Coca-Cola is looking to further strengthen its position in China with the acquisition of Huiyuan Juice.

Coca-Cola is to buy China’s largest fruit juice company, Huiyuan Juice, for a reported $2.4 billion (£1.4bn).

Once completed, the deal will be Coca-Cola’s second-largest acquisition in its 122-year history and will further cement its position in China where it has been operating since 1979.

Coca-Cola already leads China’s diluted drinks market with its Guo Li Chen (Minute Maid Pulpy) and Yuan Ye (Original Leaf Tea) brands – as well as having success with its sparkling brands, Coca-Cola, Fanta and Sprite.

It is now hoping to tap into China’s growing thirst for fruit juices – the market is expected to grow by more than 10% over the next few years as the country’s population becomes increasingly health conscious.

Muhtar Kent, President and CEO of Coca-Cola, commented on the takeover: “This acquisition will deliver value to our shareholders and provide a unique opportunity to strengthen our business in China, especially since the juice segment is so dynamic and fast growing.

“It is also further evidence of our deep commitment to China and to providing Chinese consumers with the beverage choices that meet their needs. We are strongly committed to building on the Huiyuan business’ current brand, improving the utilisation of its fixed assets and enhancing opportunities for employees of the Huiyuan business.”

Huiyuan Juice Chairman, Mr. Zhu, will take up the role as Honorary Chairman of the company, Coca-Cola said.

For more information on the companies, visit: www.thecoca-colacompany.com ^[1] and www.huiyuan.com.cn/en ^[2]

By Natasha Piscitelli