Coca-Cola ended his marriage with Kerry for 14 years

The "breakup" between Coca-Cola and the old partner Kerry Group has finally become a reality. Yesterday, Coca-Cola announced that it had formally acquired Kerry Group’s controlling stake in Kerry Beverage Co., Ltd., thus ending the 14-year cooperation between the two companies in the mainland beverage market.

The industry generally believes that Kerry's withdrawal from beverage production is related to its recent efforts to develop core businesses such as hotels and real estate. At the same time, Coca-Cola also hopes to take this opportunity to look for partners who can help it expand its domestic market. According to the relevant person in charge of Coca-Cola, the group's newly established BIG (bottling business investment group) will take over the business of Kerry Beverage.

The reason for breaking up is still dissatisfaction with performance

According to Coca-Cola, after the completion of the acquisition, Coca-Cola has already held a 89.5% stake in Kerry Beverages, and will complete the remaining 10.5% share acquisition before 2008. Previously, Kerry Beverages has established 11 bottling plants in 9 provinces in the Northeast, North China, Central China and Southwest China to serve beverage bottling, one of Coca-Cola's core businesses. It is also known as Coca-Cola and Swire and COFCO. Three major partners in the mainland market.

The industry rumors about Kerry’s withdrawal from cooperation have been around for a long time. In response to the formal withdrawal of Kerry, the reporter called Swire and COFCO yesterday, but the relevant person in charge did not want to comment. However, people close to the Kerry Coca-Cola bottling system once told the media that in recent years, Kerry’s bottling plant reform plan has not caused his performance to grow rapidly.

Previously, the industry has been rumored that Coca-Cola is also dissatisfied with the improvement of the beverage market controlled by Kerry Beverage. In response, Mukai Kang, Coca-Cola’s president, publicly stated that “the cooperation with Kerry has laid a good foundation for Coca-Cola's business in China for more than 14 years, and hopes that the acquisition can further promote the strong growth of the business.”

Two big cola or fighting again

In response to Kerry’s “successor”, the industry generally believes that another major partner, COFCO, has the most advantage. “Although Coca-Cola took over the Kerry drink business itself, it was only temporary, and Coca-Cola is definitely looking for new ones. Partners.” It is reported that at present, Swire, COFCO and other two major groups have the intention to take over Kerry's beverage business, but Coca-Cola is more willing to look for third parties to join, in order to maintain the original tripartite situation.

This reporter learned that since COFCO took a joint-venture bottling group with Coca-Cola in 2000, it had controlled six Coca-Cola bottling plants. In response, the relevant person in charge of COFCO Coca-Cola said in an interview with reporters that the bottling plant is responsible for the production and sales of beverages and channel construction in various markets, and Coca-Cola is responsible for brand promotion, market construction, and the control of concentrates. Has been tried and tested by Coca-Cola, Coca-Cola still accounted for 58% of the market share of the mainland's leading carbonated beverage market.

However, he also stated that Kerry’s control of Chengdu, Chongqing and other places, the battle between Coca-Cola and Pepsi has been constantly upgraded, and is still leading Pepsi; as well as Wuhan market, the two sides have comparable market share, whether it will allow Pepsi after the acquisition It is unpredictable for the company to take advantage.