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Guess Where Coca-Cola Is Investing $4 Billion
forbes.com/yahoo ^ | August 19, 2011 | Kenneth Rapoza

Posted on 08/21/2011 3:39:33 PM PDT by Free ThinkerNY

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.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Miscellaneous
KEYWORDS: china; cocacola; coke; muhtarkent

1 posted on 08/21/2011 3:39:35 PM PDT by Free ThinkerNY
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To: Free ThinkerNY

Dammit! And Coca-Cola has been, in the past, a pro-life company! (Especially when compared to the vile Pepsico.)


2 posted on 08/21/2011 3:42:15 PM PDT by Yossarian ("All the charm of Nixon. All the competency of Carter." - SF Chronicle comment post on Obama)
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To: Free ThinkerNY

As a smart guy (who’s name I have forgotten) said on CNBC:

China has central planning by scientists, mathematicians, and engineers, and the US has central planning by lawyers. By definition we lose.


3 posted on 08/21/2011 3:42:15 PM PDT by nascarnation
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To: Free ThinkerNY

While this seems like bad news on the face of things it’s kind of a wash.

The carbonated soft drink market in the US has been at saturation points with less than single digit growth for decades. You see Coca Cola and the likes picking up any new beverage flavor/trend and few if any of them are carbonated. The last two products Coke introduced in the carbonated category were Coke Zero and its variants and Vanilla Coke.

Why would you invest billions more in a mature market for a category you already dominate?


4 posted on 08/21/2011 3:43:30 PM PDT by PittsburghAfterDark
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To: Free ThinkerNY

I hope they’re not planning on bottling over there with that polluted water and send it back here


5 posted on 08/21/2011 3:44:52 PM PDT by molson209
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To: Yossarian
Dammit! And Coca-Cola has been, in the past, a pro-life company! (Especially when compared to the vile Pepsico.)

They're going to sell Coke there to drink, not for use as an abortifacient.
6 posted on 08/21/2011 3:45:28 PM PDT by aruanan
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To: Free ThinkerNY
I'm not drinking Coke made with Chinese water!

I don't eat anything from China!

Well....do they make chocolate?

7 posted on 08/21/2011 3:49:54 PM PDT by lonestar (It takes a village of idiots to elect a village idiot.)
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To: PittsburghAfterDark

Coke owns a lot more than just carbonated beverages. Minute Maid, Dasani, Powerade. It’s kind of a frightening list actually:
http://en.wikipedia.org/wiki/Coca-Cola_brands

They also had 35 billion in revenue last year. Popping 4 billion into a market the size of China is a smart move.


8 posted on 08/21/2011 3:50:15 PM PDT by discostu (keep on keeping on)
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To: Free ThinkerNY

Of course Coca Cola is investing in China rather than the US.

Why would the marketer of sugar water want to invest in a country with an already saturated market for sugary drinks, whose government 1) is actively campaigning against the consumption of sugar water, 2) has the highest corporate tax rate in the OECD, 3) has relatively high labor costs, 4) has extraordinarily burdensome regulations, and 5) threatens to impose new taxes on sugary drinks?

It makes much more sense to invest close to new markets, particularly if they have lower logistics costs, lower taxes, lower regulatory compliance costs, and lower labor costs.


9 posted on 08/21/2011 3:50:15 PM PDT by Skepolitic
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To: Free ThinkerNY

Red China does NOT have recycling...


10 posted on 08/21/2011 3:52:01 PM PDT by ken5050 (Should Christie RUN in 2012? NO!!! But he should WALK 3 miles every day.)
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To: ken5050

LOL. Nonsense. They invented the dang thing - what do you think chinese food IS?


11 posted on 08/21/2011 3:58:40 PM PDT by patton (I am sure that I have done dumber things in my life, but at the moment, I am unable to recall them.)
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To: molson209

No they won’t bottle there, but they’ll probably make the syrup


12 posted on 08/21/2011 3:58:40 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Free ThinkerNY

I’d like to teach the world to sing (Sing with me)
In perfect harmony (Perfect harmony)
I’d like to buy the world a Coke
And keep it company (That’s the real thing)
I’d like to teach the world to sing
(What the world wants today)
In perfect harmony (Perfect harmony)
And I’d like to buy the world a Coke
And keep it company (It’s the real thing)
I’d like to buy the world a coke
(Coke is what the world wants today)
And keep it company (Coca-Cola)
(It’s the real thing)
I’d like to buy the world a coke
(Coke is what the world wants today)
And keep it company (Coca-Cola)


