Smaller packs fly off shelves as on the go consumption rises

Chennai:

As people begin moving out for work

,smaller packs of biscuits and snacks are witnessing growth.

Biscuit makers including Unibic are saying that their Rs 10 pack is witnessing a spike in demand.

The lower SKUs (stock keeping units) have seen their share go up by 10% by volume and the sale in June is higher for the lower price points.

“The small packs are good both for on the go consumption and also for pocket friendly needs. People are on the move again slowly, especially those in the blue collar workforce. They are purchasing smaller ticket sizes to consume on the move since it’s not still safe to eat outside,” said Srini Vudayagiri, chief executive officer, Unibic.

Parle, saw its highest ever sales during lockdown, added that in the tier-2 cities, smaller packs were doing well from a budget perspective too.

“Not just the flagship Parle G brand, but also the other brands in our portfolio are seeing a jump in the Rs 5 and Rs 10 categories. In the metros, however, larger packs continue to do well since work from home happens on a larger scale,” said Mayank Shah, category head, Parle

With offices and factories open with a skeletal workforce, consumers are wary of eating outside.

“I get my lunch from home but for snacking, I pick up a packet of biscuit or chips since they are packed. Given the current conditions it is difficult to trust a tea shop or an eatery for we don’t know the hygiene levels. My consumption of packaged snacks has gone up from thrice a month to minimum twice a week,” said Varun Muniaraj, a designer in an ad agency.

Dairy giant Amul too is seeing consumption rise for its smaller packs across categories including flavoured milk, ice creams and chocolates too. R S Sodhi, MD, GCMMF (Amul) said that there is a 20%-30% growth in the smaller SKUs after the nation-wide lockdown eased.

“All in the Rs 10 to Rs 25 segments are moving fast. We also observe the immunity segment, with the ginger and tulsi concoctions seeing movement among the smaller packs. Among households, we also see Rs 10 milk powder sachets and Rs 50 tetra packs doing well,” he added.

Snapbizz, which provides data and tech support to Kirana stores, also observed a jump in demand for smaller SKUs for biscuits.

“Snacks, especially biscuits, are a constant entry in every basket. People are spending the same amount overall but the quantity has gone up by 50% since the first week of May, looking at our buying patterns. This is an indication that smaller SKUs are being purchased,” said Prem Kumar, founder, Snapbizz.


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