Coca-Cola Faces Volume Decline in Asia Pacific Amid Weather Challenges

Coca-Cola has reported a decline in volumes across its Asia Pacific market, especially in India, due to inclement weather and economic pressures. Despite this, the company gained market value share and revenue. Coca-Cola focuses on affordability and refranchising for growth, recently selling a stake in its Indian operations.

The Coca-Cola Company, a leading soft drink brand, announced a decline in volumes across its Asia Pacific markets, including India, attributing the drop to adverse weather conditions during the monsoon season. This was revealed by Henrique Braun, the company's EVP and Chief Operating Officer, during an earnings call.

In addressing these challenges, Coca-Cola has strategically shifted its focus towards a granular execution plan, which includes tailoring brand strategies and pricing according to market demand. Despite the volume decline, the company reported gains in market value share, revenue, and profit in the region.

Furthermore, Coca-Cola has undertaken significant refranchising efforts, notably selling a 40% stake in its India bottling business to Jubilant Bhartia Group. This move aligns with its strategy of enhancing its brand portfolio and achieving long-term growth with reliable bottling partners.

(With inputs from agencies.)