Coca-Cola Investing $5 Billion in India

The Coca-Cola Company KO is reportedly investing another hefty sum into its India division, with $3 billion set to support long-term, sustainable growth overseas. The money is expected to be allocated towards the country throughout the next eight years, adding to the $2 billion Coca-Cola has already committed to investing. Coca-Cola, already India's primary beverage company, is taking advantage of opportunities for itself to expand even further in a market that is now requiring bubbly instant gratification. The new investment will likely not only fund growth in its extensive line-up of beverages such as Thums Up and Minute Maid Nimbu Fresh, but also the education, water and health programs the company has implemented across the country. Of Coca-Cola's most recent 23 quarters, 17 have seen double-digit growth in India with case volume progress indicating tremendous potential for future expansion. With no signs of slowing, the refreshing beverage distributor's $5 billion venture is expected to only strengthen Coca-Cola's current reputation in the country. "Achieving continued sustainable, responsible growth in India is core to achieving our 2020 Vision of doubling system revenues in this decade," said Muhtar Kent, Chairman and CEO, The Coca-Cola Company. "Our ongoing investment in India is focused on delivering innovation, partnerships and a portfolio that enhances the consumer experience, ensures product affordability and builds brand loyalty to deliver long-term growth." Recently, Coca-Cola has been on a mission to prove just how unstoppable it truly is. In dismal economic times overseas, European shoppers still consumed enough carbonated beverages to afford the company increased sales of 4.4%, which beat PepsiCo's PEP 2.4% throughout the month of May. However, Pepsi cannot be discounted just yet. Morgan Stanley reiterated its Overweight rating on the company last week following a solid investor presentation that left analysts abuzz with a win-win situation. Over the next few quarters, Pepsi is expected to either endure increased marketing pay-offs and stock outperformance, or continued fundamental tussles that could lead to managerial restructuring, likely unlocking shareholder value. The competing company's tribulations are paid no mind by Coca-Cola, as the red and white brand continues to expand and bring in outstanding numbers quarter after quarter. With its new investment in India and positive sales in struggling Europe, The Coca-Cola Company plans to keep consumers thirsts quenched in the number one spot worldwide. Coca-Cola is down 0.23% in Tuesday morning trading at $74.77, while Pepsi is down 0.13% at $68.61.
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