Climate is the new challenge to demand prediction for ice cream, beverage, electronics companies. And, it's hard.
Mint in an earlier interaction. LG Electronics, the largest consumer electronics brand in India, makes around 28% of its annual revenues in the January-March quarter.Awry predictions, then, can lead to a production-demand mismatch.
“[Weather] models are also not able to capture the micro weather patterns,” said Mahesh Palawat, vice president, meteorology and climate change at Skymet Weather Services, adding it has become more difficult since 30-40 years ago. This leads to chaos at companies that "need predictions at least 48-72 hours in advance to make changes" to their schedules.Most ice cream companies, for instance, traditionally dispatch large inventories immediately after Holi, which marks the end of winter and the beginning of peak consumption.
“In small towns and villages, if a shopkeeper has two freezers, the person switches the second freezer on after the festival,” said Ankit Chona, founder and managing director of Hocco Industries, makers of an eponymous ice cream brand. “Holi is a time when people have a mindset switch.”Manufacturers typically schedule plant maintenance between December and February to ramp up for the season.
But unpredictable weather is increasingly disrupting these cycles, Chona added.“Given the significant investments in inventory and cold storage across distributors and retailers, climate volatility can create pressure across the supply chain,” Srideep Kesavan, CEO of Heritage Foods Ltd told Mint.Players like Kwality Walls are positioning themselves as “snacking” firms to ensure year-round visibility.Even industry heavyweights have been affected as weather plays truant. Unexpected rains in the second quarter of 2025-26, for instance, hurt beverage sales.
Read on livemint.com