Liz Gyekye / packagingnews.co.uk

Coca-Cola to invest $4bn in China

Coca-Cola has announced that it will invest US$4bn (£2.5bn) in China between 2012 and 2014.

The US drinks giant and its China-based bottling partners have already invested $3bn in China since 2009.

“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. The new investment is a part of our long-term commitment to invest in innovation, partnerships and a portfolio that will enable us to grow our business in a sustainable and responsible way,” said Coca-Cola chairman and chief executive Muhtar Kent, during a visit to Shanghai.

He added: “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.”


Strong growth

In its second quarter 2011 financial results, Coca-Cola posted strong worldwide volume growth of 6% in both the quarter and year-to-date, with growth across all five geographic operating groups, including in China.

“In the first six months of 2011, sales in China topped one billion unit cases – double the rate sold five years ago when the company first delivered one 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 number one juice brand in China,” Kent said.

Coca-Cola opened five plants in China last year. It has opened an extra facility in China this year, and has plans to launch two more.