The Dabur concalls of Q1 and especially Q2 contain extensive discussion on the effect of Campa Cola on the beverages market. Beverages sales were down 11.6 % for Dabur in Quarter 2. Interestingly, with Cola becoming cheaper it is the juices which have got impacted more than rival cola brands as consumers have shifted from juices to fizz based drinks, says Dabur. Dabur Real declined 12 %. We see this slowdown resonate in VBL’s results as well - where juice category grew just 2.73 % in Q2 compared to more than 20 % growth in soft drinks. However, VBL’s discussions do not refer to this shift from juice to cola. Since juices contribute a very small percent of VBL’s revenues, Campa has not been much of a problem to the company (so far at least). This is from Dabur Q1 call:
And the entire Q2 call is worth reading for anyone interested in this subject:
https://www.bseindia.com/xml-data/corpfiling/AttachHis/ef6cb5a9-223f-4b89-99c4-495e6f46f3a1.pdf
Nice lesson in competitive analysis.
| Subscribe To Our Free Newsletter |
