Parle and Britannia are mulling raising biscuit prices by as much as 6% raw ingredients costs soar. Both companies are yet to take a final decision on raising prices, the call will be taken basis the costs of key ingredients.
Parle and Britannia are mulling raising biscuit prices by as much as 6% raw ingredients costs soar. While Parle and Britannia two of the leading biscuit makers in India are yet to take a final decision on raising prices, the call will be taken basis the costs of key ingredients including oil, wheat flour, and sugar, CNBC TV-18 reported citing unidentified sources. The revised prices may be effective from the last quarter (January-March) of the current financial year. Parle Products, the company known for Parle-G brand is likely to raise the prices by 5-6%. On the other hand, its rival Britannia may hike prices by 3% on select brands and SKUs, the news channel reported.
Further, Parle products is looking to increase the prices of both its premium and standard biscuit brands. Parle sells Glucose, Marie and Milk biscuits under standard brands and premium products such as Bourbon, Hide & Seek and Milano under its expensive Platina range. Also, the increased prices will be visible in bigger packs in terms of value but the smaller packs will witness grammage reduction. FMCG companies tend to stick to certain price points such as Rs 1, 2, 5 and 10 as these are the most selling packs.
Biscuit makers have been looking to increase the prices of biscuits as raw ingredient prices have witnessed a jump. The biscuit companies have been trying to cope up with high procurement prices of raw materials along with high GST slab on both premium and standard cookies, Mayank Shah, senior category head, Parle Products, had told Financial Express Online in an interview earlier. Parle had also threatened laying off 10,000 people owing to demand slowdown and high GST on biscuits.
However, Finance Minister Nirmala Sitharaman’s corporate tax reduction move had brought some relief to the company as Parle’s effective tax rates got lesser after the corporate tax revision. The company had then said that the same will cushion low sales emanating from a demand slowdown.