May 20 - Coca-Cola has taken the first step in a marketing blitz of its Chinese brands following the rejection of its merger with domestic drinks manufacturer Huiyuan Juice.
A Chinese pop star kicked off the company’s publicity offensive as part of a marketing campaign to raise the profile of it Minute Maid brand in the country with a population of almost 1.5 billion. The US beverage giant is planning to invest some US$ 2 billion in its Chinese operations in the next two years – as compared to US$ 1.6 billion since 1979.
The operation is Coca-Cola's first response in China since the government, blocked its 2.4-billion-dollar bid for Huiyuan Juice in March - citing competition concerns.
Coke CEO Muhtar Kent said at the time the company would concentrate on growing its existing brands, pin-pointing its juice lines as areas for expansion.
Coca-Cola Marketing chief Andres Kiger said the new campaign was part of an aggressive drive to expand the range of Minute Maid juice drinks sold in the Chinese market.
"It's happening now, there's an accelerated amount of new and exciting products coming into the market," he added. "The brands are getting stronger and additional investment is being done."
China is Coca-Cola's third largest market in the world and the second largest for Minute Maid, with more than one billion bottles sold last year, said Kiger.
This week’s campaign launch is centred on a new white grape and aloe vera drink, the first product to come out of Coca-Cola's 90 million-dollar Shanghai research and development centre since it opened in March.
Chinese demand for juices is expected to increase as a result of rising incomes and a move toward healthier lifestyles.