PepsiCo, Coke call out India as a key growth market in global earnings

Beverage makers Coca-Cola and PepsiCo noted India as a key developing growth market in their global December quarter earnings, as businesses reopened and vaccinations accelerated.

PepsiCo said beverage unit volume grew 20% in the quarter, primarily reflecting double-digit growth in India and Pakistan. “Our success depends in part on our ability to grow our business in developing and emerging markets, including Mexico, Russia, the Middle East, China, South Africa, Brazil and India,” the maker of Pepsi cola and Lays chips said. The company noted that unit volume of convenient foods grew in the quarter riding on double-digit growth in India and Pakistan and high-single-digit growth in the Middle East.

Coca-Cola reported unit case volume growth of 11% for the quarter for its Asia Pacific unit, resulting in low single-digit increase compared to 2019. The maker of Coke and Sprite sparkling drinks noted in its earnings statement that growth was driven by China, India and the Philippines.

The company said global unit case volume grew 9% for the quarter and 8% for the full year.

“While the environment remains dynamic, we will build on the momentum from 2021 to drive topline growth and maximise returns,” Coca-Cola chairman James Quincey said in an earnings statement. The beverage maker said that compared to 2019, global unit case volume sequentially improved each quarter in 2021. The fourth quarter marked the first in which away-from-home volume was ahead of 2019, the Atlanta-based company said.

Both companies noted the impact of inflation on operations, amid rising costs of cooking oil, packaging and transportation.