Global soft drink major Coca-Cola expects its Indian market to return to vibrant growth, after it recorded a fall in sales in the last quarter of 2016 and the first quarter of 2017.
James Quincey, president and chief executive of the Atlanta-based company, said during his maiden visit to India that investment plans of $5 billion in India by 2020 was on track.
‘Top three’
The company hopes India to be among its top three global markets. “The most immediate challenge for the country is to become number five in the foreseeable future, but in the end my vision for India is we will be one of the top three markets in the world for Coca-Cola company. We had a rough few months — end of last year and beginning of this year — but things are starting to come back. India is going to return to a vibrant growth,” Mr. Quincey said, addressing a select gathering of mediapersons.
Buyer preference for non-sugary healthier beverages had led to tepid demand for aerated drinks. Promising to reduce sugar content in Coca-Cola products, Mr. Quincey said faster growth in India would also come from non-carbonated (non-sparkling) drinks, as elsewhere. “However, sparkling drinks will continue to grow here and our immediate focus will be on the same.” The company has introduced “Minute Maid Pulpy Santra” which contains juice from oranges locally grown in Maharashtra and Madhya Pradesh. The company aims to invest $1.7 billion in India’s fruit circular economy over the next five years, of which $900 million would be towards procurement of processed fruit pulp and fruit concentrate. On competition, Mr. Quincey said, “We pay a lot of attention to what competition does, not just the big players but also new entrants because they are doing something that the consumers find interesting.”
Mr. Quincey’s India ’s maiden visit comes four months after the British-born executive he took over the reins of Coca Cola from former CEO Muhtar Kent, who remains chairman of the board at Coca-Cola globally.
Describing India as a “great country and a great place to do business,” Mr. Quincey committed to an investment of more than $5 billion by 2020