Coca-Cola bid to dominate Chinese juice market derailed

by Ed Kemp, marketingmagazine.co.uk 19-Mar-09, 09:30

LONDON - Coca-Cola has been blocked in its attempt to acquire China's largest pure juice brand Huiyuan.

The deal, which would have been worth £1.7bn, was rejected under new anti-monopoly laws in China.

The move followed nationalist opposition in china, but has been met with disappointment from the European Chamber of Commerce in China, which has now sought further explanation for the deal being blocked.

While Coca-Cola has more than half of the Chinese fizzy drinks market, it has just 10% of the fruit and vegetable juice sector.

Coca-Cola had offered to sell off some smaller division of Huiyuan in order to facilitate the takeover but this was rejected by the Chinese Ministry of Commerce.