The Coca-Cola Company had a “cracking” year in India in 2022, James Quincey, chairman and chief executive officer, said on Tuesday. The company is off to a strong start in India this year as well and the market is set to take off further, he added.
While India has traditionally been looked at as a price-sensitive market, Quincey said that while the affordable entry price points have been growing, the market has seen growth on all dimensions. “It is growing in terms of the depth of different brands driving distribution and it is growing in the number of packages,” he told analysts in an earnings call for the fourth quarter and full year ended December 2022.
Quincey said that in terms of price levels, the Indian economy and the consumer base in the country is approaching a level of GDP per head which has historically tended to accelerate the development of the beverage industry.
“We are very encouraged by the potential in India to develop a fantastic beverage industry and beverage opportunity. Ultimately, development of the industry is very nascent in India, and there is a huge potential to build the industry over many decades,” he said.
Coca-Cola recorded strong growth in Brazil, India, Great Britain and Mexico in the fourth quarter, which was more than offset by the suspension of business in Russia.
Sparkling flavours category witnessed decline of 2% for the quarter and grew 5% for the year. This performance benefited from strong growth in India and the United States and was unfavourably impacted by the suspension of business in Russia. For the year, the company gained value share in total NARTD beverages, led by share gains in India, Australia, Japan and South Korea.
In the Asia Pacific region, unit case volume declined 1% for the quarter, driven by strong growth in India and Vietnam, which was more than offset by a decline in China due to varying levels of pandemic-related mobility restrictions.
“In many ways, India exemplifies the very long term opportunity of in the emerging markets including Africa, parts of Eurasia, parts of the Asean. These markets have 80% of the world’s population, while development of the beverage industry is a third of what it is in the developed markets. India typifies the long term potential of the beverage industry to keep growing, and I think it is a market that is set to take off,” he said .
Particularly on Thums Up, Quincey said, its Thums Up Stump Cam campaign saw a good activation for cricket fans. “The campaign showed strong results with Thums Up growing volume ahead about total sparkling portfolio in India during activation period, contributing to strong volume growth a Thums Up for the full year. This drove about one quarter of India’s total volume growth for the year. Thums Up also experienced its highest monthly market share jumped during activation period,” he said.