Coca-Cola says marketing strategy, Maha Kumbh fuel double-digit growth in India in Q1 2025
The Coca-Cola Company's net revenue declined 2% to $11.1 billion, driven by currency headwinds and the impact of refranchising bottling operations.
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Global beverage giant The Coca-Cola Company released its Quarter 1 2025 earnings on Tuesday. The Atlanta-headquartered company said that trademark Coca-Cola and Thums Up contributed to double-digit volume growth for the Indian market in Q1. The soft drink maker said it would continue to capitalize on the vast opportunities in developing and emerging markets. "The company is focusing on continuously improving its marketing, innovation, revenue growth management, and integrated execution capabilities with system partners across local markets," The Coca-Cola Company mentioned in its Q1 earning report.
"In India, Trademark Coca-Cola and Thums Up, a cherished regional brand, are fueling consumers and contributed to double-digit volume growth for the market in the first quarter," the company added.
On marketing initiatives taken by the company at Maha Kumbh, held in January and February 2025 at Prayagraj, Uttar Pradesh, the company said it set a new record by serving over 180 million.
"For the first time in the company’s history, the system intensified an integrated activation consisting of hundreds of refreshment zones, approximately 1,400 mobile stations, and a world-record-long 100 cooler-door wall, leading to over 180 million servings consumed during the gathering".
Overall, the company's net revenue declined 2% to $11.1 billion, driven by currency headwinds and the impact of refranchising bottling operations. The maker of Sprite, Fanta and Minute Maid 's organic revenues (non-GAAP) grew 6% while earnings per share grew 5% to $0.77.
On a consolidated basis, the unit case volume grew by 2%, led by India, China, and Brazil. Sparkling soft drinks grew 2%; trademark Coca-Cola grew 1%; juice, value-added dairy, and plant-based beverages grew 1%; water, sports, coffee, and tea grew 2%.
Value share in total Non-Alcoholic Ready-to-Drink (NARTD) beverages for the company was even as gains in the Philippines and Japan were offset by declines in Indonesia and India.
In contrast to rival PepsiCo, Coca-Cola has said that it has limited exposure to tariffs because most of its bottling operations around the globe are locally run businesses.
Last week, PepsiCo lowered its guidance for the year due to uncertainties created by tariffs.
"In 2025, the company expects to deliver organic revenue growth of 5% to 6%. The company’s underlying effective tax rate is estimated to be 20.8% versus 18.6% in 2024. This includes the impact of several countries enacting the global minimum tax regulations and does not include the impact of ongoing tax litigation with the US Internal Revenue Service," the company said.