13 posted on 08/21/2011 4:05:17 PM PDT by seowulf ("If you write a whole line of zeroes, it's still---nothing"...Kira Alexandrovna Argounova)
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To: driftdiver
No they won’t bottle there, but they’ll probably make the syrup

I seriously doubt that they're planning to make Coca-Cola syrup in China for export to the United States. For one thing, almost all of Coke's non-diet sodas in the U.S. are sweetened with high fructose corn syrup (which is made here). They're not going to ship millions of gallons of HFCS to China, mix it up and then ship it back here. That would be insanely expensive. No, whatever Coke is going to be making in China will be for the Chinese market. Relax, people.
14 posted on 08/21/2011 4:09:43 PM PDT by irishjuggler
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To: Free ThinkerNY

it’s a bonus for dentists.

soft drinks have phosphoric acid which upsets the phosphoric/calcioum balance,

not to mention the sugar.

bingo! osteoporosis. teeth fall out later in life.


15 posted on 08/21/2011 4:10:54 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: ken21

delete o


16 posted on 08/21/2011 4:11:34 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: ken21
...as bad as tobacco in healthcare costs....
17 posted on 08/21/2011 4:12:59 PM PDT by de.rm ('Most people never believe anything you tell them unless it isn't true."-Groucho Marx)
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To: nascarnation

STRONGLY disagree.

China has central planning by patriots.

American decisions, are being made in a patriotic vacuum.


18 posted on 08/21/2011 4:13:04 PM PDT by Cringing Negativism Network ("Cut the Crap and Balance!" -- Governor Sarah Palin , Friday August 12 2011, Iowa State Fair)
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To: de.rm
as bad as tobacco in healthcare costs....

sounds like we need to have MooseChelle and the healthy eatin' crew propose some new taxes

19 posted on 08/21/2011 4:15:08 PM PDT by nascarnation
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To: nascarnation
China has central planning by scientists, mathematicians, and engineers, and the US has central planning by lawyers. By definition we lose.

And Marketing MBAs. Don't forget them.

20 posted on 08/21/2011 4:17:12 PM PDT by SoJoCo
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To: SoJoCo

LOL how true....


21 posted on 08/21/2011 4:18:23 PM PDT by nascarnation
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To: SoJoCo

... in a patriotic vacuum.

China is looking out for China.

Globalists are walking away from America. Any company going to China is no longer “American”.

And deserves nothing.


22 posted on 08/21/2011 4:19:25 PM PDT by Cringing Negativism Network ("Cut the Crap and Balance!" -- Governor Sarah Palin , Friday August 12 2011, Iowa State Fair)
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To: Cringing Negativism Network

If memory serves Coke pulled out of India rather than turn over the formula for their soft drink as demanded. I wonder how long it would take the current Coke management to comply with a similar demand from their new Chinese partners?


23 posted on 08/21/2011 4:23:04 PM PDT by SoJoCo
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To: Free ThinkerNY

If Coca-Cola is investing 4 Billion they will recoup 10 Billion.


24 posted on 08/21/2011 4:26:55 PM PDT by Venturer
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To: seowulf
30 years from now a majority of the Chinese population will be morbidly obese, hooked on antidepressants and Viagra, and pissed off that Wal-mart put Mom and Pop out of business.
25 posted on 08/21/2011 4:31:05 PM PDT by Delta 21 (Make your choice ! There are NO civilians.)
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To: Venturer

Coke as been sold in China for many years.

If Coca Cola is investing 4 billion in China, it’s because they’ve been pressured to do so. By China.

They’ll end up losing everything.


26 posted on 08/21/2011 4:32:53 PM PDT by Cringing Negativism Network ("Cut the Crap and Balance!" -- Governor Sarah Palin , Friday August 12 2011, Iowa State Fair)
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To: SoJoCo

China will just steal the formula.


27 posted on 08/21/2011 4:40:33 PM PDT by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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To: Cringing Negativism Network

It depends on whether or not China nationalises them In which casem yes they will lose everything, but obviously they think they have a deal.


28 posted on 08/21/2011 4:41:47 PM PDT by Venturer
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To: Venturer

I’d just say, let’s look at things logically:

We are running a massive, massive trade deficit with China.

Our unemployment rate is rising, and our economy crumbling. Some (such as this poster) would posit, a direct cause and effect relationship.

Our current situation is not sustainable. Not for a decade. Even perhaps not for another year.

Whatever happens, will profoundly disrupt the status quo.

Anyone who thinks a disruption of the status quo (which is to say, the end of American unilateral economic surrender) will not be responded to by the PRC, is profoundly naive.

Coca Cola will lose everything.


