Coca-Cola Reports Volume Decline in India for Q3 2023 Due to Inclement Weather Conditions

The Coca-Cola Company reported a decline in beverage volumes in the Asia Pacific region, including India, due to adverse weather during the monsoon season. Henrique Braun, EVP and Chief Operating Officer, noted that all operating units in this market experienced volume drops. Despite this, Coca-Cola managed to increase its revenue and profit by gaining value share.

In response to these challenges, Coca-Cola is implementing a detailed channel execution strategy. This involves adjusting brand and pricing structures to focus on affordability while investing in growth. The company aims to maintain its market trajectory by tailoring its approach to each region's specific needs.

Focus on Growth and Market Dynamics

Coca-Cola Chairman and CEO James Quincey highlighted India's potential for long-term volume growth at lower prices. In contrast, developed markets like Australia and Japan have higher realised prices. Quincey explained that the Asia Pacific region's performance varied, with India affected by monsoon rains and China facing economic pressures.

During July and August 2025, heavy rainfall impacted several Indian states, complicating the quarter for consumer companies. These firms encountered seasonal sales declines, supply chain issues, and fluctuating demand. India remains Coca-Cola's fifth-largest market despite these challenges.

Financial Performance and Strategic Moves

In the Asia Pacific zone, Coca-Cola's unit case volume decreased by 1% in the September quarter. Growth in Trademark Coca-Cola was offset by a decline in sparkling flavours. Unit case volume measures the number of beverage cases sold directly or indirectly by the company and its bottling partners.

However, Coca-Cola's net operating revenue in this region rose by 10.6% to USD 1.5 billion for the quarter ending September 26, 2025. This increase was aided by a net gain of USD 102 million and USD 7 million in transaction costs related to refranchising bottling operations in certain Indian territories.

Refranchising Milestones and Future Plans

In July, Coca-Cola reached a significant milestone by selling a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd to Jubilant Bhartia Group as part of its refranchising process in India. The company also completed the sale of a similar stake in Hindustan Coca-Cola Beverages Pvt Ltd during the quarter ending September 26, 2025.

The Atlanta-based company aims to build a portfolio of beloved brands while pursuing sustainable long-term growth with reliable bottling partners. Coca-Cola reported a 5% increase in consolidated net operating revenue, reaching USD 12.45 billion.

James Quincey commented on the results: "While the overall environment has continued to be challenging, we've stayed flexible—adapting plans where needed and investing for growth." He expressed confidence in delivering on their 2025 guidance while working towards longer-term goals.

With inputs from PTI