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The Coca-Cola Company Message Board

  • mycrof4 mycrof4 May 6, 1998 12:20 AM Flag

    KO in the Middle East

    Fueled by strategic investments and sales
    momentum in the Middle East, The Coca-Cola Company has
    taken a leadership position in the Middle East and
    North Africa region, an area long dominated by
    Since returning to Saudi Arabia in 1993, The
    Coca-Cola Company has invested more than $100 million in
    building a soft drink
    infrastructure there. This
    includes a state-of-the-art
    production facility in
    Jeddah, an expanded distribution network,
    and more
    than $60 million in cold drink equipment, including
    60,000 Coca-Cola coolers. In 1997, the Company also
    introduced a single-serve plastic contour bottle dedicated
    to football fans,
    which is now one of the
    country's most popular single-serve packages.

    Investments of more than $60 million have also been made in
    Jordan and Lebanon, where the Company acquired the
    Coca-Cola bottling operations in 1997, installing new
    equipment and advanced product quality systems,and
    providing training
    for employees throughout the
    In Egypt, the region's most populous country,
    the Company entered a joint venture in 1994 with a
    local partner,the MAC group.
    A total of more than
    $180 million has been invested in the country to-date,
    to enhance production, distribution and marketplace
    execution, such as the placement of 30,000 coolers
    1997. As a result, after many years of being number
    the Coca-Cola system in Egypt has become the
    country's leading
    soft drink producer, with close to 60
    per cent share of sales.
    "Over the last few years,
    the Coca-Cola system has taken leadership in
    longstanding strongholds of our international
    - Russia, Eastern Europe and Venezuela," said
    Douglas N. Daft, president, Middle and Far East Group,
    The Coca-Cola Company. "We believe it is only a
    matter of time before we take the lead in every one of
    the individual countries of the Middle East and North
    The Middle East and North Africa region,
    spanning from Morocco in the west to Oman in the east, has
    benefited from a
    $400 million investment by the
    Coca-Cola system over the past five years, with a further
    $200 million infusion scheduled for
    the next three
    years. This investment has been used to build and
    upgrade production facilities, extend distribution
    networks, place sales equipment and pursue aggressive
    marketing programs.
    As a result, Coca-Cola products now
    represent 38 percent of total sales in the region as a
    whole. This is double the share of
    sales held just
    five years ago.

    This information was attained



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    • I've lived in Saudi since 1990. When I arrived
      here there were two types of cola beverages; Pepsi and
      a local poor quality brand. I was a regular
      consumer of Diet Pepsi (~6-8 cans/day<I don't drink tea
      or coffee>) and found its quality to vary.
      Sometimes it had too much of a lemon flavor in it, which
      gave it a disgusting taste. Other times it would not
      have enough cola flavor and tasted watered down. And
      finally, there were times that they would run out of stock
      of Diet Pepsi for 1-2 months! What I'm geeting at is
      their quality control and planning was terrible and
      they had no competition to entice them to

      Now let me tell you about KO. They arrived in 1993 in
      force. Their products were stocked plentifully
      everywhere. They put up new signs for local merchants with
      the Coca-Cola logo brandishing both sides of the
      store's name. They gave out free cans of KO beverages at
      the July 4th US Consulate party. The delivery trucks
      were modern, clean (you never see a dirty KO truck),
      and with refreshing signs of large KO bottles on the
      sides of them. The quality of the beverage is
      consistent. I am now a Diet Coke consumer and most of my
      friends have also swithed to KO products.
      I'll check
      with my local supermarket here and let you know how KO
      is doing against PEP.

      • 1 Reply to Dana85
      • Dear Dana 85,

        Thank You for giving us a
        real perspective and current History on whats going on
        in your base of operations concerning KO.
        As an
        Analyst I read reports on how KO is doing in the Middle
        East , but unless I go there myself and talk to people
        like yourself, I never get the real story. Your
        insight on the
        matter of KO in Saudi Arabia was most
        refreshing as it shows
        the power of KO and its attitude
        towards the competition. I
        believe that our KO family
        is benefited by representatives
        like yourself in
        the trenches. Keep up the good work and
        thank you
        again for you wonderful message.



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