#21 Coca-Cola getting more involved in China

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.

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