20th Jan 2020 06:43
(Alliance News) - Coca-Cola Co on Monday announced it will invest, alongside Coca-Cola European Partners PLC, as much as EUR1 billion over the next five years to support sustainable development in France.
At the Choose France Summit, Coca-Cola's chair & chief executive, James Quicey, unveiled a "major investment plan" covering the next five years. Quincey and French President Emmanuel Macron will discuss the deal on Monday "in the frame of the summit".
Shares in Coca-Cola closed up 0.2% at USD56.94 in New York on Friday and ended after hours trading up 0.1% at USD56.98. In London, Coca-Cola European Partners closed up 1.6% at EUR48.25.
Coca-Cola and its primary bottling partner in France, Coca-Cola European Partners, will invest up to a combined EUR1 billion in order to introduce new products to the French market, as well as to support company brands and innovation.
The money will also go towards the expansion and modernisation of Coca-Cola European Partners' manufacturing plants. Coca-Cola European Partners, which has its head office in Middlesex, England has earmarked EUR500 million to improve the firm's production and its distribution network, having already invested EUR350 million since 2013.
Coca-Cola European Partners intends to "transition to a circular economy", altering its packaging as part of this effort. Having added a bottling line for glass bottles only in 2019, it will invest in its Socx, Dunkerque plant to add a "state-of-the-art aseptic bottling line in mid-2020" to meet higher demand for its ready-to-drink tea brand Fuze Tea and for Tropico juice.
"Additional investments across all five CCEP plants in France will enable the introduction of a higher quantity of recycled material in bottles and cans and the replacement of plastic by cardboard for secondary packaging," said Coca-Cola.
Atlanta, Georgia-based Coca-Cola Co itself will invest EUR500 million in product development and introduction, such as strategic partnerships and "brand experiences". This includes Coca-Cola's support of the 2024 Olympic Games in Paris.
Quincey said: "Coca-Cola has been part of France for a century, and our presence today includes more than 2,800 people who work for Coca-Cola in France, plus many more across our entire value chain.
"Today's announcement shows continued commitment to France, helping to build the French economy and contributing to sustainable French communities for years to come."
By Anna Farley; [email protected]
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