The Coca-Cola Co (NYSE:KO) is planning to add protein drinks to its beverage portfolio. The company is reported to be in talks with a Chinese counterpart, to acquire a new line of protein drinks for $400 million. This would be the company’s second attempt to push into the Asian market after the previous one was blocked six years ago. The company being took-over is Xiamen Culiangwang Beverage Technology Co.
The drinks are currently sold under the China green band and are made with all natural plant proteins. This would be the first attempt by Coca-Cola, six years after it failed to buy the largest juice maker in the country. China had, at the time, expressed concerns that the deal might kill the competition. Consequently, China was later viewed as using anti-monopoly rules to block foreign investments.
The plans would indicate that Xiamen would help make the most of surging popularity for protein drinks in the country. Coca-Cola is also planning to restructure overseas sales, following a decline. The company had, however, been able to top analyst estimates, but that was due to increased sales in the US. The Chinese market, in particular, has proven to be disappointing for Coca-Cola as seen by the unit volumes declining by 3% in the last quarter. The company now believes that Xiamen will give them a new way to attract customers.
In addition to this acquisition, Coca-Cola has announced plans to restart its share a coke campaign. The program had proven to be very successful last time, producing a turnaround in sales after an 11 year decline. The sales surged remarkably, producing record volume in sales. Previously, the company had made use of the 250 most popular in the country to produce limited edition bottles with name tags on it. In 2015, the company aims to use 4 times the number of names and also make use of different sized bottles than used before.
The Coca-Cola Co (NYSE:KO) closed at $40.89 after losing 0.15% on April 24. The company has a huge 4.36 billion shares being traded in the market. It also has a 52-week range of $39.06-$45.
