Sunday, 8 September 2024

Global FDI in the beverages industry

1. The US is the leading destination market for greenfield beverages FDI, while it is also the top source market.

2. Between 2019 and 2023, the beverages sector was the twenty-third largest FDI sector in terms of the number of greenfield investments. The beverages sector accounts for 0.6% of global greenfield FDI projects.

3. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.

4. Combined, the top ten destination countries account for 56.9% of total beverages FDI projects.

5. The leading destination country for beverages FDI is the US. Germany, UK and Canada are also popular beverages investment hubs.

6. According to GlobalData’s FDI Projects database, United Kingdom-based companies were the leading source of greenfield beverages investments into the US.

7. With respect to outbound FDI, the US was the leading beverages source market. US-based companies held a 21.5% share of total outbound beverages FDI projects. The UK, Switzerland, Belgium and Netherlands are also top source markets for beverages FDI.


MOST ACTIVE FDI COMPANIES IN THE BEVERAGES INDUSTRY
1. The Coca-Cola is the beverages company most prolific at making international expansions, followed by Anheuser-Busch InBev and Nestle.

2. The Coca-Cola has been the most active beverages greenfield investor between Q1 2019 and Q2 2024, according to GlobalData’s FDI Projects Database. The parent company has been actively investing through several of its subsidiaries/company divisions.

3. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI such as mergers and acquisitions are not included as part of this definition.

4. The majority of The Coca-Cola investments were in the soft drinks subsector. In fact, 86.4% of its total foreign investments were in this subsector. It also created projects across a further eight subsectors.

5. By business function, most (69.7%) of The Coca-Cola projects were related to manufacturing.

6. Logistics & warehousing and sales, administration & marketing were the next most popular operations undertaken by The Coca-Cola.

7. The company has been active across nine world regions, mainly focused on Western Europe which received 27.3% of the company’s greenfield investments between Q1 2019 and Q2 2024. Its top three destination countries (by number of greenfield FDI projects) were Canada, Germany and India. Combined these three countries account for 40.7% of its total number of beverages investments.

8. The Coca-Cola created more FDI projects in 2019 compared to any other year between Q1 2019 and Q2 2024.

9. Other leading FDI project generators in the beverages industry include Anheuser-Busch InBev, Nestle, Pepsi and Diageo.

10. The US is the leading source market for outbound beverages greenfield FDI projects. The country accounts for 21.8% of total outbound beverages investment projects. There have been 25 unique parent companies from the US that have announced beverages FDI projects between between Q1 2019 and Q2 2024.


Source:

 https://www.investmentmonitor.ai/data-insights/fdi-role-beverages-industry/?utm_source=lgp5-fdi-sector&utm_medium=7-112595&utm_campaign=

https://www.investmentmonitor.ai/data-insights/most-active-companies-internationally-in-the-beverages-industry/?cf-view