Coca-Cola To Invest €1bn In Brazil In 2025

Diego Granizo, vice president of operations and general director for Brazil at The Coca-Cola Company, told Brazilian daily Valor Econômico that the investment will add 14 new production lines, the same number added in the previous three years combined.

Further expansion plans include a new plant in the state of Minas Gerais, potentially a new factory in São Paulo, eight new distribution centres, and expanding ten existing facilities in the South, Southeast, and Midwest regions of Brazil.

Granizo stated that Brazil’s growth over the past few years has exceeded expectations, prompting the company to expand both its current operations and future ambitions in the country, which he believes holds significant potential.

While Mexico currently leads, Brazil ranks as the fourth-largest market globally and the second-largest in Latin America for Coca-Cola by volume.

However, there’s still potential for increased per capita consumption in Brazil compared to other markets.

In the fourth quarter of 2024, the beverage firm’s Latin American operations saw a 10% year-over-year increase in net operating revenue, reaching $1.6 billion (€1.4 billion), while global revenue grew by 6% to $11.5 billion (€10.2 billion).

Investment Plans

The investment will also target sustainable growth initiatives, including packaging redesign and water conservation efforts.

Despite the positive outlook, concerns remain about consumer purchasing power in Brazil. Granizo highlighted the company’s diverse portfolio and returnable packaging strategy as key to navigating this challenge by offering more affordable options.

Two of the 14 new production lines launching this year will be dedicated to returnable beverages.

In Brazil, the ready-to-drink (RTD) alcoholic beverage segment is booming, prompting Coca-Cola’s increased investment in this area.

Over the past two years, Coca-Cola has expanded its alcoholic beverage portfolio, launching a Jack Daniel’s cocktail in Mexico and Brazil, and partnering with Absolut Vodka for a Sprite-based RTD in both markets.

Granizo also expressed concern about global trade instability, particularly the impact of US tariffs on raw material prices, like aluminium.

While Coca-Cola utilises various packaging types to mitigate this volatility, the company is also exploring increased sourcing of domestic aluminium, despite recognising current limitations in domestic supply.