The Coca-Cola Company plans to invest more than $4 billion in new products and facilities in China from 2015 to 2017, according to David Brooks, president of the company’s Greater China and Korea business unit. In addition to adding production facilities at the rate of two per year, Brooks said that Coca-Cola will also consider partnering with local companies to produce beverages tailored to the Chinese market, such as herbal teas, juices, and almond milk.
Although Coca-Cola is currently the leading beverage maker in China’s $69.12 billion soft drinks market, it faces stiff competition from domestic and foreign firms. Ting Hsin International Group, which entered a partnership in March 2012 with PepsiCo Inc., increased its market share to 12 percent in 2012, from just 8.8 percent in 2007. In contrast, Coca-Cola’s market share dropped from 16.6 percent to 16 percent over the same period.