As the International Herald Tribune reported recently, Sara Lee Corp is considering a sale of its European household and personal care units. It may be a case of simply focusing on what they are on their home turf – a food company; but might it be that it’s just another case of a US multinational not being able to penetrate the European market?
Archive for March, 2009
Despite the worldwide economic downturn, Coca-Cola announced in early March that it would invest approximately $2bn in China over the next three years – more than it has invested since its first entry in 1979. Interestingly enough, the news were spread right during the time when Coca-Cola is waiting for government approval for the $2.4bn takeover of Huiyuan Juice Group. Could it be that the announcement was meant to make Chinese officials friendlier towards the take-over? Having grown by an astounding 29 % in q4 of 2008, China is Coca-Cola’s third largest market behind the US and Mexico. Coca-Cola expects the middle class in China to grow by 300m-350m people by 2020 and assumes that they will all drink Coca-Cola products – which is yet to be seen.