NEW DELHI: Beverage biggie
Coca-Cola
is bullish on the long-term prospects of the Indian business, despite a slow start in the first two months this year. January and February were a bit soft, but business bounced back in the following months of March and April, the company said.
“We expect India to continue to have a strong year this year”, James Quincey, chairman and CEO, Coca-Cola Company, said during the company’s quarterly earnings call with investors.
Unit case volume in the Asia Pacific region declined 2%, as growth in trademark Coca-Cola and juice, value-added dairy, and
plant-based beverages
was more than offset by a decline in water, sports, coffee, and tea.
“Growth in the Philippines, India, Vietnam, and Indonesia was more than offset by a decline in China,” the company said in its earnings release.
Globally, unit
case volumes
for the entire quarter grew 1%, a company statement said. Net revenues grew 3% to $11.3 billion.
Quincey added that
Indian flavour brands
Thums Up, alongside others like Fanta, Sprite, and the trademark Coca-Cola have done well.
During the three months ended March 29, 2024, the company “recorded net gains of $599 million and $293 million related to the refranchising of its
bottling operations
in the Philippines and in certain territories in India,” the release stated. In January and February 2024, the company refranchised bottling operations in certain territories.
In January, Hindustan Coca-Cola Beverages, the bottling arm of Coca-Cola, announced the transfer of operations in three territories in northern India — Rajasthan, Bihar, and the north-east and West Bengal to local partners.
The company also incurred $7 million transaction costs related to the refranchising of bottling operations.
