Summer heat boosts sales for ice cream and beverage companies; Amul sales have been remarkable, says MD Jayen Mehta

On rural demand, Mehta said, Amul's rural penetration has increased. Products like buttermilk, lassi alongwith others are gaining a lot of traction.

As the summer heat intensifies in many parts of the country, companies in the cold beverage and dairy industries are reaping significant benefits.

Amul's Summer Outlook

Among them is Amul, recognized as the world's largest dairy cooperative. Jayen Mehta, the managing director, The Gujarat Cooperative Milk Marketing Federation (GCMMF) which sells its dairy products under the popular Amul brand, highlighted in interviews with CNBC-TV18 and CNBC Awaaz that sales during this summer season have been remarkable. Specifically, regions like Uttar Pradesh, East India, South India, and Maharashtra have witnessed sales growth ranging from 35 percent to over 50 percent, he said.

Amul's ice cream sales grew 30-40 percent this summer, he added.

Mehta mentioned that both beverage and dairy companies expect good sales, and overall procurement for Amul is experiencing double-digit growth, about 18 percent higher than last year.

Amul is gearing up to introduce a new product labeled as "super milk", boasting 35 grams of protein per glass, which is "the highest protein content among all our offerings", stated Mehta. "We are calling it super milk," he added.

Mehta also announced the imminent launch of organic spices in the market this week, along with plans for 20 additional products including jaggery and sugar from their organic division.

Cocoa Prices

Amul's cocoa is largely sourced from a cooperative in South India. "It has translated into an increase in cost for us for sure, we do hope prices come on a realistic level," Mehta said. He also mentioned that prices are expected to normalize within a couple of months, particularly by the Diwali season.

Surging Rural Demand

Regarding rural demand, Mehta noted that Amul's presence in rural areas has expanded and products such as buttermilk, lassi, and others are gaining a lot of traction.

Milk Prices

Mehta mentioned that milk prices have remained unchanged for the past 15 months, with the last price adjustment occurring in February 2023.

Overseas Ties

Highlighting their success in the US market, Mehta mentioned the export of butter, cheese, ghee, shrikhand, ice cream, and paneer. He noted the growing demand for products with an authentic Indian taste, particularly emphasizing the popularity of high-fat milk like Amul Gold among US consumers.

"We have been exporting butter, cheese, ghee, shrikhand, ice cream, and paneer to the US. Our customers in the US have been wanting more of our products, which have a more Indian taste, including the high-fat milk like Amul Gold," Mehta said.

The GCMMF has partnered with the Michigan Milk Producers Association (MMPA), a cooperative organization founded in 1916, to introduce its fresh milk in the American market through a collaboration. MMPA will handle the milk collection and processing according to Amul's recipe, while Amul will oversee the marketing and branding aspects.

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The initial launch is being planned only for fluid milk brands such as Amul Taaza, Amul Gold, Amul Shakti and Amul Slim n Trim. Amul-branded fluid milk products will be available in New York, New Jersey, Chicago, Washington, Texas and Dallas, apart from few other regions.

Amul has also tied up with Sri Lanka for cooperative dairy while they're looking to launch products in Kenya.