BEIJING (AP) — Coca Cola Co. said Thursday it plans to
invest $4 billion in China as food brands scramble to expand in its
fast-growing consumer market.
The investments will take place over
three years beginning in 2012 and raise Coca Cola’s total investment in
China between 2009 and 2014 to $7 billion, the company said.
Global
food brands are investing heavily in China, looking to a relatively
healthy economy that expanded by 9.5 percent in the quarter ending in
June to drive sales amid global uncertainty.
"China is one of our
most important growth markets," said Coca Cola chairman and CEO Muhtar
Kent in a statement announcing the plans.
Chinese retail spending in June rose 17.7 percent over a year earlier, according to the government.
In
July, Nestle SA announced the purchase of a 60 percent stake in candy
maker Hsu Fu Chi for $1.7 billion. Earlier this year, Nestle also bought
a controlling stake in Chinese food processor Yinlu Foods Group.
Restaurant chains such as McDonald’s Corp. and Yum Brands Inc.’s Pizza Hut and KFC also are expanding.

Kent said Coca Cola’s sales volume in China for the first half of 2011 was double that of five years ago.

Coca
Cola, based in Atlanta, opened five new facilities in China in 2009-10
and this year has opened one and plans to open a second and break ground
for a third, according the company.
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Coca Cola Co.: www.coca-cola.com
Copyright 2011 The Associated Press.