- Coca-Cola reported strong global Q2 growth with net operating revenues of $13.4 billion, up 7%, despite losing value share in India's beverage market during the June quarter.
- The company raised prices by more than 10% and introduced a larger 330ml can as smaller cans faced tight supply, sourcing cans from Southeast Asia.
- Coca-Cola's CFO John Murphy stated that the company lost market share in India, particularly in the mid-tier price band of ₹11 to ₹40.
- Despite the loss in India, the country was a leading contributor to Coca-Cola's global unit case volume growth of 5% for the quarter.
- The decline in market share reflects a broader trend in the Asia Pacific segment, where unit case volume grew 8% but price/mix declined by 9%.
- Coca-Cola attributed the price/mix decline to affordability initiatives and pricing moves aimed at defending volume among cost-conscious consumers.
Coca-Cola's recent earnings report revealed a loss of market share in India's non-alcoholic ready-to-drink (NARTD) beverage market during the June quarter, attributed to pricing pressures and supply chain issues. CFO John Murphy noted that the company does not yet have the necessary pricing architecture in the mid-tier segment, which ranges from ₹11 to ₹40.124
Despite the challenges in India, Coca-Cola's global performance remained robust, with net operating revenues of $13.4 billion, reflecting a 7% increase year-over-year. The company reported a 5% growth in global unit case volume, driven by strong performances in China, the United States, and Brazil.
The decline in India's market share is notable, as it was one of the key contributors to Coca-Cola's overall growth. The company experienced a 9% decline in price/mix, which it attributed to affordability initiatives aimed at cost-conscious consumers. This reflects a broader trend within the Asia Pacific segment, where unit case volume grew 8% but was offset by pricing challenges.7
In response to rising costs, Coca-Cola has raised prices by more than 10% and introduced a larger 330ml can priced at ₹50, up from the previous 300ml can at ₹40. The company is also sourcing cans from Southeast Asia due to supply constraints.3
CEO Henrique Braun emphasized the importance of adapting to consumer needs, stating, "We delivered another strong quarter by staying close to the changing needs of our consumers and customers."
“Coca-Cola's CFO John Murphy noted that the company lost market share in India's non-alcoholic ready-to-drink segment during the June quarter, despite India contributing to a 5% global unit case volume growth. The company raised prices by over 10% and introduced a larger can to address rising costs and supply challenges.”
