Daily Newsletter

28 September 2023

Daily Newsletter

28 September 2023

Swire Coca-Cola eyes 2025 start for three new China plants

The Coca-Cola bottler, which has 25 plants in mainland China, is looking to increase its network of factories.

Dean Best

Swire Coca-Cola is aiming to have three more plants up and running in 2025.

The Coca-Cola bottler, owned by Hong Kong-based conglomerate Swire Pacific which has 25 plants in mainland China, is looking to increase its network of factories.

Swire Coca-Cola has started building a new factory in Suzhou in eastern China.

The company also wants to set up a plant further north in Zhengzhou and in the southern city of Guangdong.

“The three new plants in Suzhou, Zhengzhou and Guangdong are expected to be completed and operational by the end of 2025,” Swire Coca-Cola said in a statement provided to Just Drinks.

The group described the project in Suzhou as the “single largest strategic investment in the Chinese mainland market”. Around 2bn yuan ($274.5m) is being spent on the new factory.

The site will have 13 production lines pushing out products including sparkling drinks, juice drinks and bottled water.

Overall, Swire Coca-Cola said its “total investment” in mainland China would “exceed 12bn yuan in the next ten years”.

The company added: “Since the construction of Zhengzhou and Guangdong plants are still at the planning stage, more information will be disclosed in the future.”

In June, Swire Pacific struck a deal to offload its Swire Coca-Cola USA unit to its controlling shareholder John Swire & Sons. Swire Coca-Cola USA produces and sells brands including Coca-Cola, Dr Pepper and Fanta across 13 US states.

At the time, Swire Pacific chairman Guy Bradley said the transaction was “consistent with our strategic focus on Greater China and South East Asia, where we remain committed to executing our exciting investment pipeline”.

Non-alcoholic beverages (NAB) market remain resilient despite inflationary pressure

Per GlobalData analysis, the NAB market has a strong outlook in terms of value and steady forecasting for volume up to 2026. The industry has been resilient to the pandemic and inflationary pressure as consumers continue to up their intake of NABs. Rising health and wellness trends mean that a growing number of consumers are swapping alcohol consumption for NABs while others are adding more drinks to their diet for improved hydration and extra nutritional value from fortified and functional NABs.

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