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Coca-Cola Gets Shut Down by the Chinese Government

Other Beverage
03.19.2009


Coke President/CEO Muhtar Kent speaking in Shanghai

According to a report by Normandy Madden and Natalie Zmuda of Advertising Age, “China’s leaders are eager to see local companies invest in overseas assets, grow their businesses and improve the overall image of China. But the government isn’t ready to loosen control over its own assets. China’s Ministry of Commerce (MOC) today issued a long-awaited decision and nixed Coca-Cola Co.’s bid to buy about two-thirds of China Huiyuan Juice Group for $2.4 billion. The Hong Kong-listed company is the mainland’s largest producer of pure fruit juices.

Huiyuan Juice Group
Huiyuan Juice Group

The official reason the deal was shot down by the Chinese government was to protect the competitiveness of local Chinese companies.

The acquisition would have been the largest foreign takeover of a Chinese company. The deal was widely seen as a test of China’s willingness to let local firms fall under foreign control. China has been loathe to do that in the past and clearly hasn’t changed its mind, based on today’s ruling.

Coca-Cola is quite bummed that the deal didn’t go through, as it has invested and plans to invest a sizable amount to butter up the Chinese government.

Last week, the company opened a $90 million innovation and technology center in Shanghai, its largest research and development facility in Asia, partly to speed up development of new products to suit Chinese consumers’ tastes and preferences…Coke also plans to spend $2 billion on new plant and distribution infrastructure, sales and marketing, and R&D in China over the next three years, underscoring China’s importance as a major growth market.



Comments

  1. Scott | Thursday, March 19, 2009

    Why coke spend those billions of dollars in the US?


  2. Brian | Thursday, March 19, 2009

    Not sure what to think about this. I think I can respect (or understand at least?) what China is trying to do, by trying to keep jobs and industry to their own people. I dunno.


  3. Julie | Sunday, March 22, 2009

    Coke should follow China’s lead and invest in the US!!!!


  4. Scott F. Sedlazek | Tuesday, April 6, 2010

    The Peoples Republic of China is very wise to stop Coca-Cola from purchasing any Chinese Beverage Asset because Coca-Cola will not only steal as much profits and wealth from China as it possibly can, Coca-Cola will put a strangle hold on China’s water supply. Back in January of 2002, I sent Doug Daft, former C.E.O. and Chairman of Coca-Cola a number of letters in regards to becoming The President of Coca-Cola, and I submitted My idea for a bottled Vanilla Coke. Early March 2002, Coca-Cola replied that it had no interest in using My Vanilla Coke idea. about two months later, Coca-Cola announced nthat it would be putting out a Vanilla Coke in June of 2002 which it did, and Coca-cola stated that this was Their Greatest innovation since Diet Coke back in I believe 1984.

    In the first six months of sales, Coca-Cola sold 90,000,000 (90 Million) cases of My Vanilla Coke with those six months of sales totalling about $750,000,000.00 (750 Milion Dollars) US almost all pure profit, and not a red cent did those crumbs send Me and my Company ” FEED THE WORLD-ONE DAY AT A TIME (R) ” or My other Company “Virgin Cola ™ L.L.C.” of The U.S.A.. I just wish to end World Hunger, Hunger Related Diseases, and ease the suffering of those with Leprosy.

    Personally, I sincerely believe that, in part, it is the Social Responsibility of Wealthy Companies to do what needs to be done to improve the Lives of every Human Being on Planet Earth and Beyond without Government Interference. The Companies like Coca-Cola and Pepsi-Cola, for whom I worked for ten (10 Years), wish for more People to die from hunger and hunger related diseases because this is what their owners want. It is no big secret. It is no conspiracy theory. It is reality, and they are looking down the barrel of their rifle directly at You. They control much of The Planet’s vital water supplies. Do some research, and it will make sense to You exactly who owns Coke and Pepsi.

    In conclusion, come over to Virgin Cola ™ L.L.C. and ” FEED THE WORLD-ONE DAY AT A TIME (R) “, and We can build someting truly great that will benefit all humanity.

    P.S.- If any Person has seen or heard from Ye Zhou / Zhou Ye of Shanghai, China, Female . born 21 july 1981, please contact Me. Xie Xie SS

    Thanx
    Scott F. Sedlazek
    President
    Virgin Cola ™ L.L.C.
    ” FEED THE WORLD-ONE DAY AT A TIME (R) ”
    P.O. Box 11008
    New Brunswick
    New Jersey
    08906
    U.S.A.



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