Now Reading: Britannia plans another 1.5-2% price hike next quarter
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Britannia plans another 1.5-2% price hike next quarter
Britannia Industries will likely raise prices by another 1.5-2% next quarter, mainly through shrinkflation in its Rs 5 and Rs 10 packs. CEO Rakshit Hargave said on an analyst call that rising…
The Story in Brief
Britannia Industries will likely raise prices by another 1.5-2% next quarter, mainly through shrinkflation in its Rs 5 and Rs 10 packs. CEO Rakshit Hargave said on an analyst call that rising sugar, palm oil and LPG costs have offset only half of the inflation the company faced. More than 60% of Britannia's portfolio is sold at these low price points, making outright price hikes difficult. The company instead reduces the quantity in each pack while keeping the retail price unchanged.
Despite cost pressures, Britannia's volume growth was close to 9% in the quarter. June recorded mid-teen revenue growth as disruption from dual pricing eased. Quick commerce now accounts for 80-85% of Britannia's ecommerce business and is growing at double-digit rates. The company is also expanding its health and wellness portfolio and considers acquisitions to add strong brands or capabilities.
The Indian Opinion
The narrative that FMCG companies are helpless victims of 'input cost inflation' needs a closer look. Britannia's 9% volume growth and expanding quick commerce channel suggest resilient demand, yet the company chooses shrinkflation over direct price increases, hitting the poorest consumers hardest. The real test will come when commodity prices eventually ease: will grammage be restored, or will these smaller packs become permanent? Consumers deserve to know if higher profits are being masked as unavoidable cost pass-throughs.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
