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Pharma sales channel emerges as new 'superstar' for Coca-Cola during pandemic
''The new channel, which is the pharma channel, is picking as it has 24-hour delivery and no restrictions. So, they are going bigger and bigger in overall contribution in size and scale, and we have to do a lot in terms of penetrations and overall things,'' Ray said.
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New Delhi
Pharma channels have emerged as the ''new superstar'' for beverage major Coca-Cola and the company is expanding its presence in this sales channel, according to a senior company official.
Besides, the company is also expanding its network in rural areas, which nearly contribute 38 per cent to the overall business. The company has focused more on the urban market in the pandemic-impacted 2021 than rural areas, due to affordability and other issues.
''In 2021, we focused on the urban market in terms of sales; while in rural areas, we focused on expanding distribution of our affordable pack,'' Coca-Cola President (India and Southwest Asia) Sanket Ray told PTI.
The company expanded the distribution of glass bottles by reducing the prices, and now, ''we are seeing rural getting back to the momentum, through its early signs'', he added. In 2021, urban sales increased by one per cent in the sales mix, he added.
''Overall, rural did not decline for us, it grew less than the urban market,'' he said.
Coca-Cola's unit case volume grew 11 per cent in the Indian market during 2021, the company had said on Thursday in a post-earnings statement.
According to Ray, pharma channels have emerged as the ''new superstar'' for Coca-Cola, in which the company is currently selling its portfolio of tetra pack range.
After the pandemic, pharma channels are selling fast-moving consumer goods (FMCG) products such as shampoo and soaps.
The kirana channel, which contributes over 50 per cent to Coca-Cola's overall business, is doing well along with the modern trade channels, as home consumption is on the rise and is getting bigger in the overall mix.
While on eating and drinking channels, on a combined basis, the business is now back though it was struggling at some point in time. The online-to-offline percentage has increased.
The travel channel is related to the mobility index; while convenience channels, which include paan bidi shops, see recovery slower than expected, he added.
''The new channel, which is the pharma channel, is picking as it has 24-hour delivery and no restrictions. So, they are going bigger and bigger in overall contribution in size and scale, and we have to do a lot in terms of penetrations and overall things,'' Ray said.
Digital and e-commerce are also growing because of restrictions, though they are still small in size.
When asked about the pharma channels, Ray said, ''Today, our penetration is not great and we have worked...on that channel.'' PTI KRH HRS hrs
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