The Coca-Cola Company (KO) recently started its first bottling plant in Crystal Springs, Hmawbi Township, Myanmar, since it re-entered the market last year.
The opening of the plant is a part of company’s planned investment of $200 million over the next five years. The bottling plant will employ 22,000 people and will help the company reach out to more than 100,000 outlets across Myanmar. The company also intends to reopen a second existing manufacturing facility in Hlaing Thar Yar.
As the developed markets are nearing saturation, Coca-Cola is showing a keen interest in developing and emerging markets. The developing and emerging markets have significant growth potential due to their relatively low per-capita consumption. The burgeoning middle class with rising income levels also promises significant growth opportunities, as demand for convenience food and beverages has increased considerably.
Currently, 43% of the company’s business is generated in developed markets (the U.S., Western Europe, Australia and Japan), 37% in developing nations and 20% in emerging markets. Due to the higher-growth rates in emerging and developing markets, the company believes each of these geographic segments will contribute 33% of the company’s business by the end of 2020.
The Coca Cola Company carries a Zacks Rank #3 (Hold).
Some other consumer staple stocks that are worth a look include Flower Foods Inc. (FLO) carrying a Zacks Rank #1 (Strong Buy), and The WhiteWave Foods Company (WWAV) and H. J. Heinz Company (HNZ) holding a Zacks Rank #2 (Buy).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment