Coca-Cola to invest US$4 billion in China
The Coca-Cola Company and its Chinese bottling partners today announced a new investment of US$4 billion over the next three years, commencing 2012.
By the end of 2011, Coca-Cola and its China bottling partners Swire Beverages Ltd. and COFCO Coca-Cola Beverage Co. Ltd. will have invested more than $3 billion in China over the last three years, bringing the total investment to $7 billion between 2009 and 2014 in the largest and fastest-growing consumer market in the world.
Chairman and CEO of The Coca-Cola Company, Muhtar Kent said,”China is one of our most important growth markets in the world as we work to achieve our 2020 Vision goal of doubling system revenues and servings this decade.
“Besides our infrastructure and capabilities, the new investment will also focus on enhancing the consumer experience, ensuring product affordability and building brand loyalty which deliver sustainable growth.”
In the first six months of 2011,Coca-Cola’s sales in China topped 1 billion unit cases – double the rate sold five years ago when the company first delivered 1 billion unit cases for a full year.
“China had an outstanding performance in the latest quarter, supported by strong growth in the Coca-Cola brand and Minute Maid Pulpy, the No. 1 juice brand in China,” Mr Kent said. “These achievements are driven by a renewed focus on core brands, continued distribution gains and expansion of cold drink equipment, all made possible by our continued investment and dedicated execution over the years.”
Kent said that the Coca-Cola China system opened five plants in Urumqi, Nanchang, Wuhan, Luohe and Hohhot in 2009-2010. In 2011, the system has already opened a new plant in Sanshui (Guandong province), will open another plant in Yingkou (Liaoning province), and break ground on a new plant in Shijiazhuang (Hebei province) later this year.
With the recently opened plants, the Coca-Cola system now operates more than 40 plants in China employing more than 48,000 people. Consumption of Coca-Cola products in China now represents approximately 7% of the Company’s global volume.