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1 MIN READ

India: Coca-Cola implements first production cut in a decade

July 31, 2015
-
Asia Pacific, Financial, Manufacture & Distribution, Non-Alcoholic Drinks

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

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Coca Cola
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