Chocolate and cold drink makers feel the heat in India as sales drop
BENGALURU: Chocolate and global manufacturers have said that the blockade in India due to Covod-19 has hit their businesses hard, although they expect a change from June. Such items often fall into the discretionary spending category and are the first to face the heat at a time when many essential foods were in short supply.
Mondelez, 's owner, said that its sales in the first phase of the closure were reduced to zero due to the closure of the plants, the lack of personnel in the distribution centers and the lack of availability of trucks.
We certainly haven't re-sold what we sell before, but we've already improved quite a bit. So I would say it's still a tough month of April, May is getting better, and I think in June, we should see a close return to the normal situation, President and CEO Dirk Van de Put told analysts in a conference call Tuesday. post-earnings.
India is a great market for Mondelez, as it contributes approximately 10% of all revenues from the emerging geography, but the company also expects a faster rebound, as it did so at all price points with a strong presence in low unit price points.
Hershey, known for his kisses, syrups and cocoa, also said he faced headwinds in India due to the blockade. “We face a lot in those markets. And I would say that is mainly in Mexico and India as the two biggest impacts. But yes, it is in that field of greatest uncertainty at this time. Michele Buck, President and CEO of Hershey, said.
Similarly, Coca-Cola reported a 5% drop in unit case volume for the quarter ended March 31 due to the impact of. In some markets such as India, the severity of social distancing measures has negatively impacted consumption simply due to the significant reduction in shopping trips, CEO James Quincey said last week.
Mars Wrigley did not specify how much demand for its products was affected, but said its supply chain has been affected and is working to maintain stock. Our manufacturing units in Pune, Bengaluru and Baddi operate at partial capacities, said a spokesperson.
However, PepsiCo was not affected as the company's beverage and snack volume recorded double-digit growth in the period.