Coca-Cola's investments reach R bi $3 in 2019

On the still uncertain scenario of brazilian economy, Coca-Cola will repeat in the next three years, a strategy similar to the last two: prepare for the long term. On the one hand, will expand its presence in different categories to become a total beverage company ". On the other hand, plans to move forward in returnable packaging, focusing on low-income consumers-leveraging sustainability appeal. To support this strategy, the brazilian subsidiary will invest R $3 billion in 2019, even with the economy skating. In 2018, coke saw its sales grow 1% in terms of volume (litre) and 3% in units (bottles). The scenery, however, does not care about Henry Braun, who took command of the brazilian operation in September 2016, after spending four years at the helm of the subsidiary of Coca-Cola in China and Korea. According to him, each year and country in which the manufacturer of drinks opera there's a diverse economic scenario. Therefore, the long-term vision is important. "You can't take your eye off the ball and worrying about what we can't control," said Braun to associated press/Broadcast. "We have positive expectations (with the Brazilian market), but we know the reality is still volatile. With that, our strategy for the next three years is very similar to what we had in the last two. " From 2013 to 2018, the Brazilian soft drink market has shrunk 21% by volume, according to Euromonitor International. According to Angelica Salado, of consulting, although the recession has shot down the consumption as a whole, the beverage market is going through a "revolution," with consumers looking for healthier habits. "In most categories, there's a movement to consume less and better," said Angelica. According to her, the reduction in sugar consumption has been seen in a decade. Although the scenario for the economy are more optimistic, the soft drink market should recover growth before the recession after 2023. To try to change this scenario, part of Coke's investments being intended for returnable packaging and recycled. Will be R $1.6 billion, from 2017 to 2020. In addition to the appeal, they cost less-essential for facing the crisis, according to Braun. The resources are destined mainly to production lines. One of the news was the release of "universal bottle", returnable PET plastic packaging, which serves all the company's soft drinks. Released in September, the project cost $100 million R. With the investment, the sales of this type of packaging rose 9%. Other fronts positioning of "total beverage company" also work, since Coca-Cola Without Sugar had high of 9% in sales volume in 2018 and the "carbonated" drinks (juices, teas, waters) advanced 11.5% in volume. According to Angelica, the diversification of categories, with investments in juices and water, is also a strategy to adapt to the new market reality. At Coca-Cola, this includes acquisitions. The latest were the Argentine brand of soy-based drinks, Ades, in 2016, and the brazilian manufacturer of Green dairy field, in 2017. According to Braun, the investment plan does not include eventual acquisitions. He avoided commenting on possible targets, but said that "never say never" about the possibility of investing in new categories.