MUMBAI: Coca-Cola’s product portfolio in India which the beverage giant counts as one of its most important markets globally is strong because it has the benefit of local brands like Thums Up, Maaza, Limca and the firm having built its business over several decades knows how to compete and win, John Murphy, president and chief financial officer (CFO)at The Coca-Cola Company said.
Competition in the local beverage space has heated up with the entry of Reliance’s Campa Cola which has triggered a price war in the market, prompting global behemoths Coca-Cola and PepsiCo to take note and consider strategies to protect their turf.
“We have competition in our industry, it invariably challenges us to be at our best. Campa is just one of many, there are a number of local, regional players who are doing pretty good jobs too….the good thing is we have been in business for a long, long time and over that period have built our playbooks as to how to compete, how to win and we are more excited about the prospects for our business in India right now than we have ever been,” Murphy said.
Besides, a relatively lower consumption of commercial beverages in the country alongside a young population create ample room for companies to have a play in the market, Murphy said.
“Our portfolio in India is strong if not stronger than just about anywhere in the world because we have the benefit of local brands in our portfolio…the runway ahead for our bigger global brands Sprite, Fanta, Coca-Cola and some of the newer categories that we will over the time invest in is enormous,” Murphy said.
Coca-Cola’s priority over the next few years will be to bolster its position in the categories in which it is already present in India but the firm will also not shy away from making new bets and adding new categories if it senses a market opportunity. The urban markets, in fact, where consumers tend to have a higher purchasing power pose a good opportunity for the company to test its newer categories, Murphy said. The CFO met the company’s team in Delhi and bottling partners on his trip to India where Murphy said the firm’s execution is “not as good” as it can be. The company will hold a series of sessions with its bottling partners over the coming weeks.