Thunder on wheels: Coca-Cola expands last-mile reach with micromobility

This direct-to-store delivery helps the company expand last-mile reach, cut reliance on middlemen or traditional wholesale channels, and gain tighter control over costs and profitability, even as quick commerce, despite rapid growth, remains a smaller, complementary part of its distribution business. The company said it is “investing heavily" to strengthen last-mile access, though it did not disclose the financial details.

Coca-Cola has a large presence in India, with nearly 6 million retail outlets, 1.5 million coolers, and a growing fleet of over 5,000 electric vehicles (EVs) for distribution of its products.

“When you walk these streets and see how many outlets don’t yet sell beverages, the opportunity to expand direct reach is significant, and we expect to see more traction over the next year," John Murphy, chief financial officer and president of The Coca-Cola Company, told Mint.

Quick commerce, while strategically important, remains a smaller part of the company’s overall business. “It will contribute more momentum over time, but today it is still a relatively modest part of our business. That said, the broader digitization of the economy is a meaningful tailwind for a business like ours," Murphy said.

Its beverages portfolio includes mass brands such as Thums Up, Sprite, Maaza, and Kinley. Manufacturing and distribution are anchored by Hindustan Coca-Cola Beverages (HCCB), which operates 15 plants, along with multiple independent bottlers across the country.

The strategy comes as several fast-moving consumer goods (FMCG) companies reassess their online and direct-to-consumer initiatives in a rapidly evolving retail landscape. For example, ITC Ltd recently discontinued its standalone e-commerce platform itcstore.in, launched during the pandemic, citing that it “served its purpose", and pivoted toward selling through third-party e-commerce and quick commerce partners to expand reach and optimize distribution costs, reported The Hindu Businessline in June last year.

This sharper focus on direct-to-store routes comes as competition intensifies from local players like Reliance-backed Campa Cola and Lahori Jeera, backed by Belgium-based Verlinvest and Mumbai-based Motilal Oswal, putting pressure on bottlers and driving price-based segmentation.

Local challengers led by Campa Cola and Lahori Jeera have rapidly gained ground in India, doubling their combined share in carbonated soft drinks market to nearly 15% during January-September 2025, up from about 7% a year earlier, according to NielsenIQ data.

Over the same period, the combined market share of The Coca-Cola Company and PepsiCo declined from 93% to around 85%, eating into the incumbents’ dominance in India’s ₹60,000-crore soft drinks market. The impact, however, remains uneven geographically, with Lahori Jeera’s presence largely limited to North and West India and minimal to no exposure in southern markets.

“I think the competitive intensity really reflects how attractive this industry is, it keeps us on our toes and pushes us to be at our best to earn our fair share of the opportunity," said Murphy.

This comes even as HCCB reported revenues of ₹12,751 crore for FY25, a 9% year-on-year decline, largely attributable to the sale of several manufacturing plants to independent bottlers in states such as Rajasthan, Bihar, and West Bengal. The bottler is now preparing to tap the capital markets, with plans to raise around $1 billion through an initial public offering (IPO) this summer, reported The Economic Times.

The company is also riding the broader shift toward healthier consumption. Mint had earlier reported that healthy snacking options are gaining traction among consumers, a trend being actively leveraged by food delivery platforms such as Zomato and Swiggy. Against this backdrop, healthier and no-sugar beverage categories are gaining momentum across channels, making Coca-Cola's Diet Coke and Coke Zero variants increasingly relevant to the portfolio mix.

“One of my biggest takeaways this time has been how much stronger the presence of low- and zero-calorie options is becoming in India. Compared to earlier visits, Diet Coke and Coke Zero are clearly more visible across stores, reflecting how consumers are increasingly looking for healthier choices," said Murphy.

This shift is being supported by a strong push on innovation across categories, including low- and no-sugar offerings such as Thums Up XForce, Sprite Zero, Diet Coke, Coke Zero, and the recently-launched Schweppes Zero tonic and sparkling water range.

The move follows Coca-Cola’s decision last year to sell a 40% stake in the parent of Hindustan Coca-Cola Beverages to Jubilant Bhartia Group for ₹12,500 crore. The partnership aligns Coca-Cola more closely with India’s large quick-service restaurant ecosystem, as Jubilant operates brands such as Domino’s Pizza, Popeyes, and Dunkin’ Donuts.

The transaction comes as the beverage and food-service industry sees increasing consolidation in India. Earlier this year, Devyani International and Sapphire Foods combined operations to jointly run more than 3,000 KFC and Pizza Hut outlets across the country.

The promoters of HT Media Ltd, which publishes Mint, and Jubilant Bhartia Group are closely related. There are, however, no promoter cross-holdings.