Beverages sector recovers as preferences shift

Consumption of soft drinks in households soared that helped sector recoup losses

KARACHI:

The business of beverages and bottled water has bounced back after the devastation caused by the Covid-19 pandemic and subsequent lockdown imposed to contain it.

Lately, sales of the two items have started picking up in 2020 and changes in consumer preferences have also been observed as well.

Now that Covid-19 vaccines have been developed, they are expected to neutralise the impact of the virus on the global economy as well as on Pakistan's economy.

Owing to the damaging impact of the virus on the national economy, Pakistan recorded a negative growth in its gross domestic product (GDP) for the first time since 1952.

Although Pakistan is yet to receive the vaccine, just news of availability of the remedy has brought optimism to Pakistan's business environment.

Even before the cure was invented, Pakistani companies had come up with solutions to serve their customers in order to sustain their businesses and achieve growth. "Sales of branded soft drinks have picked up as their demand becomes stable among consumers despite multiple challenges related to Covid19," said The Coca-Cola Export Corporation General Manager Pakistan and Afghanistan Region Fahad Ashraf.

Talking to a group of journalists on Friday, he said sales of various products of the company recorded a drop in the first quarter of 2020 but turned around in the next quarter and sustained the uptrend for the rest of the year after consumption turned stable.

A shift in consumer behaviour triggered recovery in beverage business.

During this time, the consumption of soft drinks increased in households and people preferred to purchase 1 or 1.5-litre bottles instead of 250ml or 500ml bottles, he said.

"On the other hand, the consumption of beverages other than soft drinks such as Lassi and lemonade dropped during the same period," he said. The company faced many challenges to functioning during the lockdown similar to businesses in other sectors of the economy, he said.

"However, the production cycle was maintained through alternate shifts of workers and supply was ensured against climbing demand," he said. During the Covid-19 emergency situation, the beverage business not only survived but also helped the masses with different activities.