Coronavirus stockpiling fuels Nestle Q1 sales

Swiss foods giant Nestle said Friday that India sales did well in the January-March quarter, with continued momentum for infant cereal Nan, Maggi noodles and KitKat chocolate. The India unit of Nestle SA is scheduled to report its first quarter earnings next month.

The foods maker reported its best quarterly sales growth in nearly five years globally, at 4.3% increase in organic growth, with consumers opting for pantry stocking of packaged foods as countries went into lockdown to contain the spread of COVID-19. It said however that underlying sales in Asia fell 4.6% impacted mainly due to a sales decline in China.

The maker of Maggi noodles and Nescafe coffee said in a BSE filing earlier this week that all its plants had got permissions to resume operations, and that manufacturing at the plants has begun at scaled down levels to maintain social distancing norms. Manufacturing or suspension of operations at various locations is dependent on the directions of the central and state governments and authorities.

Makers of foods products, though classified as essentials, have been facing the dual challenge of lockdown enforcements and acute labour shortage because of migration and fear of the COVID-19 over the past one month.

In India, foods companies and retailers say demand for snacks, noodles and chocolates has shot up anywhere between 50-150% with consumers indoors, and restaurants and malls shut.