Thunder on wheels: Coca-Cola expands last-mile reach with micromobility

Core Insights - Coca-Cola is enhancing its direct distribution strategy in India by utilizing small vehicles for last-mile delivery to retail stores, aiming to improve access in hard-to-reach areas [1][2][3] Group 1: Distribution Strategy - The direct-to-store delivery approach allows Coca-Cola to reduce reliance on middlemen and traditional wholesale channels, thereby gaining better control over costs and profitability [2] - The company is investing significantly to strengthen last-mile access, although specific financial details have not been disclosed [2] - Coca-Cola operates nearly 6 million retail outlets in India and has a growing fleet of over 5,000 electric vehicles for product distribution [3] Group 2: Market Competition - Local competitors like Campa Cola and Lahori Jeera are increasing their market share in the carbonated soft drinks sector, with their combined share rising to nearly 15% from about 7% year-on-year [8] - The market share of Coca-Cola and PepsiCo has declined from 93% to around 85% during the same period, indicating increased competitive pressure [9] - The competitive landscape is prompting Coca-Cola to remain agile and responsive to market dynamics [10] Group 3: Financial Performance - Hindustan Coca-Cola Beverages reported revenues of ₹12,751 crore for FY25, reflecting a 9% year-on-year decline due to the sale of several manufacturing plants [11] - The bottler is preparing for an initial public offering (IPO) to raise approximately $1 billion [11] Group 4: Consumer Trends - There is a growing consumer preference for healthier beverage options, with low- and no-sugar products gaining traction [12][13] - Coca-Cola is expanding its portfolio to include healthier choices, such as Diet Coke and Coke Zero, which are becoming more visible in retail outlets [13][14] - The company is also innovating with new product offerings like Thums Up XForce and Schweppes Zero, aligning with the trend towards healthier consumption [14]