PepsiCo India is counting on new products and convenience-led offerings to sustain festive growth, while Coca-Cola bottler SLMG Beverages reports strong sales amid rising input costs
PepsiCo India expects its food business to maintain a festive-season growth rate comparable to last year, supported by new product introductions and changing consumer preferences, a senior company executive said on Tuesday. The company is focusing on snacks, better-for-you products and premium offerings to address demand across different consumer segments and occasions.
According to a media report, Saakshi Verma Menon, Chief Marketing Officer, Foods, PepsiCo India, said the company expects its performance during the festive season to remain in line with industry growth, following a similar trajectory last year.
The company has also expanded the availability of its ready-to-eat products on e-commerce platforms to make festive snacking more accessible and convenient for consumers.
PepsiCo is adapting its food portfolio to changing taste preferences and consumption patterns in India. Its research and development teams are working on new products, while established brands continue to form a key part of its festive-season strategy. Menon said the combination of established brands and newer offerings would help the company cater to a wider range of tastes and consumption occasions during the festive period.
Meanwhile, SLMG Beverages, India’s largest bottler of Coca-Cola, has reported high double-digit growth during the ongoing festive season, with sales gaining momentum since Navratri. The company has also received strong orders for Diwali gift packs, according to Joint Managing Director Paritosh Ladhani.
Ladhani said the company had already recorded a pickup in sales and was seeing substantial demand for its Diwali gift packs and festive packages.
He expects demand to remain firm through the festive period, with November and December also emerging as important months for beverage sales amid celebrations around Diwali, Christmas and New Year.
However, rising input costs remain a concern for the bottler. Sugar and packaging materials have added to cost pressures, prompting the company to adopt a cautious approach towards further price revisions, Ladhani said.
SLMG Beverages is prioritising affordability while seeking to manage higher commodity costs through increased sales volumes. Its approach reflects the broader challenge facing fast-moving consumer goods (FMCG) companies, which are attempting to protect demand while dealing with pressure on profitability.
Input-cost inflation intensified in the September quarter, reversing some of the easing witnessed in the previous quarter. Higher costs of crude-linked derivatives, packaging materials, palm oil and sugar have weighed on manufacturers’ margins.
Several FMCG companies have absorbed part of these increases to avoid passing the entire burden on to consumers during the festive season. However, with commodity prices remaining elevated, manufacturers could consider measured price increases after Diwali.
Any such revisions will require companies to balance the need to recover costs and protect margins against the possibility that higher prices could weaken consumer demand and sales volumes.
