Asia Crisis Wont Deter Coca-Cola: Ivester

US beverage giant Coca-Cola Co chairman Doug Ivester yesterday said Asias financial turmoil would not deter its investment plans for the region, and that Chinas economic reforms could open market opportunities.

We think whats happening in Asia is just a short-term situation, Ivester said.

It absolutely does not change our commitment to, and our optimistic outlook for, the region, said Ivester, who was in Taiwan to unveil a $75-million bottling plant in northern Taoyuan.

Ivester voiced optimism about the potential of the vast market in China, saying the continuing economic reforms could trigger market opportunities.

From our conversation with the Chinese officials there is every indication that China is committed to carrying out economic reforms, Ivester said. That is music to our ears.

 

Ivester said he expected stable growth for Coca-Colas first quarter earnings. We expect steady growth for the first quarter earnings, in line with analysts expectations, Ivester said without giving exact figures. The US soft-drink giant on Monday projected a rise of about 13 to 14 per cent in unit case volume in the first quarter, with the largest rate of growth seen in Latin America. The expected gains, an improvement over a 9 per cent rise in the same period in 1997, were a result of continued momentum throughout the world-wide system and excellent execution at the local level, Coca-Cola said in a statement issued in Atlanta. Coca-Cola said it expects world-wide gallon sales to rise 13 to 14 per cent in the period. Ivester said he expected Taiwans cola consumption to reach the same level of the Philippines one of the major consumers in Asia. There is no reason why Taiwans per capita consumption cannot rise to the level of the Philippines, which means quadrupling from the current level, he said.

The Philippines per capita consumption was about 200 eight-ounce units per year, compared with 40 units in Taiwan and six units in China.