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Coca-Cola secures board approvals for $500m investment in Indonesia operations

DBR Staff Writer Published 15 December 2014

Coca-Cola has secured required board approvals to invest $500m in Coca-Cola Amatil's (CCA) Indonesian operations.

coca-cola

Through the proposed investment,Coca-Cola will acquire 29.4% stake in CCA Indonesia (CCAI).

An agreement to this effect was signed between the two companies on 30 October.

The investment will be used for the expansion of CCAI's production, warehousing and cold drink infrastructure, a move that will back its long-term growth in the market.

It is, however, subject to Indonesian regulatory approvals and CCA Non-associated Shareholder approval.

CCAI will also utilize Coca-Cola's investment to expand its product portfolio.
CCA Group managing director Alison Watkins previously said: "With a population of more than 240 million and a fast-growing emerging middle class, Indonesia is a key growth market for CCA.

"In partnership with The Coca-Cola Company, we have developed a plan to support upweighted infrastructure and capability development to enable us to strengthen our market position for the long-term and generate returns above the cost of capital for CCAI."

CCAI also plans to transform its route-to-market model to increase access to the traditional trade and expand its footprint.


Image: The investment will be used to expand CCA Indonesia's (CCAI) production, warehousing and cold drink infrastructure. Photo: courtesy of The Coca-Cola Company.