Coke on track to open two more plants
By Zhang Fengming |
April 28, 2010, Wednesday
|
Print Edition
Print Edition
COCA-COLA Co will open two more plants in China as it pushes forward its three-year, US$2 billion investment plan in its third-largest market, its chairman and chief executive officer said yesterday in Beijing.
The Atlanta-based company will open plants in Guangdong Province and Hohhot in Inner Mongolia Autonomous Region this year, Coca-Cola Chairman and Chief Executive Officer Muhtar Kent said.
The world's largest soft drink maker also started construction of a plant in Henan Province this year.
"Our US$2 billion investment plan is on track," Kent said. "China is a tremendous growth market for us and a market of great investment, partners and innovation."
The company opened three plants in China last year in Xinjiang, Jiangxi, and Hubei. The company is also raising capacity at existing facilities.
"Without any doubt, we are completely in belief and completely allied with the prospects of what China's future development holds," Kent said.
Coca-Cola's business in China grew 16 percent in the first quarter of this year. It has maintained double-digit growth in China for 38 quarters.
Coke has invested US$2 billion in China since 1979 and created 40,000 jobs directly. It creates 10 jobs indirectly with each direct job.
China is the world's second-biggest ready-to-go non-alcoholic drink market after the United States.
The 58-year-old Turkish American businessman steering the American company said he expects China to become the biggest non-alcoholic beverage market "in a fairly short period of time" and one day become Coca-Cola's biggest market.
"Everything is becoming possible," Kent said. "It's not a question of if, it's a question only of when."
The company covers segments including soda, water, tea, dairy and juice in China.
Kent said he expects the carbonated and still segments both to perform well in China.
Carbonated drinks account for about 70 percent of the company's revenue while still products take the remainder.
"Our clear goal is to grow both successfully," he said, noting that the company will focus on organic growth in China.
The company has no immediate plan to merge or acquire any rivals, he said.
The Ministry of Commerce in March 2009 rejected Coca-Cola's US$2.4-billion bid to buy China's top juice maker, China Huiyuan Juice Group, over competition concerns.
Kent also expects the company to introduce more China-developed brands overseas. For instance, it brought the Minute Maid Pulpy brand to 10 overseas markets including Latin America.
Coca-Cola and its arch rival PepsiCo Inc control 86 percent of China's soda market.
The Atlanta-based company will open plants in Guangdong Province and Hohhot in Inner Mongolia Autonomous Region this year, Coca-Cola Chairman and Chief Executive Officer Muhtar Kent said.
The world's largest soft drink maker also started construction of a plant in Henan Province this year.
"Our US$2 billion investment plan is on track," Kent said. "China is a tremendous growth market for us and a market of great investment, partners and innovation."
The company opened three plants in China last year in Xinjiang, Jiangxi, and Hubei. The company is also raising capacity at existing facilities.
"Without any doubt, we are completely in belief and completely allied with the prospects of what China's future development holds," Kent said.
Coca-Cola's business in China grew 16 percent in the first quarter of this year. It has maintained double-digit growth in China for 38 quarters.
Coke has invested US$2 billion in China since 1979 and created 40,000 jobs directly. It creates 10 jobs indirectly with each direct job.
China is the world's second-biggest ready-to-go non-alcoholic drink market after the United States.
The 58-year-old Turkish American businessman steering the American company said he expects China to become the biggest non-alcoholic beverage market "in a fairly short period of time" and one day become Coca-Cola's biggest market.
"Everything is becoming possible," Kent said. "It's not a question of if, it's a question only of when."
The company covers segments including soda, water, tea, dairy and juice in China.
Kent said he expects the carbonated and still segments both to perform well in China.
Carbonated drinks account for about 70 percent of the company's revenue while still products take the remainder.
"Our clear goal is to grow both successfully," he said, noting that the company will focus on organic growth in China.
The company has no immediate plan to merge or acquire any rivals, he said.
The Ministry of Commerce in March 2009 rejected Coca-Cola's US$2.4-billion bid to buy China's top juice maker, China Huiyuan Juice Group, over competition concerns.
Kent also expects the company to introduce more China-developed brands overseas. For instance, it brought the Minute Maid Pulpy brand to 10 overseas markets including Latin America.
Coca-Cola and its arch rival PepsiCo Inc control 86 percent of China's soda market.
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