Despite being the world’s largest beverage company with a valuation of $106 billion, Coca-Cola continues to see itself as a challenger brand in India, striving to carve a significant market share amidst strong local competition. This perspective was highlighted by John Murphy, Global President and CFO of Coca-Cola, during his address at the Deutsche Bank Global Consumer Conference in Paris.
“India is a top-five volume growth priority market for us,” Murphy said. “Even though the brand Coca-Cola is a global leader, in India, we approach the market with the mindset of a challenger. It’s one of our toughest markets, and that mindset is crucial for our success here.”
In India, Coca-Cola trails behind local favourites Thums Up and Sprite, both of which have surpassed $1 billion in annual sales in the country. Thums Up, which Coca-Cola acquired from Parle in 1993, became the first Coca-Cola brand in India to achieve this milestone in 2021, thanks to its strong carbonation and alignment with the spicy Indian palate. Sprite followed suit, reaching the billion-dollar mark the next year, driven by locally tailored, occasion-based marketing campaigns.
While Coca-Cola’s flagship brand has faced several rebranding efforts in India—from “Thanda Matlab Coca-Cola” to “Open Happiness”—its competitors have consistently maintained their market lead. Murphy emphasized that these local adaptations are part of Coca-Cola’s strategy to remain relevant and competitive in a diverse market like India.
Coca-Cola’s Indian operations have shown impressive financial growth, with a 57% increase in consolidated profit to ₹722 crore for the fiscal year 2023 and a 45% rise in revenue from operations, reaching ₹4,521 crore. This robust performance underscores India’s importance as a strategic market for the Atlanta-based beverage giant.
Murphy highlighted India’s consistency as a reliable growth market over the past few years, noting the company’s ability to convert opportunities into tangible value. “The key to our success has been our ability to execute daily and adapt to an environment where challenges are constantly evolving,” he stated.
Coca-Cola’s approach in India reflects a broader strategic shift to tailor its tactics based on the unique dynamics of each market. Murphy explained, “In a market like India, adopting a challenger mindset helps us unlock the brand’s potential. This approach might differ in other markets, where Coca-Cola’s role and strategy are adapted to fit local contexts.”
As Coca-Cola continues to navigate India’s competitive landscape, its commitment to innovation, localized marketing, and consistent execution remains critical to maintaining its growth trajectory. The company’s ability to stay agile and responsive to local preferences will be key in its journey from challenger to market leader in India’s bustling beverage sector.