Cola, beverage, ice cream makers expect surge in sales as temp soars

With a gradual rise in temperature and the start of heatwave, FMCG and dairy firms selling cola-based fizz drinks, juices, mineral water, ice creams and milk-based beverages expect a spike in sales and have ramped up their production and stocks to meet the anticipated consumer demand.

Photograph: Sucheta Das/Reuters

The makers are launching new products keeping in mind the evolving consumer preferences and also investing substantially on promotions and expansion of the channels this season, company executives of beverage and ice cream makers said.

Beverages major PepsiCo said summer months are naturally the most favourable season for its category and it is “optimistic” that its portfolio of brands will continue to delight consumers during the period.

The company which owns brands as — Pepsi, 7up, Mirinda, Mountain Dew, Slice, Gatorade & Tropicana, has launched campaigns taking on board leading stars such as Ranbir Kapoor, Rashmika Mandanna, Hrithik Roshan, Mahesh Babu, Kiara Adani and Nayanthara to woo consumers.

“We are excited about our high octane 2024 summer campaigns which have been rolled out over March and April.

“Our early read is that consumers are responding very positively to all our campaigns,” said a PepsiCo India Spokesperson.

FMCG major Dabur India expects a stronger and longer summer would be good for the company’s summer-centric products, particularly for its beverages and glucose portfolio.

“We have started building inventory for the same, both at the retail and stockist end,” said Dabur India Ltd head of sales Anshul Gupta.

Anticipating demand in the summer season, Dabur has expanded capacity at its beverage plant at Pantnagar, in Uttarakhand.

“In addition, a new unit has been set up in Indore for beverages and in Jammu for aerated fruit beverages to gear up for the summer demand,” he said.

Coca-Cola India said it is always attuned to market dynamics and consumer preferences and is also ramping up production.

“As the summer season approaches, we are adopting a segmented approach and strategically ramping up distribution to stay connected with our consumers and embrace this time of year,” said a Coca-Cola India spokesperson.

The India Meteorological Department (IMD) has predicted prolonged heat waves this summer, especially between April and June.

Havmor Ice Cream, now part of South Korean confectionery company LOTTE Wellfood Co, said predictions for this year is also to be one of the warmest years, like the previous year and expect the category’s momentum to continue.

“To cater to the growing demand, we have increased the production capacity in the existing factories and will be ready to service more demand through our upcoming factory in Pune starting July- August 2024,” said Havmor Ice Cream managing director Komal Anand.

The company has plans to introduce 12 new flavours during the season.

Moreover, “considering the current K殆ave among consumers, we are also expanding the LOTTE range by adding new Korean-inspired products in the coming months,” said Anand.

While, a leading milk supplier in Delhi-NCR, will launch 30 new products this summer, mainly in ice cream and yoghurt categories, as it expects a 25-30 per cent increase in consumer demand.

“With IMD’s prediction of above-normal temperatures and a hot summer this year, we are expecting a multifold surge in demand for these categories,” Mother Dairy Fruits and Vegetables Pvt Ltd MD Manish Bandlish had said last month.

While another maker Baskin Robbins India said amidst a growing demand for high quality and differentiated ice cream products and rising temperatures around the country, it is well positioned to meet consumer expectations during the season.

“Our strategic innovations coupled with the new plant have enabled us to move up the ladder on customer preferences.

“This approach will see us bring in not just new flavours for the season but also introduce several new exciting formats that are ideal to snack on,” said Mohit Khattar, the CEO of Graviss Foods, which is the master franchise for Baskin Robbins in South Asia.