No thirst for carbonated drinks even amidst hot spell
The soft drinks industry has been pounded by the outbreak of coronavirus in Bangladesh at a time when it typically enjoys mounting sales for the rise in mercury.
In April, which is normally marked as the beginning of summer, beverage sales are poised to drop a lot more than 80 per cent, because of the countrywide shutdown in a bid to contain the spread of the highly infectious virus.
The shutdown on March 26 prompted the closure of shops, hotels, restaurants, movie theatres, convention and party centres, which are the topmost point of sales for beverages.
"Our sales have come to a near halt," said Md Nahid Yousuf, an assistant general manager for brand at Partex Beverage, the franchisee of Royal Crown Cola (RC Cola).
Sales of RC Cola, which includes five variants, is set to drop to significantly less than 20 % in April. The previous month, it were able to sell about 30 % of the products.
Its popular drinking water brand MUM, that was rolled out in 2001, is not faring any better: its sales nosedived about 70 per cent.
"We paid the wage for March and would do for April too. After that, if this trend continues, it will be hard to pay every staff," he said, adding that Partex Beverage directly employs about 2,500 people.
PepsiCo's popular brands such as for example Pepsi, 7UP, Mirinda, Slice, Mountain Dew, Pepsi Diet and 7UP Light have also taken a beating, using its sales crashing to significantly less than 20 per cent.
"Usually, the months of March, April and May see a spike in sales. Now, the complete economy is down and the country's carbonated soft drink (CSD) market plunged," said a senior official of Transcom Beverage, the exclusive PepsiCo franchisee for Bangladesh.
However, its drinking water brand Aquafina's sales have suffered less than others, he said requesting never to be named as he's not authorised to speak with the media. Based on the insiders, the industry has tremendous potential in Bangladesh since it grows together with the economy.
The twelve-monthly per capita consumption of carbonated drinks in Germany is 450 bottles, 550 in america and 600 in Mexico.
However in Bangladesh, it is merely 17 by 2018, said a high official of Transcom Beverage.
Bangladesh also lags behind its peers in Asia: in India, it really is 25 bottles, Vietnam 45 and Sri Lanka 40.
Transcom Beverage hasn't laid off some of its staff and even provided advance wage for some of its employees who work in the field in order that they don't face any issue in running their family expenses, the senior official added.
Pran, which has an array of beverage lines, also saw dwindling sales from March.
"We have a range of products and several of them are created targeting the village population. But now rural distribution gets harder due to the shutdown," said Nurul Afsar, head of corporate brand at Pran RFL Group.
The business's beverages sale would nosedive in April.
Sales of beverages surge during Eid festivities.
"But this year is a different one. I visit a bleak future," Afsar said.
The global pandemic can be affecting the business's beverage export to India, the Middle East, Nepal and other countries.
He projects that beverage exports would fall practically 40 per cent year-on-year in April.
"Because of coronavirus, we are acquiring less export order. Now, occasionally, we can not deliver our product to the buyers for congestion in the port and delays in shipment."
Afser also partly blamed the low sales to the widespread fake news that consumption of cold drinks could make consumers more vunerable to COVID-19.
The World Health Organisation (WHO) hasn't issued any warning on cold drinks.
The United Nations' public health agency even said there is absolutely no scientific evidence that eating hygienically made frozen food and ice cream spread the brand new coronavirus.
The WHO, however, said alcohol may put persons at increased risk of coronavirus, weakening your body's immune system and leaving drinkers at risk for other risky behaviours that could boost the odds of contracting coronavirus.
Global drinking brand Coke's sale also fell drastically.
"We are facing the same problem like other beverage companies," said the official of Coca-Cola Bangladesh requesting anonymity.
He attributed it to weakening purchasing ability of folks as many are now out of jobs.
"People are now buying essentials, so sales of other products are falling," said Rafique Masud, sales manager for Meghna Band of Industry's fast-moving consumer goods division.
Meghna Beverage manufactures Super Fresh NORMAL WATER, Fresh Dhoom Cola, Fresh Mejanda, Fresh Soul Up, Gear Energy Drink etc.
Its CSD sales have plunged to significantly less than 20 per cent due to the virus outbreak.
Akij Food and Beverage, which manufactures Mojo, Frutika, Speed, Clemon and normal water Spa, echoed exactly like other, said the official wishing anonymity.
However, in supermarkets, which open for a couple hours each day amid the crisis, sales of soft drinks have remained stable.
"Sales of CSD have not dropped. In some cases, it increased," said Mohammad Aurangzeb, manager for procurement and operation at Khulshi Mart.
Normal water sales too practically doubled within the last few weeks.
