Beverages company Coca-Cola today reported 31 percent growth in volumes in India for the March quarter. The strong volume case growth in Q1 2009, is the 11th straight quarter of consistent performance, with eight quarters out of the 11 quarters delivering double digit growth and puts the company on track for strong growth in the country.
In the first quarter of 2008 growth was 12 per cent and improved to 28 per cent during Q4 2008 (last quarter results). The company could manage only single-digit growth through 2006. Coca-Cola saw strong growth in other emerging markets like China, Brazil, Thailand and Vietnam during the first quarter of 2009, that saw the profit decline 10 per cent following restructuring charges and lower revenue.
The Atlanta-based company’s net income slipped to $1.35 billion during the quarter as against net income of $1.5 billion, in the first quarter of 2008. The company in a statement said it is currently on track to deliver $500 million in annualised savings from productivity initiatives by year-end 2011. The continued acceleration of these efforts will enable cash flows to be redeployed to drive investments for growth.
With consumers shifting from traditional carbonated soft drinks to healthier options like bottled water and juice drinks, the company continues to invest the $250 million as announced in late 2007 for expanding its product portfolio and strengthen its infrastructure.
Coca-Cola’s results came a day after rival PepsiCo reported a higher-than-expected profit and witnessed high double digit volume growth in India for its beverages business.
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.
