Coca-Cola plans to invest over USD4 billion in China from 2015-2017
The Coca-Cola Co announced its plan to invest more than USD4 billion in China from 2015 to 2017. The fund will be used to build new plants in the said country. This was one of the company's ways to fight competition, according to a a report published by Yahoo Finance.
The soda market in China is valued at USD69.12 billion. Coca-cola is still the top beverage maker in the country. However, the beverage giant faced tough competition with healthier drinks, which started gaining more popularity among Chinese consumers, the report said.
Shaun Rein, managing director of China Market Research Group said: "The beverage market is quite competitive right now and Coke is going to have to do a lot more acquisitions rather than growing through organic growth."
Coca-Cola is ready to deal with local companies, according to spokeswoman Sharolyn Choy. Analysts had said that Coca Cola's strategic investment could help the company go with the trend of herbal teas and healthier beverages in China, as stated in the report.