Saturday, April 6, 2013

Parle, ITC, Cadbury among firms vacating currency-friendly price tags

English: Logo of ITC Limited
Packaged food and confectionery makers are increasingly giving up popular price points such as Rs 5 and Rs 20 for more inconvenient prices such as Rs 6 and Rs 22 because they could no longer reduce pack sizes to manage rising input costs. Parle Products has increased prices of Top biscuits and its two top-selling candies, Kismi toffee and orange candies; ITC plans to gradually increase price points across product segments such as Sunfeast biscuits, Bingo! wafers and its confectionery range; Coca-Cola and PepsiCo have already increased prices of 300-ml returnable glass bottles.

Top confectionery maker Cadbury recently launched a Rs 2 Eclairs variant, which is now promoted heavily against the Rs 1 conventional pack.

Devendra Chawla, president (Food Bazaar) at the country's top retailer Future Group, says brands' decision to adopt unconventional price points will depend on the elasticity of the category and its penetration.


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