Two colas' Q3 report: China key market

16:32, November 05, 2009      

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The Coca-Cola and PepsiCo Q3 report showed that the overall operational
revenue of the two companies declined and the emerging markets had been the new force of growth on business. In addition, non-carbonated beverage proportion was growing gradually in both companies. Both attached great importance to the Chinese market, and have sped up the construction of factories and R&D centers.

The Coca-Cola Company stated that the decline of all businesses led to the 4 percent drop in revenue for Q3 which reached 8.04 billion U.S. dollars. Net profits increased slightly to 1.9 billion U.S. dollars in Q3 this year and reached 1.89 billion U.S. dollars over the same period last year. Sales of branches in Europe and Africa surged by 2 percent, however, its sales in the EU and North American markets decreased by 2 percent and 4 percent respectively.

Its global markets around the world especially the Indian and Chinese markets helped it pass through the recession of the U.S. economy. During Q3, sales in main emerging markets grew strongly. Since 2009, production bases in Jiangxi, Xinjiang, Wuhan and so on were put into production. Amid them, the base in Wuhan was the largest non-carbonated beverage production base in the world; in addition, it also promoted the R&D of products and market sales in China and launched new products in the fields of fruit juice and milk drinks, the Coca-Cola Company expressed.

Comparatively speaking, PepsiCo performed slightly better. The fiscal report showed that its operational revenue in Q3 amounted to 11.08 billion U.S. dollars, down 1.5 percent year-on-year. However, net profits reached 1.73 billion U.S. dollars, increasing by 10 percent.

At present, both the Coca-Cola Company and PepsiCo see China as the main market for performance growth. They both expressed that they would invest more in China, not only competing to open new factories but accelerating the rate of R&D for new products. Although the two companies have different strategies for China, competition by both companies is inevitable in the carbonated and noncarbonated fields in the long run.

By People's Daily Online
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