Coca-Cola's Largest Bottler in India Warns of Price Hikes if Middle East Conflict Persists

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A senior executive at SLMG Beverages, Coca-Cola’s largest bottler in India, said that if the increased packaging costs caused by the Middle East conflict become difficult to absorb, SLMG Beverages may raise prices on some products.

The conflict has driven up the cost of key packaging materials, including plastic bottles, caps, labels, and cartons, with some bottled water producers already starting to increase prices.

“If the war continues, the cost of packaging materials may continue to rise,” Rahul Kumar, SLMG’s Deputy CEO, said in an interview earlier this month, adding that price increases will depend on various factors, including how competitors respond and consumer reactions to higher prices.

Kumar noted that in the highly competitive soda market, there is limited room for price hikes, as the market includes numerous national and local brands. He also added that over the past 7-8 years, the company’s product portfolio has not experienced widespread price increases.

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