Retail Question
Will Coke's $2.4 billion acquisition in China help it ramp up sales there?
This is Coke's second largest acquisition ever -- will this make a significant impact on its sales, profits and most importantly, its stock price???
Best Answer
593 points
RobSmith answered 3 months ago …
Not in the next 2 - 3 years, but definitely in the next 5 - 10. It's similar to what Pepsi did in the US back in the early 90's -- move into a fast growing market (juices/non-carbonated beverages) before anybody else, establish a foothold and distribution and then use that to sell all kinds of other products.
So Coke won't only use the Huiyuan acquisition to sell more Huiyuan products, it will also look to sell more Coke and other coke products in the China as well.
I think it was a very smart and a VERY necessary move for Coke.
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