Prolonged monsoon rains curbed beverage demand and disrupted sales across key Indian markets
The Coca-Cola Company reported a decline in beverage volumes across its Asia-Pacific markets, including India, during the July–September quarter of 2025, as prolonged monsoon rains weakened consumer demand and disrupted retail operations.
According to reports, the company said the Asia-Pacific region experienced softer consumer spending, subdued industry performance, and adverse weather conditions in major markets such as India and the Philippines.
India recorded one of its wettest monsoon seasons in recent years. Data from the India Meteorological Department showed that rainfall during August reached 268.1 mm — the seventh-highest since 2001. Overall, the June–September period saw 6.1 per cent above-normal rainfall, with north-west India registering its highest August rainfall in nearly two decades. The extended rains weighed on beverage sales and distribution across several states.
Coca-Cola’s unit case volume in the Asia-Pacific region declined by 1 per cent in the September quarter, as growth in its core Coca-Cola brand was offset by weaker demand for sparkling flavours. However, net operating revenue in the region rose 10.6 per cent to USD 1.5 billion, supported by price–mix improvements and gains from the refranchising of bottling operations in India.
During the quarter, the company completed the sale of a 40 per cent stake in Hindustan Coca-Cola Beverages to the Jubilant Bhartia Group and a similar stake in Hindustan Coca-Cola Holdings earlier in July. The transactions, valued at around Rs 12,500 crore, are part of Coca-Cola’s global refranchising and asset-light strategy aimed at strengthening local execution and operational efficiency.
Globally, Coca-Cola reported a 5 per cent increase in consolidated net operating revenue to USD 12.45 billion, with organic revenue rising 6 per cent. The company maintained its full-year 2025 guidance, projecting organic revenue growth of 5–6 per cent.
India, Coca-Cola’s fifth-largest market by volume, remains a key growth focus. The company is emphasising affordability, channel-specific execution, and flexible pricing to support long-term expansion in emerging markets.
The extended and intense monsoon season has also affected the broader fast-moving consumer goods (FMCG) sector. Beverage makers, including PepsiCo, reported lower volumes during the quarter, citing adverse weather and increased competitive pressures.
