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Coke steps up campaign after failed bid

SHANGHAI: Coca-Cola launched a juice marketing offensive in China on Tuesday, 19 May 2009, making good on a vow to put more power behind its brands after Beijing shot down its purchase of a local juice maker.

Hong Kong pop star Eason Chan performed live in the city of Guangzhou, kicking off a new campaign that the beverage giant is hoping will raise the profile of its Minute Maid brand in the nation of 1.3 billion people.

The campaign is Coca-Cola's first major move in China since the government, citing competition concerns, blocked its $2.4 billion bid for Huiyuan Juice in March.

It would have been the largest ever takeover of a Chinese company by a foreign firm, and the rejection triggered fears that China was raising barriers to overseas companies.

Coca-Cola President and CEO Muhtar Kent responded at the time by saying the company would "focus all our energies and expertise on growing our existing brands."

Coca-Cola has big ambitions for China and is planning to invest $2 billion in the country over the next three years, compared with just $1.6 billion spent since 1979.

The campaign on Tuesday launched a new grape and aloe vera drink, one of the first products to come out of Coca-Cola's new research and development centre in Shanghai.

Analysts predict China's beverage market, including sparkling drinks, teas and juices, is expected to continue growing at more than 16% annually.

Minute Maid sales have seen "strong double digit growth" year-on-year since its line of pulp juice drinks was introduced in 2004, Coca-Cola said, without providing detailed figures.

Coca-Cola and its rival PepsiCo do not release China-specific sales figures.

But Coca-Cola is believed to be the market leader in carbonated drinks, while Chinese drink maker Wahaha dominates the non-carbonated segment, according to analysts.

Source: Sapa-AFP

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