Coca-Cola stated on Wednesday that its business in India during the June quarter was negatively affected by unseasonal rains. Despite this, the beverage giant reported that the Asia-Pacific region, particularly markets like India, remained a driving force behind its growth, according to its second quarterly earnings release.
On an earnings call, James Quincey, Chairman and CEO, the Coca-Cola Company said, “There are always a few markets affected by specific local factors…. In India, business was unfavourably impacted by unseasonable rains and cooler temperatures in the quarter. However, the growth outlook remains intact.”
He mentioned that there is a significant surge in demand for juices in India and China. Additionally, the company reported robust consumer engagement with its diverse range of brands, such as Sprite and Thums Up, in the sparkling drinks segment.
Among the global beverage markets, India ranks as the fifth largest for the beverage major.
The summer season plays a pivotal role in driving the beverage companies’ annual sales growth. Nevertheless, the occurrence of unseasonal rains in specific regions of the country during the peak season had a detrimental effect on the sales of beverage players, particularly in the out-of-home channel.
Commenting about the performance of the Asia-Pacific region in its earnings release for the second quarter, the beverage major said, “Unit case volume grew 2 per cent, driven by growth across most categories. Growth was led by India, China, Thailand and Vietnam.”
The company further stated that it achieved “value share gains” in several markets, including India, South Korea, Australia, and Thailand.
“In a world with a wide spectrum of market dynamics, from inflation, to currency devaluation, to shifting consumer needs, our business has proven to be very resilient,” Quincey stated.
Talking about the performance of the bottling investment group, which represents the company-owned bottling plants network, it added, “Unit case volume declined 1 per cent, primarily driven by the impact of refranchising bottling operations and a decline in the Philippines, partially offset by growth in India and South Africa.”