Coca Cola- Planning to invest hefty amount of around $4 Billion in 2015 to 2017

Coca Cola Inc. is the world’s largest beverages company and it has planned to invest more than $4 billion in China after 2015 to 2017. It builds companies and additionally innovative products for meeting demand which will rise to competition.

            Moreover , Coca cola is likewise open to acquisition in China and it might consider arrangements with  corresponding business that is juice makers or protein drinks like Almond milk , David Brooks , president of Atlanta based company’s greater China and Korean business unit, mentioned in 6^th Nov interview in capital of China.

He also comments on the future investment plan for China that “You will see an increase in investment on annual basis on three year basis on average. Coke is financing around $4 Billion in the country for 2012 to 2014.

     United States soft drink maker raging up its China investment as the company and its bottlers pursue to multiply revenue globally up to $200 Billion in 10 years to 2020. Adding to this, Coca cola Inc. is the country largest soft drink maker and they turned up with competition from other companies which include Pepsi Inc. and the local Hangzhou group as they are seeking to expand around the Globe.

Moreover, Pepsi Inc. is the world’s second largest soft drink maker as it is pacing up its push into China. Pepsi also opened new factories and required to expand supply through a channel with Tingyi Cayman Islands. There is an intense competition in beverage industry China. This sector is with low growth and weak profitability as mentioned in Sep 25 reports by analyst Jean Chan (Sanford C. Bernstein & Co.) .She added promotions are typically driven by promotion.

Coca cola states that in the month of July’s second quarter the sale volume in china was little altered after growth of 7 % a year ago. Brooks said “Third quarter sales have shown improvements and this will be continuing over the next year as well”. Asian economy has paired a projective growth of an average of 7% this decade as compared with 10.5 % in last decade.

Hence Coca cola is planning to open as many as two product facilities on each further year in the country and over the next decade Brooks added. In the earlier term, they are planning to invest in a new blending factory in Shanghai and most likely they will open a new plant in South West province in next two years Brooks stated.

Chinese beverage market is still much disunited as executive said. Not a single company has the major share of market and there is a large amount of available opportunity left to grow.