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The Coca-Cola Company

The Coca-Cola Company. Group 5 Shirkara Jackson Siromik Jackson Monday, September 15, 2008. Coke’s Juicy China Deal!. “ Coca-Cola has announced a $2.4 billion takeover of China Huiyuan Juice , giving it a big boost in the fast-growing market for noncarbonated drinks.” -BusinessWeek.

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The Coca-Cola Company

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  1. The Coca-Cola Company Group 5 Shirkara Jackson Siromik Jackson Monday, September 15, 2008

  2. Coke’s Juicy China Deal! • “Coca-Cola has announced a $2.4 billion takeover of China Huiyuan Juice, giving it a big boost in the fast-growing market for noncarbonated drinks.” -BusinessWeek Team 5: Coca-Cola

  3. Coca-Cola Quick Facts • Founded in 1886 by Dr. John Pemberton. • Consumer servings per day total 1.5 billion. • Employs 90,500 people worldwide. • Products reach more than 200 countries: 1-U.S 2-Mexico 3-Brazil 4-China • Beverage variety of more than 2,800 products. Team 5: Coca-Cola

  4. Coke’s Most Popular Brands Soft Drinks Juices Energy Drinks • Sports Drinks • Water • Tea & Coffee Team 5: Coca-Cola

  5. Coke Identifies An Opportunity… • With a 9.7% market share in the juice segment, Coca-Cola identified an opportunity to increase their market share by acquiring their industry rival, China Huiyuan Juice. • Huiyuan Juice Group’s is 10.3% • Thus making Coca-Cola #1 in China’s juice industry with a 20% market share. Team 5: Coca-Cola

  6. China Huiyuan Juice's Appeal To Coke • Huiyuan Brand is the leading brand in China’s beverage industry. • Controls 46% of the pure juice market share and 39.8% of the nectar market share. • Products are exported to more than 30 countries and regions including: -USA -Japan -Australia • Have developed and produced more than 500 products in the last 15 years. Team 5: Coca-Cola

  7. Huiyuan’s Most Popular Brands 100% Juice Juice Drinks VegetableJuice Nectars Team 5: Coca-Cola

  8. China’s Massive Thirst • “Carbonated soft drinks are in decline in China, and native tastes prefer juice. It’s going to be a growth sector.” -Matthew Crabbe Managing Director for Access Asia • The market demand for fruit and vegetable juice in China totals 2.6 billion gallons, compared to 2.3 billion gallons of soda. • In dollar terms: Juice vs. Soda Juice sales total $12.3 billion Soda sales total $8.6 billion Team 5: Coca-Cola

  9. A Happy Match • China Huiyuan is the right target for Coke because of the Chinese company’s strength in segments where the American company is weak. • This acquisition gives Coca-Cola a big advantage because China Huiyuan is definitely the leading company in fruit and vegetable juice. Team 5: Coca-Cola

  10. Company Chairman & CEO “This deal will provide a unique opportunity to strengthen our business in China, especially since the juice segment is so dynamic and fast-growing in China .” “This partnership with Coca-Cola will further develop the Huiyuan brand in a competitive global beverage market and provide a larger and more competitive platform for Huiyuan’s business and employees.” Huiyuan Chairman Zhu Xinli Coke President & CEO Muhtar Kent Team 5: Coca-Cola

  11. Facing An Uphill Battle….. • Winning the O.K. from government regulators looking to enforce the new Chinese anti-monopoly law. • Market saturation • Figuring out how to build on the two companies’ combined 20% market share in juices. “There are still loads and loads of companies all competing in the same market. It’s highly inefficient, and nobody is making a really good profit.” -Matthew Crabbe Team 5: Coca-Cola

  12. Market Sales Potential “By adding Huiyuan, Coke may force weaker players out, and if the deal goes through, profits will then follow!” -BusinessWeek Team 5: Coca-Cola

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