Coca-Cola eyes billion-dollar brand surge in India amid resilient demand

New Delhi: Global beverage major Coca-Cola is bullish on India's long-term growth, with its Executive Vice-President and Chief Operating Officer, Henrique Braun, stating that more India-origin brands are poised to join the company’s global billion-dollar club. 

This optimism comes amid what Coca-Cola calls “resilient” consumer demand, even in the face of climatic fluctuations and high taxation on carbonated drinks.

Currently, Coca-Cola has three billion-dollar brands in India—Thums Up, Maaza, and Sprite—underscoring the market’s vitality, Braun said. 

“India is very important. It's our fifth-largest market in terms of volume, and we’re building the right foundations for sustainable growth,” he added. 

Industry insiders believe Coca-Cola is set to add another brand, potentially Coke, to the billion-dollar club from India soon.

Braun noted that Coca-Cola now has 30 billion-dollar brands globally, half of which were built organically. “I have no doubt that we will have another one coming in the future because we believe in the vibrance of the country and the industry,” he said.

India's beverage market, while still developing, presents a significant opportunity, especially as Coca-Cola seeks to reduce its reliance on seasonal sales peaks. “Summer still accounts for a larger percentage of beverage sales worldwide, but in India, we are working to create consumption occasions across the year to flatten this seasonality,” Braun said.

To that end, Coca-Cola is adopting an “all-weather” mindset, identifying new moments of consumption, and developing long-term strategies to offset the concentration of demand during peak summer months. “It’s never a straight line. But in a larger time frame, demand in India remains resilient,” Braun said.

Scaling digital and local innovations

Coca-Cola’s India playbook is also informing global strategies, particularly in digital transformation. The company has rapidly scaled Coke Buddy, an online B2B platform for kirana stores, with over 1 million out of 5 million retailers in India already onboard. The platform simplifies bulk ordering with features like personalised recommendations and real-time tracking.

Braun described India as a “learning lab,” especially for digital innovations and localised solutions. “We are taking the lessons learned here to other global markets,” he said.

Portfolio and packaging aligned with evolving preferences

Coca-Cola is expanding its low- and no-sugar beverage offerings in India, alongside smaller, more affordable pack sizes. The company recently launched Thums Up XForce, a zero-sugar variant, and continues to push Diet Coke, Coke Zero, and Sprite Zero to meet consumer demand for healthier options.

“We provide a diverse range of products that cater to varied needs while maintaining affordability and accessibility,” Braun said. These shifts also align with India’s evolving regulatory landscape, which includes some of the highest taxes on carbonated beverages globally—28% GST plus a 12% cess.

While Braun acknowledged the taxation burden, he added, “We’ve learned in 139 years that we have to deal with the local framework. We focus on what we can control.”

Bottling strategy ready for next growth phase

Coca-Cola’s bottling network in India is also primed for its next growth phase, with recent moves to refranchise operations and partner with aligned regional bottlers. The company now works with 11 bottling partners, four of which account for 85% of total volume.

“We’re in good shape for the next round of growth,” said Sanket Ray, President of Coca-Cola India and South Asia. “We’ve defined partners that are aligned with our vision to grow in India.”

In December 2023, Coca-Cola sold a 40% stake in its bottling business Hindustan Coca-Cola Beverages (HCCB) to the Jubilant Bhartia Group. This was followed by franchising operations in Rajasthan, Bihar, the Northeast, and parts of West Bengal to existing bottlers.

Looking ahead, Braun said Coca-Cola is not chasing a fixed number of bottlers. “What we really look at is who has the highest capabilities to partner with us, with the right size and granularity.”

As Coca-Cola doubles down on India’s fast-paced beverage market, its blend of brand building, seasonality mitigation, digital innovation, and localised strategy appears central to its next phase of global growth.