Unseasonal Rain Dampens Beverage Sales in India
This year's early monsoon and unseasonal rainfall have significantly impacted beverage sales in India during the June quarter. Both international and local brands, including Coca-Cola and PepsiCo, faced declines due to the weather's effect on distribution and consumer demand for both cola and milk-based beverages.
- Country:
- India
The early arrival of monsoon and unseasonal rainfall this year has taken a toll on beverage sales across India during the June quarter. The unexpected weather shift hit major players like Coca-Cola and PepsiCo, who experienced significant declines in their beverage segments.
Coca-Cola Chairman and CEO James Quincey acknowledged the impact of early monsoons in India during a crucial selling season. After a strong start to the year, the company's volume suffered due to adverse weather conditions and geopolitical conflicts with Pakistan, despite India being Coca-Cola's fifth largest market.
Similarly, PepsiCo reported a decline in its International Beverages Franchise segment in India. Local beverage companies, including Tata Consumer Products and Dabur India, also faced challenges. Unseasonal rains led to restrained volume growth and lower revenues, compounded by increasing competition from local brands and tight rural demand due to inflation.
(With inputs from agencies.)
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