Coca-Cola to Invest $3 Billion in Russia

Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company
Coca-Cola Plant Opening
Rostov, Russia
September 26, 2011

Good morning and thank you for being here. It's very special for me to be in Russia once again with so many friends, new and old. On behalf of Coca-Cola, let me say just how honored we are to be here in this great country on this very special occasion.

I want to thank Deputy Prime Minister Dmitry Kozak for being here. We're honored to have you join us, and we appreciate all the Russian Federation is doing to make your country a welcome market for business investment. I also want to thank Governor Vasily Golubev for joining us along with Dmitry Chernyshenko. CEO of the Sochi 2014 Organizing Committee. Thank you both for sharing your kind words about this marvelous plant we're opening today.

And I want to thank George David and our outstanding bottling partners at Coca-Cola Hellenic for your commitment to this plant and this market.

Coca-Cola, as you may know, has a long and in some ways remarkable history. Though not nearly as long or remarkable as the history of Russia!

Even so, Coca-Cola goes back a while. In fact, this year, we're celebrating our 125th anniversary... commemorating that magical day in May 1886 when Dr. John Pemberton served the very first Coca-Cola at Jacob's Pharmacy in Atlanta, Georgia, USA. With that founding moment of inspiration, Dr. Pemberton began an ongoing story of refreshment and innovation that continues to this day.

Our business can also look back on three decades of history in Russia, starting with the introduction of Fanta Orange in 1979. Our late Chairman Paul Austin, himself an Olympic athlete, worked tirelessly with leaders here on an agreement to bring Coca-Cola to Russia as part of the 1980 Moscow Olympic Games.

But, as you may recall or may have since read about, all those very carefully prepared plans were upended by geopolitical events and one particular decision made in the Oval Office in Washington, DC.

Even so, we did not give up. We knew people were thirsty here in Russia, and we ultimately managed to bring Coca-Cola here to stay in 1985.

A quarter-century later, we're delighted to have the opportunity to refresh Russia's 140 million consumers. Today, our system employs more than 13,000 Russian citizens across 17 manufacturing plants and 70 sales and distribution facilities nationwide.

In time, Coca-Cola has become one of Russia's largest foreign investors, with more than $2 billion invested to date...and plans for much more. In fact, over the next five years, we expect an additional investment of some $3 billion!

As a system, we're working hard to contribute to Russia's economic development: investing in our business... creating jobs... and stimulating growth across our supply chains. And, with this plant, we have the opportunity -- at long last -- to provide our delicious beverages to Olympic athletes and guests here in Russia.

And let me just say, on behalf of Coca-Cola people worldwide, that we are deeply honored to be part of the 2014 Sochi Olympic Games. We're excited about Sochi... We know the games will be spectacular... And, frankly, we can't wait for 2014!

As you may know, Coca-Cola is a global business with operations in 206 countries... quite a few more, by the way, than even the United Nations!

And, yet, we remain a fiercely local business, wherever we operate. We hire locally, source locally, manufacture locally, bottle locally, sell locally, distribute locally, market locally, and innovate locally. All so people can enjoy Coca-Cola locally.

And this outstanding new Rostov plant is only the latest example of how the Coca-Cola system works to improve and enrich local communities wherever we operate. As a truly state-of-the-art facility, this plant brings together the latest production technology with advanced sustainability features that conserve energy, save water, and protect the environment.

In the coming years, this plant will allow us to continue to meet the ever-evolving refreshment needs of consumers across South Russia. And local people here -- including the wonderful Russian associates we have with us today -- will lead the way... extending the heritage of innovation and refreshment Dr. Pemberton began 125 years ago. As a significant investment for the Coca-Cola system, this facility reflects our strong belief in this great country and its people and its bright future.

Coca-Cola is fortunate to have so many outstanding Russian associates and partners and customers contributing to our success here. And we appreciate the enduring enthusiasm of the Russian people for our all our brands, not only Coca-Cola but also Fanta, Sprite. Dobry, Bonaqa, Moya Semya, Burn, Powerade and Nestea.

People and families often develop strong and lasting connections with our brands, and we are working -- every day -- to be faithful stewards of their passion and love for Coca-Cola.

As Coca-Cola begins our next 125 years, we're planning to double the overall size of our global business by 2020. This is an aggressive yet achievable goal based on the current state of our business and a set of macro trends toward:

• more balanced economic growth worldwide,
• greater urbanization
• and a ballooning global middle class.

What happens here in Russia will be critical to realizing our 2020 Vision. This is country, after all, with tremendous growth potential -- and not just for Coca-Cola.

Today, Russia is among the world's top ten nations in both population and consumer buying power. Your country is also one of the Coca-Cola system's ten fastest growing markets, with double-digit annual growth expected through 2020.

As for Coca-Cola. we're thrilled to be part of this growing economy, part of this vibrant community and part of the solution as Russian continues to crack the code for growth.

The fantastic new plant we're opening today will help our associates and partners refresh consumers in Russia for years to come... including guests of the 2014 Olympics.

So, ladies and gentlemen, here's to the Sochi Winter Games... here's to Coca-Cola's new Rostov plant... and here's to the men and women who are the heart and soul of this operation!

Thank you very much!