Inclement weather impacts beverage major Coca-Cola's India Q3 performance

Global beverage major Coca Cola flagged the impact of bad weather in India, which led to a decline in volumes in the country,

“In India, volumes declined as our business was impacted by inclement weather,” Henrique Braun, chief operating officer at the Coca Cola Company told analysts on a post-results call on Tuesday. 

On a consolidated basis, the company’s unit case volume grew 1 per cent, primarily driven by growth in Central Asia, North Africa, Brazil and the United Kingdom. In the Asia Pacific region, unit case volume declined 1 per cent, “as growth in Trademark Coca-Cola was more than offset by a decline in sparkling flavours,” stated the company. 

Meanwhile, in its bottling investments, unit case volume grew 2 per cent, largely due to growth in Africa and India, partially offset by the impact of refranchising bottling operations. 

Last week, rival PepsiCo, too, had flagged unseasonal weather and increased competition in the Indian beverage sector, which led to growth moderation in the country. 

“Growth in India has been slowed due to weather and the competitive situation in the country’s beverage sector, which will impact growth for a couple quarters, but it is coming back,” Ramon Laguarta, chairman and chief executive officer, PepsiCo, told analysts post its results. 

“Most deceleration in the international markets was linked to bad weather, but September has been strong with growth coming back in the mid-single digits. The consumer is stressed all around the world,” Laguarta added.