FMCG, dairy firms bet on strong sales this summer

NEW DELHI: Demand for ice creams and cold beverages like Cola have surged because of the onset of early summer and sales are likely to grow in strong double-digits this season, according to top executives of FMCG and dairy firms.

The summer season will also get a tailwind in the form of an abatement of the pandemic with increased consumer mobility.

This will also help the out-of-home (OOH) segment, where the companies expect a sharp rise in sales after a slump of two years.

Companies are ready with new and innovative offerings anticipating strong demand for their products this season and have started building inventory.

“For a category like ice creams, which is a highly infrastructure-led business, we have ramped up our production, cold-chain infrastructure, refer vehicles and have invested in asset deployment at our consumer touch points to ensure shelf strength,” said Mother Dairy MD Manish Bandlish.

In addition, Mother Dairy is also geared up to entice consumption with the launch of about 15 new variants and flavours this season and excite consumers to explore for more, he said.

”We expect our ice cream category to grow by about 25 per cent in the upcoming season,” Bandlish added. Expecting a good season, companies have also increased their marketing spends on endorsements, brand campaigns etc targeting the consumers. Beverage maker PepsiCo said it is “excited” about an early onset of summer and this could signify for the beverage sector in 2023.

The company is “optimistic” that its portfolio of beverage brands will be able to meet consumer demand and to help them beat the heat, said PepsiCo India senior vice president, Beverages George Kovoor. “Most of our high-octane, brand summer campaigns are being launched in February itself, and they feature celebrities with mass appeal to further strengthen the connect with consumers and ensure brand love.”

Similarly, home-grown FMCG major Dabur India said a warmer and longer summer would be good for its summer-centric products, particularly its beverages and glucose portfolio.

“We are already witnessing good demand for these products and have started building inventory for the same, both at the retail and stockist end,” said Dabur India COO Adarsh Sharma.