Premature to predict demand in near term, but in-home consumption picking up: Coca-Cola

New Delhi: Beverage maker Coca-Cola said it is premature to predict consumer demand in the near immediate term and upcoming festive season, though it is seeing good consumption pick up within the in-home channel.
“It is premature to provide a consumption outlook for the upcoming festive season. The management of the crisis externally will have a significant bearing on all businesses,” Coca-Cola India and Southwest Asia president T. Krishnakumar said on Tuesday, addressing a virtual press briefing.

Krishnakumar, however, said the beverage maker is optimistic about demand returning in the next six months to one year. “In-home demand has been increasing week-on-week over the past one month or so. There is going to be loss in away-from-home channels so we have to continuously create in-home consumption occasions for consumers,” he said.

On average, three-fourths of overall soft drinks sales are contributed by out-of-home channels such as restaurants, hotels, cinema theatres, malls and live events. The Atlanta-based company had said that in the April-June quarter, within the Asia Pacific region, unit case volumes declined 18% primarily due to the strict lockdown in India.

The maker of Coke and Sprite sparkling drinks and Minute Maid juices said all its 55 factories have resumed production and are running based on demand.

“We are systematically accelerating in-home consumption by creating affordable versions of products, focusing on grocery channels and building a portfolio which has more relevance to consumers; out-of-home will take some time to revive,” Krishnakumar said.

The Indian government announced a nationwide lockdown starting March 25, which resulted in complete shutdowns of markets, malls, restaurants and cinema theatres. The lockdown coincided with the peak season for soda makers, with the April-June quarter contributing more than half of the soft-drink industry’s annual sales of over Rs 20,000 crore.

The India unit of the world’s largest beverage maker said it is witnessing big change in consumer’s shopping experiences, consumers are making value-based choices, and it is focusing on affordability, localisation and functionality.

The company announced the launch of two new variants of fortified juices to its Minute Maid franchise on Tuesday.