Erratic rains pose demand challenges for beverage makers
NEW DELHI : Summer sales of cold drinks were “challenging" this year as unseasonal rains crimped demand for beverages in India, said a top executive at Coca-Cola India. “It was a challenging summer. How big was the challenge, and how well we did? Wait for a few days, you will get an update," Sundeep Bajoria, vice president at Coca-Cola India said in an interview on Thursday.
Summer season typically translates into strong demand for cold drinks and ice creams. However, this year’s erratic rainfall in parts of north India as well as the early onset of monsoon has impacted demand for such products. On Thursday, packaged consumer goods maker Dabur India, too, said its food and beverage business, and in particular, the summer-focused beverages portfolio, had a muted June quarter due to unseasonal rains and mild summer.
Bajoria said unpredictable weather trends are here to stay, prompting companies to adapt and navigate demand trends. “We can’t change the weather, and India has seen summer rains every few years. I don’t see that changing.
From a beverage sector point of view, what we do is how we operate, how we connect (with consumers)—that is where we have to make sure that we are better connected with our consumers, that we get into more homes here, into more outlets, and that we are executing better," he said. Coca-Cola has also been making progress in rural India, expanding its distribution to reach more households, Bajoria said. “I think our penetration (in rural) is still low.
Read more on livemint.com
