 "Global beverage major Coca-Cola bullish on India; sees strong year ahead")
Global beverage major Coca-Cola sees a strong year ahead in India, despite a soft start to the year.
The company’s business momentum in India was impacted by temporary factors in the first quarter ended 29 March 2024.
“However, the momentum in India recovered by the end of March,” said James Quincey, chief executive officer, Coca-Cola Company, during the company’s quarterly earnings call with investors.
“The India market performed atypically at the start of the year with a soft January and February, but started picking up in March and April. We have realised that India will not follow a straight line of metronomic growth. We are bullish on the long-term growth in India and see a strong year ahead for the country,” he added.
Unit case volume in the Asia Pacific region declined 2 per cent, as growth in trademark Coca-Cola and juice, value-added dairy, and plant-based beverages was more than offset by a decline in water, sports, coffee, and tea.
“Growth in the Philippines, India, Vietnam, and Indonesia was more than offset by a decline in China,” the company said in its earnings release.
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The Atlanta-based fizzy drink major said that unit case volumes for the entire quarter grew 1 per cent.
Quincey added that Indian flavour brands ThumsUp, alongside others like Fanta, Sprite, and the trademark Coca-Cola have done well.
During the three months ended 29 March 2024, the company "recorded net gains of $599 million and $293 million related to the refranchising of its bottling operations in the Philippines and in certain territories in India," the release stated.
Hindustan Coca-Cola Beverages Pvt Ltd (HCCB), the bottling arm of the Coca-Cola Company, in January this year, had announced the transfer of operations in three territories in northern India — Rajasthan, Bihar, and the north-east and West Bengal to local partners.