Coca-Cola’s global Chief Executive, James Quincey, has flown into India to assess the performance of the beverage maker’s fifth largest market by volumes, as confirmed by executives familiar with the matter. During his visit to India, Quincey is set to address employees, meet with bottling partners, and conduct market visits, aiming to gain insights into the local operations and opportunities for growth.
India holds immense significance as a pivotal market for Coca-Cola. The beverage giant is actively focused on fostering the growth of soft drinks in the country, leveraging its unwavering stability in the face of global volatility.
Despite sending an email to Coca-Cola inquiring about Quincey’s visit and requesting details and comments, no response has been received thus far.
“India is a high priority market for Coca-Cola, with huge under-penetrated category potential, providing a significant runway for growth. Hence the importance of this market among company leadership,” an executive with knowledge of the developments said.
In recent months, John Murphy, the global President and Chief Financial Officer of the company, also made a visit to India.
The beverage maker based in Atlanta acknowledged its India unit’s remarkable performance in 2022, with the country being its fifth largest market in terms of volume. However, the current April-June quarter has been characterized by uncharacteristically cool weather and excessive unseasonal rainfall in North India, affecting the demand for summer-specific products such as soft drinks, ice creams, and air conditioners.
The April-June summer period, which typically contributes a significant portion of annual sales for soft drinks, is experiencing a unique situation across North India. According to the weather forecaster IMD, there is no heat wave observed in the region, marking a departure from the usual weather patterns seen since 2014.
In its global earnings statement, Coca-Cola reported that its India unit had increased the availability of its products to over 300,000 stores during the last reported January-March quarter. This expansion in distribution resulted in a remarkable 3 billion transactions for the company.
Ahead of the summer season, the beverage maker of Coke and Thums Up revealed that it had successfully incorporated 40,000 new coolers during the quarter.
Quincey commended the Indian economy, characterizing it as “resilient” and highlighting its robust job market and strong consumer demand. He attributed the growth of their business in India to a higher number of retailers, strategic investments in modern cold-drink equipment, and effective pricing strategies.
