The Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), renowned for its iconic 'Amul' brand, has reported a remarkable 11% increase in revenue for the 2024-25 fiscal year, reaching Rs 65,911 crore. This growth is attributed primarily to a surge in volumes across all product categories, as Managing Director Jayen Mehta noted strong consumer demand coupled with minimal price hikes.
Mehta, speaking to PTI, emphasized the company's robust performance, stating, "Our revenue during the 2024-25 financial year grew by 11 per cent to Rs 65,911 crore. We have clocked double digits across all product categories." The total un-duplicated revenue of the Amul brand has risen to approximately Rs 90,000 crore, up from about Rs 80,000 crore in the previous fiscal year.
GCMMF stands as the world's largest farmer-owned dairy cooperative, representing a network of 36 lakh farmers across 18,600 villages in Gujarat. Its 18 member unions collectively procure an impressive 300 lakh litres of milk daily. Notably, these unions market Amul dairy products directly in local markets, bypassing the GCMMF network.
Mehta pointed out that the recent increase in turnover was largely driven by volume growth rather than significant price increases. However, he acknowledged that milk prices were raised in June 2024 due to escalating input costs. In an effort to stimulate consumer purchases, GCMMF reduced the prices of one-litre milk packs by Rs 1 across India in January 2025, encouraging customers to opt for larger quantities.
In terms of global standing, GCMMF ranks eighth among the top 20 dairy companies worldwide in milk processing, as reported by the International Farm Comparison Network (IFCN). The cooperative is not only thriving in the domestic market but is also expanding its international reach, exporting dairy products to approximately 50 countries. A significant milestone was achieved in 2024 when GCMMF entered the US market with four variants of fresh milk, aiming to cater to the Indian diaspora and Asian communities.
In stark contrast, British confectionery firms have faced a challenging year, experiencing a 13% decline in sales revenue on average. This downturn, as reported by Neill Barston, can be attributed to a combination of inflationary pressures and ongoing supply chain challenges that have adversely affected ingredient costs.
The latest figures from Unleashed, an inventory management software provider, indicate that the average sales revenue for confectionery companies plummeted from £1,983,461 in 2023 to £1,718,605 in 2024. The findings underscore the significant hurdles faced by the sector, including the ramifications of Brexit, which has increased export costs to the EU and introduced additional red tape.
Barston noted that many manufacturers have reported inflated costs that have squeezed their profit margins and hindered effective exporting. The study revealed that manufacturers in the confectionery category generated an average of £2.33 for every pound spent on inventory last year, a slight decrease from £2.36 in 2023.
Despite the challenges in confectionery, the broader food and drink sector in the UK has seen an uplift, with average sales across seven grocery categories rising by nearly £2.1 million in 2024, representing a 17% increase from the previous year. Drinks companies, in particular, reported impressive results, with sales soaring by 76%, from £708,212 to £1.246 million.
However, the analysis also highlighted that manufacturers, wholesalers, and retailers continue to grapple with margin pressures, generating an average of £2.07 for every pound spent on inventory last year, down from £2.61 in 2023. This trend reflects the ongoing challenges in managing costs while trying to remain competitive.
Among the grocery categories analyzed, the Sauces, Condiments & Seasonings category led the pack with a remarkable increase of over 42%, climbing from £894,638 to £1.2 million. Mixed Goods also performed well, posting over a 30% increase, while Snacks saw a 17% rise in sales from £984,000 per company in 2023 to £1.1 million in 2024. In contrast, the confectionery sector experienced a decline, falling from £1.98 million achieved two years ago to £1.7 million per business in 2024.
The report by Unleashed revealed that while profitability on inventory decreased for confectionery manufacturers, there were notable exceptions in the Sauces, Condiments & Seasonings, and Sport Supplements categories, which saw significant rises in Gross Margin Return On Inventory investment (GMROI), at 118% and 100%, respectively.
Joe Llewellyn, general manager of ERP Small Business at The Access Group, commented on the situation, stating, "The strong sales performance seen last year across all categories is a sign that the UK’s small food manufacturers are adept at tapping into the public’s appetite for new food experiences. However, this hasn’t been reflected in confectionery, which saw a dip in sales and a squeeze in its margins."
Dan Pope, host of the podcast Hungry, highlighted the ongoing tension between cost-of-living pressures and brand survival in the confectionery sector. He remarked, "Consumers have less to spend and will switch to own-label for some items. Brands are becoming more expensive as they’re having to put through price increases to stay in the green, and retailers aren’t wanting to accept cost price increases. It’s the perfect storm."
As the Amul brand continues to thrive amidst a backdrop of strong consumer demand and careful pricing strategies, the confectionery sector faces a stark reality of declining revenues and increasing pressures on margins. The contrasting fortunes of these two sectors illustrate the diverse challenges and opportunities present in today's market landscape.
