Coca-Cola on Wednesday said that business in India in the June quarter was “unfavourably impacted” by unseasonal rains. The beverage major, which released its second quarterly earnings, however added that growth in the Asia-Pacific region was led by markets such as India.
On an earnings call, James Quincey, Chairman and CEO, the Coca-Cola Company said, “There are always a few markets affected by specific local factors.... In India, business was unfavourably impacted by unseasonable rains and cooler temperatures in the quarter. However, the growth outlook remains intact.”
He added that the company saw “strong demand” for juices in India and China. The company added that in the sparkling drinks segment, it is seeing strong consumer engagements with its various brands including Sprite and Thums Up.
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India is the fifth largest market globally for the beverage major.
Summer season is a key driver of growth for the beverage companies’ annual sales. However, unseasonal rains in certain parts of the country during the peak season had an adverse impact on sales of beverage players especially in the out-of-home channel.
Growth
Commenting about the performance of the Asia-Pacific region in its earnings release for the second quarter, the beverage major said, “Unit case volume grew 2 per cent, driven by growth across most categories. Growth was led by India, China, Thailand and Vietnam.”
The company added that it recorded “value share gains” in markets including India, South Korea, Australia and Thailand.
“In a world with a wide spectrum of market dynamics, from inflation, to currency devaluation, to shifting consumer needs, our business has proven to be very resilient,” Quincey stated.
Talking about the performance of the bottling investment group, which represents the company-owned bottling plants network, it added, “Unit case volume declined 1 per cent, primarily driven by the impact of refranchising bottling operations and a decline in the Philippines, partially offset by growth in India and South Africa.”