Beverage and Cola Makers Optimize Seasonal Prospects Amid Western Trade Disruptions

Summer Season Outlook for Beverage Makers Remains Positive Despite Weather Disturbances

Beverage and cola makers are hopeful of a successful summer season, despite weather-related disturbances in the northern region and rains in the national capital. Despite losing 15 days of sales in April due to unseasonal rains, companies such as Archian Foods, which manufactures and markets Lahori Zeera, have seen demand rebound quickly once hot days prevailed.

Archian Foods, which raised over Rs 400 crore last year, is targeting net sales of over Rs 1,200 crore by 2026-27 (FY27). The company's growth is driven by new flavors such as Lahori Chatpata Aam Ras and stevia-sweetened variants of existing products, as well as an expansion into new markets. However, the company's margins are expected to take a hit due to increased packaging costs caused by the ongoing war in West Asia.

Coca-Cola Expands Visi-Cooler Network to Cater to Growing Demand

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Meanwhile, global cola major Coca-Cola is expanding its network of visi-coolers to cater to the growing demand. The company's vice president, Sundeep Bajoria, stated that the arrival of summer this year is accelerating demand and creating a larger opportunity for beverages. Coca-Cola's innovation continues to shape its portfolio, with new launches such as Powerade in sports hydration and ready-to-drink RimZim Rose Sharbat.

The company's bottling partner, SLMG Beverages, has also expanded its manufacturing capacities to cater to this demand. The early arrival of summer has provided a significant tailwind to the beverage industry, and the company is observing a healthy acceleration in consumer demand.

PepsiCo Bottler Varun Beverages Sees Strong Season Ahead

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PepsiCo bottler Varun Beverages is also hopeful of a strong season, despite untimely rains. The company's dairy portfolio is growing at 60-70 percent, and its new mid-priced energy drink Adrenaline Rush at Rs 60 has been performing well. The company has also seen strong growth in its Nimbooz and Tropicana PET brands.

In a report last month, Crisil Ratings stated that soft drink bottlers are poised to see revenue rebound to their long-term average growth of 15 percent this financial year, driven by hotter summers and deeper penetration into untapped domestic territories. The summer months account for 40 percent of overall sales.