Global beverages company Coca-Cola is on track to invest $5 billion in India between 2012 and 2020.
This was announced by Ahmet C Bozer, Executive Vice President and President, Coca Cola International. At a press event to celebrate the American company's twentieth anniversary of re-entering India in 1993, Bozer was also very positive about the Indian economy. “You have to understand that everything works in cycles, overall I still have great faith in the Indian market. India will be a shining star in the Coca-Cola portfolio”, he said.
Atul Singh, the former India head of Coca-Cola and recently promoted to Deputy President of the company's 'Pacific Group' added that India has been a hotbed of innovation both in terms of packaging and products. “India is currently the seventh largest market for Coca-Cola globally, and we have an aim of making it the fifth largest market within a few years”, Singh said. In India, the company has the two top selling 'sparkling' (or carbonated) beverages - Sprite and Thumbs Up, the latter which was acquired in 1993 when Coca-Cola re-entered India and bought out Parle Beverages.
Singh pointed out the major opportunities for Coca-Cola India, “Currently we reach only 30 per cent of the outlets that are serviced by FMCG brands, this will improve going forward. In addition, Indians currently consume 14 servings (250ml each) of beverages every year. This is against the global average of 94 and 745 servings annually in Mexico.” To add capacity, the company today inaugurated a brand-new bottling plant in Greater Noida built at a cost of Rs 140 crore, which included the first can bottling unit of the company in Northern India.
Bozer also addressed the controversial issues of 'health' given that sugary drinks such as those sold by Coca-Cola and their rival Pepsico have come attack from governments and activists for promoting obesity and diabetes across the world. “We do not believe that limiting or banning things is the solution”, he said in response to a question which pointed out how in New York City, Mayor Mike Bloomberg has banned large servings of sugary drinks.
“We wish to form a 'Golden Triangle' with government's and non-governmental organizations to address these health issues. We do not want to be at loggerheads at them, but wish to address the underlying issues. People have to make healthy choices, we are constantly exploring 'non-sugar' sweetened drinks and in the US, the amounts of calories that we sell every year have actually declined, but obesity remains a concern. We do not market to children under-12 as a matter of policy”, Bozer said pointedly.
However, Coca Cola India only sells one non-sugar drink 'Diet Coke' in the Indian market. Singh said that they are exploring the possibility to launch further options such as 'Diet Sprite' and the extremely popular 'Coke Zero'.