Coca-Cola adds fizz to regional business with S$79m depot

SINGAPORE — Beverage giant Coca-Cola has revealed plans to more than double its portfolio of brands in the Republic as it explores widening its existing product range to strengthen its presence in Asia-Pacific markets.

Coca-Cola — which has a global portfolio comprising more than 500 brands — officially opened a S$79 million storage and distribution centre in Tuas yesterday, with Senior Minister of State for Trade and Industry Sim Ann in attendance.

“In a market like Singapore, 40 brands could become 100 over the next three to five years as we expand our participation in different categories and offer more package options to consumers,” Mr John Murphy, president of Asia-Pacific Group of the Coca-Cola Company said on the sidelines of the launch event.

“We decided to invest in Singapore to support 15 countries in the Asia-Pacific region.

“This facility was built to complement our overall growth in the region as it allows our production facility to upgrade output and meet demand from the region.”

Mr Murphy highlighted that the warehouse is the second phase of its project that started in 2010, when the company opened a new concentrate and beverage plant, also in Tuas.

The concentrate plant and distribution centre are both operated by Pacific Refreshments, a wholly owned subsidiary of The Coca-Cola Company.

Together, they will produce and distribute more than 200 different concentrates covering the whole spectrum of brands that are consumed locally in the markets that Coca-Cola serves.

These include Coca-Cola, Sprite, Fanta, Schweppes, Heaven & Earth, Minute Maid and Powerade.

The 19-storey storage facility is the first of its kind in the Republic, utilising about half the space of conventional warehousing operations.

It also has an automated storage and retrieval system built on top of the loading and unloading bays.

“Asia is one of our fastest-growing markets, and we see high demand for our wide range of beverages across the region,” added Mr Murphy.

“Singapore is a strategic location as a hub to support the region, whether through this facility or through our regional office. It is an interesting consumer market, and one that we see as an opportunity to be a showcase for our business in the region.”

Elaborating on the company’s growth plans in the region, he said: “We see the opportunity to not only participate in our core growth areas, but also to establish new positions.”

He also said the company will not ignore acquisition opportunities if available. Juices, premium water, coconut water and sports drinks are some of the categories that are gaining traction, even as the organisation continues to invest in growing its core business in sparkling beverages and the Coca-Cola franchise.

Asia-Pacific accounted for 23 per cent of the company’s volumes in 2016, compared with 20 per cent in 2011.

Mr Murphy added: “This growth is being fuelled by a number of factors.

“Externally, we are seeing disposable incomes changing lifestyles and evolving purchase habits, and internally within our company we are evolving as a total beverage business participating in all beverage categories, looking to offer more choice to consumers, besides investing in research and development.”