Varun Beverages: The Weather Effect (Unseasoned Rain)

For any Beverage Company, second quarter which is April to June is usually very big, Last year it was a big disaster due to unseasoned rains, led to lesser outdoor activities and social gatherings, and also consumers generally tend to prefer hot beverages during cooler and rainy weather.

Rainfall experienced in the North last year was an abnormal occurrence.

And Company can't transport its products from this plant to the south and west due to the high freight costs.

Unseasoned rains throughout the Quarter has affected the sales more for Juice Category as compare to Carbonated Soft Drink (CSD).

but in Q3, market has rebounded saw a substanial growth:

~ Nimbooz grown by 100%.

~ Gatorade grown by 50%.

These two Brands were the standout performer in the third quarter

Src- Concall