In its global earnings statement released on Wednesday, Coca-Cola reported that its India business was adversely affected by unseasonal rains during the April-June quarter. James Quincey, Chairman of the Coca-Cola Company, mentioned on an earnings call that the unfavourable impact was due to unexpected rains and cooler temperatures during the quarter, which impacted sales of summer categories like cold beverages and ice cream. Despite this setback, Quincey assured investors that the growth outlook for India remains intact and that the Asia-Pacific region’s growth is led by key markets such as India.
Coca-Cola highlighted the strong demand for juices in both India and China, as well as robust consumer engagement with popular sparkling beverage brands like Sprite and Thums Up in the Indian market. The April-June quarter is crucial for beverage companies, contributing close to 40% of annual sales.
Despite the challenging weather conditions, unit case volume for Coca-Cola grew by 2%, driven by growth across most categories, with India, China, Thailand, and Vietnam leading the way. The company also achieved value share gains in important markets such as India, South Korea, Australia, and Thailand.
However, the bottling investment group faced a decline of 1% in unit case volume, attributed to refranchising bottling operations and a downturn in the Philippines, partially offset by growth in India and South Africa.
India, the fifth-largest market for Coca-Cola in terms of volume sales, experienced its “strongest year ever” in 2022. Nonetheless, the growth momentum of last year’s summer-facing categories was hindered due to the impact of unseasonal rains during the current quarter.