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COCA-COLA AND PARLE JOIN HANDS IN INDIA

 Strategic Alliance Brings Together
 Global Soft Drink Leader and Number 1 Soft Drink Company in India
 ATLANTA, Sept. 21 /PRNewswire/ -- The Coca-Cola Company (NYSE: KO) and Parle Exports announced today their formal agreement to enter into a strategic alliance to produce and market soft drinks in India. The agreement brings together the world's leading soft drink company and the number one soft drink company in India, and it represents a major step in making Coca-Cola available to consumers throughout India.
 Under the agreement, the bottlers of Parle Exports will continue to produce Parle brands, including Thums Up, Limca, Citra, Gold Spot and Maaza, under license from The Coca-Cola Company. The Company also will introduce over time its international brands, Coca-Cola, Fanta and Sprite, as appropriate.
 Operating through a network of 60 licensed bottlers, Parle is the leading soft drink system in India.
 Additionally, in order to expand and upgrade production capacity, a bottling investment joint venture company will be formed to make strategic investments in key bottling operations. The joint venture will be initially capitalized at $20 million and will be 50 percent- owned by an affiliate of Parle Exports and 50 percent-owned by a subsidiary of The Coca-Cola Company.
 The alliance also envisages the formation of a marketing service company to provide advertising, media services, promotional and sales support for all Company brands. The chairman of both of these new companies will be Ramesh Chauhan, currently Chairman of Parle Exports.
 "This partnership makes perfect sense," said Mr. Chauhan. "The Parle system will gain the unparalleled marketing expertise of the world's No. 1 soft drink maker, while The Coca-Cola Company will gain access to the production and distribution infrastructure of the largest Indian soft drink company. It's an unbeatable combination."
 "This landmark agreement is a tribute to the vision of Ramesh and Prakash Chauhan of Parle Exports," said John Hunter, executive vice president, and principal operating officer/International, The Coca-Cola Company. "We have always admired the Chauhan brothers as the most successful marketers of soft drinks in India, and respected them as formidable competitors. This powerful partnership will now enable us together to lead the way in the future growth and development of the Indian soft drink industry."
 "The built-in synergies of this alliance will grow the soft drink industry and increase per capita consumption of soft drinks in India by offering consumers a wide range of choices of brands and flavors in various packages," said Prakash Chauhan.
 "This partnership is a concrete expression of our confidence in the Government of India's measures to liberalize the Indian economy and welcome foreign investment," said E. Neville Isdell, senior vice president, The Coca-Cola Company and president of its Northeast Europe/Middle East Group.
 In addition to the $20 million investment already announced in a wholly owned business to supply the beverage essence and bases for processing into finished beverages by bottlers, The Coca-Cola Company will invest a further $40 million in the acquisition of the Parle trademarks and related business rights. The Company's initial contribution to the capital of the joint venture bottling investment company will be $10 million, which is expected to increase in the future based on the growth needs of the business. This will bring The Coca-Cola Company's total direct investment in India to $70 million.
 The agreement is expected to be finalized before the end of the year, subject to the fulfillment of specific terms and conditions by the parties.
 The Coca-Cola Company is the largest soft drink producer in the world, serving over 685 million drinks each day in more than 195 countries.
 -0- 9/21/93
 /CONTACT: Linda Peek of The Coca-Cola Company, 404-676-4848/
 (KO)


CO: The Coca-Cola Company; Parle Exports ST: Georgia IN: FOD SU:

RA-BN -- AT004 -- 4164 09/21/93 12:30 EDT
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Publication:PR Newswire
Date:Sep 21, 1993
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