Coca-Cola expands last-mile reach with micromobility

Even as express merchandising remains a smaller, integral part of the distribution business despite rapid growth, this direct-to-store delivery is helping the company expand its last-mile reach, reduce reliance on intermediaries or traditional wholesale channels, and gain tighter control over costs and profitability. The company said it was “investing heavily” to strengthen last-mile access, although it did not disclose financial details.

Coca-Cola has a large presence in India with nearly 6 million retail outlets, 1.5 million coolers and a growing fleet of more than 5,000 electric vehicles (EVs) for the distribution of its products.

“When you walk these streets and see how many stores don’t yet sell beverages, the opportunity to expand direct access is significant, and we expect to see more interest in the coming year,” said John Murphy, chief financial officer and president of The Coca-Cola Company. Mint.

Express commerce, although strategically important, remains a smaller part of the company’s overall business. “It will gain further momentum over time, but today it’s still a relatively modest part of our business. That said, the broader digitization of the economy is a meaningful tailwind for a business like us,” Murphy said.

Its beverage portfolio includes mass brands such as Thums Up, Sprite, Maaza and Kinley. Production and distribution are handled by Hindustan Coca-Cola Beverages (HCCB), which operates 15 plants along with numerous independent bottlers across the country.

The strategy comes as many fast-moving consumer goods (FMCG) companies re-evaluate their online and direct-to-consumer initiatives in the rapidly evolving retail landscape. For example, ITC Ltd recently discontinued itcstore.in, a standalone e-commerce platform launched during the pandemic, arguing that it had “served its purpose” and turned to selling through third-party e-commerce and flash merchant partners to expand reach and optimize distribution costs. Hindu Business Line in June last year.

This sharper focus on direct-to-store routes comes as competition from local players such as Reliance-backed Campa Cola and Lahori Jeera, backed by Belgium-based Verlinvest and Mumbai-based Motilal Oswal, has intensified, putting pressure on bottlers and encouraging price-based segmentation.

Local rivals, led by Campa Cola and Lahori Jeera, have rapidly gained ground in India, doubling their overall share of the carbonated soft drinks market to almost 15% in the January-September 2025 period from around 7% in the previous year, according to NielsenIQ data.

During the same period, the combined market share of The Coca-Cola Company and PepsiCo fell from 93% to around 85%, weakening the incumbents’ dominance in India. ₹60,000 crore soft drinks market. But the impact remains geographically uneven; Lahori Jeera’s presence is largely limited to North and West India and is minimal or non-existent in southern markets.

“I think the competitive intensity really reflects how attractive this industry is, it keeps us on our toes and pushes us to do our best to win our fair share of opportunity,” Murphy said.

This was despite HCCB reporting its revenues ₹12,751 crore for FY25, a decline of 9% year-on-year, largely attributable to the sale of various manufacturing facilities in states such as Rajasthan, Bihar and West Bengal to independent bottlers. The bottler is now reportedly preparing to tap the capital markets and plans to raise around $1 billion through an initial public offering (IPO) this summer. Economic Times.

The company is also addressing a broader shift towards healthier consumption. Mint had previously reported that healthy snack options are gaining traction among consumers and this trend is being actively leveraged by food delivery platforms such as Zomato and Swiggy. Against this backdrop, healthier and sugar-free beverage categories are gaining momentum across channels, making Coca-Cola’s Diet Coke and Coke Zero varieties increasingly relevant to its portfolio mix.

“One of my biggest takeaways this time around is how strong the presence of low- and zero-calorie options has become in India. Compared to previous visits, Diet Coke and Coke Zero are clearly becoming more visible in stores, reflecting consumers increasingly looking for healthier choices,” Murphy said.

This shift is supported by a strong push for innovation across categories, including low-sugar and sugar-free offerings such as Thums Up XForce, Sprite Zero, Diet Coke, Coke Zero and the recently launched Schweppes Zero tonic and mineral water range.

The move follows Coca-Cola’s decision last year to sell a 40% stake in the parent company of Hindustan Coca-Cola Beverages to Jubilant Bhartia Group. ₹12,500 crore. This partnership brings Coca-Cola even closer to India’s large quick-service restaurant ecosystem, as Jubilant operates brands such as Domino’s Pizza, Popeyes and Dunkin’ Donuts.

The transaction comes at a time when the beverage and foodservice industry is experiencing increasing consolidation in India. Earlier this year, Devyani International and Sapphire Foods merged their operations to jointly operate more than 3,000 KFC and Pizza Hut outlets across the country.

HT Media Ltd, which publishes Mint, and the promoters of Jubilant Bhartia Group are closely related. However, neither promoter has cross-holdings.