New Delhi, February 10 Global beverage major The Coca-Cola Company said on Wednesday that India is a "market of the future" and a "long-term contributor to volume growth," where it will continue to make investments "ahead of the curve" along with its bottling partners.
However, Coca-Cola, along with other beverage players, has to bear the impact of seasonality-related issues such as rain and others, which affect its business.
"In India, we experienced different impacts last year, including industry dynamics, weather, and it was a market that we continue to invest in, ahead of the curve. We believe that it will return to growth in 2026," said The Coca-Cola Company CEO-Elect Henrique Braun while responding to a question during an investor call.
When asked whether there would be an increase in marketing and innovation investments in India, he said: "I think this is a strategy that has worked for us."
The company has been "investing" with its bottling partners "ahead of the curve."
He stated that India would be a market that would be a long-term contributor to overall volume growth.
"The level of investment that we have made in new lines has been unprecedented," said Braun, who will take over the position of CEO on March 31.
The Coca-Cola company will continue to invest because India is a "market for the future."
"We are still developing the industry there, and that's why we need to continue to invest ahead of the curve, because it's a model where building will come, right? Because really, in this market, you can actually continue to push forward. Digital is part of this," he said.
Braun also mentioned that Coca-Cola is also focusing on engaging with consumers through data tech and AI, and has also developed a platform, Coke Buddy, which is a self-ordering platform for retailers.
"We are still at one-fourth of the entire outlet base that we can reach in India. But we believe that we are already deploying digital ordering, AI, and genetic AI to determine the next best SKU. And the next phase of that growth will be a complete digital platform that will connect not only the consumer, but also the customers, and translate that engagement into transactions," he said.
Therefore, India is a market that will continue to be ahead of the curve.
While its Chairman and CEO James Quincey, responding to a question, said that the company is investing in the business as the business needs.
"About a quarter of our capital investment this year and last year goes towards the franchises that we still own in Africa and India," he said.
Coca-Cola, in its fourth quarter earnings release, said that in terms of performance of bottling investments, which refer to company-owned bottling operations, "Unit case volume declined 6 per cent for the quarter, largely due to a decline in India and the impact of refranchising bottling operations."
India is the fifth-largest market for The Coca-Cola Company, and recently, Quincey, who was on a visit, said it may become one of its top three markets in the coming years.