Overall commodity prices, especially sugar prices, have witnessed a correction of about 10% during the past few days. The food products industry, however, said it may not be able to bear the cost pressures despite minor corrections in commodity prices and would have to increase food product prices in the near future.
“Everyone in the food business is contemplating the situation as commodity prices do not seem to come down,” said Pankaj Chaturvedi, executive director, Graviss Food Solutions, the exclusive franchise of Baskin Robbins ice-creams.
Charturvedi said the global slowdown and higher commodities prices, especially sugar prices, are affecting margins by 2%-3%, which his company has to bear.
Other food product companies are also finding it difficult to survive due to cost pressures and may be forced to hike prices in the near future, most possibly after Diwali, said a market source.
Baskin Robbins has also tied up with Eros International PLC, for their upcoming movie Aladin and is launching three new flavours based on the movie theme. The new flavours titled “Choc ‘aladin”, “Princess’Delite” and “Ringmaster’s Whip” are based on the characters from the movie.
The ice-cream maker, which has about 370 stores across 65 cities in India, plans to add another 100 stores in the current financial year, Chaturvedi added.