Massive investment by Coca Cola in France

  •   20/01/2020 - 17h09
  •   Adeline HARMANT

While the Coca Cola group announced this morning its intention to invest up to one billion euros over five years in France, we suggest you learn more about this news and analyze together the possible repercussions of this announcement on this share on the stock market with a few additional details.

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Massive investment by Coca Cola in France
Image copyright: Arie - Flickr

Continued American involvement in the hex:

Through this operation announced yesterday, the American group Coca Cola intends to maintain its commitment to the French market. Indeed, to go even further, this giant intends to make a major investment on French territory in the coming years since it has announced on Sunday, its intention, in collaboration with its French-based packer, to invest up to one billion euros over five years.

This announcement does not come at just any time, since it was made on the eve of the third European Summit in Brussels.conomique Choose France which takes place today and which is an event dedicated to promoting the attractiveness of the country to international investors. It is therefore a strategic operation for Coca Cola.

Thus, the CEO of the American group James Quincey in this morning's betting press release announced; "Today's announcement deshows our ongoing commitment to France by making a lasting contribution to the economy and society for years to come.»

Also note that a meeting between James Quincey and Emmanuel Macron is planned today as part of this event organized in Versailles.

 

Production and distribution rewarded with 500 million euros :

Thus, the bottler Coca Cola European Partners or CCEP, 18% owned by the American group, is expected to invest more than 500 million euros to strengthen its production and distribution network. This subsidiary has already invested more than €350 million since 2013 in the 5 French plants it operates and also intends to equip the Dunkirk site by 2020 with a state-of-the-art aseptic bottling line.

This should also allow more recycled material to be introduced into bottles and cans and replace plastic with cardboard in secondary packaging.At the same time, the American group will invest an additional 500 million euros to support the development of its current brands and introduce new products in France.

 

A well-thought-out leadership strategy:

In line with the acquisition of Fuze Tea and the purchase of the French brand Tropico in 2018, the Coca Cola Group intends to strengthen its leadership and boost its entry into new beverage categories. The investments made by the group should enable the development of brands in the media through brand experiences or strategic partnerships.