Coca-Cola and China -- All those thirsty people

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.

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.

Max Lubetkin
Max Lubetkin: Max is BestCashCow's entertainment and specialty writer. He is a recent Dartmouth graduate and a forever fan of Big Green!

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Comments

  • Anonymous

    July 25, 2007

    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?

  • Anonymous

    July 25, 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.

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