Leading biscuit makers Britannia said that the company launched several premium products at a time when people were not willing to buy five-rupee biscuits.
While FMCG companies have been facing the headwinds of ongoing slowdown, one of the leading biscuit makers Britannia said that the company launched several premium products at a time when people were not willing to buy five-rupee biscuits. Announcing the company’s results for the quarter ending September, Britannia said: “We continued our premiumisation and innovation journey with the launch of limited edition “Treat Cream biscuits” & “Little Hearts Strawberry,” Varun Berry, Managing Director, Britannia, said in a statement on Monday. Earlier, Financial Express Online had reported that fast-moving consumer goods companies tend to launch comparatively costlier products during slowdown as the affluent still have money to experiment.
Britannia also said that the company will ramp up the production of other categories in the coming months. “Our plan is to scale up “Salted snacks” in West & “Croissant” in East & South,” Varun Berry added.
Key takeaways from Britannia’s Q2 results
- Britannia Industries Ltd reported consolidated revenue growth of 6% for the quarter ending September at Rs 3,023 crore.
- The company’s consolidated net profit jumped by double-digit 33% and stood at Rs 404 crore.
- Britannia also reported sequential revenue growth of 13%.
Earlier, Britannia’s rival biscuit maker Parle had told Financial Express Online that Parle has kept up with the launch of premium range biscuits because “premium is doing really well and is actually untouched by slowdown,” Mayank Shah, senior category head, Parle Products had told Financial Express Online in an interview last month. A report from Euromonitor International had also shown that biscuit industry deploys the premiumisation strategy amid slowdown to lever sales.
Meanwhile, Britannia is not the only company in the food business that has driven expensive product production. Recently, tobacco maker ITC also said that only did it roll out several expensive products in the last few months but also received healthy response to those products. “In the Dairy & Beverages Business, the recently launched premium range of juices comprising three differentiated flavours … continued to receive an excellent response from consumers,” ITC said announcing its Q2FY20 results.