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Growth in emerging markets continues rising at a brisk pace. In the second quarter of this year, Coca-Cola enjoyed 33% sales growth in India and 14% sales growth in China. And they remain untapped gushers if you look at both countries through the company’s measuring scale of bottles consumer per capita,
The average American drinks 412 bottles of Coke products a year. In China, that figure drops to 28 bottles and Indians consume only 7.
For example, India has a high birthrate and 1 billion people with an average age of 25… and trending lower. Since young people are particularly susceptible to the lure of carbonated, sugary drinks, that creates a particularly attractive Coke, especially as family incomes in India continue to rise.
Investors should step back a moment and think about those facts and figures … and the opportunities they raise. Because you can bet that Coca-Cola has The Chinese Ingredient. Coca-Cola has already proven it can go the distance in China, a country that used to be its seventh biggest market back in 2001. Today, China ranks third on that list, behind only the US and Mexico[1].
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