Saakshi Verma Menon, Chief Marketing Officer, Foods, at PepsiCo India, told PTI on Tuesday that the company is widening its range across snacks, "better-for-you" products and premium offerings for the festive season.
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"We expect PepsiCo Foods to deliver a growth trajectory similar to last year during the festive season, growing in line with the industry," she told the news agency.
More choices, easier buying
The company has recently strengthened its ready-to-eat range on e-commerce platforms, which is meant to make festive snacking more convenient, according to the PTI report.
PepsiCo's food strategy aims to meet changing Indian taste preferences and different occasions of eating, with its research and development teams working on new products for the market. Its food brands in India include Lay's, Kurkure, Uncle Chipps, Quaker, Cheetos and Doritos.
"Together with our much-loved core brands, these offerings allow us to cater to a wider spectrum of tastes and occasions, while continuing to bring smiles with festive snacking," Menon said.
Coca-Cola bottler sees strong festive sales
PTI also reported that SLMG Beverages, India's largest bottler of Coca-Cola, is seeing high double-digit growth in the ongoing festive season. Its sales have picked up since Navratri, and it has received strong orders for Diwali gift packs.
"We have already seen a spurt in our sales," Joint Managing Director Paritosh Ladhani said in an interview. He added that the company has a lot of orders for the gift packs and other packages it launched for Diwali.
Ladhani expects demand to stay strong through the festive period. He said November and December are important months for the beverage business, as consumers celebrate Diwali, Christmas and New Year.
Input costs stay in focus
SLMG Beverages is dealing with higher costs of inputs, including sugar and packaging materials. It is taking a wait-and-watch approach before any further pricing decision, Ladhani said. The company is putting consumer affordability first and aims to offset commodity cost pressures through higher sales volumes.
The report said the fast-moving consumer goods (FMCG) sector continues to face margin pressure as rising input costs squeeze profits. Cost pressures grew in the September quarter, reversing some of the easing seen in the previous quarter.
According to PTI, companies absorbed part of the increase to protect demand during the festive season. Higher costs of crude-linked derivatives, packaging materials, palm oil and sugar weighed on margins.
With commodity costs still high, FMCG makers are likely to consider calibrated price increases after Diwali. They would have to balance the need to restore profitability against the risk of lower sales volumes.
(With inputs from PTI)
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