Coca-Cola Co. will invest $1 billion in Argentina over the next four years, CEO Muhtar Kent said after meeting the country’s newly elected president at the World Economic Forum in Davos, Switzerland.
Mauricio Macri, a former businessman and Buenos Aires mayor, has promised to undertake reforms to spur the economy and make the country of 43 million people more receptive to foreign investment. Argentina largely fell off the global economic radar during eight years of the leftist administration of former President Cristina Fernandez de Kirchner.
Mr. Macri used the Davos forum to assert that the country was committed to reintegrating into the global economy. One major move he has already made: reopening negotiations with New York-based hedge funds that Argentina stiffed on sovereign bond payouts during a financial crisis in 2001.
Mr. Kent, accompanied by executives from Coca-Cola FEMSA, a major Latin American bottling partner, expressed Coke’s desire to continue its longstanding partnership with the country. Coke has been there for 74 years, and the system employs 15,000 directly and indirectly, generates $650 million in tax revenue and buys 37,000 tons of fruit juice annually, according to a release distributed by Coke in Argentina.
“This investment we announced today to President Macri shows once more our commitment to the country’s economic and social development, which we have always kept, even during challenging times. We think this investment will foster economic growth and employment, will make our operations more sustainable, and will strengthen our relationship with consumers,” Mr. Kent said in the release.
Along with FEMSA, other bottling partners that will participate in the investment include Coca-Cola Andina, Arca Continental and Reginald Lee.
Global Atlanta will travel to Argentina at the end of February to conduct research for a special report on the country. For updates on the trip, email twilliams@globalatlanta.com.
