Coca-Cola Plans to Invest $2 Billion in China

Despite that China’s economy is growing weak due to global recession, beverage giant Coca-Cola Co. expressed its plan to invest $2 billion in this country. Experts agree that this marketing move is a bold step for the US company since most foreign firms have started leaving China or have closed its factories.

In line to boost its production in the Asian region, US beverage giant Coca-Cola Co expressed its plan to invest $2 billion in China amid the growing number of foreign firms that left the country due to its weakening economy, according to a Wall Street Journal report.

Earlier report said Coca-Cola has also been planning to acquire Huiyuan Juice Group Ltd which is one of the biggest beverage makers in China. If successful, this move will be the largest foreign takeover in China and also the biggest overseas purchase of the US beverage giant. Because of this planned acquisition, this stirs controversy as some critics warn that Coca-Cola can potentially monopolize the beverage industry in the country.

The US company had also spent more than $90 million to built technology center based in Shanghai which is the biggest in Asia.

In a statement, Coke chief executive Muhtar Kent said the company will continue to invest billions of dollars for the next three years in the Asian country to boost their production and sales.

“We will invest to create new plants and infrastructure, focus on research and development activity, and boost the company’s sales, distribution, and marketing”, Kent added.

Meanwhile, Coca-Cola’s massive investment in China would intensify the stiff competition against rival PepsiCo Inc. which is enjoying fast growth rate in the country.


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