 "Coca Cola flags slowdown in emerging markets, cites heavy monsoons in India")
Beverage major Coca-Cola reported a 1 per cent decline in volumes in the third quarter ended September 27, owing to temporary factors, mainly heavy monsoons in several states, as the company flagged a slowdown in emerging markets globally.
“India had a particularly heavy monsoon in several states, which impacted volume growth in the country,” said James Quincey, chief executive officer, Coca Cola Company, during the quarterly earnings call with investors.
Quincey, however, stated that a good monsoon spell translates into increased agricultural output in the country, adding that the company is looking forward to “India returning to growth next year.”
The Atlanta-based company’s unit case volume declined 1 per cent, as “the growth led by Brazil, the Philippines and Japan was more than offset by declines in China, Mexico and Türkiye,” the company stated in its earnings release.
Meanwhile, in the Asia Pacific region, unit case volume declined 2 per cent as growth in Coca-Cola was more than offset by declines in water, sports, coffee and tea, and juice, value-added dairy and plant-based beverages.
Meanwhile, earlier this month, rival cola major Pepsico had said it witnessed a high-single digit growth for beverages in India in the third quarter ended September 7.
Several Indian fast-moving consumer goods (FMCG) companies, too, have flagged disturbances caused by heavy rains and floods in the September quarter.
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In its quarter update, Dabur India – the maker of Hajmola candy and Real fruit juices – said that while demand trends were improving, heavy rains and floods across the country impacted out-of-home consumption and consumer offtake during the quarter, which especially impacted its beverage business.
Analysts, too, have flagged the impact of monsoon on demand in the quarter.
“Heavy rains and floods in certain regions have disrupted the supply chain. They also affected out-of-home consumption and consumer offtake, particularly for the beverages category,” analysts at Motilal Oswal financial services had stated in a note earlier this month.