Coca-Cola Volume Declines in Q3 in India due to Inclement Weather Conditions

Soft drinks major The Coca-Cola Company on Tuesday said its volumes declined in Asia Pacific markets, including India, which faced "Inclement weather" conditions in the monsoon season.

In the Asia Pacific market zone of Coca-Cola, which includes India, volume declined across each of the operating units, said its EVP and Chief Operating Officer, Henrique Braun, during the earnings call on Tuesday.

"In Asia Pacific, volume declined across each of the operating units, driven by softer consumer spending, weaker industry performance and inclement weather in a few markets, like India and the Philippines; however, we gained value share and grew revenue and profit for the segment," he said.

Now, to maintain its trajectory, Coca-Cola is focusing on a granular channel execution plan, tailoring brand, price back architecture, with a focus on affordability and investing for growth in these markets, he added.

Replying to query, Coca-Cola chairman and CEO James Quincey said in the emerging market business, India has at one end "huge potential for growth in volume over many, many years" but at "much lower prices".

The countries, such as Australia and Japan, in the same Asia Pacific market zone, are on "the other end of the spectrum", which have been growing but have much higher realised prices given the developed economy.

"And so one of the predominant effects in the Asia Pacific is how fast did each of those components grew? And in this particular quarter, as we talked about earlier, India, because of the monsoon, China, because of some of the economic pressures and ASEAN, those markets underperformed our expectations in volume terms," said Quincey.

In 2025, rains have been significantly higher in many states in the first two months of July and August of the quarter, which has made the quarter tougher. Companies operating in the consumer space faced seasonal sales dips, supply chain disruptions, and fluctuating demands.

India is the fifth-largest market for The Coca-Cola Company.

In the Asia Pacific Zone, Coca-Cola's "unit case volume declined 1 per cent, as growth in Trademark Coca-Cola was more than offset by a decline in sparkling flavours", in the September quarter, it said.

Unit case volume refers to the number of unit cases of company beverages sold directly or indirectly by the company and its bottling partners to customers.

However, Coca-Cola's Net Operating Revenue in the Asia Pacific zone was up 10.6 per cent to USD 1.5 billion for the quarter ended on September 26, 2025.

This was helped by a "net gain of USD 102 million and incurred USD 7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India." Moreover, in the quarter which ended on September 26, 2025, Coca-Cola also completed the sale of 40 per cent stake in its India bottling business Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL) to Jubilant Bhartia Group.

Additionally, in July, the company reached another milestone in the refranchising process in India with the sale of a 40% ownership stake in Hindustan Coca-Cola Holdings Pvt Ltd to Jubilant Bhartia Group. The company will continue to focus on building a portfolio of consumer-loved brands and pursue enduring long-term growth for the Coca-Cola system with trusted, capable and motivated bottling partners.

The Atlanta-headquartered company reported a 5 per cent increase in its consolidated net operating revenue to USD 12.45 billion.

Commenting on the results, Chairman and CEO James Quincey said: “While the overall environment has continued to be challenging, we’ve stayed flexible — adapting plans where needed and investing for growth.” "By offering choice across our total beverage portfolio and leveraging our franchise model’s unique strengths, we’re gaining ground and strengthening our leadership position. We’re confident we can deliver on our 2025 guidance while also working to achieve our longer-term objectives,” he said.