in Kerala but the best months of summer, April and May, are turning out to be the worst. Ravi Menon, MD, Blendhub (India Hub), a company that offers product development facilities to food majors tells us, “Gujarat, UP, MP and north are regions where ice cream sales hit the peak during summer. April was a total disaster. This month and thereafter, the danger of downward sales looms.”
Monsoon around the corner will pose a problem as well. But more worrisome for those in the business is the battling the public perception involving consumption of ice cream. On the back of COVID-19, the World Health Organisation has been forced to issue a clarification, highlighting the safety of consuming the cold dessert. Menon said advertising campaigns are also seeking to dispel the fear in the minds of people. The usual ramp-up in March has built up the inventory of finished goods, not to forget the stock pile of raw materials. “All the players are having to contend with cash flow issues,” he added.
RG Chandramogan, CMD, Hatsun Agro, concurs on last month’s dismal sales. “We were impacted heavily in April, taking a hit of 15 per cent of what was achieved in the previous year. But this month, we are seeing an improvement,” he told DTNext. In such uncertain times, top brands have turned to innovative ways of reaching customers. Havmor has tied up with Dunzo to deliver its range of ice cream products to the consumers. Its Ice-Cream Xpress store on the delivery app will cater to eight cities including Chennai and Bengaluru. Anindya Dutta, MD, Havmor Ice-cream said, “It is imperative we reach out to the consumers directly to their homes.” The model is not without its critics as Chandramogan remarks distribution will be strained and “we don’t want to reach out this way.”
SCOOP, SLURP AND MORE…
- India’s ice cream industry may generate a revenue of approximately $3.4 bin by 2021; employing over 15 lakh people, it is one of the fastestgrowing segments of dairy or food processing industry
- Factors for demand surge are growing urbanisation, rising disposable incomes, desire for indulgence treats, and changing customer preferences; global ice cream market estimated to grow at a Compound Annual Growth Rate (CAGR) of 4.7 pc, reaching a staggering $73.2 billion by 2022; India CAGR to be 12.4 pc
- India, world’s largest producer of milk, accounts for over one-fifth of the total milk production; per capita consumption of ice cream remains low at 400 ml; changing socio-economic dynamics of India, will boost ice cream sector growth of more than 50% from 2019 to 2022
- Manufacturers in India and globally are stepping up innovation to meet consumer’s demands for new and exotic flavours of ice creams like Indian pan, blueberry, kiwi, pineapple, coconut, watermelon
- Customers inclined towards healthy and premium options; uptick in diet-friendly stuff (fat-free, low sugar, pro-biotic sugar-free variants)
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