Hindustan Unilever (HUL) has identified its premium coffee and tea segments as key growth drivers in the short term, following a flat performance in its Health Food Drinks (HFD) portfolio, which includes brands like Horlicks and Boost. Despite a 4% increase in turnover and 3% growth in net profit in Q2FY2024, HUL's CEO, Rohit Jawa, emphasized that growth in the HFD sector will be a medium to long-term commitment, potentially taking three to five years to materialize due to micronutrient deficiency opportunities in India.
Jawa also noted that the HFD market was affected by extreme weather in India, as Horlicks and Boost are traditionally consumed as warm beverages, leading to stagnation in growth during the last quarter. In contrast, HUL's premium coffee products, such as the Bru Southern Trails specialty coffee range, and premium tea brands like Taj Mahal Tea and Green Tea, have shown strong growth and continue to strengthen market leadership. However, the company remains cautious about potential tea pricing inflation due to erratic weather patterns affecting crop yields.
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