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Cola majors spent over Rs 900 crore on advertising in FY21

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This is a 23% decrease over Rs 1196 crore that PepsiCo India and Coca-Cola India spent in FY20, according to financial data provided by Tofler

Cola majors PepsiCo India and Coca-Cola India have collectively spent Rs 924 crore on advertising during the financial year ended 31st March 2021. According to financial data of the two companies provided by Tofler, this is a 23% decrease over the Rs 1196 crore that the two companies spent in FY20.

During the fiscal under review, PepsiCo India’s advertising promotional expenses dropped 13% to Rs 459 crore from Rs 517 crore in FY20. Coca-Cola India’s advertising promotional expenses shrank 32% to Rs 465 crore from Rs 679 crore in FY20.

In its annual filing, Pepsi said that its advertising and marketing expenditure is expensed as incurred. Media costs including third-party production expenses incurred for advertisements to be aired in this subsequent financial year are treated as prepaid expenses. Payments under personal service contracts of celebrities participating in advertisement and marketing campaigns and multi-year commitments are expensed in accordance with the terms of the agreement.

PepsiCo’s revenue from operations dropped 4.4% to Rs 5032 crore from Rs 5264 crore. Total income fell 7% to Rs 5128 crore from Rs 5495 crore. Total expenses dropped 4% to Rs 5031 crore from Rs 5248 crore. The company’s net profit dropped 78% to Rs 73 crore as compared to Rs 329 crore.

Coca-Cola India’s net sales fell 16% to Rs 2298 crore as compared to Rs 2742 crore. Total income was down 16% to Rs 2355 crore from Rs 2812 crore. Total expenses increased 11% to Rs 1741 crore from Rs 1961 crore. The company reported a net profit of Rs 443 crore, which is a 28% increase over Rs 619 crore.

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