On-the-go business will take six months to revive: Coca-Cola
2 min read . Updated: 05 Aug 2020, 06:06 AM ISTOut-of-home beverage consumption accounts for more than 50% of sales for the likes of Coca-Cola
NEW DELHI : Beverage major Coca-Cola on Tuesday said it will work towards reviving the away-from-home channels of consumption over the next six months to a year as the pandemic-related lockdowns and curbs on movement have wiped away a big chunk of the on-the-go business for beverage makers.
A bulk of the business for the company has moved to “in-home" consumption, said T. Krishnakumar, president, Coca-Cola India and South West Asia. The company is doing a lot to push more packs of Coke, Sprite and Minute Maid in-home, driving low-pack sizes for households and accelerating its presence across grocery stores in India.
“We are going to have a slow and steady revival of the away-from-home channels. There is going to be some loss in terms of that occasion. So, what we are trying to do is to create the same products for being consumed at home and put in some marketing to ensure that we create for consumers an opportunity to actually enjoy the loss of the away-from-home occasion at home," Krishnakumar told reporters.
Out-of-home beverage consumption accounts for more than 50% of sales for beverage makers. Channels such as travel, hotels, bars, cinemas, offices remain under restricted operations or shut.
As a result, several companies witnessed a sharp slump in sales in the peak summer. Meanwhile, consumers have gravitated towards in-home consumption as they spent more time indoors consuming more snacks and beverages.
“We believe that we will, over the next six months to one year, revive the away-from-home channel because it is a very important channel. We are very clear that we have to work with the people there and make it come to life again because we play a significant role in it," Krishnakumar said.
The beverage maker has resumed production across its more than 55 plants in India.
On Tuesday, it also scaled up a new variant of Minute Maid called Nutri Force and announced the launch of Vita Punch, both to be marketed as immunity boosting beverages.
Krishnakumar said the company is ready with more products that will subsequently be rolled out. “We have accelerated the need to develop the functional side of the beverages. You will see us systematically launch this portfolio is in a few months," he said.
Coca-Cola’s investments announced for India remain intact, he said. “For us, investments are not based on some happenings. Yes, there could be some scheduling and rescheduling, but we are absolutely on track," he added.
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