Coca-Cola bottles better growth in Dec quarter

Beverages company Coca-Cola today reported an 18 per cent growth in volumes in India for the December quarter. Coming on the back of a 21 per cent growth in the September quarter this consistent performance puts the company on track for strong growth in the country.

In the first quarter of 2007 growth was just four per cent. That improved to 12 per cent in the second quarter. The company could manage only single-digit growth through 2006.

Coca-Cola saw strong growth in other emerging markets like Turkey, Brazil, Russia and West Asia as well, that saw the company's fourth quarter net profit climb by 79 per cent.

Growth in the quarter came mainly from carbonated soft drinks, especially its flagship Coke drink, and in what the company calls "still drinks" such as Maaza and Minute Maid.

The Atlanta-based company's net operating revenue rose to $7.33 billion (about Rs 28,800 crore) from $5.93 billion (about Rs 23,400 crore) a year ago.

With consumers shifting from traditional carbonated soft drinks to healthier options like bottled water and juice drinks, the company has announced plans to invest $250 million (about Rs 990 crore) in India in the next three years to expand its product portfolio and strengthen its infrastructure.

Unlike its rival PepsiCo, Coca-Cola has offset weak sales of drinks like Coca-Cola and Sprite with strong sales in emerging markets, acquisitions of non-carbonated drinks including Vitaminwater, and the introduction of Coke Zero, a no-calorie version.

According to industry sources, Coca-Cola's brand Thums Up is currently the leading cola brand in India. The company's range in India includes orange drink Fanta, cloudy lemon drink Limca and its pulpy orange drink Minute Maid which was launched last year.