Pay a Lit­tle More for Your Cool Treats

The Economic Times - - Brands & Companies - Mad­hvi.Sally@ times­

New Delhi: Ice-cream ma­jors such as Cream Bell, Mother Dairy, Amul and Vadi­lal have in­creased prices by 5-8% this month be­cause of higher in­put costs from items like sugar and milk pow­der, a move that has come af­ter two years.

In the past one year, the skimmed milk power prices have risen 90%, sugar 30%, white butter 40%, and milk by over 30%, said RS Sodhi, MD, Amul. The dairy co­op­er­a­tive has a 40% share in the ₹ 2500-crore or­ga­nized ice cream mar­ket.

“We have in­creased ice-cream prices by 5% to 8% since Fe­bru­ary this year. This in­crease has come af­ter two years. In 2014-15, there must have been a mar­ginal 2% to 3% in­crease in prices as glob­ally com­mod­ity prices were very weak,” Sodhi said.

Gu­jarat-based Vadi­lal group too has raised prices by 6% to 7%, and has also low­ered the quan­tity in their packs in the ₹ 5-`10 range, said the com­pany’s MD Ra­jesh Gandhi. Mother Dairy has also in­creased ice cream prices by 5%, said its MD S Na­gara­jan.

“In the past one year, buf­falo milk prices have in­creased by 15% to ₹ 3739 a litre. This in­crease has to be passed on to the con­sumers,” he said.

But de­spite the rise in prices, the in­dus­try ex­pects an­nual sales growth to ac­cel­er­ate to 15-20% from 10-12% in re­cent years.


Newspapers in English

Newspapers from India

© PressReader. All rights reserved.