Coke Expands In Emerging Markets
The Coca Cola Company (KO: 68.01 -0.30 -0.44%), the largest global producer and marketer of still and sparkling beverages, announced its intention to invest about $121 million in a new plant in Karnataka, Southern State of India. The investment is in line with the company’s strategy to expand its operations in developing and emerging markets.
Coca Cola has also been expanding its presence in emerging markets through the introduction of water and juices. Apart from making sparkling and still beverages the company intends to manufacture juices and juice drinks in the proposed facility.
Further, in the most recently reported quarterly earnings, the company witnessed high volume growth in the Eurasia & Africa division with markets such as India, Turkey and Russia posting volume growth of 22%, 10% and 6%, respectively.
Coca Cola’s arch rival Pepsi Co. (PEP: 67.11 +0.41 +0.61%) has also been focusing on emerging markets for growth. Both companies are expanding market shares primarily in few major markets such as India, China and Russia.
| Analysts' Targets | |
| UBS Securities | $75 |
| Add | |
| Thursday, January 13, 2011 | |
| Barclays Capital | $74 |
| Equalweight | |
| Monday, November 22, 2010 | |
| Stifel Nicolaus | $75 |
| Outperform/Buy | |
| Thursday, November 18, 2010 | |
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