India Spotlight Index 2020
Coca-Cola India
Product Profile Categories
Bottled Water; Carbonates; Dairy; Juice; Sports Drinks
Rank 5 / Score 4.4
Rank 5 (2016)
Product Profile
Rank 14 / Score 3.5
Company Profile
Rank 5
(%) Figure in brackets is the weighting of the category. All category, commitment, performance and disclosure scores are out of 10
Commitment
Performance
Disclosure
The bar graph to the left shows company performance across the seven Index categories, which are key topic areas of assessment, and scores are shown for each category. The circles above provide an alternate view on the company’s overall results, showing the score per indicator type.
Main areas
of strength
- Coca-Cola India ranks fifth in the India Index 2020 with a score of 4.4 out of 10, up from 2.4 in the 2016 Index. The company achieved this improvement by strengthening its performance in all ATNI categories.
- Coca-Cola India is reshaping its growth strategy to expand and reformulate products in response to changing consumer needs and local preferences, putting a greater focus on nutrition and health. This is illustrated by their recent introduction of flavored-milk products. And although this product range is limited, Coca-Cola India ranks first in the Product Profile within the Dairy category with an average Health Star Rating (HSR) of 3.5 out of 5 (the ‘healthy’ threshold). This result is based on the analysis of two of the company’s flavored ‘Vio’ milk drinks.
- Coca-Cola India has increased its focus on micronutrient fortification. For example, it has commercially launched a clinically tested, micronutrient-fortified beverage (Minute Maid Vitingo) in 2018, which aims to address iron deficiency in children. The drink is offered at low prices and distributed through specific channels to reach the target group. Further, the company has partnered with non-governmental organization Dharma Life to distribute the product with the help of women entrepreneurs.
- As noted in the India Index 2016, Coca-Cola India continues to be a leader in responsible marketing to children by committing not to market any products directly to children under 12. The company also commits not to market its products in primary schools.
- Coca-Cola India is one of the few companies in the Index to provide nutrition information for all products online. To further inform consumers, it also provides a description of the functionality of nutrients and ingredients, as well as an online tool to compare products’ nutritional attributes.
- Coca-Cola India publicly supports the National Nutrition Strategy and Vision 2022 (Kuposhan Mukt Bharat – free from malnutrition, across the life cycle). Nutrition was also identified as one of the key focus areas in the company’s Sustainability Report 2017-18.
- Coca-Cola India’s Fruit Circular Economy program focuses on food loss and waste challenges throughout the value chain, indirectly addressing food insecurity and/or undernutrition in India.
Priority areas
for improvement
- The company ranks fourteenth in the Product Profile with a score of 3.5 out of 10. It was estimated that 19% of the company’s 2018 sales were generated from healthy products (i.e. achieving an HSR of 3.5 or more). Although this estimate is higher than in 2016, the company should continue its efforts to improve the overall nutrition quality of its product portfolio and/or to shift its marketing efforts to sell more healthy products.
- Coca-Cola India's strategies to reduce serving sizes, and to reformulate and expand its product portfolio, demonstrate its approach to help tackling India’s challenges of obesity and diet-related chronic diseases. However, these strategies are not clearly set out in a formal commercial policy. The company is therefore encouraged to adopt such a document, and to define SMART - Specific, Measurable, Achievable, Relevant and Time-bound targets, for example to reduce added sugar in its products, as it does in other markets to some extent.
- As noted in the India Index 2016, the company does not have a Nutrient Profiling System (NPS) to define which of its products are healthy. By taking up an NPS, Coca-Cola India would be able to more clearly evidence its shift towards developing healthier products. Further, clearly defining healthy products would enable the adoption of strategies to make these more affordable and accessible.
- Coca-Cola India could strengthen its responsible marketing to children by expanding its scope regarding age (include children above the age of 12) and locations, i.e. to exclude inappropriate marketing in secondary schools and in places near schools. The company should also consider commissioning independent auditing of its marketing policy compliance and to publicly report its the India-specific findings.
- The company currently discloses calorie information on its front-of-pack (FOP) labeling. To further improve, the company is encouraged to implement an interpretive FOP labeling system as soon as possible that aligns with other companies or industry associations, and is developed in partnership with the Government and other stakeholders.
- The company is encouraged to improve its disclosure practices and improve its transparency on engagements with relevant stakeholders, particularly those that affect the company’s commercial nutrition strategies.
