Coca-Cola's India value market share slips in June quarter
The Coca-Cola Co. said it lost value market share in India's non-alcoholic ready-to-drink (NARTD) beverages segment during the April-June quarter, as investments and affordability initiatives weighed on its performance.
“The company lost value share in total NARTD beverages (in Asia Pacific), as gains in Japan and China were more than offset by a loss in India,” the company said in its June-quarter earnings statement released on 28 July.
The management said that three factors contributed to this- investment timing, affordability initiatives and geographical mix.
Quick answers to key questions
Coca-Cola's market share was impacted by three factors: investment timing, affordability initiatives, and geographical mix.
Coca-Cola introduced low-priced variants to respond to stiff competition, particularly from Reliance's Campa Cola, and to attract more consumers in a price-sensitive market.
While Coca-Cola gained value share in Japan and China, its performance in India lagged, leading to an overall loss in value share in the Asia Pacific region.
Varun Beverages aims to maintain over 20% growth by focusing on larger pack sizes and expanding into newer beverage categories instead of engaging in a price war.
Investors might consider the declining market share as a cautionary indicator, but Coca-Cola's broader performance and adaptation strategies should also be evaluated before making decisions.
“One was investment timing, one-third of it. Another third was of the affordability initiatives that are important for us to bring the consumers to the base in the right way,” said Henrique Braun, chief executive officer of The Coca-Cola Company, in the post-earnings analyst meet.
Coca-Cola had introduced low-priced variants of its products as the Indian market faced stiff competition from Reliance's Campa Cola.
Coca-Cola said it is investing ahead of the curve in cold-drink equipment and the right capabilities to gain more consumer engagement in India.
“The other third is just the geo mix, because when you have India and China outgrowing, for instance, other developed markets like Australia and Japan and Korea, then you have that geo mix impact on that,” he added.
The company’s unit case volume grew 5%, led by India, China, the US and Brazil in the quarter.
In the quarter, the company reported net revenues up 7% to $13.4 billion in the June quarter. The company reported volume growth in many markets in Europe due to extreme summer. The company also benefitted from the American markets as it sponsored the FIFA World Cup and the demand from America's 250th anniversary celebrations.
India competition
Indian conglomerate Reliance Industries Ltd reintroduced Campa Cola in March 2023 to compete with Coca-Cola and PepsiCo in the soft drinks market in India. Campa achieved over ₹4,700 crore in gross sales during FY26.
The Indian soft drinks market is estimated to be about ₹60,000 crore.
Varun Beverages, the Pepsico India bottler reported consolidated revenue from operations of ₹8,650.6 crore for the April-June quarter, up 20.8% from a year earlier but below the Bloomberg consensus estimate of ₹8,675.9 crore.
Consolidated net profit rose 15.1% to ₹1,525.4 crore, also missing the Bloomberg consensus estimate of ₹1,533.6 crore.
“The 10 rupee is a non-profitable category for us,” Ravi Jaipuria chairman of Varun Beverages said during the company's post-earnings conference call. "As long as we are delivering 20% plus growth in most of our markets, we are pretty happy with that growth."
About the Author
Neethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context. She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and retail sector.<br><br>With an academic background in business administration and a keen eye for financial statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping carts, you can find her explaining the latest conspiracy theory.
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