Chinese Investor Plans to Develop Drinking Water Bottling in Russia


The Chinese company COFCO Coca-Cola Beverages, Ltd. intends to develop the bottling of high quality drinking water in the Far East and Baikal region. Mrs. Luan Xiuju, director general of the company told about the possible expansion of the project at a meeting with Yuri Trutnev, deputy Prime Minister and the Plenipotentiary representative of the President of Russia in the Far Eastern Federal District in Dalian.

In Russia, "COFCO Coca-Cola" launched water bottling in Petropavlovsk-Kamchatsky under the brand "Сlean Earth". "This is water from underground sources. Two years ago, you suggested that we start implementing this project. This project was the first one for the company "COFCO Coca-Cola" within development strategy proposed by the Chinese government “The Belt and Road Initiative”. One million bottles of water have already been produced. Online sales of Kamchatka water in China started in July 2018” said Mrs. Luan Xiuju.

"The project can be of great importance for the development of cooperation between our countries and for human health. We need to attract leading world brands to the Far East ",-said Yuri Trutnev.
The planned volume of bottling should make 10 million liters of water in the first year, 18 million liters - in the second year and 30 million liters-in the third year. Eighteen jobs will be created to service the bottling in the first year, followed by an increase in proportion to the volume of production.

In case of high demand for finished products, "COFCO Coca-Cola" considers the possibility to make investments in realization of the second stage of the project. For this purpose, "COFCO Coca-Cola" has conducted preliminary work in Irkutsk region for the search of the partner on bottling of high-quality drinking water. The planned total volume of investments in realization of two stages will be 6 bln rubles. According to the company's representative, the water from the Baikal region will start to arrive on the shops shelves starting from September.

“COFCO Coca-Cola Beverages, Ltd” is a subsidiary of COFCO, China's largest food conglomerate; it produces and distributes carbonated beverages, juices, tea, coffee, water, and syrups. Cooperates with the Coca-Cola Company since 1979. In 2000, a joint venture COFCO Coca-Cola Beverages, Ltd was established (COFCO - 65% of shares, Coca-Cola Company - 35%). The company operates bottling enterprises in the cities of Beijing, Shanghai, Hangzhou, and Nanjing, provinces Guangdong, Jiangxi, and Xinjiang Uygur Autonomous Region. The total number of bottling plants is 18.

“COFCO Coca-Cola Beverages” is the leader of the Chinese beverage market, the company manages not only production assets, but also a wide distribution network (more than 1 million points of presence), which provides the company with the first position in terms of sales of beverages in China (more than 5 billion liters of carbonated beverages per year).

Let us remind you, that on August 20-21, Deputy Prime Minister of the Russian Federation -Plenipotentiary representative of the President of Russia in the Far Eastern Federal District Yuri Trutnev is in the People's Republic of China (Dalian) on a working visit. The Russian delegation included the Deputy Minister of the Russian Federation for the development of the Far East Alexander Krutikov, governor of Khabarovsk Krai Vyacheslav Spurs, acting Governor of Amur region Vasily Orlov, governor of the Baikal region Natalia Zhdanova, and Leonid Petukhov, Director General of the Far East Agency for Attracting Investment and Export Support, as well as other representatives of the State authorities and business community.

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