Coca-Cola's Unit Case Volume Declines 4 Percent in Asia-Pacific Due to COVID-19 Restrictions in India and Japan
The Coca-Cola Company reported a 4 per cent fall in its unit case volume for its Asia-Pacific market due to coronavirus-related restrictions in India and Japan.
New Delhi, October 22: The Coca-Cola Company, global soft drink major, on Thursday reported a 4 per cent fall in its unit case volume for its Asia-Pacific market due to coronavirus-related restrictions in India and Japan. The Asia-Pacific market, in which India falls, reported the decline due to "negative channel mix in key markets, partially offset by positive geographic mix", said Coca-Cola in an earnings statement. Coca-Cola Decides to Discontinue Production of 200 Drink Brands to Focus on Profitable Beverages: Report.
"Unit case volume declined 4 per cent, primarily due to coronavirus-related restrictions in India and Japan," it said. However, the unit case volume performance included solid growth in sparkling soft drinks in China. India, which is the fifth-largest market for Coca-Cola, went through lockdowns imposed by the authorities and disrupted the supply chain. Unit case volume means the number of unit cases of company beverages directly or indirectly sold by the company and its bottling partners to customers. Hindustan Coca-Cola Beverages to Allow Permanent Work from Home.
Coca-Cola has also reported a decline in the performance of its Bottling Investments Group, which represents the company-owned bottling plants. "Unit case volume declined 10 per cent, driven by India and South Africa due to the impact of the coronavirus," said Coca-Cola. Overall, the Atlanta-headquartered company has reported a decline of 9 per cent in its consolidated net revenues to USD 8.7 billion, and its operating income declined 6 per cent.
"Revenue performance included a 4 per cent decline in concentrate sales and a 3 per cent decline in price/mix," it said. The company reported improvement in trends versus the prior quarter, with revenue declines versus the prior year driven by ongoing pressure in away-from-home channels partially offset by sustained growth in at-home channels. "Unit case volume declined 4 per cent, as continued strength in at-home channels was more than offset by coronavirus related pressure in away-from-home channels," it said.
James Quincey, chairman and CEO of The Coca-Cola Company, said, "Throughout this year's crisis, our system has remained focused on its beverages for life strategy. We are accelerating our transformation that was already underway, shaping our company to recover faster than the broader economic recovery." He added that while many challenges still lie ahead, the company's progress in the quarter gives confidence that it is on the right path.
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