The Indian market continues to be a key growth driver for beverage major Coca-Cola, as sales on its home turf of North America continue to remain poor.
The cola major saw a unit-case volume growth of 29 per cent in India, the highest recorded in any region in the first quarter of calendar year 2010. Turkey was a distant second, at 18 per cent volume growth. Together, India and Turkey, pushed up the volume-growth of Eurasia and Africa by 11 per cent, helping the latter lead the performance chart by region for the quarter.
Net revenues for Eurasia and Africa grew 21 per cent in the first quarter. Operating income, on the other hand, was a bit higher in terms of growth, at 23 per cent.
Overall, Coca-Cola’s unit-case volume growth increased by three per cent, while net revenue was up five per cent for the first quarter. Its home turf of North America saw a fall of two per cent in terms of volumes, while revenues were down by six per cent.
Says Atul Singh, president and chief executive officer, Coca-Cola India: “We are seeing strong growth across our portfolio, both in sparkling and in stills. Brand Coca-Cola, too, registered double-digit growth during the same quarter.”
Besides India, there were allied contributors to brand Coca-Cola’s growth. This included Vietnam, the Philippines, Brazil, Russia and Egypt. Like India, these registered double-digit volume growth.
Overall, total sparkling beverage unit-case volumes grew two per cent, with international sparkling beverage unit-case volumes rising three per cent. Total still beverage unit-case volumes, on the other hand, increased eight per cent in the quarter, led by continued growth in juices and juice drinks, teas and water brands. Internationally, still beverage unit-case volumes increased 12 per cent.
Muhtar Kent, chairman and chief executive officer, The Coca-Cola Company, said, “I am once again pleased with the results of the quarter, as we continue to grow our dynamic global business.”
“During the quarter we continued to achieve solid business results worldwide, all the while taking decisive action to strategically advance our North America business and further strengthen our franchise system in Europe. Despite expected ongoing challenges in global economic conditions, we continue to invest in our business and build the health of our brands fuelled by world-class marketing and innovation.”
