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Colas drown in May showers
Worst summer in 5 Years for Coke, Pepsi as Sales Fall 15-17%
DON’T be surprised if soft drink companies are soon seen scampering for weather insurance while pushing their fizzy products. The May showers may have brought some relief to the heat-struck north, but for cola majors Coke and Pepsi, it was the worst summer in five years. Sales of the two companies’ flagship brands declined 15-17% in April-May over the same period last year as this summer has so far been unusually mild.
With consumer preferences shifting fast to functional beverages like juices, juice-based drinks and packaged water, the April-June quarter is the best period to sell aerated drinks such as Coca-Cola, Pepsi and Thums Up as nearly 50% of total sales happen then. “If April, May and June go badly, it’s curtains for the year/ said a bottler for one of the soft drink companies.
Declining to comment on the specific figures, PepsiCo executive vice-president (marketing), cola, Vipul Prakash said, “Weather fluctuations are factored in our plans. The CSD (carbonated soft drink) category exhibits a high seasonality in the summer months, accounting for a significantly higher percentage of annual sales.”
But Coca-Cola sources maintain that the all-India performance of its cola brands, Coca-Cola and Thums Up, have been more than satisfactory. “The cola segment, within the sparkling beverages category, is back on the growth curve. Both Coca-Cola and Thums Up have grown this season and maintained their leadership. This is complimented by growth in other categories such as flavours and still beverages.”
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