Coca-Cola to spend $4bn in China

Coca-Cola (KO.NYSE) plans to spend an additional US$4 billion over the next three years growing its business in China, the beverage giant’s third-largest market, the Wall Street Journal reported. Chairman and Chief Executive Muhtar Kent said that the funds will be plowed into setting up new bottling plants, expanding existing facilities and supporting distribution, marketing and product development initiatives; however, the company does not plan to grow through acquisitions. Coca-Cola has been posting double-digit growth in China, and both Coke and competitor PepsiCo (PEP.NYSE) have been investing heavily here. Last year PepsiCo set aside US$2.5 billion to grow its snacks and beverage businesses in China. McDonalds (MCD.NYSE), which sells Coke products, has also accelerated the pace of its growth here, annnouncing plans to expand its number of stores to 2,000 by 2013. Beverage Digest, a US trade publication, estimates that Coke had a 60.1% share of China’s carbonated soft drink market last year, followed by PepsiCo with 34.6%.