Coca Cola - Hellenic Bottling Company (HBC) acknowledge some
issues/risk doing business in emerging markets in a statement to
investors. Specifically Coca Cola indicated the risk in
doing business in Russia is now at the same level of risk as in
Coca Cola - Hellenic Bottling Company is the one Coca Cola's
largest bottling companies.
The statement goes on to say the risk can negatively impact
sales in the region.
Coca Cola (HBC) cites contradictory decision and policies
between local municipal, regional and national government bodies
and growing complex regulations which in turn are increasing the
cost of business in Russia.
Coca Cola (HBC) is also dealing with legal uncertainties in
both Russia and Nigeria and went as far as calling it endemic
with large scale corruption hindering American companies doing
business in the region even though the countries agree to U.S.
Further complicating matters when it comes to sales are lower
consumer demand trends as consumers continue to struggle and
focus their spending on essential products for them and their
Coca Cola is not alone in its view and situation - Coca Cola's
number one competitor Pepsi (
) earlier highlighted similar concerns after Russia's
presidential election and warned civil unrest and corruption
could negatively impact the company.
Coca Cola (
) has been doing business pretty much every corner of the world
from developed to emerging to frontier markers and with a great
management team doing business in these unpredictable
regions. I continue to look at pullbacks as buying
opportunities. Coca Cola has been trading in a sideways
channel and break above the $39 level as a bullish event.
This article has been revised since publication to
acknowledge clarification between Coca Cola and Coca Cola HBC a
bottling company distributing products.