Chocolate sales resume ahead of Diwali festivities
Despite extraordinary circumstances due to the COVID pandemic, chocolate makers say sales resumed ahead of the Diwali festivities.
Amul told CNBC-TV18 that its holiday-focused sales grew 30% this year, as business in the corporate segment overtook the end-consumer market, thanks to the reopening of the offices.
However, only 10 percent of the brand’s sales come from the corporate segment, a number it wants to grow to 30 to 40 percent of sales volume per year.
With the opening of businesses and retail stores for the holiday season, offline chocolate sales have jumped into high gear. This is great news for the chocolate brands, as an optimal recovery in this segment relies on equal contributions from online and offline sales channels, and from the end consumer and business category.
However, some companies claim that while these green shoots are encouraging, India Inc. is still not buying as many chocolates as it was before COVID.
Although premium chocolate brands like Fabelle and Smoor have seen sales growth of 40 to 50 percent this season compared to the gloom last year. They report a sales ratio of 50-50 from their corporate and end-consumer segments.
For a brand like Smoor, that number was 70 to 30 in favor of the business segment, before COVID.
The good news is that despite the reopening of physical retail stores, online sales for most brands remain stable.
So, what are consumers buying this Diwali, anyway? Dark chocolate is a favorite by far, with sales accounting for 70% of some brands’ revenues, while sales of sugar-free, almond-based and milk chocolate are also taking their place.
Watch the video to learn more.
(Edited by : Bivekananda Biswas)
First publication: STI