Coca-Cola’s Market Grip Weakens in Nepal; Sales Dip 15%

Kathmandu – Bottlers Nepal Limited, the official producer and distributor of popular soft drink brands such as Coca-Cola, Fanta, Sprite, and Kinley in Nepal, has reported a total revenue of Rs 12.06 billion in the first nine months of the current fiscal year.

The company operates through its two key entities: Bottlers Nepal Limited and its subsidiary Bottlers Nepal (Terai) Limited. Of the total sales, Bottlers Nepal Limited accounted for Rs 7.10 billion, while Bottlers Nepal (Terai) generated Rs 4.96 billion during the same period.

Bottlers Nepal (Terai), established in 1987, holds the official distribution rights for Coca-Cola products in the country. Despite its extensive market reach, the company has seen a decline in revenue compared to previous years. In 2022, it posted sales worth Rs 9.19 billion, which rose slightly to Rs 9.40 billion in 2023. However, by 2024, revenues dipped to Rs 8.80 billion, which is a 4% decrease year-over-year. Sales during the current fiscal year’s first nine months have dropped further by 15%, primarily due to reduced sales volume.

Similarly, Bottlers Nepal Limited, which has been distributing beverages in Nepal since 1979 in partnership with Southwest Asia Holding Limited, recorded a steady decline in revenue in recent years. The company’s annual revenue stood at Rs 12.52 billion in 2022 and marginally increased to Rs 12.64 billion in 2023. However, in 2024, it reported a downturn to Rs 11.37 billion, reflecting a nearly 10% drop compared to the previous year.

According to company officials, the decline is attributed to halted exports and rising price competition in the domestic market, which has led to reduced sales volume. Market share has also taken a hit, slipping from 61% last year to 54% in the first nine months of the current fiscal year.

Bottlers Nepal Limited holds a 76% stake in the business, with Gorkha Brewery owning 22%, and the remaining shares held by the public. Meanwhile, Bottlers Nepal (Terai) is largely public-owned, with 91% of its shares held by individual and institutional investors.

To support their operations, the two companies have collectively secured short-term credit ratings totaling Rs 7.27 billion. Individually, Bottlers Nepal has rated Rs 3.37 billion worth of loans, while Bottlers Nepal (Terai) has rated Rs 2.39 billion.

With a network of over 250 dealers nationwide, Bottlers Nepal (Terai) continues to maintain a significant presence in Nepal’s beverage market, currently holding a 38% market share.

Despite current challenges, both entities remain major players in the country’s beverage industry and are expected to navigate the competitive landscape with strategic adjustments moving forward.