Hold on to your bottle caps, Coke is going Chinese.
Coca-Cola has announced a bid to takeover the king of the Chinese fresh juice industry – China Huiyuan Juice Group.
Coke is looking to expand into the Chinese market because they have recognized that China’s recent growth has created a huge expanding middle class that’s becoming a big fan of cars, McDonald’s, KFC, and soda. The real American dream.
But does this mean Coke will be trading their lovable polar bear mascot for panda bears?
The bid is currently at $2.4 billion, which if approved, would be the biggest foreign acquisition ever of a Chinese company.
Huiyuan is a decent buy right now. It was founded back in 1992 and has grown to dominate 46% of the Chinese fresh juice market. Shares of Huiyuan have fallen sharply along with the Chinese and Hong Kong stock markets, making this the perfect time for Coca-Cola to strike for a buy.
The big sellers are apple, orange, and pear juice beverages. Pear juice sounds kind of gross but to each his own, I guess.
I just hope Coke doesn’t decide to launch a bunch of wacky combo flavors like Diet Coke Zero with Pear. I swear, if I see any of that crap over here in the U.S., I’ll destroy whatever brightly colored display case imposes itself on me at the supermarket.
You might think, I’m crazy but did you hear what Pepsi is doing in Japan as we speak? They introduced this new line of drinks called “Pepsi Ice Cucumber” which sold out in a matter of weeks. They then launched another drink called “Pepsi Blue Hawaii” flavored with Pineapple and Lemon, that tastes equally horrible. Is that something you want served in restaurants and at family bbq’s here?
NYT: Coke Bids For Chinese Juice Giants, Sept 3, 2008