Friday, July 03, 2015

Coca-Cola invests $ 1 bi in 2016

Coca-Cola will invest $ 1 billion in Brazil in 2016, of which about half will be to finish building two new factories. The plan is part of the strategy to win more slices in one of the largest emerging markets in the world. That's what informed the President of the Latin America Group, Brian Smith.
The new factories will be located in Rio de Janeiro and Brasilia. Three weeks ago, Coca-Cola Femsa inaugurated a factory in Minas Gerais, which cost $ 250 million. According to Smith, the group will have invested $ 7 billion in Brazil between 2012-2016.
'' Who grows now, in a market slowdown, WINS market slices, '' he said. This year, Coca-Cola and its bottlers in Brazil nine are investing R $ 2.7 billion in the country.
The mill on the River will be built in Duque de Caxias, by Chilean bottler Andina. Brasilia unit shall be in charge of the Group Brasilia. The Coca-Cola system, which brings together the multinational and its bottlers, operates 43 manufacturing plants.
The beverage market sales crash in Brazil this year. Brian says that if this occurred in General, in the case of Coca-Cola sales increased in several categories. Its portfolio includes, in addition to soft drinks, juices, water, Guarana, tea, coffee, energy drinks. The President of Coca-Cola in Brazil, Xiemar Zarazúa, told in March that sales grew 2% last year and this in 2015 would grow too, despite being a tough year.
Brian says optimistic about Brazil, but also realistic, noting that the next 18 months '' will be tough. '' The order in the group is to increase productivity and reduce costs, since the distribution until the packaging. The capacity increase will mean more efficiency, he said. The Group seeks to expand also the synergies between the factories in the country. Besides, you want to reduce the cost of packaging, for example with reduction of up to 25% in a plastic bottle. But the volume of drink will remain the same.
In addition to the $ 400 million in the construction of two factories, the rest of the investment in 2016 will occur in maintenance and modernization of equipment, purchase of trucks and many refrigerators, in addition to the spending on advertising.
Tarek Farahat, Chairman of Procter Gamble & (P&G) to Latin America, said Brazil '' is a great consumer market, 70% of GDP is domestic consumption, and this is something that in our sector is very important. '' He recalled that the country is Latin America's largest market, with a share of 51% of sales. As Tarek, in the Northeast, the growth has been three times higher than in the rest of the world.
Even with the slowdown in consumption and rising inflation, beauty products and personal care continued to grow, said the Executive. In addition, during periods of crisis, 69% of consumers kept buying the brands they use, said the Executive.
Valor Econômico - 03/07/2015
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