In Short:
Packaged food and beverage companies are increasing supplies ahead of the upcoming general election, as large rallies and outdoor gatherings are boosting demand for low-priced snacks and drinks. With the announcement of election dates, companies like Parle Products and Amul are expecting a rise in sales. Distributors are also anticipating higher demand for chips, cookies, and beverages, particularly in the low-price range.
The Human Side of Elections: How Packaged Food and Beverage Companies are Gearing Up
As the buzz around the upcoming general election grows louder, packaged food and beverage companies are hitting the ground running to meet the increased demand for low-priced goodies at rallies and outdoor events.
A Look at the Election Schedule
The Election Commission of India (ECI) recently revealed the dates for the 2024 Lok Sabha election, set to begin on 19 April and stretch across seven phases until 1 June.
Insights from Industry Leaders
“With the upcoming elections and the dates declared, we are expecting some buoyancy in the market and good spending on ground. Consumers also get more disposable incomes, different parties dole out freebies or even cash. For our category, it does have an impact. We will have to wait and watch. But it will be positive, given the number of rallies. Wherever rallies happen, we see a large congregation of people,” shared **Krishnarao Buddha**, senior category head at **Parle Products**.
**Parle Products**, known for brands like Parle-G biscuits and Hide & Seek cookies, typically witnesses a 10-15% surge in demand during election months due to increased out-of-home mobility.
**GCMMF**, the dairy cooperative behind the popular Amul brand, anticipates a rise in demand for low-priced beverages during the election season and the upcoming summer.
Impact on Business and Consumers
According to **Jayen Mehta**, managing director of **GCMMF**, large gatherings at political and religious events drive sales of beverages, especially in rural areas and among low-income groups.
As national and regional parties gear up for rallies, distributors foresee a spike in the demand for chips, cookies, and beverages in the next quarter, benefiting local players offering products in the Rs5, Rs10, and Rs15 price range.
**Dhairyashil Patil**, president of the **All India Consumer Products Distributors’ Federation (AICPDF)**, believes that packaged food companies will see a boost in demand during the election season, thanks to increased liquidity in certain market segments.
