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 ...
Dammit! And Coca-Cola has been, in the past, a pro-life company! (Especially when compared to the vile Pepsico.)
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.
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?
I hope they’re not planning on bottling over there with that polluted water and send it back here
I don't eat anything from China!
Well....do they make chocolate?
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.
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.
Red China does NOT have recycling...
LOL. Nonsense. They invented the dang thing - what do you think chinese food IS?
No they won’t bottle there, but they’ll probably make the syrup
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)
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.
delete o
STRONGLY disagree.
China has central planning by patriots.
American decisions, are being made in a patriotic vacuum.
sounds like we need to have MooseChelle and the healthy eatin' crew propose some new taxes
And Marketing MBAs. Don't forget them.
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