The Coca-Cola Company (NYSE:KO) is looking forward to have some investment in China. The drinks maker want to invest more than $4 billion in country by manufacturing new plants during 2015 and 2017, in order to strengthened itself and boost its share in China as it had lost its $69.12 billion or 421 billion Yuan soft drinks market in the country.
The company spokeswoman Sharolyn Choy for Asia has said that the latest investment by the company will add to the $4 billion that the globe’s biggest drinks manufacturer has allocated for the country during 2012 to 2014, revealed on Friday.
The Coca-Cola Company spokeswoman also added that the firm is also open to deals with domestic companies. And analysts predicts that the company this move will facilitate it in adopting the local trends and styles in the country, such as herbal teas and other healthier drinks.
There is a common trend in Chinese people that they mostly opt for healthier food and drinks in their life as compare to other alternatives, so other food chains that are operating in the country are also switching towards such trends that can facilitate their business like McDonald’s Corporation (NYSE:MCD) and Yum! Brands, Inc. (NYSE:YUM).
Euromonitor, a market research firm, has reported that the beverage maker is still a top player in drinks market in China. In the country the company held 16% market share by volume according to last year, decreased 16.6% 5 years ago.
The beverage maker’s international sales lowered than its targets during April-June quarter, which the company quoted to economic slowdown in Asia and Europe.
China Market Research Group, director Shaun Rein, has said the drinking sectors is quite aggressive currently and the company drinks is going to have to do some additional purchasing as compare to increasing through organic growth. The Coca-Cola Company (NYSE:KO) share fell -0.55% to $39.83 in last trading session.
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