The Coca-Cola Company reported a substantial revenue influx of USD 290 million from India during the January–March period by divesting its bottling operations in key markets. Hindustan Coca-Cola Beverages (HCCB), the company’s Indian arm, transferred its company-owned bottling operations in Rajasthan, Bihar, the Northeast, and parts of West Bengal to existing bottlers, resulting in net gains of USD 293 million.
The decision to refranchise its operations aligns with Coca-Cola’s global strategy of divesting assets and franchising regional operations to local partners. This move underscores the company’s commitment to adapting to local market dynamics and leveraging existing partnerships for growth opportunities.
Despite facing a 2 percent decline in unit case volume in the Asia Pacific market zone, which includes India, Coca-Cola experienced growth in the Indian market. The company’s strong portfolio of brands, including Coca-Cola, Coke, Thums UP, Maaza, Sprite, Fanta, and Minute Maid, continues to resonate with consumers in India, making it the fifth-largest market for the Atlanta-based beverage giant.
HCCB facilitated the transfer of bottling operations to its existing partners in the regions mentioned, namely Kandhari Global Beverages, SLMG Beverages, and Moon Beverages. This strategic realignment allows Coca-Cola to focus on its core competencies while driving efficiency and agility in its supply chain.
In addition to the positive performance in India, Coca-Cola witnessed growth in other key markets such as the Philippines, Vietnam, and Indonesia. However, challenges persisted in China, where a decline offset gains in other regions.
Overall, the Coca-Cola Company reported a 1 percent growth in unit case volume globally, reflecting its resilience in navigating dynamic market conditions. With net revenue for the March quarter reaching USD 11.3 billion and organic revenues growing by 11 percent, the company remains optimistic about its outlook for the rest of the year.
Chairman and CEO James Quincey expressed confidence in the company’s performance, emphasizing the sustained growth trajectory amidst a challenging business landscape. Looking ahead, Coca-Cola anticipates organic revenue growth of 8–9 percent, driven by operational excellence and pricing adjustments in response to market inflation.