Coca-Cola to launch low-sugar products
, ET Bureau|
Feb 22, 2018, 06.58 AM IST
The local unit of Coca-Cola is working on reducing the sugar content across its portfolio by introducing low-sugar and diet variants of existing brands, and bringing in all-new products with lower-sugar content. This move is in line with the company’s global commitments, Coca-Cola India and Southwest Asia president T Krishnakumar said.
Last year, the US-based beverages giant said it would reduce sugar content in more than 500 products around the world and introduce more low-sugar variants.
Krishnakumar said the Indian unit grew by high double digits in revenue and high single digit in volumes in the October-December quarter.
“An expanded portfolio, higher investments in marketing on both carbonated drinks and juices, and better bottling execution have worked for us. We have seen two sequential quarters of good growth,” he said.
He said the company was equally focused on driving revenue as well as volume.
The company, which follows a January-December financial year, however, did not specify its India numbers. Most consumer-facing companies in India have posted higher-than-average volume growth in the October-December quarter, on account of the base effect as demonetisation had hit the year-ago performance.
While lemon drink Sprite remains the biggest brand for Coca-Cola India, followed closely by Thums Up, both Thums Up and Minute Maid juices posted “healthy” growth in the quarter, he said. “The sparkling category has retained its relevance, and has grown almost at the same levels as overall growth,” Krishnakumar said. He said more variants of Thums Up could be launched this year.
The key categories where the company will invest this year are sparkling, juices and hydration, he said. It will also explore opportunities in tea and dairy.
Coca-Cola will expand its portfolio to include frozen fruit-based deserts in the coming season, and plans to launch variants of its aerated brands with juice content.
Coca-Cola will maintain prices as India is a “value-driven market”, he said. On the consumption outlook for the next two quarters, Krishnakumar said: “We expect growth to remain positive, in both urban and rural markets.
We have a better understanding of what the consumer is looking for, and have a strong portfolio of products and packaging for rural consumers.”
Last year, the US-based beverages giant said it would reduce sugar content in more than 500 products around the world and introduce more low-sugar variants.
Krishnakumar said the Indian unit grew by high double digits in revenue and high single digit in volumes in the October-December quarter.
“An expanded portfolio, higher investments in marketing on both carbonated drinks and juices, and better bottling execution have worked for us. We have seen two sequential quarters of good growth,” he said.
He said the company was equally focused on driving revenue as well as volume.
The company, which follows a January-December financial year, however, did not specify its India numbers. Most consumer-facing companies in India have posted higher-than-average volume growth in the October-December quarter, on account of the base effect as demonetisation had hit the year-ago performance.
While lemon drink Sprite remains the biggest brand for Coca-Cola India, followed closely by Thums Up, both Thums Up and Minute Maid juices posted “healthy” growth in the quarter, he said. “The sparkling category has retained its relevance, and has grown almost at the same levels as overall growth,” Krishnakumar said. He said more variants of Thums Up could be launched this year.
The key categories where the company will invest this year are sparkling, juices and hydration, he said. It will also explore opportunities in tea and dairy.
Coca-Cola will expand its portfolio to include frozen fruit-based deserts in the coming season, and plans to launch variants of its aerated brands with juice content.
Coca-Cola will maintain prices as India is a “value-driven market”, he said. On the consumption outlook for the next two quarters, Krishnakumar said: “We expect growth to remain positive, in both urban and rural markets.
We have a better understanding of what the consumer is looking for, and have a strong portfolio of products and packaging for rural consumers.”
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