Coca-Cola and PepsiCo, two of the world’s largest beverage companies, cited India as a critical developing growth market in their global December quarter earnings, as businesses reopened and vaccinations were expedited.
PepsiCo said beverage unit volume grew 20% in the quarter, primarily reflecting double-digit growth in India and Pakistan. The beverage company’s success depends in part on its ability to grow business in developing and emerging markets, including Mexico, Russia, the Middle East, China, South Africa, Brazil, and India. PepsiCo noted that unit volume of convenient foods grew in the quarter, riding on double-digit growth in India and Pakistan and high-single-digit growth in the Middle East.
The Coca-Cola Company reported a 17% increase in net revenue to USD 38.7 billion, with organic revenue increasing by 16%. This performance was driven by 9 per cent growth in concentrate sales and 6 per cent growth in price/mix.
In the Asia-Pacific market, in which India falls, Coca-Cola’s unit case volume grew 11 percent, resulting in a low single-digit increase versus 2019. “Growth was driven by China, India, and the Philippines, partially offset by pressure in Australia due to the impact of the pandemic. Growth was led by Trademark Coca-Cola and sparkling flavours.
Coca-Cola reported unit case volume growth of 11% for the quarter for its Asia Pacific unit, resulting in a low single-digit increase compared to 2019. The maker of Coke and Sprite sparkling drinks noted in its earnings statement that growth was driven by China, India, and the Philippines. The company said global unit case volume grew 9% for the quarter and 8% for the full year.
“While the environment remains dynamic, we will build on the momentum from 2021 to drive topline growth and maximise returns,” Coca-Cola chairman James Quincey said in an earnings statement. The beverage maker said that compared to 2019, global unit case volume sequentially improved each quarter in 2021. The fourth quarter marked the first in which away-from-home volume was ahead of 2019, the Atlanta-based company said. Both companies noted the impact of inflation on operations, amid rising costs of cooking oil, packaging, and transportation.