Hershey India's syrups, cocoa powder sales jump as people bake more during lockdown
BusinessToday.In July 27, 2020
Chocolate manufacturer Hershey India has witnessed a sharp rise in the sale of its syrups, cocoa powder, bread spreads amid the coronavirus pandemic. A company official said that this was due to an upsurge in baking activities at home.
The sales of Hershey's grocery portfolio in June was nearly double versus the average monthly run rate in the first quarter of this year, the official added.
"So during the lockdown, families have been spending time together, they have been cooking at home and recent consumer trends also indicated that there's been a significant surge in people searching for home baking and cooking recipes," Hershey India Managing Director Herjit Bhalla told PTI.
Moreover, the chocolate maker brand has ramped up its capabilities on e-commerce by partnering with several food delivery apps such as Swiggy and Dunzo to deliver its products at consumers' doorsteps.
According to Bhalla, Hershey India was simplifying its demand planning and supply chain. He added that "If consumers look for low-cost trial packs, we have them. Or if consumers look for larger premium packs, we have those as well. Everything that we are making, is largely produced in the country and it is tested and customised for an Indian consumer's palate".
The company said its three brands--Hershey's, Sofit and Jolly Rancher were growing at a CAGR of 30 per cent for the last three years.
"If you really look at us, we are a fairly young business in India and we are still in our growth stage to really bring in our entire portfolio into the market."
Bhalla also added that the company was looking to continue building business in India. He claimed that the company has committed a $50 million investment in the country at the end of 2017.
"Given the fact that Indians have a sweet tooth and market in India is big and growing, we are very confident of bringing in the portfolio and enabling our consumers to interact a lot more with the brand".
Hershey India introduced chocolates which included Hershey's Kisses, Hershey's bars and Hershey's Exotic Dark in January this year.