Coca-Cola India business witnesses robust growth in 2023

New Delhi: Soft drinks major Coca-Cola Company on Tuesday said its beverage volume growth in 2023 in the developing and emerging market was led by India and Brazil.

The India business "experienced a robust growth in 2023", said James Quincey, Chairman and CEO of the Coca-Cola Company during the earnings call on Tuesday.

The company's net revenue for the December quarter grew 7 per cent to USD 10.8 billion, and organic revenues (non-GAAP) grew 12 per cent. For 2023, net revenues grew 6 per cent to USD 45.8 billion.

In 2023, Coca-Cola's unit case volume grew 2 per cent, in which the developed markets grew 1 per cent, driven by growth in Mexico and Germany.

"Developing and emerging markets grew 2 per cent, driven by growth in India and Brazil, partially offset by the suspension of business in Russia in 2022," the Atlanta-headquartered company said in its earnings statement.

For the December quarter, Coca-Cola's Unit case volumes grew 2 per cent.

During the quarter, "developing and emerging markets grew 4 per cent, driven by growth in Brazil and India".

Unit case volume means the number of units of beverages directly or indirectly sold by the company and its bottling partners.

India is the fifth largest market for The Coca-Cola Company.

The Indian market also contributed to the growth of Coca-Cola's overall growth from the Asia Pacific region and the emerging market, the company said.

In the December quarter, Coca-Cola's unit case volume in the Asia Pacific region grew 2 per cent.

This was "primarily driven by growth in juice, value-added dairy, and plant-based beverages and sparkling flavours. Growth was led by India and China", it said.

For the year, "the company gained value share in total NARTD beverages (non-alcoholic-ready-to-drink), led by share gains in India, the Philippines, South Korea, and Japan", it added.

However, unit case volume from its bottling investments declined in India in the December quarter, as the company is divesting its business.

For its bottling investments group, "unit case volume declined 1 per cent for the quarter, as growth in India and the Philippines was more than offset by the impact of refranchising bottling operations." Last month, Coca-Cola's Indian bottling arm Hindustan Coca-Cola Beverages (HCCB) transferred bottling operations in Rajasthan, Bihar, and the Northeast and parts of West Bengal to its existing partners in these three regions.

Bottling investments are the company-owned bottling operations of the Coca-Cola Company.

Over the outlook, Coca-Cola said in 2024 it "expects to deliver organic revenue (non-GAAP) growth of 6-7 per cent".

"As we begin a new year, we are confident that our all-weather strategy, powerful portfolio and harmonised system will continue to create value for our stakeholders in 2024 and for the long term," said Quincey.