Coca-Cola Opens Bottling Plant in China

After a 30 year absence, Coca-Cola is once again "adding life" to the meals of tourists in the People's Republic of China. Under an agreement with the China National Cereals, Oils and Foodstuffs Import and Export Corp., a Coke bottling plant opened in Peking in mid-April.

The plant is relatively small by Coke standards; it will produce two million cases per year and employ 40 workers. The marketing agreement states that Coke will sell soft drink concentrate to the Chinese, provide all necessary bottling equipment, and supply technical and marketing assistance.

The agreement also stipulates that the beverage- may be purchased only with foreign exchange certificates, which are not available to most Chinese. This arrangement, along with the Chinese government's encouragement of tourism, will help "boost China's hard currency reserves," said Daniel Stein. Trade Development Assistance Officer at the U.S. Department of Commerce.

The Coke-China courtship, was not easy. According to Stein. Coke "had been at it for a number of years" before the agreement was signed. Coke wooed the Chinese with a variety of cultural exchanges, including five scholarships to the Harvard Business School and sponsorship of the Chinese soccer team's U.S. tour. According to Coke spokesperson Brenda Rigby, the purpose of the exchanges was to "establish a feeling of mutual friendship between our two countries."

Coke hopes that mutual friendship will extend further in the future and "would not be disappointed" if the Chinese government permitted the use of local currency to purchase the soft drink. At present prices, however, most Chinese are unable to afford a bottle of Coke, which, at 68 cents is two to three times more expensive than any other Chinese beverage.