Giants PepsiCo and Coca-Cola have cut down production for the first time in what is easily the peak summer quarter for soft drink sale. Currently, production lines are operating two to three days a week. Officials hope to make a recovery in the next month. But if no substantial recovery is made in the month of May, sales for this quarter will be hugely affected.
Markets in several northern states of the country have felt the heat. States of Delhi-NCR, Haryana, Himachal Pradesh, Uttar Pradesh, and Punjab contribute as much as half of national soft drinks sales. Stocks in these markets are moving at half the pace despite heavy and aggressive marketing from both ends. PepsiCo is the title sponsor for the ongoing Indian Premier League and even Coca-Cola has splurged money on multimedia commercials.
Sales of Electronic Items Dip
In addition to this, even the sale of air coolers, table fans, and air conditioners has been on the lower side. Retailers in Delhi-NCR are unhappy with the response this year. Generally, every year in the month of April, sale of these electronic devices is at its peak. But in 2015, unseasonal widespread rain has resulted in temperatures recording below normal, thereby influencing the sale and purchase of electronics.
Some sort of a recovery is surely expected in the month of May. But with normal monsoon predicted for India in 2015, both soft drink and electronic sales may be compromised again. If pleasant to comfortable weather conditions continue to prevail in most parts of the country, both manufacturers and retailers will suffer in terms of overall sales and profit.
(Featured Image Credits: wsj.com)