Coca-Cola Digs in its Heels in Egyptian Market

The White House has brought more than 100 US executives and their staffs to Egypt this week with hopes of boosting American investment there.

Among them is Hamish Banks, who directs communications for Coca-Cola’s Middle East and North Africa unit.

Banks says despite political turmoil in Egypt, there’s little antipathy for US brands like Coke.

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Marco Werman: America’s image around the globe is, of course, defined by more than just muscle cars; there’s Coca-Cola too. Big U.S. brands like Coke are so ubiquitous worldwide that they tend to define America abroad. This week, a delegation of more than 100 U.S. brand executives is in Egypt representing several mega U.S. companies interested in the post-revolution Egyptian market. Coca-Cola is represented along with Pepsi, Boeing, Exxon Mobil, Google, Oracle and Microsoft, to name just a few. It’s part of a White House led effort to make Egypt more attractive to U.S. investors. Hamish Banks directs communications for Coca-Cola’s Middle East and North Africa unit. Hamish, we understand that Egyptian President Mohamed Morsi who took over in June told your delegation that Egypt is open for business. What does it mean for Coca-Cola to deal with an Islamist government? I mean, is the Muslim Brotherhood open to your brand?

Hamish Banks: We don’t really look at the government but we look at the opportunity that exists in each market and within the Middle East region, of course, we’re dealing with a number of Muslim governments so this is nothing new to us.

Werman: Right, but Egypt is a country in transition. Some would say it’s even politically unstable right now.

Banks: Coca-Cola has been present in Egypt since, I think, 1942. So, this is not like we’re making our first foray into the market here and we’ve certainly had a great deal of success over the years. Our goal is to double our business over the course of the next 5 years and we feel very confident that that’s gonna happen.

Werman: So, Coke has been in Egypt since 1942 with various rises and falls in its fortunes. How are U.S. brands like Coke received in Egypt right now?

Banks: Good brands are well received anywhere. I don’t think it’s so much a question of whether it’s a U.S. brand or another. I mean, our business is certainly flourishing and I think I speak for many of the other brands that you mentioned earlier. We don’t see a significant antipathy towards American brands at this time.

Werman: On Coca-Cola’s website you maintained that Coke is an international brand but Hamish there you are, an American company in Egypt, being courted. Doesn’t it feel like you are trying to sell an American brand to the world?

Banks: In many ways we are an Egyptian brand. Today, we have nine bottling plants here which employ 12,000 Egyptians directly. We also, from each of those 12,000 jobs, create opportunity and jobs for a further 10 people for each one of those. So cumulatively, we’re hoping to provide employment for well over a 100,000 Egyptians.

Werman: I had been under the impression that people in the Mideast really wanted their own Cola brands front and center. I remember Mecca Cola and Qibla Cola were launched as alternatives to U.S. brands. What happened to them?

Banks: In the end, the most successful brands are the ones that really understand the needs of the consumers in the local market. We have just launched a new juice-based product in Egypt that uses Egyptian mangoes as the product base and it does very well because it’s meeting a consumer need. That is really the measure of a brand and it goes beyond a marketing gimmick or an idea that may be struggling really to find resonance in the marketplace.

Werman: Hamish Banks directs communications for Coca-Cola’s Middle East and North Africa unit. Hamish, thank you.

Banks: Thanks Marco.

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