By: Alan Rappeport
Source: http://www.ft.com
Coca-Cola, the world’s largest soft drinks company by revenues, said on Monday that it would invest $2bn in India over the next five years, as it looks to deepen its presence in fast-growing emerging markets amid slowing US demand for carbonated beverages.
Coke’s India investment matches what the company has spent there in the past 18 years and the funds will be used to develop manufacturing and distribution capacity and on consumer marketing.
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“The opportunity in the packaged beverage segment is immense, and our efforts in India are focused on being the beverage of choice all day, every day,” said Ahmet Bozer, head of Coke’s Eurasia and Africa group.
“If we continue to do the right things each day and at all times, it would not surprise me if India becomes one of the top five markets for the company globally by the end of this decade.”
Coke employs 25,000 workers in India and has been engaged in a tough battle for market share there with rival PepsiCo since re-entering the market in 1993.
Both companies have been stepping up efforts in emerging markets as concerns about obesity in the US have softened demand for carbonated soft drinks.
The new commitment to India marks a big shift from the contentious relationship between the company and the country in the 1970s. Coke abandoned the Indian market in 1977 after the government demanded that the company partner with an Indian company and share its secret formula.
Coke and Pepsi have also faced challenges in India more recently. In 2005, the companies launched campaigns to convince Indian consumers that their products were safe, after several states enacted partial bans on the beverages because of fears that they contained pesticides.
Coke accounts for 56 per cent of India’s carbonated soft drinks market, while Pepsi has 40 per cent, according to data from Beverage Digest.
In 2008, Pepsi announced a $500m investment in India and said it wanted to triple its revenues from the country within five years.
In India, Coke’s top-selling brands are Thums Up, Sprite and Maaza, a popular juice drink. Growing demand for Maaza has created a mango shortage in India and the company is working with low-tech farmers to teach them new mango-growing techniques. Monday’s announcement followed Coke’s decision in August to invest $4bn in China during the next three years.
That was added to a $3bn investment it announced in 2009.
Source: http://www.ft.com/intl/cms/s/0/32a67f42-0ee7-11e1-b585-00144feabdc0.html#axzz1dqQH3Uq3
Source: http://www.ft.com
Coca-Cola, the world’s largest soft drinks company by revenues, said on Monday that it would invest $2bn in India over the next five years, as it looks to deepen its presence in fast-growing emerging markets amid slowing US demand for carbonated beverages.
Coke’s India investment matches what the company has spent there in the past 18 years and the funds will be used to develop manufacturing and distribution capacity and on consumer marketing.
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/32a67f42-0ee7-11e1-b585-00144feabdc0.html#ixzz1dqQXu1Z8
“The opportunity in the packaged beverage segment is immense, and our efforts in India are focused on being the beverage of choice all day, every day,” said Ahmet Bozer, head of Coke’s Eurasia and Africa group.
“If we continue to do the right things each day and at all times, it would not surprise me if India becomes one of the top five markets for the company globally by the end of this decade.”
Coke employs 25,000 workers in India and has been engaged in a tough battle for market share there with rival PepsiCo since re-entering the market in 1993.
Both companies have been stepping up efforts in emerging markets as concerns about obesity in the US have softened demand for carbonated soft drinks.
The new commitment to India marks a big shift from the contentious relationship between the company and the country in the 1970s. Coke abandoned the Indian market in 1977 after the government demanded that the company partner with an Indian company and share its secret formula.
Coke and Pepsi have also faced challenges in India more recently. In 2005, the companies launched campaigns to convince Indian consumers that their products were safe, after several states enacted partial bans on the beverages because of fears that they contained pesticides.
Coke accounts for 56 per cent of India’s carbonated soft drinks market, while Pepsi has 40 per cent, according to data from Beverage Digest.
In 2008, Pepsi announced a $500m investment in India and said it wanted to triple its revenues from the country within five years.
In India, Coke’s top-selling brands are Thums Up, Sprite and Maaza, a popular juice drink. Growing demand for Maaza has created a mango shortage in India and the company is working with low-tech farmers to teach them new mango-growing techniques. Monday’s announcement followed Coke’s decision in August to invest $4bn in China during the next three years.
That was added to a $3bn investment it announced in 2009.
Source: http://www.ft.com/intl/cms/s/0/32a67f42-0ee7-11e1-b585-00144feabdc0.html#axzz1dqQH3Uq3
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