Coca-Cola issues China warning as sales growth slows

Coca-Cola bottles on display in a store in China Rising income levels in China have resulted in increased consumer demand in the country

Related Stories

Coca-Cola, the world's biggest soft-drinks maker, has warned that it expects slower growth in China amid a slowdown in the Chinese economy.

The firm said its sales rose 2% in China during the third quarter, as it reported its earnings for the period.

That is down from 7% growth in the country during the previous three months.

China is one of the world's fastest growing consumer markets and has been a key driver of the firm's growth.

"As we look ahead to the next six months, it is reasonable to expect that China's ongoing economic slowdown may have a short-term effect on our industry and on our business," Muhtar Kent, chief executive of Coca-Cola said.

However, he added that in the long run China will continue to remain a key growth market for the company.

More fizz

Coca-Cola reported a net profit of $2.3bn (£1.4bn) for the period, a 4% increase from a year earlier.

Despite the slowing growth in China, Asia has continued to be a key component of the firm's success.

Its sales jumped by 19% in Thailand, and 15% in India in the three months to end of September, compared to a year ago.

Coca-Cola has already unveiled plans to increase its investment in the region in a bid to further boost its market share.

Earlier this year, it announced plans to invest $5bn in India, spread over a period of eight years.

It has also re-entered Burma after a gap of 60 years, following the US government's decisions to lift some sanctions against the country.

More on This Story

Related Stories

From other news sites

* May require registration or subscription

More Business stories



BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.