India's Heatwave Boosts Cold Drink Sales While AC Demand Remains Weak
Heatwave drives surge in cold drink sales, AC and fridge demand stays weak
Image: The Economic Times
Intense heatwaves in India have led to a surge in sales for cold drinks and ice creams, prompting manufacturers to raise their sales targets. However, demand for air-conditioners and refrigerators has not met expectations due to rising prices and consumer sentiment issues.
- 01Mother Dairy reports ice-cream sales have more than doubled in the last 10 days compared to the previous period.
- 02Soft drink makers like Coca-Cola and PepsiCo are ramping up distribution after a poor sales season last year.
- 03Dairy beverages are increasingly competing with carbonated drinks during peak consumption times.
- 04Air-conditioner and refrigerator sales have increased modestly by 15% and 10% respectively, failing to meet industry expectations.
- 05Rising petrol prices and economic sentiment are impacting consumer spending on cooling appliances.
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The ongoing heatwave in India has significantly boosted sales of cold beverages, ice creams, and dairy products, prompting companies like Mother Dairy to revise their sales targets upwards. With ice-cream volumes doubling on quick commerce platforms and dairy products seeing over 30% growth, manufacturers are optimistic about the April-June quarter, which is critical for their annual sales. Conversely, the demand for air-conditioners and refrigerators remains weak, attributed to 8-10% price hikes this year and subdued consumer sentiment due to rising fuel prices. While air-conditioner sales have seen a modest 15% increase and refrigerators 10%, these figures fall short of expectations. Industry leaders note that consumers are in a 'wait-and-watch' mode, affecting discretionary spending on cooling appliances. The changing consumer preferences also highlight a shift towards dairy beverages during peak refreshment times.
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The surge in cold drink sales may benefit local manufacturers and retailers, while weak AC sales could impact appliance companies.
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