Weekly FMCG Update: Swiggy expands, Cola wars intensify

SLMG Beverages eyes overseas expansion
Coca-Cola’s largest independent bottler in India, SLMG Beverages, owned by the Ladhani Group, plans overseas expansion as domestic opportunities decline. The company aims for INR 20,000-crore revenue by FY31. It’s also diversifying into wealth management and renewable energy to generate higher returns from small-scale investments.

Coca-Cola, Pepsi face renewed rivalry
The Cola wars heat up as Reliance’s Campa Cola gains market share, after disrupting the market late last year, challenging Pepsi and Coca-Cola with aggressive pricing and nostalgic campaigns. Pepsi’s recent ad campaign, reviving its 1996 “nothing official about it” catchphrase, stirs up memories of past brand clashes. Reliance’s strategic expansion, including IPL sponsorship and disruptive pricing, intensifies competition in the USD 20-billion cola segment, with analysts noting that innovation and localisation will be key for survival in this highly competitive market.

Swiggy Instamart expands to 100 cities
Swiggy Instamart has expanded to 100 cities in India, driven by increasing demand in tier-2 and 3 markets for quick, 10-minute deliveries. CEO Amitesh Jha highlighted growing demand, especially in smaller cities. The platform introduced larger ‘megapods’ to expand its product range and support delivery networks. Swiggy also recorded high spending trends in cities like Thiruvananthapuram and Dehradun, with Patna and Raipur achieving significant milestones. This expansion aims to meet the rising demand for convenience-led retail beyond metro cities.

Wholesale inflation hits two-month high
India’s wholesale inflation rose to 2.38% in February, its highest in two months, driven by a surge in manufactured products. While food prices fell, manufacturing items made up a significant portion of the index. Retail inflation eased to 3.6%, with food prices at a 21-month low. Core inflation spiked. Analysts expect wholesale inflation to remain steady, with a further repo rate cut from the RBI in April, as crude prices stay below USD 80 a barrel.