Published on : Apr 22, 2015
Recently, Coca-Cola decided that it will soon be purchasing a China based beverages business in order to stimulate its activities and operations in the Chinese market at a time when in 2009 the concerned authorities had put a stop its bid to purchase a juice enterprise. A sum worth US$400 million will be paid in cash by Coca-Cola to Xiamen Culiangwang Beverage Technology Company wherein the former will acquire the manufacturer of protein drinks that are plant-based.
This business proposition goes as per the strategy of Coca-Cola to continue supplying a host of beverages to consumers in China. These protein beverages contain botanical extracts and the consumption of these in China indicates the gradually flourishing Chinese beverages industry. The company sells beverages such as walnut based, red bean, and green bean based protein beverages within the China Green Culiangwang brand.
China Culiangwang Beverages Holdings is the Hong-Kong listed market player that owns Xiamen Culiangwang. The deal was finally valued at US$400.5 million. This investment company independently declared stock issue in order to bolster and strengthen the development and growth of the business of multi grain foods. Coca-Cola, Atlanta has explored products which go beyond bottled drinking water and aerated drinks and the company is at present trying to explore the market for coffee coupled with energy beverages such as Monster Beverage and Keurig Green Mountain.
Back in 2009, there were a few Chinese authorities that had blocked the company’s plan of purchasing Huiyuan Juice. Coca-Cola had also stated that it would be submitting an application in order to acquire Xiamen Culiangwang after it would be reviewed by the concerned central and government authorities.