Coke follows the money to China

COCA-COLA IS THE the world’s largest soft drinks manufacturer, the longest standing Olympic partner and one of the most active investors in global sports sponsorship so its announcement that it is exploring a listing on the Shanghai Stock Exchange in noteworthy. Major brands have looked longingly at China’s 1.4 billion consumers for many years. Coke products are enjoying double digit growth in a country where its Sprite brand is already the country’s top selling soft drink and its CEO recently announced a $2 billion investment. Now it is clear that part of the appeal is investor cash too. This is a tacit admission that US investors’ influence and shareholdings are likely to reduce as the world’s economic powerbase shifts. Indeed some are predicting that Coke and other American icons are likely to seek Asian CEOs a development likely to have profound effects on how they allocate their sponsorship budgets. - 2/6/2011