Britannia signals another 1.5-2% price hike in Q2

For its low-priced packs, Britannia has largely relied on shrinkflation, keeping the retail price unchanged while reducing the quantity in each pack.

BENGALURU: Britannia Industries may implement another 1.5-2% price increase next quarter, largely through “shrinkflation” in its Rs 5 and Rs 10 packs, as higher sugar, palm oil and fuel costs continue to weigh on the biscuits maker. Its CEO and MD, Rakshit Hargave, said during an analyst call on Friday that the price increases implemented in the June quarter had offset only about half of the inflation the company faced. For its low-priced packs, Britannia has largely relied on shrinkflation, keeping the retail price unchanged while reducing the quantity in each pack. “If the overall impact was 1%, you would probably see another 1.5%-2% coming in,” Hargave said.