Soft drinks major The Coca-Cola Company witnessed remarkable performance in the September quarter, with Chairman and CEO James Quincey announcing double-digit growth in both volume and top-line revenue. Moreover, the company achieved its highest gains in value share over the past three years. During an earnings call, Quincey revealed that the company recorded an impressive 2.6 billion transactions in India in the third quarter of 2023. This success was attributed to the company’s commitment to offering affordable products and expanding its sales network into remote rural regions.
“In India, we delivered double-digit volume and top-line growth, which resulted in the highest value share gains over the past three years. We are winning in the market by generating 2.6 billion transactions at affordable price points and driving availability across rural regions,” he said.
Coca-Cola Growth:
The Indian market played a significant role in driving Coca-Cola’s overall growth within the Asia Pacific region and the emerging markets.
During the June quarter, Coca-Cola’s business in India was affected by untimely rainfall, which coincided with the summer season when demand for carbonated beverages typically reaches its zenith.
India played a pivotal role in propelling global growth within Coca-Cola’s Bottling Investments Group (BIG), an in-house division responsible for managing bottling operations in select countries.
“Unit case volume grew 2 per cent, primarily driven by growth in India and the Philippines, partially offset by the impact of refranchising bottling operations,” it said.
India is the fifth largest market for The Coca-Cola Company.
In the Asia Pacific market, Coca-Cola’s unit case volume was “even” as growth in Trademark Coca-Cola and other beverage categories was offset by a decline in water, the company said.
“Growth in India and the Philippines was offset by declines in China and Indonesia,” it said.
The company gained value share in total non-alcoholic-ready-to-drink (NARTD) beverages in the Asia Pacific market, led by share gains in India, the Philippines, South Korea and Japan, the earnings statement added.
Unit case volume means the number of unit cases of company beverages directly or indirectly sold by the company and its bottling partners to customers.
The Atlanta-headquartered company reported an 8.04 per cent growth in its consolidated net operating revenue to USD 11.95 billion.
“Revenue performance included 9 per cent growth in price/mix and 2 per cent growth in concentrate sales. Concentrate sales were in line with unit case volume,” it said.
Its unit case volume grew 2 per cent during the quarter.
“Developed markets grew 2 per cent, driven by growth in Mexico and Japan. Developing and emerging markets also grew 2 per cent driven by growth in India and the Philippines,” said the earning statement said.
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Quincey said the company has delivered an “overall solid quarter”.
“Our leading portfolio of brands, coupled with an aligned and motivated system, positions us to win in the marketplace today, while also laying the groundwork for the long term,” he said.
The company has raised its full-year topline and bottomline forecast in light of its year-to-date performance, Quincey added.
“The company expects to deliver organic revenue (non-GAAP) growth of 10-11 per cent,” it added.