Coca-Cola reported weaker-than-expected sales in India during the July–September quarter, as heavy and prolonged monsoon rains dampened demand for summer-focused beverages. Despite the short-term slowdown, the beverage giant remains optimistic about India’s long-term growth prospects.
“India underperformed expectations in volume terms because of the monsoon,” said James Quincey, chairman and global chief executive officer of The Coca-Cola Company, during the company’s quarterly earnings call on Tuesday. “India, because of the monsoon, and China, due to economic pressures—both markets saw softer volumes.”
India, Coca-Cola’s fifth-largest market by sales volume, faced an extended spell of rainfall that impacted key summer categories such as aerated drinks and juices. “In Asia-Pacific, volume declined across all operating units, driven by softer consumer spending, weaker industry performance, and inclement weather in markets like India and the Philippines,” Quincey added.
He noted that the company witnessed “some sequential improvement” in September, indicating early signs of recovery as weather conditions normalized.
Coca-Cola’s rival PepsiCo also reported similar challenges earlier this month. Its global chairman and CEO Ramon Laguarta said that “growth in India has slowed due to weather and competitive pressures,” though he expects recovery in the coming quarters.
In parallel, Coca-Cola advanced its bottling refranchising strategy in India—a process it began in 2015 to shift bottling operations to local partners. The company sold a 40% stake in Hindustan Coca-Cola Beverages (HCCB) to the Jubilant Bhartia Group, marking a significant milestone in the refranchising roadmap.
Quincey described the deal as “one of the last two large pieces” required to complete Coca-Cola’s global refranchising effort. The company disclosed that it recognized a net gain of $102 million and incurred $7 million in transaction costs from the Indian refranchising during the nine months ending September 26, 2025.
Commenting on the region’s broader dynamics, Quincey said: “India has huge potential for growth in volume over many years, even though prices are much lower compared to developed markets like Japan and Australia.”
Globally, Coca-Cola reported a 1% rise in unit case volume and a 5% increase in net revenue to $12.46 billion, exceeding market expectations. However, the company acknowledged that beverage demand “remains soft but is improving.”
Despite the weather-related setback, Coca-Cola’s leadership continues to view India as a core growth engine in its Asia-Pacific portfolio, citing rising per-capita consumption, expanding retail reach, and the country’s youthful demographics as key drivers for the years ahead.