Coca-cola expands their business in China
The Coca-Cola Company officially announced its entrance into China’s dairy beverages market on Monday and after that the company on Friday followed with a remarkable expansion of its largest single investment for strengthening its still beverage business in China.
Coca-cola opened a bottling plant in Wuhan which is the capital of Hubei province with 600 Yuan; it will be operated by the most advanced still beverages producing technology in the Coca-cola system globally.
It’s the 39th facility to bottle Coca-cola’s products across China, and the 10th opened bottling plant for manufacturing Coke’s still beverage products, with annual production capacity of 45 million unit cases of Coke’s still beverage products (which is equal to 1 billion bottles of beverages), according to the company.
Coca-cola would achieve the annual still beverage production capacity of 300million unit case by this year with this expansion and an increase of 80million unit cases compared with previous years.
Dong Jackson, the president of Coca-cola China said today, still beverages are growing to contribute more than 30 percent of Coca-cola’s sales in China, the world’s second largest beverage producer after the US. Also China has cleared shown the potential in the still beverage market as the Chinese consumers maintained high demand in non-carbonated drinks.
Coca-cola Company has already built up a strong network for manufacturing its still beverage products in 11 cities across China, including Beijing Shanghai, Xiamen in Fujian province and Dongguan in Guangdong province, as well as the new expansion in Wuhan.
The Wuhan bottling plant will be used to produce bottle water, tea and fruit juice beverages, as well as the newly launched juicy dairy beverages.
Chen Jing, an analyst from Beijing Orient Agribusiness Consultant LTD. “Minute Maid juice will continue to be the focus for Coca-cola to expand its still-beverage business in China, since it has grown to be the number 1 brand in the low-juice content beverage market since 2007.”
Ren Jiliang, a senior director of Coca-Cola bottle’s manufacturing (Dongguan) Company LTD, said that in the Wuhan plant, two of the four production lines will be used to make Minute Maid Pulpy Super Milky and its related juice dairy products.
There is an unnamed industry insider commented that the newly established plant was s signal of Coca-Cola’s expectation to drive further business growth in China’s still beverage market after its failed bid to buy the Huiyuan group.
But the company might not give up China’s pure juice market in the coming future, although Jackson refused to mention the timetable for entering into the sector.
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