One summer doesn't tell the story: Coke upbeat on India
Coca-Cola
global chief operating officer Henrique Braun declared consumer demand in
India
was 'resilient' amid slowing sales across household products and groceries, exacerbated by early onset of monsoon that curtailed sales of summer products, including beverages and colas.
"We continue to see resilient demand in India. Summer still accounts for a larger percentage all over the world. But what is more important is the overall year equation, how you get events during the year when you can actually increase consumption, and then level off the seasonality moving forward," said Braun. "There are still many occasions that we need to develop for seasonality to actually be lowered. An all-weather mindset is important and the only thing that's going to change is that we are going to pivot fast and make sure we need to be back on track."
Demand for fast-moving consumer goods worsened to a two-year low in the March quarter with FMCG volume sales growth of 3.5%, according to global research firm Kantar. However, Coca-Cola saw double-digit volume growth in the quarter due to higher inventory stocking before summer.
However, the onset of India's monsoon, the earliest since 2009, impacted sales growth of summer goods including beverages and ice-cream, which counts April-June as their peak season.
The company behind
Maaza
and
Thums Up
, however, said market measurements don't fully factor ecommerce sales, especially
quick commerce
in cities, which have been seeing highest demand pressure over the past year.
"So, if you think about the urban, not only the sales that you get through the normal channels, but the whole ecosystem (has to be factored in). That math is not easily done as some of the market measurements don't capture everything. It's all happening in the urban, not necessarily in the rural," added Braun. "India has accelerated tremendously in digitisation. One of the things that was, to me, an eye opener as well, in terms of another channel that's developing here is the quick commerce that is very unique to India. It's accelerating, every time I come in, it's bigger."
India is Atlanta-based Coca-Cola's fifth largest market by volume. Globally and well as in India, shifting consumer tastes are prompting beverage companies, including Coca-Cola and
Pepsi
, to find ways to diversify from traditional soda and high-calorie juices to low calories versions.
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