The Coca-Cola Company KO and Coca-Cola Amatil (CCA) recently announced the opening of two new production facilities in the lucrative market of Indonesia. The production facilities are a part of Coca-Cola Amatil’s Indonesian subsidiary Coca-Cola Amatil Indonesia (CCAI) Cikekodan plant in Bekasi, West Java. This investment is a part of $500 million investment that The Coca-Cola Company has planned for the Indonesian market.
In Oct 2014, The Coca-Cola Company announced its plans to create a joint venture with CCAI with an investment of $500 million. The investment will support production, warehousing and cold-drink infrastructure over three to four years.
In fact, during the last three years, CCAI invested more than $300 million to set up 18 new production facilities, deployed 150,000 coolers and three big distribution centers. Further expansion of production facilities in Indonesia will strengthen the company’s position in the Indonesian market and increase its ability to serve the increasing demand in the region.
Other than Indonesia, Coca-Cola has a commanding presence in the developing and emerging markets of Latin America, India, Russia and China.
Coca-Cola is highly optimistic of its Indian operations where the company owns four of the top five sparkling brands as well as the top juice brands in India. Since 2007, Coca-Cola has been witnessing volume growth in the country aided by popular brands like Thums Up, Sprite and Maaza.
Coca-Cola is also confident of its long-term prospects in China. Coca-Cola plans to make huge investment in China over the next few years to build plants, distribution, coolers, brands and equipment. The cola giant also plans to invest in Russia, Brazil and Vietnam.
The Coca-Cola Company carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked beverage companies include Monster Beverage Corp. MNST, Coca-Cola Amatil Ltd. CCLAY and Cott Corp. COT. While Monster Beverage sports a Zacks Rank #1 (Strong Buy), Coca-Cola Amatil and Cott Corporation carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment