Quantcast
  

Wednesday, April 23, 2014         

 Print   Email   Comment | View 0 Comments   Most Popular   Save   Post   Retweet

Coke more than doubles its stake in India

The beverage maker plans to invest $5 billion between now and 2020 as growth explodes

By Candice Choi and Michelle Chapman

Associated Press

POSTED:

associated pressCoca-Cola is raising its investment in India. A man passed a Coke sign at a food stall Tuesday in Mumbai.

NEW YORK » The Coca-Cola Co. and its bottlers plan to invest an additional $3 billion in India over the next eight years to boost the soda giant's stake in the rapidly growing market.

The world's biggest beverage maker, whose brands include Minute Maid, Dasani and Powerade, is seeing some of its biggest gains come from emerging markets as growth at home slows.

In its first quarter, for example, Coca-Cola said its volume rose 20 percent in India, compared with a 2 percent increase in North America.

Including the new cash infusion, Coca-Cola said Tuesday that it now plans to invest $5 billion in India between 2012 and 2020. That's more than double the $2 billion it has invested since re-entering the market in 1993.

The Atlanta-based company had pulled out of India in 1977 to avoid handing control over to its Indian subsidiary and revealing its secret formula.

Globally, Coca-Cola's market share of carbonated soft drinks is 52 percent, compared with 21.4 percent for PepsiCo Inc., according to industry tracker Beverage Digest.

"In most markets outside the U.S., Coke has a very large lead in carbonated soft drinks," said John Sicher, publisher of Beverage Digest.

In India, he said, the gap is smaller; Coca-Cola has 56 percent of the market versus PepsiCo's 40 percent.

Coca-Cola's dominance in the country isn't the result of its namesake cola, however.

The company's Thums Up — a spicier local soda it acquired in 1993 — and Sprite are the top-selling soft drink brands in India, each with 16.5 percent of the market, while its Maaza is the top-selling juice.

The company's namesake Coca-Cola, meanwhile, has just 8.8 percent of the carbonated soft drink market, trailing PepsiCo's flagship soda, which has 15 percent, according to Euromonitor International.

PepsiCo, based in Purchase, N.Y., re-entered India in 1989, several years ahead of Coca-Cola.

Coca-Cola CEO Muhtar Kent said that the company's increased investment in India is part of its plan to double revenue over this decade.

The company and its bottling partners plan to invest more than $30 billion globally over the next five years for new manufacturing plants, distribution systems and marketing to support growth in emerging markets.

Coca-Cola's shares rose 31 cents to $75.08 Tuesday, near the high end of their range of $63.34 to $77.82 over the past 52 weeks.






 Print   Email   Comment | View 0 Comments   Most Popular   Save   Post   Retweet

COMMENTS
(0)
You must be subscribed to participate in discussions
By participating in online discussions you acknowledge that you have agreed to the TERMS OF SERVICE. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. Because only subscribers are allowed to comment, we have your personal information and are able to contact you. If your comments are inappropriate, you may receive a warning, and if you persist with such comments you may be banned from posting. To report comments that you believe do not follow our guidelines, email commentfeedback@staradvertiser.com.
Leave a comment

Please login to leave a comment.
IN OTHER NEWS
Latest News/Updates