SHANGHAI—The Coca-Cola Company and its Chinese bottling partners announced a new investment of US$4 billion over the next three years, beginning in 2012. This new investment brings Coco-Cola’s total investment in China to $7 billion between 2009 and 2014.
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.
"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 Muhtar Kent, Chairman and CEO of The Coca-Cola Company, during a visit to Shanghai. "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."
According to a company press release, 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 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," 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."
