PepsiCo India is focussing on leveraging rising in-home consumption to boost demand for its snacks portfolio. As the country is gradually unlocking economic activities, the company said supply chains are now functioning at very close to normal levels.

Dilen Gandhi, Senior Director and Category Head – Foods, PepsiCo India told BusinesLine , “All our food plants are functional at this point of time while maintaining highest standards of safety.”

‘New normal’ boosts sales

The company said it’s also witnessing an uptick in demand for larger packs and has also introduced various combo packs. “As people adjust to the ‘new normal’, in-home consumption is witnessing a significant uptake. We are witnessing a jump in both penetration and frequency of our food category,” Gandhi explained.

As part of the strategy to leverage on in-home consumption occasions, the company has also launched a new campaign for its snacks brand Kurkure, drawing on cultural insights of deepening of family ties and uptick in time spent together by families. The campaign, which features brand ambassador Akshay Kumar, also focusses on consumer insights drawn from an in-house consumer study commissioned by the company.

“There is a growing demand for our larger packs as in-home occasions of togetherness have increased manifold. While the consumers are looking at in home experiences and seeking convenience, they are also looking at value. We have also introduced various combo packs for our food portfolio creating and further driving in-home consumption," he added.

‘Bonding’ times

According to the company’s Kurkure study, 80 per cent of the families surveyed have stated snacking together has become a family bonding activity during these challenging times. In addition, nearly 55 per cent of the families surveyed said they now have at least one meal together. “These trends are further driving in-home consumption,” Gandhi added.

The company has also tied up with players such as Dunzo and Swiggy to bolster last mile delivery efforts recently. “While e-commerce is a small mix, there has been an uptake in sales on e-com platforms. As far as partnerships with hyperlocal partners are concerned, the initial response has been encouraging. We are now working in scaling the model and expanding it to other states,” Gandhi added.

Earlier this month, PepsiCo, in its global earnings, had reported a double-digit drop in snack and beverage volumes in India in the second quarter ended June 13, due to strict lockdown imposed to contain the spread of the Covid-19 pandemic.