Author - Damini Chandankar
Beverage producers were among the most affected during the Coronavirus lockdown. Hector Beverages Pvt. Ltd, which sells the Paper Boat brand of traditional beverages, is growing its distribution network and dealing with more online-only launches.
The company lost sales across modern trade channels and institutional deals to airports and airlines which was a major chunk of their business. Paperboat's share of online sales is up from 6% pre-Coronavirus to 14-15%. Therefore, it is reviewing its plan to bring back its seasonal launches on e-commerce sites.
In the last fiscal year, Hector had to write off inventory worth ₹35 crores as its rollout for summer beverages coincided with the world's strictest lockdown. The company expects to significantly narrow losses by end of the current fiscal year and turn profitable in FY22.
What do you think, Will Hector Beverages be able to survive with online-only Products?