Financial Daily from THE HINDU group of publications
Tuesday, Mar 11, 2003
Financial Daily from THE HINDU group of publications Tuesday, Mar 11, 2003 |
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Agri-Biz & Commodities
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Tea Corporate - Alliances & Joint Ventures Coca-Cola ties up with Goodricke for tea supply Our Bureau
KOLKATA, March 10 COCA-Cola India has entered into an exclusive agreement with Goodricke Group Ltd for procurement of teas that would be needed by the cola major for its recently launched `Georgia' brand of tea. This was announced by Mr Sanjiv Gupta, Deputy Division President of Coca-Cola India, while addressing a press conference. He was in the city to deliver a lecture at the India International Tea Convention, 2003. In November 2002, Coca-Cola introduced the Georgia brand of tea vending machines in Kolkata and Delhi. This is a part of the initial test marketing exercise before the national launch. However, Mr Gupta preferred not disclose further details about its agreement with Goodricke. Instead, he said Coca- Cola was bullish about its tea business. However, he admitted the company was learning the different nuances of this industry. The company has already invested Rs 35-40 crore for the tea business. More than 2,000 vending machines have been set up, of which some are owned by the company, the rest by the retailers. ``We will have to wait and see how the business develops. We will have to study this business for at least a year and find out how the logistics work because during the monsoons so many things including the water drastically changes,'' Mr Gupta explained. In this context, he said from September 2002-March 2003, the company had invested Rs 700-750 crore for capacity expansion and addition of new facilities. Though most of the investment was made in southern India, approximately Rs 100 crore was invested in eastern India and Bhutan. ``The investments are being made with the aim of doubling our sales of all products. With this, we would also increase the per capita consumption of soft drinks in India,'' he said. Mr Gupta said the company was contemplating to set up a new fruit juice production facility in North Bengal but the final decision would be based on the growth of its business in this region
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