Global packaged food majors called out India as a key growth engine and pointed to revival trends backed by better consumer sentiments in the September quarter, post the second pandemic wave.

Double-digit growth

Mondelez International, maker of Cadbury chocolates and Oreo biscuits, said that its India unit delivered double-digit net revenue growth in the September quarter, adding that emerging markets such as India are “attractive growth engines” for the company.

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On an earnings call on Tuesday, Dirk Van de Put, Chairman and Chief Executive Officer, Mondelez International, said, “I think what we’re seeing is that the consumer confidence is improving in markets like India, big parts of Latin America …. they are seeing the vaccine roll out, they’re seeing life going back to normal. They feel better about their personal finances and that is reflected in their consumption. At the same time, they still spent more time at home, which benefits our categories.”

BRIC countries

“Particularly the BRIC countries are very strong with a double-digit growth in India and Brazil and high single-digit growth in China and Russia,” Van de Put added.

The company’s management said that India posted double-digit revenue growth in the chocolates category and mid-single-digit growth in biscuits category.

Last week on an investor call, Suresh Narayanan, Chairman & Managing Director, Nestle India, said that India has been among the fastest growing markets for the company in the past three years. The company said that India’s sales growth (from all Nestle brands sold in India) in 2018, 2019 and 2020 was higher than markets such as the US, China, Russia and Japan .

Markets recover

With easing of mobility restrictions and out-of-home channels seeing faster recovery, snacks and beverage company PepsiCo said its India unit posted a double-digit organic revenue growth in the third quarter. The company’s management on the investor call stated that markets such as India, Middle East and Africa were “challenged last year” and these businesses are now “coming back” indicating revival trends.

Omni-channel growth

Beverage major Coca-Cola too stated that its unit case volume growth in the September quarter was primarily led by developing and emerging markets such as India, Russia and Brazil. It said there was solid performance by fruit-drink brand Maaza and brands Coca-Cola and Thums Up in the country too witnessed growth on the back of effective marketing activations. The company’s management said it “participated strongly in the recovery by focusing on affordability and omni-channel growth”.

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In a statement on Wednesday, Brian Smith, President and Chief Operating Officer, The Coca-Cola Company, who is on an India visit, said, “India is an important growth region for the Coca-Cola system globally. The macro-economic conditions coupled with the resilience and entrepreneurial spirit of the people create the perfect conditions for growth. We have therefore prioritised investing in sustainable brands to win in the market while also making a positive difference to the people and communities we serve.”

“We are in a strong position to harness this incredible momentum in India with the right set of opportunities, doing the right things, building value for the Coca Cola Company and our bottling partners, continuing to delight our customers and consumers,” he added.

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