“In India, we delivered our best ever quarter volumetrically; that’s 1 billion incremental transactions in the quarter led by affordable single-serve packs. We gained market share in sparkling soft drinks and juices, and our system is continuing to invest in the marketplace availability and execution to capture growth," James Quincey, chairman and chief executive officer, The Coca-Cola Co., said during the company’s earnings call on Tuesday.
India faced an early onset of summer this year, while consumer mobility has been on the rise, with an upswing in both domestic travel and out-of-home movement.
The maker of Coke and Maaza beverages said unit case volume grew 11% in the Asia-Pacific region during the second quarter, driven by strong growth in India and the Philippines. “Growth was led by sparkling soft drinks and juice and juice drinks," the company said on region-specific demand.
Overall, growth in developing and emerging markets was led by India and Brazil, it added.
Coca-Cola topped street expectations to report 12% growth in net revenues for the second quarter at $11.3 billion, signalling a recovery from the pandemic.
Meanwhile, across categories, the beverage maker said that at a consolidated level, sparkling soft drinks volumes grew 8%, driven by higher sales across all operating geographic segments, but primarily led by India, Mexico and Brazil.
Nutrition products, juice, dairy and plant-based beverages grew 6%, led by Maaza in India, fairlife in the US, and Del Valle in Latin America, the company said in its earnings note.
In India, Coca-Cola is expanding its consumer base by adding affordable products, and by reaching out to more outlets. This is especially key as companies face high inflation and consumers pick value offerings. “For example, in India, we focussed on segmented pricing, increasing prices on multi-serves and premium packs, but holding transaction driving price points and single serves, besides the affordable portfolio," Quincey said.
In May, Sanket Ray, president for India and South-West Asia, Coca-Cola, had said the company was promoting returnable glass bottles to reduce packaging costs and reach out to more customers.
Earlier this month, rival PepsiCo said its beverages business reported double-digit volume growth in India in the second quarter, hinting at strong summer season sales, as demand for cold drinks picked up.
Coca Cola sells brands such as Thums Up, Sprite and Limca in India. In February, it said home-grown aerated beverage Thums Up had become a billion-dollar brand in 2021.
