Boston, MA 07/07/2014 (wallstreetpr) – The Coca-Cola Company (NYSE:KO) is just a step away from its market target in India. According to the latest market data, India has become the sixth market of the beverage giant, overtaking Germany. The Atlanta-based company targets India to be in its top-five markets by volume says by 2020.
The combination of low price points and vast distribution helped the company to expand its sales in India, a market that company executives believe they have barely scratched the surface.
Following the latest development, India, the world’s second-most populous country, now trails markets like U.S., Mexico, China, Brazil and Japan as the leading volume markets for Coca-Cola.
Since 2016, India has overtaken 13 global markets to rank at position six, up from position 19. India currently contributes 12 percent of The Coca-Cola Company (NYSE:KO) volume sales in Asia-Pacific region.
Emerging markets
Coca-Cola has been hit with declining sales of its soft drinks in mature markets such North America and Europe because of the increasing health awareness that is turning people away from sugary drinks to healthier options. As such, the company is targeting emerging markets with new products and aggressive marketing to bolster its balance sheet.
For Coca-Cola Company (NYSE:KO) and other beverage companies like PepsiCo Inc (NYSE:PEP), India is a bastion because of its present low soft drink consumption. For example, while the average per capita consumption of Coca-Cola products globally is 94, India is 14. That suggests a huge market opportunity for the company in the Asian country.
Perhaps that explains why the company continues to make direct investment in the country. The company has earmarked $50 million investment in new manufacturing plants in India within 2015, a move that will help it increase its capacity in the country.
Sales slowdown
Although Coca-Cola Company (NYSE:KO) is bullish about India because of the vast market, the company has seen its sales growth in the country slowing down in recent quarters. The sales slowdown can be linked to the urban population that is turning away from sugary soft drinks, slowdown in the economy, competition from PepsiCo, and weather changes that don’t encourage consumption of soft drinks.
