Coca-Cola is unfazed by the surge of new competitors in India’s crowded beverages market, with its global Chief Operating Officer Henrique Braun stressing that the company is prepared for short-term disruptions while staying focused on long-term growth.
“Being in this business for a long time, we know how to react to a short-term attack by different competitors without losing sight of the future,” Braun said at the Barclays Consumer Staples Conference in Boston.
He noted that the majority of new brands fail to survive beyond a few years. “About 30,000 new products enter the market every year. Five years later, 85% are gone. Less than 1% actually become $1-billion brands after 7–10 years,” he pointed out.
Rising Competition in India
Braun’s comments come as India’s ₹67,000 crore packaged beverages industry faces heightened competition. Reliance Consumer Products has relaunched Campa Cola at nearly half the price of Coke and Pepsi, backed by a planned ₹8,000 crore investment. Regional brands such as Lahori, House of Bindu, and Tru are also gaining ground, driven by ethnic flavours and lower price points.
According to NielsenIQ, small and regional beverage players grew 10.2% by value in 2024—the fastest in five years—boosting categories like carbonated drinks, juices, sports beverages, and ready-to-drink coffees.
Growth Momentum Slows
Despite India being Coca-Cola’s fifth-largest market by sales volume, the company reported a decline in volumes during April–June, attributing it to early monsoons and geopolitical pressures. Globally, unit case volume fell 1% in the last quarter, dragged by India, Mexico, and Thailand. In Asia-Pacific, volumes slipped 5%, largely due to weaker demand in India.
“It’s never a straight line. Momentum has been slower than expected in markets like India, Mexico, Vietnam, and Thailand. But we remain aligned with our bottlers on actions that safeguard long-term value creation,” Braun said.
India Partnerships Remain Key
Coca-Cola recently sold a 40% stake in Hindustan Coca-Cola Beverages (HCCB) to the Jubilant Bhartia Group in a ₹12,500 crore deal, marking the group’s largest investment to date. Braun underscored the importance of long-term partnerships in India: “When we picked our partners, there was always an element of multi-generational belief in the business—that’s critical when choosing bottlers.”
Despite headwinds, Coca-Cola remains committed to India, betting on scale, partnerships, and patience to outlast short-term competition in one of the world’s most dynamic beverage markets.