My Changing Nature of
Business in China class is taught by the past CFO of Coca-Cola China so as a
special class trip, we got to go visit the Coca-Cola bottling plant which is on the
outskirts of Shanghai. We were brought up to a board room and shown a video of
the history of Coca-Cola. Started by a pharmacist in Georgia in 1886 and only
sold about 5 glasses a day when it was first sold. Now the product can be found
in over 200 countries and has a huge product line!
We got to first go through
the bottling and assembly lines of both Coke and Sprite. They are able to fill
about 1,000 bottles every minute from their assembly line! It was crazy to see
how quickly the bottles moved from being first washed, then labeled, then filled,
and finally sealed and sent off to be packaged. They also showed us about the
new packaging system that China is using to be a little more eco-friendly.
Instead of using cardboard boxed to package their bottles, they are using
plastic wrap and shrink wrapping cases of their beverages which take away much
of the waste that cardboard used to account for.
Afterwards, we went through
the factory’s Coca-Cola Museum. They had all of the styles of bottles and cans
that Coke has used in the past and even had special bottles designed for
Chinese events such as this past summer’s Expo and the Beijing Olympics. They
played a wide selection of adds that have run on Chinese television to
advertise Coca-Cola products available to the Chinese market. It was interesting
to see the similarities (advertising to a younger audience and having the
commercial be highly energetic) and the differences (focusing a lot of their
adds on romance and falling in love) from Chinese Coke commercials to American
coke commercials. The museum displayed the many different products that Coke
produced for the Chinese market, many that I have never seen in the states, and
now when I look around at the drink selection in stores it is blatant how
dominant Coke has been able to become in the Chinese market. Although, there
are other brands such a Pepsi, from what I have seen, it looks as though Coke
has about 75% of self-space in stores reserved for their products.
We got to finish our afternoon at the Coca-Cola Facotry by getting to sample the different drinks. I chose to try a milk like drink with pineapple flavor. In 2008 China was faced with a crisis with the milk that was being sold to its citizens. The chemical melamine was found in the milk prodced by 3 major companies in China and as a result over 6,000 people became sick and experienced kidney failure, a few even died because of this chemical. Due to this milk crisis, the Chinese have been very hesistant to drink milk over the past few years. This Coke product is not pure milk, has a fruity flavor, and also doesn’t require refrigeration (cold drinks are not popular in china, only in the past few years has the idea of chilled beverages began to gain popularity), this makes the product much more desirable to the overall population. The drink fell way beyond my expectations! It was delicious (almost like a less sweet pina colada!) and I’ve bought it a few times already!
The factory tour and
presentation was such a fun opportunity and something so unique to be able to
experience while here!
The Coca-Cola factory there looks really big! I bet the machineries there are huge to be able to produce so much bottles in an hour. Your tour there seems really amusing too. I would love to visit it when I have a chance to go to Shanghai.
ReplyDeleteRob Feckler