Remarks at the Nanchang Bottling Plant Opening

Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company
Nanchang, Jiangxi, China
June 23, 2009

As prepared for delivery

Honorable Provincial Governor Mr. Wu Xin-xiong, Nanchang Secretary General Mr. Yu Xin-rong, Nanchang Mayor Mr. Hu Xian, Chairman of COFCO Mr. Frank Ning, our business partners and honored guests. It's truly an honor to be here with you in Nanchang to celebrate the opening of this beautiful new bottling plant.

This 100 million RMB investment marks our 37th Coca-Cola plant in China. More importantly it signals a new beginning for our relationship with the wonderful citizens and communities of Jiangxi Province and with our great bottling partner, COFCO [China National Cereals, Oils and Foodstuffs Import and Export Corporation].

For the past 15 years, our products have been features in stores and shops throughout Jiangxi. With the opening of this facility, Jiangxi's 44 million consumers will now be able to enjoy refreshing Coca-Cola beverages made right here. Local beverages made by the citizens of Jiangxi. Sourced locally. Distributed locally. And enjoyed and shared locally.

In fact, each year, the 424 employees of this plant will produce 20 million unit cases -- that's 480 million servings of quality, great-tasting, refreshing beverages.

None of this, of course, would be possible without the strong commitment of our trusted bottling partner, COFCO. Since our re-entry into China in 1979, COFCO has been there with us -- trusted rock-solid partners who bring local insights and innovative thinking to the table every single day.

We at Coca-Cola are only as strong as our bottling and retail partners who make our beverages available through more than 6 million retail outlets in China and nearly 15,000 outlets here in Jiangxi.

Working side-by-side with COFCO we have built a very robust sparkling and still beverage business across China, anchored by such great brands as Trademark Coca-Cola, Sprite and Minute Maid juice, among others. For the last five years, we have experienced strong double-digit growth here, including 19 percent growth in our business last year.

Today, this dynamic nation is now the third-largest of the 206 national markets served by the Coca-Cola system. And we expect even greater days ahead.

We also recognize that we are only as strong as the communities we serve. These investments and today's plant opening underscore a broader commitment we have made to China… its people… and its communities.

Coca-Cola is honored -- and privileged -- to be part of this great nation's business, cultural and social landscape. Today, we employ 33,000 people in China, while our extended supply chain supports more than 300,000 jobs across the country. And the 424 new jobs here at this plant will actually generate more than 4,000 jobs with suppliers and distributors in Jiangxi.

This 220-acre development is clearly aligned with the Chinese government's call for greater investment and economic development in central and western communities across this nation. In fact, I will be out in Urumqi in Xinjiang Province opening a similar facility as this one tomorrow.

Over the next two years, we will invest more than $2 billion US dollars in new infrastructure, marketing and operations across China, all designed to bring greater value, choice and benefits for 1.3 billion consumers.

Earlier this year, I had the honor to help open a new 643 million RMB research and development center in Shanghai. It is now the most advanced Coca-Cola R&D center in our system in Asia. And it will play a huge role in expediting the time it takes to commercialize new innovations and bring new beverage benefits to Chinese consumers.

Perhaps the greatest message we're sending with today's opening -- and all the investments planned over the next few years -- is that we have unbending faith in China's future. Despite the current global economic storm, China continues to lead the way. China has stepped up with what I believe is the most effective and comprehensive economic stimulus plan of all. This bold action will help this great nation lead the world through these trying times and beyond.

No future is brighter than China's and nowhere was that future more on display to the rest of the world than the 2008 Beijing Olympic Games which we were proud to sponsor this past summer. We felt privileged to share in that wonderful moment in China's history and were grateful to help bring the Olympic Torch Relay to Jiangxi. And now as the excitement grows in the lead up to 2010 Expo Shanghai, we are equally proud to be a global partner with Expo.

At the same time, we were deeply saddened by the tragic earthquake that hit Sichuan last May and felt compelled to share in your great loss -- and our great loss. Right after the disaster, the Coca-Cola China system donated over 20 million Rmbs for the relief actions. We have committed an additional 80 million Rmbs to help with the reconstruction of schools impacted by the earthquake.

Education, snow storm and earthquake relief donations were also made to communities right here in Jiangxi on behalf of the Coca-Cola system. We were pleased to help support the construction of a Coca-Cola Project Hope school attended by 460 primary and secondary students. These new schools are helping improve education for hundreds of underprivileged students.

Coca-Cola is committed to a sustainable and prosperous future for all of China in the years ahead and we will do our small part to make sure that happens.

Thank you for your time and attention, and please enjoy today's celebration!