August 1, 2007 -- On July 18, a joint venture between Coca-Cola Beverages and COFCO, COFCO Coca-Cola Beverages (Jiangxi), was established in Nanchang, Jiangxi Province.

"COFCO's cooperation with Coca-Cola so far has a history of 28 years. COFCO Coca-Cola has the largest coverage in China, where we have seven holding companies and 10 share companies in different provinces," Yi Yu, manager of foreign affairs department in COFCO Coca-Cola told Emerging China.

"COFCO is the most important cooperative partner of Coca-Cola Company in China, engaging in the production and sale of Coca-Cola beverages. We have invested 100 million yuan (US$13.2 million) in the first stage to set up the company in Nanchang. It is expected to be competed and go into operation in 2008." Xiaojun Li, public affairs director in Coco-Cola Ltd. China, told Emerging China.

In addition to Coca-Cola, other drinks - such as Spring, Fenda and Qoo - will be produced.

"COFCO Coca-Cola (Jiangxi) Ltd is expected to have an annual output of 120,000 tons of Coca-Cola beverages for sale in the Jiangxi market. Local consumers will taste Coca-Cola beverages, which will be made from the local water source at the first time. This will save the cost of transportation and promote the local economic development," said Yu Yi.

"The pattern of Coca-Cola's development is to enter small and medium size cities, and rural areas of the Chinese market. People in every area of China will taste Coca-Cola," Shijie Guo, food and beverage analyst in Research in China, told Emerging China.

"Coca-Cola extends into the Chinese market with understanding every different area, consumer spending habits and psychology. It has enough marketing and investment to get to the most effective advertising. Coca-Cola has won in the highly competitive beverage market," said Guo.

"Jiangxi has a unique strategic location. It is attracting a growing number of foreign investors. There is a good investment environment such as increased economic development, good environmental protection and high water quality. It's very suitable for Coca-Cola's business," Li added

COFCO Coca-Cola (Jiangxi) Ltd. is the thirtieth Coca-Cola Company in China.

COFCO owns many well-known brands in a variety of businesses. In 1979, COFCO imported refined drinks for domestic sale, and it assisted Coca-Cola back into the Chinese market. In 1981, COFCO cooperated with the Coca-Cola company to establish China's first domestic Coca-Cola company in Beijing.