beverage industry india
India spices up the performance of global food, beverage companies
PRASAD SANGAMESHWARAN
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In 1993, the consumption of aerated beverages in India was a meagre three servings, per person, per annum. Cut to 2013, industry estimates cite that Indians have a per capita consumption of 14 servings.
While that’s small when you compare the global average of 94 servings, India, because of the sheer weight of its population, is a huge force to reckon with for the world’s leading food and beverage corporations.
Despite its low per capita consumption of aerated beverages, India figures high on the priority of leading global beverage corporations PepsiCo and Coca-Cola.
For example, India is now the seventh largest market for Coca-Cola globally from practically nothing in 1993 – Coca-Cola re-entered the Indian market only 20 years ago, after it left it in 1977.
And the country is also delivering the numbers where it matters. For instance, when Coca-Cola recently announced its third quarter results for 2013, it reported a spike of 22 per cent in volumes of Coca-Cola in India. A company statement said that volumes have been growing continuously over the last 29 quarters with the growth in double digits in 19 of them.
But to be sure, the progress has not been without its shares of setbacks. For instance, a McKinsey article on ‘How MNCs can win in India’ highlights the fact that “For multinationals, the key to reaching the next level will be learning to do business the Indian way, rather than simply imposing global business models and practices on the local market”.
BIG CHALLENGES
Citing the example of a leading beverage company, the article points out that this company “entered India with a typical global business
PRASAD SANGAMESHWARAN
SHARE · COMMENT · PRINT · T+
Ads by Google
Aviva Term Insurance Plan - Buy i-Life @ Rs.16*/day. Trusted by Over 50000+ Customers, Buy Today ! www.avivaindia.com/Term-Insurance By 2018, food and beverage industry likely to touch $66.3 billion
In 1993, the consumption of aerated beverages in India was a meagre three servings, per person, per annum. Cut to 2013, industry estimates cite that Indians have a per capita consumption of 14 servings.
While that’s small when you compare the global average of 94 servings, India, because of the sheer weight of its population, is a huge force to reckon with for the world’s leading food and beverage corporations.
Despite its low per capita consumption of aerated beverages, India figures high on the priority of leading global beverage corporations PepsiCo and Coca-Cola.
For example, India is now the seventh largest market for Coca-Cola globally from practically nothing in 1993 – Coca-Cola re-entered the Indian market only 20 years ago, after it left it in 1977.
And the country is also delivering the numbers where it matters. For instance, when Coca-Cola recently announced its third quarter results for 2013, it reported a spike of 22 per cent in volumes of Coca-Cola in India. A company statement said that volumes have been growing continuously over the last 29 quarters with the growth in double digits in 19 of them.
But to be sure, the progress has not been without its shares of setbacks. For instance, a McKinsey article on ‘How MNCs can win in India’ highlights the fact that “For multinationals, the key to reaching the next level will be learning to do business the Indian way, rather than simply imposing global business models and practices on the local market”.
BIG CHALLENGES
Citing the example of a leading beverage company, the article points out that this company “entered India with a typical global business