irasia.com

The following was released by Coca-Cola China Limited.

FOR IMMEDIATE RELEASE 28 August 2002

Coca-Cola to acquire full ownership of Dongguan facility

(Hong Kong, 28 August, 2002) Coca-Cola (China) Investment Limited ("CCCIL") today announced that it plans to acquire full ownership of a non-carbonated soft drinks production facility currently operated by Swire Beverages (Dongguan) Limited ("SBDG"). SBDG is owned 86.1% by Swire Coca-Cola Hong Kong Limited ("SCCHK"), a subsidiary of Swire Pacific Limited, with the remaining 13.9% held by local partner Dongguan Huaxin Industry and Commerce Corporation ("Huaxin"). SCCHK will first buy out Huaxin for a consideration of RMB38.5 million in order to acquire 100% control of SBDG before selling the entire 100% to CCCIL for a total consideration of RMB193.5 million. The deal is subject to obtaining the necessary approvals from the relevant government and registration authorities in Mainland China.

Commenting on the acquisition, Mr. Paul Etchells, President of Coca-Cola (China) Beverages Ltd. said, "We have had considerable success this year with our leading juice drink Qoo, and in order to meet demand and to provide an efficient, low cost manufacturing platform for the planned expansion of our range of non-carbonated beverages (NCB), we and our bottling partner, Swire Beverages, agreed upon a reconfiguration of NCB production with the objective of reducing manufacturing costs and making our products more competitive in the market."

Mr. John Slosar, Managing Director of the Swire Beverages division of Swire Pacific Limited, added, "We believe Coca-Cola's direct involvement in the production of non-carbonated soft drinks on the Mainland will be beneficial as it will provide broader opportunities to develop this segment of the business. Following the change of ownership, we will be focusing our own attention on sales and distribution activities, whilst continuing to source the relevant products from the Dongguan facility on normal commercial terms."

The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of soft drinks. Along with Coca-Cola, recognized as the world's best-known brand, the Company markets four of the world's top five soft drink brands, including diet Coke, Fanta, and Sprite. The Coca-Cola Company and its bottling partners have invested more than US$1.1 billion in China since 1979. Its wholly owned unit, Coca-Cola (China) Beverages Ltd., and its 23 bottling companies, employ about 20,000 local staff across the country, and buy approximately US$600 million worth of goods and services from local suppliers each year.

Swire Beverages, a division of Swire Pacific Limited, is an "anchor bottler" for Coca-Cola products, producing and selling over 350 million cases of soft drinks annually in seven provinces in Mainland China, Hong Kong, Taiwan and parts of the western USA.

Source: SWIRE PACIFIC LTD
  • Press Releases
    		•
  • Company's Index
    		•
  • irasia.com
    		•
    © Copyright 1996-2024 irasia.com Ltd. All rights reserved.
    DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website.
    TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited.
    TERMS OF USE: Please read the Terms of Use governing the use of our website.