Now Reading: Britannia to raise prices 1.5-2% via shrinkflation next quarter
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Britannia to raise prices 1.5-2% via shrinkflation next quarter
Britannia to raise prices 1.5-2% via shrinkflation next quarter
Britannia Industries plans another 1.5-2% price increase next quarter, mainly through "shrinkflation" on its Rs 5 and Rs 10 packs. CEO Rakshit Hargave said on Friday that the price hikes in the…
The Story in Brief
Britannia Industries plans another 1.5-2% price increase next quarter, mainly through "shrinkflation" on its Rs 5 and Rs 10 packs. CEO Rakshit Hargave said on Friday that the price hikes in the June quarter offset only half the inflation the company faces from rising sugar, palm oil and fuel costs.
LPG costs surged 2.5 times in April and May, palm oil rose over 20%, and sugar prices climbed further. More than 60% of Britannia's portfolio sells at Rs 5 and Rs 10, making direct price hikes tough. The company instead reduces pack quantity. Demand remained resilient with volume growth close to 9% in the quarter.
The Indian Opinion
The narrative that companies are helpless victims of input cost inflation is convenient but incomplete. Britannia's CEO admitted the June price hikes covered only half the cost rise, yet demand stayed resilient and volume grew 9%. Shrinkflation on Rs 5 and Rs 10 packs, over 60% of its portfolio, raises a pointed question: when profit margins stay high and executive pay grows, why should the poorest customers silently bear smaller packets at the same price?
Sources (2): timesofindia.indiatimes.com, timesofindia.indiatimes.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
