Coke India volumes grow three-fold in Q3

Coca-Cola India has posted 12 per cent increase in unit volumes for the quarter ended December 2006, a three-fold rise from the previous quarter. This is the second quarter of robust growth for it in the country after eight quarters of slow growth.

In a communication to the US Securities & Exchange Commission, Chairman and CEO Neville Isdell said: "Continued investment in marketing initiatives around the quality and safety of our products and focus on execution in the consolidated bottling operations resulted in solid growth and share gains in sparkling beverages as well as in juices and juice drinks for the quarter."

In the previous corresponding quarter, Coca-Cola saw a 4 per cent decline in unit volumes in the country. The company posted a unit case volume decline of 10 and 12 per cent respectively for the first two quarters in 2006.

This was partly because of an increase in product prices as well as consolidation of the bottling operations in order to drive revenue growth and improve operating and working capital efficiencies.

When the pesticola controversy resurfaced in Q3 2006, Isdell had said while the company would continue to address the allegations, it was cautious on the growth outlook for the rest of the year.

During the quarter, Coke rolled out its fruit juice brand Minute Maid in select locations such as Mumbai. It also introduced variants of Schweppes tonic in the city. The brands will be rolled out in other metros shortly.

The growth in the latter half of 2006 has been attributed to increased investment in marketing and brand building. International growth has been strong for the company during the quarter, growing at six per cent against an overall growth of four per cent.

Net income for the year ended December 2006 was $5080 million, four per cent higher than $4872 million for the previous year. Net operating revenues were $24,088 million, four per cent higher than $23,104 million in 2005.

The company has managed double digit growth in emerging markets such as India, China, Russia and Nigeria among others. The company's flagship brand, Coca-Cola, has grown by five per cent globally.