Source: China Daily

12-03-2008 19:10

By Jiang Wei (China Daily)

On December 18, 1978, just one day after China and the United States announced the establishment of formal diplomatic relations, Coca Cola, the world largest soda supplier announced its return to the Chinese market.

According to the agreement with its Chinese partner, the State-owned China National Cereals, Oils, and Foodstuffs Import and Export Corp (COFCO), Coca Cola would be allowed to sell its products in major Chinese cities and at tourist attractions. Before it set up a bottling plant in China, the products would be distributed by COFCO.

The agreement was signed at the Ministry of Foreign Trade and Economic Cooperation, the predecessor of the Ministry of Commerce.

However, the ministry was cautious about this American "icon", and its sales were restricted to specially designated retail outlets, such as hotels for foreigners and Friendship Stores, which were designed to serve foreign visitors.

It was not the first time Coca Cola tapped the Chinese market. In 1927, the US company had established a bottling facility in Shanghai. By 1948, it had three bottling plants across China. Shanghai also became its first overseas market with annual sales exceeding 1 million crates. Then in 1949, Coke's business on the Chinese mainland ended.