29 posted on 08/21/2011 4:47:33 PM PDT by Cringing Negativism Network ("Cut the Crap and Balance!" -- Governor Sarah Palin , Friday August 12 2011, Iowa State Fair)
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To: Free ThinkerNY

WTG AnointedIdiot and merry band of anti-capitalist radicals passing your idiot-ridden regulations, etc. When you all going to give Kent a jobs czar position....? =.=


30 posted on 08/21/2011 4:54:02 PM PDT by cranked
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To: cranked

Obama is investing 4 billion in China?...


31 posted on 08/21/2011 4:55:56 PM PDT by Cringing Negativism Network ("Cut the Crap and Balance!" -- Governor Sarah Palin , Friday August 12 2011, Iowa State Fair)
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To: Cringing Negativism Network

Apparently, you are clueless as to why Coca-Cola, as with GE, among a host of other business’ are shifting to China and elsewhere? =.=


32 posted on 08/21/2011 4:57:52 PM PDT by cranked
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To: cranked

Perhaps.

All I can say is, Alex Jones is gradually making more sense. Not going to give him even one break about being a “truther”, but a lot of the other things he says, really begin to resonate as so-called American companies continue to shaft average Americans at every turn.

I see no indication, any “American” companies think one second, about Americans.

Ever.


33 posted on 08/21/2011 5:01:31 PM PDT by Cringing Negativism Network ("Cut the Crap and Balance!" -- Governor Sarah Palin , Friday August 12 2011, Iowa State Fair)
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To: Free ThinkerNY

Peru


34 posted on 08/21/2011 5:16:13 PM PDT by yldstrk (My heroes have always been cowboys)
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To: All
Something to mull over when Obama & Co. attack "Big Oil"…

Big Soda (Coke) pre-tax profit margin 36.2%.

Big Oil (Exxon) pre-tax profit margin 15.5%

Big Oil (BP) pre-tax profit margin 8.9%

(Current stats from forbes.com)

35 posted on 08/21/2011 5:19:28 PM PDT by newzjunkey
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To: Yossarian
Err… what? China is a growth market. It would be insane and irresponsible to the shareholders for Coke not to invest there.

Coke is in the business of selling sugar water at high margins. Investing in China to sell to chinese customers let's them keep that edge.

36 posted on 08/21/2011 5:29:18 PM PDT by newzjunkey
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To: Free ThinkerNY

Wow, all the hand wringing about Coke deciding to tap into China’s market.. Who cares what they do. Coca Cola corp. has been slowly poisoning our country for years with the high fructose corn syrup they use as a sweetener. When I buy soda, I buy from the micro brew soda makers. I sat good riddance to Coca Cola.


37 posted on 08/21/2011 5:53:18 PM PDT by Necrovore
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To: Necrovore
Coca Cola corp. has been slowly poisoning our country for years with the high fructose corn syrup they use as a sweetener.

It's not working fast enough. There's more Coke drinkers now than ever before.

http://seekingalpha.com/article/258853-coke-still-leading-in-the-cola-wars

38 posted on 08/21/2011 5:58:08 PM PDT by nascarnation
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To: Delta 21
30 years from now a majority of the Chinese population will be morbidly obese, hooked on antidepressants and Viagra, and pissed off that Wal-mart put Mom and Pop out of business.

The Commies have their master plan to take over the world.

It seems Coca Cola has one too.

Could Coke be a CIA plot? Probably not, but it should be.

39 posted on 08/21/2011 6:05:15 PM PDT by seowulf ("If you write a whole line of zeroes, it's still---nothing"...Kira Alexandrovna Argounova)
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To: Cringing Negativism Network

“Coke has been sold in China for many years”

True and going back to the 1920’s IIRC.

I grew up hearing how the attempt to render “Coca-Cola” into Chinese characters came out meaning “Bite the wax tadpole”. Now, Wikipedia isn’t perfect but their discussion of marketing translation nightmares pointed out that it was local Chinese distributors whose attempts at ideographic transliteration resulted in the above.

The Coca-Cola corporation engaged fleets of Chinese linguists who ultimately came up with four characters which both approximated the syllables Co-Ca-Co-La and which literally meant, “The mouth’s refresher”.

I also recall how Pepsico’s attempt to render “Come alive, you’re in the Pepsi generation!” into Chinese came out as “Pepsi brings your ancestors back from the dead!”

Anyway, somebody please tell us how more Chinese drinking Coke will enhance their global strategy to take over the world.

;^)


40 posted on 08/21/2011 6:33:57 PM PDT by elcid1970 ("Deport Muslims. Nuke Mecca. Death to Islam. Freedom for mankind.")
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