PackMan's highlights of the week
Four top stories from PackMan. These include an analysis of India’s alco-bev market, dairy-giant Milky Mist’s initial public offering, insights into the cereal category, and the changes in quick commerce platforms.
23 Jul 2024 | By Anhata Rooprai
We drink beer, here
The International Wine & Spirit Research (IWSR) report for 2024 is here. And it says, we drink beer, here!
The report analysed the drivers for India’s alcoholic beverage market. The volume growth for alcoholic beverages in 2022 was 1% globally. Spirit volumes in India increased by 12% — beer was up by 38%, wine by 19%, and ready-to-drink beverages by 40%. According to IWSR, value grew ahead of volume, and it’s only upwards from here.
IWSR research says high-quality products “are the future”. Its market data forecasts show that premium-and-above blended Scotch volumes are predicted to grow at a CAGR of 13% between 2022 and 2027, and premium-plus malt Scotch at 19% CAGR. Indian Single Malts (ISMs) and craft gins are also expected to display strong double-digit CAGRs by 2027.
This is why, producers are increasing their ranges, they are spanning more price points: Indian whiskies are available from Rs 500 a bottle to Rs 13,000 – similar to a super-premium imported single malt. It means premium packaging with lots of embellishments.
Milky Mist all set for IPO
According to a report by a leading business portal, Milky Mist might float an initial public offering (IPO), to expand its dairy brand portfolio and take on larger Amul, the behemoth in its category. The IPO could be valued at Rs 20,000-crore, as the company ventures into newer offerings like chocolates and ice creams.
The Erode-based manufacturer will follow the footsteps of Hatsun Agro Products, Heritage Foods, Parag Milk Foods, and Dodla Dairy. Nestle, Britannia, and Amul in the dairy segment.
Recently, the company was in the news for its investment to boost a variety of packaging formats, volumes, and designs. With 12 Aseptic filling machines, Milky Mist can fill 12,000 carton packs per hour in three different volume sizes such as 500, 750, and 1,000-ml.
Marico amps up cereal offerings
Marico expanded its breakfast offerings in June with the launch of Saffola Muesli in three new flavours.
According to Kantar, muesli makes up a third of the overall breakfast cereal category already and is growing in double digits year on year. Market leader Kellogg enjoys more than 70% share of muesli in value terms.
The category posted a positive compound annual growth rate (CAGR) of 18.18% during the 2018 to 2023 period with a sales value of 5,962-crore in 2023, an increase of 12.99% since 2022. The market posted its strongest performance in 2019 when it grew by about 24% over the previous year and its weakest performance in 2023, when it increased by 13% over 2022.
Deloitte: Online impulse buying is picking up
According to a report published by Deloitte in June 2024, online impulse buying contributes to nearly 30% of the average order value for quick commerce companies like Zepto, Blinkit and Swiggy. This is a significant increase from a 5-7% average order value five years ago.