Coke doesn't intend to buy Coke Enterprises

New York, Dec 12: Coca-Cola Co has no intention of acquiring the remainder of Coca-Cola Enterprises Inc., the beverage company's newly-appointed President and Chief Operating Officer said.

Muhtar Kent, in his first public appearance since his promotion last week, said Coke will look to grow its existing business and by targeted acquisitions in the near future. But he stood by the company's previous statement that it does not plan to purchase remaining shares of its largest bottler.

Coca-Cola already owns 36 percent of Coke Enterprises and some analysts have speculated that Coca-Cola might seek to acquire the rest of it.

''It's an indictment of ourselves if we say that's all that is left to do,'' Kent told a conference hosted by industry newsletter Beverage Digest. ''We have so much to do.'' In becoming the first COO of Atlanta-based Coke since 2004, Kent said he plans to focus on organic growth and acquisitions, both at home and abroad.

''There is going to be organic growth and targeted acquisitions.

Every time there is an opportunity you will see us move with speed and conviction,'' Kent said.

Sales of carbonated soft drinks have been falling in developed markets like the United States and Great Britain, as health-conscious consumers move toward bottled water or juice.

Coca-Cola has weathered the slowdown due to its strength in developing markets, where there is still growth for all types of ready-to-drink beverages in bottles and cans.

By contrast, rivals PepsiCo Inc. and Cadbury Schweppes Plc have diversified into candy and food. When asked whether Coke could still grow without diversifying, Kent said there was still plenty of opportunity in beverages.

''There is so much opportunity in every single market. In emerging markets there is going to be a huge conversion between non-ready-to-drink and ready-to-drink (beverages),'' Kent said.

''Until there is no opportunity left, I see us focused strategically, with clarity, on nonalcoholic ready-to-drink'' beverages.

Kent pointed to Western Europe as a market with particularly strong growth in 2006, due in part to sales of Coke Zero and the World Cup soccer tournament.

Coca-Cola Enterprises shares closed down 9 cents to .43 and Coca-Cola Co. shares ended 10 cents lower at .81, both on the New York Stock Exchange.

REUTERS