'UP' FOR A DRINK THIS SUMMER?

LAST YEAR THE DEMAND WAS DISRUPTED DUE TO PREPONED MONSOONS. THIS YEAR'S FORECAST IS FOR A BLAZING SUMMER. FMCG COMPANIES SUCH AS DABUR, PARLE AGRO, CAVIN KARE, GODREJ JERSEY & HAMDARD LABORATORIES GEAR UP TO MEET DEMANDS AND HOPE TO MAINTAIN THEIR PRICING AMIDST A WAITAND WATCH APPROACH

- SHRABONA GHOSH

One man's loss is another's gain. Case in point: Sizzling summer has set in; as people look for respite from heat waves, beverage makers gear up to meet summer drink demands.

On April 1, the Indian Meteorological Department (IMD) issued an advisory on the rising temperatures and heat waves taking over major parts of the country. Furthermore, with elections underway, people are spending more time outdoors which would spurt in out-of-home consumption. Last year, the demand was disrupted due to prepone monsoons, this year's forecast is of a blazing summer. "A stronger and longer season would be good for our summer-centric products, particularly the beverages and glucose portfolio. We have started building inventory for the same, both at the retail and stockist end," said Anshul Gupta, Head of Sales, Dabur India Limited.

Beverages are classified into thirst-quenching and indulgent. Thirst-quenching options typically include buttermilk and fruit-based drinks. Historically, there has been a significant increase in demand for buttermilk and lassi, more than two fold during the summer. This year, the industry is also witnessing stability in milk supply and procurement prices over the past year. The dairy industry remains optimistic about a surge in demand especially in product categories like ice cream and other dairy beverages like flavored milk.

Conversely, indulgent beverages have seen a growth rate of 48 to 50 per cent. "Last year, we experienced unprecedented rainfall during the summer months, affecting sales. However, this year, with the expectation of El Niño conditions, we anticipate a much stronger performance.