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Zero-sugar drinks hit the sweet spot as sales double for PepsiCo and Coca-Cola in Sept qtr

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Zero-sugar drinks hit the sweet spot as sales double for PepsiCo and Coca-Cola in Sept qtr

Zero-sugar drinks hit the sweet spot as sales double for PepsiCo and Coca-Cola in Sept qtr

During the July-September 2026 quarter, consumer demand for zero-sugar and low-sugar beverages significantly increased across India. PepsiCo reported that sales of its low-sugar drinks doubled, while Coca-Cola also experienced similar gains. Companies are prioritising the production of low-sugar beverages to meet the rising market demand.

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New Delhi: Sales of PepsiCo 's zero-sugar and low-sugar drinks doubled to a record 88% of volumes in July-September 2026 quarter, up from 44% in the corresponding year-ago quarter as consumers turned away from sugary drinks. This helped helped mitigate margin pressures amid steep and continuous surge in sugar prices.

Larger rival Coca-Cola , which leads the ₹60,000-crore soft drinks category, also saw sales of its diets and lights drinks double over last year, which now include Schweppes sugar-free flavoured drinks as well.

PepsiCo's bottling partner Varun Beverages (VBL) told investors at its post September quarter earnings call in a management commentary that surge in prices of sugar was offset by increase in low sugar and no sugar products.

"In India, savings in sugar consumption, driven by a higher mix of low-sugar, no-sugar products helped maintain gross margins despite the inflationary raw material environment affected by the West Asia crisis," Raj Gandhi, president and wholetime director at VBL said on the investor call. The numbers include sales of sugar-free Pepsi and 7 Up sugar-free, Evervess soda and Aquafina water.


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