Pantry stocking too is witnessing a second wave | Economic Times

Pantry stocking is back again and at-home consumption is surging, amid increasing local lockdowns, companies that had resumed normal operations asking employees to again return to work from home and consumers preferring to stay indoors, as a second wave of the Covid-19 pandemic sweeps the country.Categories such as biscuits, salty snacks, instant noodles, frozen foods, beverages and edible oils are witnessing a surge in demand as a result, said industry executives in packaged goods and grocery ecommerce.“With escalation of lockdowns and mini containment zones, in-home consumption is increasing, as consumers have no choice,” said Varun Berry, managing director of biscuits and dairy products company Britannia Industries. “We will have to see how the numbers play out across the full quarter,” Berry said, while adding that it will depend on how the Covid situation evolves. 81962131The April-June quarter of 2020 had seen packaged foods and hygiene product makers report record high sales, as consumers pantry stocked. The surge had tapered off and normalised from August-September, with staggered reopenings of malls, restaurants and, in many cases, offices. But now executives said demand due to pantry stocking amid the second Covid-19 wave has increased 80% to as much as six-fold, depending on the category. And, much of the demand is being met through ecommerce.“We are seeing a very good pickup for large packs and health and wellness product categories,” said Piyush Patnaik, managing director at Cargill’s edible oil business in India. “We expect this as well as stocking of large packs to continue; we are ensuring no disruption is experienced by consumers due to localised lockdowns. This will only get further amplified in the coming days.”A spokesperson for online grocery store Grofers said demand for categories such as ready-to-eat and ready-to-cook packaged foods has gone up to 80%, while that for frozen foods has increased up to 500%. Sales of packaged milk and milk products have seen a 150% increase in sales. “We are witnessing a 30% spike in weekly demand in the markets that have been affected by the second wave,” the spokesperson said.A spokesperson for frozen foods maker McCain said, “Increase in in-home consumption has sustained for us. A further increase is likely due recent measures for which we are prepared.”Analysts said they expect higher sales in at-home consumption to reflect strongly in the April-June quarter and boost the results for the new fiscal year. “There is a scope for both top line and earnings growth for FY22,” analysts at Motilal Oswal wrote in a note on Wednesday.Companies are responding to the development by pushing bigger packs and do-it-yourself products, and launching new offers.“With in-home occasions increasing manifold, the foods portfolio has seen an upsurge in demand for larger pack sizes…,” a spokesperson for beverages and snacks maker PepsiCo said.The company expects affordability and convenience to continue to drive at-home consumption, “especially when consumers are staying or working from home more in these challenging times”, the spokesperson added.Snacks maker Cornitos, which sells tortilla wraps, nachos and crisps under the same brand, recently launched do-it-yourself corn and wheat wraps aimed at in-home consumption.