New Delhi If the plastic container of your regular moisturizer breaks easily or if If a 20 pack of your favorite brand of chips appears small, don’t panic. It’s just that their manufacturers are using thinner packaging to counter the cost of goods, packaging and freight. Companies are using recycled aluminum for cans, cutting advertising and marketing spending and postponing new launches.
Parle Products, which makes biscuits under the Parle-G and Krack Jack brands, is looking at saving from the carton configuration – that is, looking at ways to add more packets of biscuits or snacks per carton. This will help the company reduce its transportation cost. This comes after Parle’s 7-8% price hike in the last six months, which includes both grammar cuts and direct price hikes.
Parle is also reducing the size of packet sizes in its confectionery and snacks portfolio. “What we have done as part of our efforts to bring in cost efficiency is start reducing the plastic used in our packs. Krishnarao Buddha, Senior Category Head, Parle Products, said, “Giving extra plastic unnecessarily is not very viable. This helps the company save on packaging and transportation costs.”
Rival Britannia Industries said it was doubling down on its cost savings programmes, as the inflation situation remains “quite dire”. This includes reducing distance from the market as well as making your sourcing strategy more efficient.
Varun Berry, Managing Director of Britannia, said in a post earnings call on May 4 that the company is bringing in process automation to increase productivity, reduce distance from market to reduce costs and provide innovative products to consumers, Reducing wastage in factory and market. , and move towards the goal of using up to 60% of renewable energy. “It’s working out quite well. From a physical standpoint, our sourcing strategy is focused on making sure we get the best bang out of our buck,” Berry said.
Varun Choudhary, managing director of CG Corp Global, which makes Wai Wai noodles, said the company had to re-evaluate its plans to play a bigger role in the biscuits segment. “With full cost escalation, we are now re-evaluating our potential. Biscuit also contains the most flour and palm oil. Palm oil prices hit an all-time high.”
Food and beverage maker PepsiCo India said it is accelerating a mix of higher revenue packs to offset the impact of rising commodity prices and inflationary pressures. A company spokesperson said, “Rising costs, especially in palm oil and paper and freight costs, have put significant pressure on margins.
Brewer AB InBev said it does not see the challenges associated with higher raw material prices going away any time soon. The maker of Budweiser beer is working with its suppliers to increase the recycled content of aluminum in its cans, among other steps to reduce costs.
The beer industry has limited options to accommodate the increased costs, as liquor prices are governed through state excise departments in India. “We see this impact with ingredients like barley in our supply chain as well as packaging costs remaining high. These essential ingredients for our business have always been the most stable in terms of pricing and availability,” said Ashwin Kak, Head of Procurement and Sustainability, India and South East Asia, AB InBev. Has launched the circular packaging initiative.Packaging with material made from barley straw to carry its products.
Beverage maker Coca-Cola India Pvt. Ltd. has been promoting returnable glass bottles after years of focusing on disposable plastic bottles.