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Summer Heat Fuels Sales Surge for Beverages and ACs
4 Mar
Summary
- Beverage, ice-cream, and AC sales rose 25-30% last month.
- Early summer temperatures reached 31 degrees Celsius in many regions.
- Companies are meeting demand with existing excess production capacity.
An early onset of summer, with temperatures reaching 31 degrees Celsius in several regions, has spurred a 25-30% increase in sales for beverages, ice-creams, and air-conditioners last month. Delhi recorded its warmest February in three years, marking a significant departure from the cooler weather experienced previously.
This early heatwave is expected to set a positive trend for the entire season, promising a revival for products that saw sales plummet by over half last year. Companies like SLMG Beverages and Amul are reporting substantial month-on-month growth in ice-cream sales, attributing this success to the favorable weather conditions.
Manufacturers are well-prepared to meet the heightened demand, with many operating with excess production capacity from the previous year. This allows them to manage the increased sales without immediate capacity expansion. Voltas, for instance, anticipates a 20% growth in AC sales, supported by their existing manufacturing capabilities.
