Despite raw milk prices remaining firm, ice cream makers expect to clock strong double-digit growth this summer season over last season. Companies have ramped up production capacities and are offering a wider range of products, especially in the impulse categories tailored for out-of-home consumption. However, gross margins are likely to be under some stress, believe experts.

Manish Bandlish, Managing Director, Mother Dairy, said, the company expects to garner a growth of over 20 per cent this summer in the ice cream category. “The summer season is the most anticipated season for a category like ice-creams. With summer temperature predictions just like last year and in anticipation of the surge in demand, we have taken a holistic approach for the category. Apart from strengthening our cold chain infrastructure, we have also ramped up our production capacities by adding new lines for ice cream bars,” he added.

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The company has introduced a range of new variants and flavours. Bandlish said this expansion has been largely done under the impulse portfolio led by kulfis, cones, and bars. “While the raw milk prices remain under stress, we are taking all possible efforts to offer value for money products with desired quality benchmarks to all consumers,” he added.

Ice cream makers are also ramping up their distribution network as the out-of-home channels have seen a brisk recovery in terms of sales since last year.

Mohit Khattar, CEO, Graviss Food Pvt Ltd (Baskin Robbins), said, “We are confident that the new range of sundaes, coupled with ice cream pizzas, and ice cream rocks, along with new flavours, will help us beat the expected industry growth of 15-17 per cent. We are planning to add another 100 exclusive parlours during the course of the year. This would be on top of the expansion in our general trade, modern trade, and online presence as well.” The company already has a presence in 239 cities in the country and operates over 850 parlours.

Also read: Relish more desi flavours of beverages, ice-creams this summer

On inflationary pressures, Khattar added, “Milk inflation and the resultant inflation in the cost of other dairy-based ingredients is adversely impacting gross margins. However, for now, we have decided to hold prices in the interest of consumers.”

A recent report by Nuvama Institutional Equities noted that the food companies’ summer portfolios, such as ice creams and beverages, are expected to do well in terms of sales given the rising temperatures across the country.

Also read: India’s dairy sector needs a structural shift

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