The Telegraph
Sunday , June 22 , 2014
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Coca-Cola rural plans

Calcutta, June 21: Coca-Cola India is increasing its focus on rural areas. The beverage major expects rural India to contribute about 40-45 per cent to its total sales. At present, the region accounts for one-third of its total volume.

“Our rural strategy is focused on introducing consumers to high quality, great tasting and refreshing packaged beverages from Coca-Cola India. For this, we are offering 200ml Coca-Cola glass bottle at an affordable price of Rs 8 and the Maaza tetrafino pack at Rs 7. We have launched the Maaza Tetrafino in Jabalpur recently,” said Venkatesh Kini, president of Coca-Cola India and Southwest Asia.

Coca-Cola has restructured its distribution system with a focus on rural markets. Kini said inflationary pressures had impacted sales of the industry in the urban region. In comparison, a good monsoon last year and support from the government through schemes had pushed up demand in rural areas. Besides, per capita consumption in rural markets is about six times lower than in urban areas, providing room for growth.

India is the seventh largest market for the US beverage major Coca-Cola Company. Coca-Cola India is looking at becoming the top five businesses of the global company, which has already announced its plans to invest $5 billion from 2012 till 2020 in the country.

“We are on course with our investment plans. This investment will increase manufacturing capacity by adding new lines and distribution and supply chain. To increase manufacturing capacity, we are putting new lines at existing plants and exploring the option of setting up greenfield plants,” he said.