The Coca-Cola Company Group 5 Shirkara Jackson Siromik Jackson Monday, September 15, 2008

Coke’s Juicy China Deal! Coca-Cola China Huiyuan Juice“Coca-Cola has announced a $2.4 billion takeover of China Huiyuan Juice, giving it a big boost in the fast-growing market for noncarbonated drinks.” -BusinessWeek Team 5: Coca-Cola

Coca-Cola Quick Facts Founded in 1886 by Dr. John Pemberton. Consumer servings per day total 1.5 billion. Employs 90,500 people worldwide. Products reach more than 200 countries: 1-U.S 2-Mexico 3-Brazil 4-China Beverage variety of more than 2,800 products. Team 5: Coca-Cola

Coke’s Most Popular Brands Team 5: Coca-Cola

Coke Identifies An Opportunity… With a 9.7% market share in the juice segment, Coca-Cola identified an opportunity to increase their market share by acquiring their industry rival, China Huiyuan Juice. Huiyuan Juice Group’s is 10.3% Thus making Coca-Cola #1 in China’s juice industry with a 20% market share. Team 5: Coca-Cola

China Huiyuan Juice's Appeal To Coke Huiyuan Brand is the leading brand in China’s beverage industry. pure juice nectar marketControls 46% of the pure juice market share and 39.8% of the nectar market share. Products are exported to more than 30 countries and regions including: -USA -Japan -Australia Have developed and produced more than 500 products in the last 15 years. Team 5: Coca-Cola

Huiyuan’s Most Popular Brands Team 5: Coca-Cola

China’s Massive Thirst “Carbonated soft drinks are in decline in China, and native tastes prefer juice. It’s going to be a growth sector.” -Matthew Crabbe Managing Director for Access Asia The market demand for fruit and vegetable juice in China totals 2.6 billion gallons, compared to 2.3 billion gallons of soda. In dollar terms: Juice vs. Soda Juice sales total $12.3 billion Soda sales total $8.6 billion Team 5: Coca-Cola

A Happy Match China Huiyuan is the right target for Coke because of the Chinese company’s strength in segments where the American company is weak.China Huiyuan is the right target for Coke because of the Chinese company’s strength in segments where the American company is weak. This acquisition gives Coca-Cola a big advantage because China Huiyuan is definitely the leading company in fruit and vegetable juice.This acquisition gives Coca-Cola a big advantage because China Huiyuan is definitely the leading company in fruit and vegetable juice. Team 5: Coca-Cola

Company Chairman & CEO Team 5: Coca-Cola “This partnership with Coca-Cola will further develop the Huiyuan brand in a competitive global beverage market and provide a larger and more competitive platform for Huiyuan’s business and employees.” “This deal will provide a unique opportunity to strengthen our business in China, especially since the juice segment is so dynamic and fast-growing in China.”

Facing An Uphill Battle….. Winning the O.K. from government regulators looking to enforce the new Chinese anti-monopoly law. Market saturation Figuring out how to build on the two companies’ combined 20% market share in juices. “There are still loads and loads of companies all competing in the same market. It’s highly inefficient, and nobody is making a really good profit.”-Matthew Crabbe Team 5: Coca-Cola

Market Sales Potential “By adding Huiyuan, Coke may force weaker players out, and if the deal goes through, profits will then follow!” -BusinessWeek Team 5: Coca-Cola