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London Dairy sees 15% volumes from e-comm channels; high double-digit growth in impulse packs, ET Retail


New Delhi: Online retail channels including e-commerce and quick commerce are driving about 15 per cent volumes for premium ice-cream brand London Dairy. Overall, the brand is seeing about 50-55 per cent of its volumes from gourmet stores followed by 15 per cent from e-commerce and the remaining from modern trade.

Talking to ETRetail, Milind Pingle, CEO, Allana Consumer Products said that the company in the last 2-3 years has seen significant growth in its e-commerce business and is expanding its presence across food delivery apps and quick commerce platforms.

London Dairy is marketed and distributed by FMCG major Allana Consumer Products. The brand plays in the premium segment selling ice creams in the range of Rs 1,000 per liter.

Commenting on future plans, Pingle said that the company is working on the possibility of geographical expansion into 100 new cities across the country along with building a wider portfolio to cater to emerging consumer segments such as healthy ice creams and impulse packs.

Over the last year, London Dairy is seeing higher demand for impulse packs in the form of single packs, cups, bars, and sticks. Pingle stated that the impulse packs segment is growing at a high-double digit of 35-40 per cent for the brand, while take-home packs are growing at a modest rate of 15-20 per cent.

Further, the company is working on expanding its portfolio to cater to the health-conscious and vegan segment. London Dairy has launched light ice creams, less-fat yogurts, and sorbets for lactose-intolerant consumers.

Compared to pre-pandemic levels, Pingle expects the brand to grow at a CAGR of over 20 per cent compared to the industry which has been growing at 12 – 14 per cent over the last five years.

“In the premium space, we have been growing by over 20% YOY in the last three years and I must say here that our price point is significantly higher than some of the popular brands. I think that we will do even better in this coming year.”

Commenting on the impact of high milk prices on ice-cream costs, he noted that commodity inflation is here to stay and it has to be battled for the entire industry. London Dairy has not taken any price hikes for this summer season yet and has been absorbing the cost increases on raw materials.

  • Published On May 18, 2023 at 05:07 PM IST

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