Coca-Cola Opens US$22 million New Plant in Mongolia

Sales of Coca-Cola Products in Mongolia increase 16 times in 6 years


A US$22 million green field Coca-Cola bottling plant was officially opened in Ulaanbaatar today by Muhtar Kent, President and CEO of The Coca-Cola Company and Odjargal Jambaljamts, Chairman & CEO, MCS Group. This new plant will be the second and largest Coca-Cola plant in Mongolia. The first Coca-Cola plant was built in 2001 by MCS Coca-Cola, the exclusive bottler of Coca-Cola products in the market.

"I'm delighted to see MCS Coca-Cola continue to exceed all projections in sales volume and profit," said Mr. Kent. "By posting an average annual volume growth of nearly 50% year on year, the Mongolian business has established itself as one of the strongest performing operations globally. I am also delighted to see that the leadership of MCS Coca-Cola has continuously demonstrated its commitment to invest in the development of its people and manufacturing facilities, critical to ensure continued future growth of the Coca-Cola business in Mongolia."

The new bottling plant in Ulaanbaatar has a site area of 6 hectares. Two state-of-the-art bottling lines are installed - one for sparkling PET-bottle "Cold"/ ambient filling, and another line for still "hot" filling to cover the production of juice, tea and water products. A returnable glass bottling line will also be relocated from the existing plant. The new plant will implement cutting edge water treatment processes in line with the stringent quality assurance system of The Coca-Cola Company. Good manufacturing practice and sound environmental and regional safety requirements will also be enforced.

The Coca-Cola Company sees incredible value in developing its business in the Mongolian market and is confident that the new expansion will help the local business generate further growth.

The Coca-Cola system in Mongolia is also strongly committed to being a respected corporate citizen; an effort that is reflected by MCS Coca-Cola's commitment to contributing to the Ulaanbaatar economy and population. With over 3,500 employees, the bottling company is a leading employer and top taxpaying private company in the city. The MNTT25.35 billion (US$22 million) that the company invested into the new site also created an influx of funds to bolster the local economy. International research indicates that for each job created directly by the Coca-Cola system additional 10 local jobs are created with suppliers and business partners.

"With the burgeoning beverage market in Mongolia we have recorded remarkable growth rates. In 2002 we sold 4 Coca-Cola products to every average Mongolian consumer. In 2008 we are selling an average of 67 beverages to every Mongolian consumer. This has caused our first plant to run out of manufacturing capacity 7 years ahead of schedule" said Mr. Jambaljamts. "We are greatly encouraged by the outstanding performance of our bottling operation as both the bottling company and The Coca-Cola Company have exceeded all projections of profitability and sales. Our investment in the new plant is just our first step to bring world class manufacturing to Mongolia."

The Coca-Cola Company

The Coca-Cola Company is the world's largest beverage company, refreshing consumers with more than 450 sparkling and still brands. Along with Coca-Cola, recognized as the world's most valuable brand, the Company's portfolio includes 12 other billion-dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid and Georgia Coffee. Globally, we are the No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of 1.5 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that protect the environment, conserve resources and enhance the economic development of the communities where we operate. For more information about our Company, please visit our Web site at

Coca-Cola (China) Beverages Co., Ltd.

Coca-Cola is one of the most well-known international brands in China, with a leading position in the soft drinks market. Since re-entering China in 1979, the Coca-Cola system (Company and local partners) has invested more than US$1.3 billion in local market. By the end of 2007, the system has established a total of 35 bottling plants. Now the Coca-Cola system employs more than 30,000 people, virtually all local-hires. The system also has donated more than RMB60 million to support China's national and regional social charity undertakings and RMB 20 million to help the relief efforts of the Sichuan earthquake occurred in May 2008. For more information about our Company, please visit our Web site at

MCS Holdings Limited

Founded in 1993, MCS Holding Limited is one of Mongolia's leading enterprises in six major industries, including energy and infrastructure, information technologies, beverages, property development, cashmere processing and mining. MCS is one of the largest private sector companies in terms of number of employees and contribution to the state budget in Mongolia.

Source: The Coca-Cola Company