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Coca-Cola bottler seeing robust growth in China's recovery

By Zhong Nan | chinadaily.com.cn | Updated: 2021-03-16 11:17
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An employee works on a production line of Swire Coca-Cola in Xiamen, East China's Fujian province, on Jan 21, 2021. [Provided to chinadaily.com.cn]

Swire Coca-Cola Ltd, a bottler of Coca-Cola beverages, will add more investment to advanced production lines, digital supply chains and e-commerce channels in China to maintain robust growth, a senior executive said.

Thanks to the country's effective control of COVID-19 and quick economic recovery, especially in the area of consumption, Swire Coca-Cola saw its sales revenue grew by 2 percent on a yearly basis to 38.15 billion yuan ($5.86 billion) in 2020.

Despite lingering uncertainties about the COVID-19 pandemic, Karen So, managing director of Swire Coca-Cola, said China's resilient economy and stable social environment have not only ensured a strong and dynamic domestic consumption market, but also supported the operation of the global supply chain.

"China's effort to push the dual circulation growth pattern will sustain growth in the coming years, building up strength in both domestic demand and foreign trade to meet challenges in a new development stage," she said, adding the firm's sales revenue surged 34 percent year-on-year in the first two months of this year.

With a more predictable policy environment and fast-growing market, So said she remains positive on the nation's business outlook and the company will continue to invest in this market, largely due to the government's moves to further reduce barriers to foreign investment and provide more fair and efficient public services.

Swire Coca-Cola Ltd is adding production lines to its plants across China. Many of them are expected to be operational this year.

As the fifth largest bottling group in the Coca-Cola system globally, Swire Coca-Cola has partnered with the Coca-Cola Co for over five decades. Supported by more than 23,000 employees, the company currently runs 18 plants in 12 Chinese provinces, autonomous regions and municipalities. They manufacture and distribute soda, tea, coffee, energy drinks and other beverages across China.

Since traditional sales channels have been altered as more consumers switch to online purchases and choose on-demand delivery services or online-to-offline platforms, So said the company will continue to enrich cooperative content with O2O and fresh produce e-commerce platforms to offer packaging suitable for consumers confined to homes.

Rising above the challenges brought by the COVID-19 pandemic and the global economic recession, China's actual use of foreign direct investment surged 31.5 percent on a yearly basis to 176.76 billion yuan in the first two months of this year, according to the latest data released by the Ministry of Commerce.

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