Hotline: 1800 102 2007
X
Search Business Opportunities
Nov, 20 2017

Coca Cola eyes business development In India

Sales growth for soft drinks in India has tapered as urban consumers opt for low-sugar beverages and rural buyers cut discretionary spending

Coca-Cola, the world’s largest beverage company, has not been able to crack a section of the Indian market even with brands such as Sprite, Maaza and Thums Up.

John Murphy, President of the Asia Pacific Group of Coca-Cola, said “India is “a different story,” referring to a market of almost 300 million people in the bottom half of the pyramid in India that is yet to take to the global soft drink brands. We have tried so many times in my time in the Coca-Cola system to crack the code there and we haven’t done it. We have got a team of pretty smart people who want to have the legacy to be the first to do so. India is the US giant’s sixth largest market and Coca-Cola is the country’s leading beverage maker. In India we have leader brands, but we have an industry that is very underdeveloped. Sprite, Maaza and Thums Up have tremendous equity in India and the company’s job is to leverage those brands to help grow the industry. We’re excited with the work we have under way to do that. In addition, we have a couple of other categories that we believe have tremendous room for growth as we go forward and the good news is there are not too many there yet who have cracked the code on leadership in those categories. Beverage landscape in Asia-Pacific is very different today than you have seen in other parts of the world. Seven out of every 10 beverages consumed in Asia-Pacific are non-commercial.

Sales growth for soft drinks in India has tapered as urban consumers opt for low-sugar beverages and rural buyers cut discretionary spending. Smaller regional brands that are cheaper are getting popular, hurting the prospects of global beverage companies including Coca-Cola and PepsiCo.

While addressing at conference Murphy also said “Home rituals are important, hence the prevalence of self-home beauty, homemade juices. They love a lot of stuff, sweet, unsweet, hot, cold, gooey, un-gooey — you name it. They are very trend conscious increasingly in today’s environment and those trends are influencing the repertoire of beverages that they are trying and they love to try”.

Mentioning the launch of Mosambi juice under its Minute Maid franchise, Murphy said “marrying a local desired fruit to a global brand creates value. The move to localise to the last mile with ethnic flavours and leveraging local fruit-based beverages is aimed at fighting back the onslaught of regional brands”.

Comment
Related opportunities
  • Quick Service Restaurants
    About Us  WowFillss a brand of M/s Search Route is a..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Other Vocational Training
    About Us: The Sunday Science School is a registered institute for..
    Locations looking for expansion Maharashtra
    Establishment year 2000
    Franchising Launch Date 2009
    Investment size Rs. 2lac - 5lac
    Space required 00
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Robotics & Technical Training
    IndiaFIRST™ ROBOTICS - a name known for India’s First ever Modular robots..
    Locations looking for expansion Maharashtra
    Establishment year 2009
    Franchising Launch Date 2013
    Investment size Rs. 50 K - 2lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
  • Bars, Pubs & Lounge
    About Us : Located in the iconic Freemasonry Building right opposite..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 2400
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities