ITC Foods anticipates a prosperous future for its dairy and beverage divisions, despite the challenges posed by inflation. The company remains optimistic, forecasting growth driven by various factors.
In a recent interview with Moneycontrol, Sanjay Singal, the chief operating officer overseeing the dairy and beverages cluster of ITC Foods, discussed the sector’s dynamics. He highlighted the positive impact of recent developments like a fruitful dairy season and the onset of a hot summer, which are expected to boost demand.
Singal pointed out a shift in consumer preferences towards packaged milk, particularly among rural consumers, driven by concerns about quality and safety, especially for children. He underscored the importance of maintaining consistent quality assurance measures, including innovative approaches like ‘report cards’ that encourage consumers to opt for premium options.
The concept of premiumization, commonly associated with urban markets, is gaining traction in rural areas as well, reflecting an evolving mindset towards consumption. Singal emphasized ITC Foods’ success stories, such as their milk-based smoothies and premium coconut water offerings under the ‘B Natural’ brand, catering to health-conscious urban consumers. Additionally, affordable pouch-packed lassis are meeting local tastes and budgets in rural areas, particularly during hot summers.
The role of digital technology in ensuring supply chain transparency and quality cannot be overstated, according to Singal. From engaging with farmers through dedicated apps to implementing QR-coded milk packets and traceable organic ghee, ITC Foods is leveraging technology to build consumer trust and meet evolving preferences.
Despite the challenges posed by inflation in the dairy sector, Singal remains hopeful about the current cycle, which appears more favorable, hinting at a potentially better year ahead for dairy companies. Looking ahead, he discussed the potential impact of national elections on consumer demand and hinted at strategic initiatives to cater to changing preferences.
In conclusion, Singal painted a cautiously optimistic picture for the dairy and beverage segment, counting on a promising summer and increased interest in natural and healthier product offerings. With a focus on rural distribution and market trends, ITC Foods is well-positioned to overcome challenges and capitalize on emerging opportunities in the coming quarters.
