India: Coca-Cola implements first production cut in a decade
Coca-Cola has effected its first cut in production in India in over a decade following a number of months of poor sales, according to reports in Restaurant India and the Business Standard.
In the peak summer season of April-June 2015, Coca-Cola reportedly saw a “mid single digit” drop in sales volumes from the previous year.
April-June is the peak season for soft drinks industry in India, contributing about 40 percent of annual sales – estimated at over 14,000 crore IRN ($2.18 billion). The unseasonal weather conditions that led to monsoon rain covering almost the entire country by the second half of June have been blamed in part for the slump.
Price increases – especially in the 200ml returnable glass bottle segment, a rise in excise duty, and a switch by Indian consumers to for more healthy and natural drinks have also been cited as factors in Coca-Cola’s sales decline.
Source: Restaurant India / Business Standard