The plant’s opening marked the first part of a half-billion-dollar investment the US-based parent and Australia’s Coca-Cola Amatil (CCA) are making in Indonesia over the course of several major investments.
Coke’s sights set on Indonesia’s growth
Coca-Cola Amatil Indonesia’s (CCAI) plan is to accelerate growth over the next three to four years in the country, and the investment builds on the US1.2bn the Coca-Cola has invested there over the last 25 years.
“We consider Indonesia a dynamic and promising market and one of the growth engines to achieve our long-term vision,” Muhtar Kent said.
Last October, The Coca-Cola Company announced plans to create a joint venture with Coca-Cola Amatil’s local Indonesia subsidiary to invest in the plant. This was done in return for an ordinary equity ownership interest of 29.4%, with the funds invested into Coca-Cola Amatil Indonesia operations to support accelerated expansion of production, warehousing and cold-drink infrastructure.
The drinks company expects to increase its employment in Indonesia from 60,000 to 135,000 within three to four years. The investment is subject to CCA non-associated shareholder and Indonesian regulatory approvals.
Ramping up production and distribution
In the past three years alone, CCAI commissioned 18 new production lines, deployed 150,000 coolers and built three mega distribution centres to increase capacity and build local capability with total investments exceeding US$300m.
Between now and 2020 the global nonalcoholic ready-to-drink beverage category is expected to grow in retail value by approximately US$300bn.
With a population of more than 240m people, Indonesia boasts the world’s fourth largest population and a large, emerging middle class with underdeveloped consumption rates of non-alcoholic ready-to-drink beverages.
Coca-Cola has been present there for 88 years, and now markets 16 brands, operates 10 bottling plants and more than 200 sales and distribution centres, supplying over 520,000 large and small retail outlets.