USA – The Coca-Cola company has announced a US$1.2bn investment in Argentina over the next three years to 2021, aimed at improving operations and expand production in the country.
The new investment adds to the US$1 billion it committed to invest in the country in partnership with its four bottling partners including Coca-Cola Andina, Arca Continental, Coca-Cola FEMSA and Reginald Lee.
According to Just-drinks, the investment, announced by the company’s South Latin America unit seeks to enhance expansion and renewal of production lines.
Reuters reported that Coca-Cola was one of the first companies to pledge a major investment in Argentina after President Mauricio Macri took office in late 2015 promising business-friendly reforms after more than a decade of leftist populism.
His government is said to be struggling with the aftermath of capital flight earlier this month after the central bank hiked interest rates to 40%, the highest in the world.
Despite of all these, Joao Marcelo Ramires, president of the South Latin America Unit of Coca-Cola reassured of the company’s commitment to Argentina where it has operated for 75 years.
“We are aware of the responsibility that touches us as a business sector at this momentous moment for the country and, therefore, we renew our commitment to Argentina, where we have worked with passion for 75 years to create shared value with society,” said Ramires.
The company claimed that the investment was necessary to achieve truly sustainable growth with a positive socioeconomic impact, compatible with environmental protection.
Coca-Cola reported a positive start to 2018 in the first quarter results particularly in Latin America where unit case volume grew 1%, Brazil, Argentina and Mexico recording volume growth.
Argentina as well as India and Brazil remained key market for the world’s biggest soft drinks manufacturer noticed in the second half of 2017 and in first-quarter.
Coca-Cola is striving to maintain a commanding presence in the developing and emerging markets of Latin America, India, Russia and China given that more than half of the company’s revenues were generated outside the United States.