Category Analysis
Governance
Products
Accessibility
Marketing
Workforce
Labeling
Engagement
Nutrition
- A1
- Nutrition strategy
- A2
- Nutrition management
- A3
- Reporting quality
- B1
- Product Profile
- B2
- Product formulation
- B3
- Defining healthy products
- C1
- Product pricing
- C2
- Product distribution
- D1
- Marketing policy
- D2
- Marketing to children
- D3
- Auditing and compliance
- E1
- Employee health
- E2
- Breastfeeding support
- E3
- Consumer health
- F1
- Product labeling
- F2
- Claims
- G1
- Influencing policymakers
- G2
- Stakeholder engagement
All category, criteria, commitment, performance and disclosure scores are out of 10
Commitment
Performance
Disclosure
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
For this category performance indicators were not included. The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Peer Comparison
Peer Comparison
Peer Comparison
Peer Comparison
Peer Comparison
Peer Comparison
Peer Comparison
Product Profile
14
Rank 14 / Score 3.5
Portfolio-level Results
| Average HSR score products (sales-weighted) |
Healthy products (HSR) |
Products suitable to market to children (WHO SEAR) |
Range of total India F&B sales included |
||||
|---|---|---|---|---|---|---|---|
| % products healthy |
% sales healthy |
No. products assessed |
% products suitable |
% sales suitable |
No. products assessed |
||
| 1.9 | 20% | 19% | 65 | 11% | 16% | 72 | 90-100% |
- A total of 72 products from across five categories, representing 90-100% of Coca-Cola India’s estimated 2018 sales, were included in the Product Profile. Of those, 65 could be assessed using the Health Star Rating (HSR). Thirteen products (20%) were found to meet the HSR healthy threshold and the company is estimated to have derived almost one fifth (19%) of its 2018 sales from healthy products.
- The company achieves an unweighted mean HSR of 1.8 out of 5. After sales-weighting the company’s mean HSR slightly improves to 1.9 out of 5, resulting in a mean healthiness score of 3.7 out of 10.
- All 72 products were assessed to determine their suitability to be marketed to children according to the World Health Organization (WHO) South-East Asia Region (SEAR) nutrient profile model. Eight products in the Bottled Water and the Carbonates categories, representing an estimated 16% of 2018 sales, were found to meet the WHO SEAR criteria.
Product Category Results
| Category | Bottled Water | Carbonates | Dairy | Juice | Sports Drinks |
|---|---|---|---|---|---|
| Mean HSR | 5.0 | 1.7 | 3.5 | 1.3 | 1.5 |
| % products healthy |
100 | 11 | 100 | 10 | 0 |
| % products suitable to market to children |
80 | 15 | 0 | 0 | 0 |
- After the Bottled Water category, the second-best performing category for Coca-Cola India is Dairy. Although only two products were assessed in this category, both were found to meet the HSR healthy threshold, resulting in a mean HSR of 3.5 out of 5. Few products in the Carbonates or Juice categories were found to meet the HSR healthy threshold and none of its products in the Sports Drinks category were found to meet the threshold.
Relative nutritional quality of Coca-Cola India's products by category compared to competitors
| Mean HSR | Bottled Water | Carbonates | Dairy | Juice |
|---|---|---|---|---|
| Coca-Cola India | 5.0 | 1.7 | 3.5 | 1.3 |
| Aavin TCMPF | 2.3 | |||
| Amul GCMMF | 2.4 | |||
| Arla | 3.2 | |||
| BRF | 2.7 | |||
| Britannia Industries | 2.2 | |||
| Campbell | 3.3 | |||
| Coca-Cola | 1.5 | 3.6 | 2.7 | |
| Conagra | 2.1 | |||
| Danone | 3.5 | |||
| Ferrero | 0.7 | |||
| FrieslandCampina | 3.4 | |||
| General Mills | 3.5 | |||
| Hatsun Agro Product | 2.7 | |||
| KMF Nandini | 2.2 | |||
| Keurig Dr Pepper | 1.3 | 2.1 | ||
| Kraft Heinz | 2.7 | 3.6 | ||
| Lactalis | 3.1 | 4.3 | ||
| Mars | 2.8 | |||
| Meiji | 3.2 | |||
| Mengniu | 3 | |||
| Mondelēz | 2.4 | |||
| Mother Dairy | 3.0 | |||
| Nestlé | 1.8 | 2.4 | ||
| Nestlé India | 3.0 | |||
| PepsiCo | 1.6 | 3.1 | 2.6 | |
| PepsiCo India | 5.0 | 1.8 | 2.5 | |
| Suntory | 1.6 | 3 | 3.5 | |
| Tingyi | 2.7 | 3.6 | ||
| Yili | 3.1 |
- When compared to the other companies that sell dairy products in India (as part of their top-selling categories), Coca-Cola India’s dairy products achieve the highest mean HSR (3.5 out of 5), ranking it first out of eight in the Dairy category.
- Coca-Cola India and PepsiCo India were the only companies for which products of the Carbonates and Juice categories were included in the Product Profile. On average, PepsiCo’s products were found to be healthier within these categories, although the difference within the Carbonates category is small with a mean HSR of 1.7 for Coca-Cola India and 1.8 for PepsiCo India.
- Coca-Cola India competes with other companies in four categories, and achieves a relative category score of 3.2 out of 10 based on its ranking within these categories.
Conclusion
- Coca-Cola India’s mean healthiness score of 3.7 and relative category score of 3.2 result in an overall Product Profile score of 3.5 out of 10, which means the company ranks fourteenth.
- Coca-Cola India should continue and accelerate product innovation and reformulation activities, and shift sales efforts towards its healthier products such as the new dairy products.