New concentrate manufacturing plant leverages Singapore’s regional connectivity and skilled manpower to support The Coca-Cola Company’s growth in Asia Pacific.

The Coca-Cola Company (Coca-Cola) officially opened a S$72 million (US$60 million) concentrate manufacturing plant in Singapore on 20 September. The concentrate plant will support the beverage giant’s continued growth in Asia Pacific and help achieve the company’s goal of doubling daily worldwide servings of its beverages in the next decade.

One of the largest in Asia, the plant has the capacity to produce 24 million kilograms of concentrate per annum – equivalent to over 18 billion 330ml cans of Coca-Cola – and will supply concentrates to markets across Asia Pacific. These concentrates are used to manufacture beverages in Coca-Cola’s portfolio, including major brands such as Coca-Cola, Fanta, Sprite, Powerade and Minute Maid.

“This (the concentrate plant) is an investment for growth as Asia is one of our fastest growing markets and across the region, we see high demand for our wide range of beverages,” said Irial Finan, President, Bottling Investments and Executive Vice President, The Coca-Cola Company, at the plant’s opening ceremony.

He added that Singapore’s skilled manpower, world-class infrastructure and global connectivity make it an attractive location for the concentrate plant. “Locating the plant in Singapore is in line with Coca-Cola’s strategy of being close to our customers. We can have a short lead time to our markets, enabling a flexible supply chain and low carbon footprint,” said Finan.

The world’s largest maker of non-alcoholic drinks has a long-standing presence in Singapore – its local operations span 75 years and include a bottling plant and a regional marketing office. The new concentrate plant is Coca-Cola’s first in Singapore and broadens its activity base in the city-state to include manufacturing.

Location, Location, Location

Singapore’s strategic location between East and West provides consumer packaged goods companies with effective market access to Asia. Closer proximity to regional markets enables companies to better capture the tremendous opportunities fuelled by the growth in Asia’s middle-class consumers and their spending.

“Companies such as Coca-Cola looking to grow in Asia need a location that puts them closer to their customers. This will enable a more flexible supply chain and shorter lead time to markets,” said Leo Yip, Chairman, Singapore Economic Development Board (EDB). “Singapore as a globally connected logistics hub located in the heart of Asia meets these supply chain management and logistical needs.”

Yip added that Coca-Cola’s decision to locate its knowledge-intensive concentrate plant in Singapore validates the country’s efforts in developing a business-friendly environment with a robust intellectual property protection regime.

Deeper Understanding of Regional Markets

To cater to the increasingly sophisticated Asian consumers, global companies and brands need to understand the unique needs and preferences of these Asian consumers. This would enable them to effectively develop and manage products and services tailored for the regional markets. Singapore is now building up its consumer insight capabilities to help companies do so.

One key initiative is the newly established Institute on Asian Consumer Insight. The S$77 million (US$64.2 million) institute was set up to conduct research and education programmes to help firms innovate brands, products and services that meet the needs and aspirations of consumers across the region.

“We are committed to strengthening our value proposition and capabilities… as a centre for brand management and innovation,” said Yip. “I am confident that Coca-Cola will continue to find value in our business propositions and grow in partnership with Singapore.”