Dairy Brands-In summers and stable milk prices
New Delhi: Milk and milk product companies are expecting strong sales during the summer season owing to soaring high temperatures coupled with stability in input costs, industry executives told ETRetail.
“Last year, the summer was disturbed due to unseasonal rains, especially in South India. This year, the heat has come pretty well. Now, if summer comes out decent and strong, dairy categories will get a boost. Along with proper summer, if we get decent monsoon this year, there will be an uptick in rural demand,” commented , Bhupendra Suri, CEO, Godrej Jersey.
Mohit Khattar, CEO, Graviss Foods, Baskin Robbins said that the next few months typically show an upward trend in sales starting from February. Sharing a YoY growth outlook, he stated that the ice cream major is aiming for a minimum growth of 17 to 20 per cent for this summer.
“This projection is based on the assumption that the summer season will see a pickup activity. Despite the upcoming elections and the IPL starting soon, we anticipate that these events will positively impact our growth trajectory,” Khattar added.
Mother Dairy, in a statement earlier had said that the brand is expecting the demand for its dairy products to strengthen by 25 – 30 per cent over the last season’s demand. ally show an upward trend in sales starting from February. Sharing a YoY growth outlook, he stated that the ice cream major is aiming for a minimum growth of 17 to 20 per cent for this summer.
Along with high predicted temperatures, stable raw material costs are contributing to the positive outlook of dairy companies. Last year, brands experienced significant pressure on raw material prices, primarily due to a shortage of cattle in the dairy industry. This year, the prices of dairy ingredients have remained relatively stable. However, rising cocoa prices, pose a considerable challenge for companies.
To tap into rising demand, brands have lined up summer-focused product launches and are gradually expanding their ‘healthy dairy’ portfolio.
“As we get into the season, we are all geared up to excite consumers with our delightful offerings of over 30 new products including a range of around 20 new ice cream products followed by Greek yoghurts and other dairy products," Manish Bandlish, , MD, Mother Dairy Fruit and Vegetable had said in a prepared statement.
Sharing Godrej Jersey’s expansion plans, Suri shared that the brand has launched products such as Milky Shots and Recharge. Further, the company is actively expanding its ice cream offerings and aims to become a Rs 100 crore brand in a couple of years.
On the healthier side, Suri shared that Godrej Jersey is planning to launch low-sugar variants. “However, for such niche categories, the order volume initially is so low that the whole supply chain cannot stand that,” he opined.
Akshali Shah, , ED, Parag Milk Foods commented that the milk major is working towards becoming a health and nutrition brand.
“Our goal is to transition into a health and nutrition company, providing innovative protein solutions across the spectrum. With this vision in mind, we're dedicated to delivering products that not only meet but exceed the expectations of health-conscious consumers, empowering them to lead healthier, happier lives,” Shah said.
Jash Shah, , co-founder and CEO, Get-A-Whey said, "For us, quick-commerce is emerging as one of the key channels of growth.
At an industry scale, q-commerce is driving almost about 8%, that is, Rs 1000-1200 crore of business annually for ice creams. We see a significant number of our orders via quick commerce platforms at late night hours.”
He shared that overall the healthy dessert brand is expecting to grow its business from Rs 3- 3.5 crore monthly revenue to Rs 6 - 7 crore this summer season.