HONG KONG: Coke secures lion’s share of bottling JV
Coca-Cola Co. has bought a major stake in its bottling joint venture in China.
The firm confirmed today (29 August) that it has bought a controlling shareholding in Kerry Beverages, its bottling joint venture with the Kerry Group - a conglomerate based in Hong Kong. Financial details of the purchase were not disclosed.
Coke now holds 89.5% of Kerry Beverages, and has agreed to buy the remaining stake by the end of 2008.
Kerry Beverages was formed by the two companies in 1993, and has majority ownership in 11 joint ventures that manufacture and distribute Coke's products across nine provinces in China. Kerry Beverages also has a minority interest in the joint venture bottler for Beijing.
The transaction does not affect the local shareholding structure of the bottlers in China, Coke noted.
"Our partnership with Kerry Beverages over the past 14 years has allowed our business in China to establish a strong foundation for continued growth," said Muhtar Kent, president, Coca-Cola International. "We are also grateful to Kerry for its future support of our long-term commitment to China and look forward to continued cooperation."
"It has been a productive and successful partnership with Coca-Cola," added Thomas Lui, Kerry Beverage's managing director. "With the change in the shareholding structure, we will be focusing on our core business areas, while Coca-Cola Co. will continue to grow the thriving operations in China."
Kerry Group is looking to increase the focus on its core business areas, namely hotel management, property development and logistics.
After the transaction, Coke's dedicated function to manage its bottling operations, the Bottling Investments Group, will lead the management of KBL.
The announcement of major restructuring and 3,500 job losses at Coca-Cola Enterprises (CCE) says as much about The Coca-Cola Company as it does about its largest bottler. Annette Farr examines the und...
Mexican soft drinks bottler Embotelladoras Arca saw profits rise 14% last year thanks to growing volumes across the business....
US consumers will soon know how much caffeine is contained in Coca-Cola Classic. From May, The Coca-Cola Company will include caffeine content on the product's labelling as part of an industry initiat...
The Coca-Cola Company has sealed its move to take full control of its bottler in the Philippines....
The Coca-Cola Company has bought two Moldovan soft drinks brands from Efes Breweries International (EBI) for an undisclosed sum....
Coca-Cola Amatil (CCA) may sell its South Korean bottling business after its operations there hit earnings during 2006....
Odwalla has lined up a line of bottled waters for the US, containing natural fruit flavours....
The Coca-Cola Co. has announced the appointment of Cécile Bernheim to the newly-created post of as director, strategic planning Europe....
- Industry is following the pack to patriotic party
- The category today - Scotch Whisky I
- Today's Market Trends - Scotch Whisky II
- Key Brands Performance - Scotch Whisky IV
- Tomorrow's Market Trends - Scotch Whisky III
- Brown-Forman shuffles director pack
- Diageo unveils first European Johnnie Walker House
- Spirits can fill music industry gap - Jagermeister
- Diageo's Smirnoff Red, White & Berry - NPD
- Wm Grant redesigns Glenfiddich 21yo Gran Reserva
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Soft Drinks Global Overview: Growth Opportunities Between Category Lines
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global travel retail insights - market forecasts, product innovation and consumer trends