Beverage makers stare at weak Q2

BOTTLERS FOR SOME of the country’s top beverage majors such as PepsiCo and Coca-Cola India expect a weak September quarter as an extended monsoon season is hurting demand, notably during the festive period this month.

- VIVEAT SUSAN PINTO

While traditionally, September marks the withdrawal of the southwest monsoon season, this year rains have continued in several states, including Maharashtra, Gujarat, Goa, Telangana, Kerala, Tamil Nadu, Andhra Pradesh and the North-East.

The forecast is that rains could last till the first week of October, implying there could be some impact on beverage sales during Dussehra, which will be celebrated on October 2, sector experts said.

Analysts at JP Morgan said that volume growth for the September quarter will likely be flat for beverage bottlers, the second straight period after the June quarter when unseasonal rains hurt summer sales.