MEXICO CITY -
(Dow Jones)- Coca-Cola Co. (KO) plans to invest more than $1 billion
this year in Mexico, a key market for the soft drink maker, as part of a $5
billion, five-year investment plan.
President Felipe Calderon announced the investment after
meeting with Coca-Cola Chief Executive Muhtar Kent
in Davos, Switzerland, over the weekend. Kent said the investment is part of a five-year
plan in which the company expects to invest a total of $5 billion in Mexico; the
investment plan kicked in as of 2010, a Coca-Cola official said.
As part of the investment, Coca-Cola plans to increase the
number of people it employs in Mexico
to more than 100,000 from 90,000 currently. An estimated 800,000 additional
jobs are generated via the company's supply and distribution channels.
"Without a doubt, this important investment will boost
our economy and will create more and better jobs for Mexican workers,"
Calderon said.
Mexico is home to Latin America's two largest bottlers of
Coca-Cola brand products, Coca-Cola Femsa SAB (KOF, KOF.MX) and Arca
Continental SAB (AC.MX, EMBVF), as well as juice brand Jugos del Valle,
Coca-Cola's 14th best-selling brand with annual sales above $1 billion.
Calderon cited Mexico's growing economy, expanding
per capita income and young population as factors that attract global firms,
especially those tapping the consumer market. The country added around 600,000
formal-sector jobs last year, while gross domestic product expanded 4% in the
first nine months of 2011 and is expected to have ended the year with growth of
just under 4%. Estimates for 2012 economic growth are around 3.2%
Copyright © 2012 Dow Jones Newswires
Source: foxbusiness.com