Challenges grow for Coca Cola despite double-digit growth in June quarter

In April-June period, all aerated brands from the firm's stable posted double-digit growth, albeit on a low base

Coca-Cola India managed to grow its sales and volume in double digits during the April to June quarter. While it is the second consecutive quarter of double-digit volume growth and fourth in terms of revenue expansion, higher taxation on sugary aerated drinks and the recent rise in sugar prices are adding to the firm’s margin pressure.

During the past one and a half years, taxation on aerated beverages has jumped to 40 per cent from 24-26 per cent. Moreover, prices of sugar have surged by over 25 per cent from May. Experts say it could rise further due to frantic buying