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Coca-Cola Investing $4 Billion in China

According to the soft drink empire, $4 billion is just the beginning
 Coca-Cola Investing $4 Billion in China
 
 

Global businesses of every kind are setting their sights on China, and The Coca-Cola Company (TCCC) is right there with the best of them. The soda dynasty is investing $4 billion into development in China, with the hopes of doubling revenue in the country by 2020.

This aggressive tactic marks the company’s largest planned investment in China since a $2 billion endeavor in 2009 – between then and 2014, it is projected that Coca-Cola and its regional bottling partners Swire Beverages and COFCO Coca-Cola Beverage will have spent at least $7 billion. Within the past two years alone, TCCC has opened six new plants throughout China and plans to open two more in Liaoning and Hebei provinces later this year, bringing the grand total for Coca-Cola related facilities in China to 41.

 

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Why so much effort invested in China? Coca-Cola has high expectations for the country and what it can do for the company’s revenues. “With the rapid growth of the middle class and the general public having more disposable income, the China market potential is enormous and will continue to be an important growth engine for TCCC,” a spokesperson for Coca-Cola told Beverage Daily.

The company cites rapid sales growth in China, with sales having doubled between 2011 and five years prior. Much of that can be attributed to Minute Maid Pulpy – as the highest selling juice brand in China, the drink is credited as Coca-Cola’s “first brand in an emerging market to reach the $1bn sales mark.”



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