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Consumer Trends, Other Factors, Dampen Coke, Pepsi Production In India

August 24, 2017: 12:00 AM EST
Citing two “industry insiders,” the Economic Times of India reports that bottling plants associated with Coca-Cola and PepsiCo are producing at only 40 to 50 percent of capacity, as more consumers spurn carbonated soft drinks. Another factor affecting soft drink sales is increased competition from “a proliferation of B-brands.” Sales growth has dipped to low single digits for seven quarters, and is further affected by newly-implemented GST levies of 40 percent on aerated beverages. However, production of juices, juice-based drinks, sports drinks, etc., is running at optimum capacity. Both companies are focusing on producing more non-aerated drinks.
Ratna Bhushan, "Coca-Cola, PepsiCo hit hard by slow growth in soft drinks segment", The Economic Times, August 24, 2017, © Bennett, Coleman & Co. Ltd
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