Coca-Cola and China -- All those thirsty people

Article Submitted by: max
Corporate News


Tags: Coke, Global play.

China is Coca-Cola's fourth largest market. In the last five years, they have pretty much doubled their sales there. Just imagine what their sales will look like in another five years. To get a handle on growth and forward movement, Coke is investing some $80 million on a R&D center in Shanghai. The US, Brazil and Mexico are Coke's three other major markets. China may well pull ahead soon, and Coke is playing its cards well. Coke is becoming a very good global play.

 

Submitted: Jul 24, 2007    Views: 508    Comments: 2    Likes: 4   


China is Coca-Cola's fourth largest market. In the last five years, they have pretty much doubled their sales there.  Just imagine what their sales will look like in another five years.  To get a handle on growth and forward movement, Coke is investing some $80 million on a R&D center in Shanghai.  The US, Brazil and Mexico are Coke's three other major markets.  China may well pull ahead soon, and Coke is playing its cards well.  Coke is becoming a very good global play.

The Shanghai center is one of six that Coke has around the globe, each tailoring existing products and developing new ones for different world regions.  It makes very good business sense.

In the last year, KO has increased over 20%.  I would bet the stock will continue to appreciate at that rate.


Sponsor Updates and Offers

Sign up for Zions Direct’s free weekly newsletter.

Get market information, CD and Bond auction updates, new-issue alerts and more.



Related Articles:



4

Email this story Email to someone | Print Story Print Content | Add to reading list

Comments Received:

Coke may be doing OK in China, but in the rest of the world they are hobbled with dramatically declining demand for their core products, poor marketing, poor product mix and not too much to get too excited about. The China card is there for Coke, but will it offset mediocre business elsewhere?

Posted: Jul 24, 2007

I tend to agree with Victor. I think Coke has satured its market in the developed world and is going to see a decline in demand. At best. China should help it stay slightly ahead but I wouldn't call this a growth stock.

Posted: Jul 24, 2007



Add Your Comments:

Your Name:

Spam protection control:


© Copyright 2010 max All rights reserved. max has granted BestCashCow.com, LLC non-exclusive rights to display this work on Bestcashcow.com.

Financial products of all nature bear inherent risks and this website is not a financial advisory service; it is a forum for users to share and to compare notes and observations on financial publications. The website provides, free of charge, the technical and logistical apparatus and the medium for users to share and to publish financial information and to comment on publications. As such, the website's operator can not and does not take responsibility for information, observations or opinions of any sort or nature provided by third parties with whom it is not affiliated who use the website to publish, to comment or as a means of solicitation. Users are specifically warned against following any advice related to specific instruments, including, but not limited to, equity securities, that may be provided by other users directly on this site or on web pages to which other users have provided links on this site. BestCashCow.com can not and does not check or verify the qualifications and credentials of users who publish or comment on this site or on linked pages. Users should seek personalized advice from qualified professionals regarding all personal financial issues and evaluate the risks and applicability to their own circumstances of each financial product discussed regardless of who the publisher is or purports to be. Should you, through your use of this site, identify an individual or organization purporting to offer personalized advice, you bear all responsibility to ensure that the individual or organization has the qualifications that they may represent on the website, and that their advice is appropriate for your circumstances. On certain webpages, BestCashCow.com provides information related to rates on US-based savings accounts, CDs, short-term government bonds, and other US cash equivalent securities, also free of charge to internet users for their independent use. The accuracy of this information is not guaranteed, and the information, like all other information on this website, should not be construed to provide investment advice, nor to endorse a financial product of any sort.

© 2010 BestCashCow.com, LLC. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy.