Guess Where Coca-Cola Is Investing $4 Billion

[Donnachaidh]

http://news.yahoo.com/guess-where-coca-cola-investing-4-billion-015616584.html

Who says American companies aren't investing? They are. Billions, in fact. Only, they are just not investing here in the U.S.

Atlanta based Coca-Cola (KO) plans to invest $4 billion in China, the company's CEO Muhtar Kent told reporters in Shanghai this week. It's the company's biggest planned investment in China since the 2009 investment of $2 billion. The investments will start next year and is part of the company's China capex until 2014.

Kent said the company is even considering listing its shares on the Shanghai Stock Exchange, adding itself to the list of mainstream brands listing their depositary receipts on exchanges outside of their home base. Massachusetts luggage maker Samsonite opted to list in Hong Kong in the second quarter rather than do its initial public offering on the NYSE. The new China investments will focus on innovation, infrastructure and expansion of its production capacity. The company now has six manufacturing centers in the country.

"U.S. corporations are actually in good shape and a lot of that is due to emerging markets, particularly the BRIC countries," fund manager Paul Dietrich of Foxhall Capital Management in Orange, Conn told Forbes on Friday. The BRIC countries are Brazil, Russia, India and China.

More at the link --

[rdking647]

1. big deal

Coca cola is building a plant in china to expand produtcion there so they can sell more product to china... I dont see a problem at all

[KurtNYC]

2. That was an easy one. n/t

[leveymg]

3. Another American Icon Corp. fleeing with its cash from the US market.

[Historic NY]

4. Do some research there over 300 plants world wide...has been for decades...

besides no one is buying the crap here unless its diet.

[leveymg]

11. I'm well aware that Coca-Cola Company is a multinational.

It already was in 1944.

But, it's still expanding operations abroad while the US market is stagnant. Like every other US market, except that for Right-wing baloney.

[fascisthunter]

13. "Thank America... now, Buh Bye!"

businesses are real patriots!... NOT! They could care less how they make their money, even if sending jobs oversees screws Americans more. No investment in AMerica... take, take, take...

[dmallind]

5. You'd prefer they used billions of barrels of oil shipping it to Chinese customers from Atlanta?

Which customers of course would gladly pay five times the price for Coke than domestic products, since they would have to ship a product that is 90%= water 12000 miles.

[SidDithers]

8. Exactly...

They're not going to making Coke in China and shipping it back to the US either. This is manufacturing in China for the Chinese market.

Sid

[physioex]

15. That's not how the industry works.....

I think there are only three factories in the world that make the original Coca Cola syrup as the recipe is "secret". It is then sent to bottlers who then distribute the product around the region. Consumers do indeed pay a premium (not necessarily five times) for Coca Cola compared to the local brands because of increased marketing and brand association.

[LeftinOH]

6. I wonder if the Chinese product be made with HFCS or sugar. n/t

[alc]

9. they have multiple recipes

Each bottling plant can literally change daily depending on what the cheapest sweetener (the biggest cost) is.

Also, each bottle type (metal,glass,platic, fountain) and size (12 oz, 24 oz, 1 liter, 2 liter, etc) has a different recipe to give it the best shelf life before opening and a consistent taste after (e.g. 12 oz will be finished right a way and should have the "best" taste, but 3 liter should still taste good days or a week later and you should not notice that it's changing much/"going flat"). It's not your imagination that the soda you got at a fast food place tastes different than the big bottle you just opened.

[KillCapitalism]

7. Companies are starting to see the US as a dead market.

So much of our wealth has been lost/sucked dry that it's starting to kill the host. Think about it, how many companies invest in Haiti or Liberia? That's where we are headed.

[physioex]

17. I don't know if Coca Cola is really a blessing....

Probably already have their own brands of sugar water which are much cheaper. Now Coca Cola comes in with their marketing machine and sells a product more expensive than the local brands, destroys the environment, and contributes to obesity. There are really no winners but the cronies at the top....

[Octafish]

10. And the profits? Surely an American company will pay US taxes on them.

Or not.

Tell me again, who makes the world safe for democracy business?

[Brother Buzz]

12. One, Two, Three

[physioex]

14. Other than their investment....

I don't see the benefits of their products. It's just overpriced sugar water with some fancy marketing. Are the Chinese going to be just as obese as we are now?

[Obamanaut]

16. I'm guessing China, because I read it in an earlier thread, here ->

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=439&topic_id=1781505

[Javaman]

18. Meh, I don't drink it nor their products. nt