Packaged food firms stock up ahead of polls
Packaged food and beverage companies are stepping up supplies on the ground ahead of the coming general election, as large rallies and outdoor gatherings raise demand for low-priced biscuits, snacks and beverages.
The Election Commission of India (ECI) announced dates for the 2024 Lok Sabha election on 16 March. Voting will start on 19 April, and go on till 1 June, across seven phases.
“With upcoming elections and the dates declared, we expect buoyancy in the market and good spending on ground,” said Krishnarao Buddha, senior category head, Parle Products. “Consumers also get more disposable incomes, different parties dole out freebies or even cash. For our category, it does have an impact. We will have to wait and watch. But it will be positive, given the number of rallies. Wherever rallies happen, we see a large congregation of people.”
Election months typically see a 10-15% jump in demand for the company’s brands as out-of-home mobility increases. “Accordingly, we are gearing up to stock as well,” he said. Parle Products sells brands such as Parle-G biscuits and Hide & Seek cookies.
Dairy cooperative Gujarat Cooperative Milk Marketing Federation (GCMMF) that markets dairy products under the Amul brand said the general election, coupled with a strong summer, will help in an uptick in demand for low-priced beverages such as shakes, lassi and even ice-creams.
“Any economic activity has a direct impact on business,” said Jayen Mehta, managing director, GCMMF. “Large congregations help the sale of soft drinks and other beverages. This is especially true in rural areas and among low-income classes.” The company has also bolstered its range of beverages this summer.
Distributors said early summer and elections could drive up demand for chips, lowpriced packs of cookies and beverages in the next quarter.
“The season has started strong with an early summer, so yes, elections and rallies will benefit companies in the coming quarter. This will have an impact on demand for packaged foods and not much on personal care items,” said Dhairyashil Patil, president, All India Consumer Products Distributors’ Federation.