BackEarly summer to lift sales of colas, ice-creams, fans
Expectations of a prolonged, hot summer prompt companies to stock cooling products
PremiumNEW DELHI : With India set to see an early and prolonged summer, makers of cooling appliances as well as producers of cold beverages and ice creams are anticipating strong demand for their products this season.
With the summer season also benefiting from the abatement of the pandemic, companies said consumer mobility remains strong and with markets staying open, its helping companies ramp up supplies.
Beverage maker PepsiCo said the early onset of summer could signify exciting times for the beverage sector this year. “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," said George Kovoor, senior vice president, beverages at PepsiCo India.
Between January and February, PepsiCo announced a series of campaigns backed by big celebrities, underscoring its aim to gain market share and capitalize on a strong summer season.
The company recently launched a campaign for its energy drink brand ‘Sting’ featuring Akshay Kumar and signed up Rashmika Mandanna as its new brand ambassador for 7UP. In January, it onboarded Kannada superstar Yash as the brand ambassador for its flagship brand Pepsi.
India is set to experience a warm and prolonged summer—temperatures are already rising in parts of north India. Last week, the US weather agency, the National Oceanic and Atmospheric Administration (NOAA), indicated the possibility of an El Niño year, that is linked to poor monsoons.
This has come with early signs of strong summer-linked demand in parts of Delhi-NCR, said Mother Dairy.
“Last year, we witnessed one of the warmest summers, and this year too, the predictions are similar. For a category like ice cream, 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 Manish Bandlish, managing director, Mother Dairy.
The news comes as demand recovery, especially in rural markets, remains weak. As a result, companies are pinning hopes that consumers spend on coolers and cold drinks.
Meanwhile, it’s not just food and beverages, but also consumer durables, which could reap the benefits.
Usha International, which has a significant presence in the ceiling fans category, expects a 6-7% rise in volumes this season over 2019, and revenues are expected to grow at twice that rate as consumers move up the value chain and buy premium fans. However, growth will be led by the mid-to-premium end of the market. “Majority of the growth is happening at the premium end," Dinesh Chhabra, CEO, Usha International said.
However, consumers will have to pay more for ceiling fans this season after the government-mandated star labelling (for fans) was implemented from 1 January as per the revised Bureau of Energy Efficiency (BEE) norms.
Godrej Appliances, the business unit of Godrej & Boyce, said it is set to nearly double sales of its air conditioners in the upcoming fiscal as a strong summer season sets the base for the company to expand the cooling appliances business. “I’m expecting this summer to be better than last year," said Kamal Nandi, business head and executive vice president of Godrej Appliances.
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