Thums Up, Maaza lead Coca-Cola’s bounce back in Asia Pacific

Thumbs Up and Maaza lead Coca-Cola’s bounce back in Asia Pacific, the beverage giant has said.

Homegrown Thums Up and Maaza are leading the global beverage giant Coca-Cola's demand curve in India, reporting a double-digit volume growth in the June quarter.

“Our business in India recovered nicely from a slower start to the year, driven by Sprite and Fanta, as well as strong local brands such as Thums Up and Maaza. Strong end-to-end execution across our growth flywheel led to double-digit volume growth,” said James Quincey, chairman & CEO, The Coca-Cola Company, during an earnings call on July 24. The company remained bullish on India, he said.

On a consolidated level, unit case volume grew by 2 percent. “Developed markets were even, while developing and emerging markets grew mid-single digits, driven by growth in India, Brazil, and the Philippines,” the company’s earnings release said.

In the Asia Pacific, unit case volume grew by 3 percent, driven by growth in sparkling flavours and Coca-Cola. The growth was led by India and the Philippines.

The performance in the Asia Pacific was driven by India’s bounce back. He shared, “…in the first quarter, India had a soft start. The second quarter was very strong, producing a big swing in the results. India had good double-digit growth of volume in the second quarter. We remain very bullish on India, though realistic that growth won’t be a straight line into the future, but India certainly had a good second quarter,” Quincey said, without sharing the numbers.

He also spoke about the company recording a loss of $3 million in January and a net gain of $290 million in February, related to the refranchising of bottling operations in some territories in India.

“In January and February 2024, the company refranchised our bottling operations in certain territories in India. In February 2024, the company refranchised our bottling operations in Bangladesh and the Philippines,” he said.

In India, the company is using an ultra-lightweight, affordable bottle with an extended shelf life, allowing beverages to be transported farther, reaching more consumers, and reducing costs.

The packaging is now available in over half of India’s commercial beverage outlets and added more than 400 million transactions in the first half of the year, the earnings release said.

The global beverage firm expects to continue to have cases and gallons in line. “With regards to the gross margin impact, there's a slight benefit on both the gross and operating margins related to the stocking, but it's in the tens of basis points and again reflected in our guidance years ago with that leveling out that we expect,” Quincey said.