New Delhi: As inflation eases into the household budget, fast-moving consumer goods makers are reducing the availability of fewer unit packs as well as “bridge packs” to ensure affordability of everything from soaps to biscuits. are introduced.
Two months ago, biscuit maker Parle Products introduced its flagship Glucose Parle-G brand as well as crackers 15. Snacking Brand Ready to Launch Cornitos 50 price point for modern merchandise stores. Meanwhile, packaged consumer goods company Hindustan Unilever Limited introduced a Rs 16 pack for its soap brand Lifebuoy. 10 more 36 packs that are already available in the market.
Several companies Mint spoke to as well as analyst reports point to those with higher consumption or cost of lower unit packs. 2, 5, 10 more 20—These are popular value packs within the fast growing consumer goods ecosystem and account for 30% to 40% in terms of revenue for some FMCG categories. However, companies refrain from increasing the prices in such packs as it is easier for the consumers to buy the product for Rs 2. 5 more Given the easy availability of 10 coins; These products are also popular among low-income groups who value affordability.
As a result, companies have introduced more “bridge” packs that cost . is between Rs 5 and Rs 20 – Accounting for commodity inflation along with ensuring the availability of products in the price pyramid.
Companies say it is becoming increasingly difficult to increase prices or reduce the volume of their entry price packs.
Mayank Shah, Senior Product Category Manager, Parle Products, said, “Offering Bridge Pack is the best way to increase the value and value ladder to the consumer. Sold at price points and higher.
With commodity inflation on decadal high manufacturing pack 2 or 5 is also getting tiring, the makers said.
“Whenever you have high inflation and you need to induce consumers to buy a bigger back or a higher price, you have to introduce bridge packs,” Shah said. The company also offered a Its a 15 pack for NutriCrunch crackers. “The idea is to encourage the consumer to buy a larger pack A pack of Rs 10 to 20- Rs 15 helps in the transition.”
The Cornitos chip maker said it is facing 20-25% inflation on raw materials. It is now offering the Rs 50 pack exclusively for modern trade stores. “We cannot take a price hike or reduce the pack size on a pack of Rs 35. With the current inflation, what are we offering 35 more 90 We are unable to offer and provide visibility into these modern stores. As a result, 50 is the middle ground for us,” said Vikram Agarwal, managing director, Greendot Health Foods Pvt Ltd.
Faced with four decades of high cost inflation, FMCG companies are adopting a variety of tactics including reduction in grammar along with direct price hikes to counter high raw material prices.
“FMCG companies are increasing aggressively in the bridge pack to tackle inflation. For example, HUL has introduced the Lifebuoy Pack here 16, which is a bridge pack from 10 36 price point pack,” analysts at Edelweiss Securities said in a note dated June 16.
Meanwhile, inflation is also pushing households to reduce their monthly expenses.
As a result, it is common for families to move to a lower pack size or even switch to a cheaper pack to save money. For companies- ensuring availability across price points becomes even more important.
“Due to inflation, there has been down-trading across all categories and stock keeping units. The report said that lower unit prices and units keeping stock between the larger packs allow the company to capture some of this down-trading rather than lose out on demand from smaller and local brands.
The report said that through Bridge packs, FMCG companies are trying to provide better value to the consumer by offering more grammar in popular price points versus these Bridge packs.
Companies are also seeing a large share of low unit packs.
Ankush Jain, Chief Financial Officer, Dabur India Limited said that the company is focusing on the existing low unit packs and affordable packs, whose demand has increased in the last few months.
Jain said, “We have increased the supply of these affordable packs across all categories to fuel the growth in demand.”
Recently, researcher Kantar noted that the number of FMCG packs purchased between February and April increased by 15% year-on-year – indicating that as prices continue to rise, consumer balances have been created. That’s with buying smaller packs, it said in its June update. FMCG Sector.