The Coca-Cola Company has announced that its India business recorded the best-ever volume growth in the second quarter.
It reported unit case volume growth in the June quarter, helped by its sparkling soft drinks portfolio and fruit drink brand Maaza.
"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 a share in sparkling soft drinks and juices and our system is continuing to invest in the marketplace availability and execution to capture growth," said Coca-Cola Company Chairman and CEO James Quincey during the company’s earnings call on July 26, 2022.
Sparkling soft drinks grew 8%, driven by growth across all geographic operating segments, primarily led by India, Mexico and Brazil. Trademark Coca-Cola grew 7%, driven by growth across all geographic operating segments and operating units. Coca-Cola's Zero Sugar grew 12%, driven by double-digit growth across developed, developing and emerging markets. Sparkling flavours grew by 11%, led by the Asia Pacific and Europe, the Middle East and Africa.
In the second quarter, Coca-Cola Company's sparkling soft drinks grew 8%, which was "primarily led by India, Mexico and Brazil", said the Atlanta-headquartered firm in its global earnings.
"Growth in developed markets was led by Mexico, Western Europe and the United States, while growth in developing and emerging markets was led by India and Brazil," it said.
Nutrition, juice, dairy and plant-based beverages grew by 6% led by Maaza in India, Del Valle in Latin America and fair life in the US.
In the Asia Pacific Market, which includes India, Coca-Cola's unit case volume grew by 11%.
This was "driven by strong growth in India and the Philippines, partially offset by pressure in China due to reduced consumer mobility resulting from a resurgence in Covid-19 cases", said Coca-Cola.
During the three months ended July 1, 2022, Coca-Cola Company's net operating revenue was $1.56 billion, up 4.19%. It was $1.50 billion in the corresponding period last year.
Unit case volume means the number of unit cases of the company's beverages directly or indirectly sold by it and its bottling partners to customers.
Bottling investments: Unit case volume grew 26%, driven by growth in all markets, led by India and the Philippines. Bottling investment showcased strong and robust growth through the focus on affordable entry packs and relaunching reusable glass bottles in India.
India is the fifth-largest market for Coca-Cola globally.
Overall, Coca-Cola Company's net revenues grew 11.80% to $11.32 billion and organic revenues (non-GAAP) grew 16%. Its net revenue was $10.12 billion in the June quarter of last year.
Quincey said, "Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we have taken to execute for growth in the face of challenges in the operating and macroeconomic environment".