Bubbling sales figures from across Alberta are prompting the world's largest beverage manufacturer to grow its Calgary operations.

Coca-Cola Bottling Co. has announced plans to invest more than $3.5 million in the expansion of its northeast Calgary production, warehouse and sales centre.

"Our sales continue to increase in Calgary and in all of Alberta as we expand our volumes and as our products grow," says Jeff Kirkland, area vice-president for Western Canada. "As we launch more products, we need more space."

The warehouse expansion will consist of an additional 40,000 sq. ft. at the south of the building, including eight additional loading docks, bringing the total square footage to 250,000. Kirkland says the additional space will be used to increase flexibility and capacity for product storage. Construction at the site, 3851 23 St. N.E., is scheduled to begin in early April and is expected to be completed by late September.

Dave Olecko, Business Edge
Jeff Kirkland, Coca-Cola's area vice-president for Western Canada, says diet pop sales have enjoyed double-digit growth.

The facility serves Calgary and the surrounding area and produces a range of carbonated beverages and bottled water for all of Alberta, as well as other locations in Western Canada. It is the largest facility in the west, and the third largest in Canada, Kirkland says.

While he declined to give specific sales and production data from the company's Calgary operations, citing competitive reasons, Kirkland did reveal that in 2004 Alberta sales climbed six per cent, while in 2003 the increase was four per cent. He expects future growth to average between two and four per cent each year.

Water, sold under the Dasani label, is the fastest-growing Coca-Cola product on a percentage basis, while the company's "diet portfolio" has also generated growth.

"The (diet) Cokes and Sprites are really doing well - we're talking about double-digit growth - and we expect that to continue as people change their habits and lifestyles. Diet seems to be the one to be moving forward."

The Calgary facility employs 350 employees and is where the Western Canadian management team is located. No staffing increases are foreseen as a result of the expansion.

The non-alcoholic beverage industry has enjoyed steady growth in Canada in the past decade. According to Statistics Canada, gross domestic product in the soft-drink industry increased to $907 million in 2003 from $726 million in 1997, representing a compound annual growth rate of 3.8 per cent. Meanwhile, accumulated capital investment grew from $1.8 billion in 1994 to $2.2 billion in 2003, or at a compound annual growth rate of 2.3 per cent.

Statscan also reports that the total number of employees for the industry decreased from 11,259 workers in 1993 to 10,897 workers in 2002, a decline of 0.4 per cent over this timespan.

Coca-Cola employs about 5,500 people across Canada. In addition to the full range of Coke and Sprite products, the company produces Fruitopia, Mello Yello, Fresca, Barq's root beer, C-Plus, Nestea iced teas, Powerade sports drinks, Evian, Dasani bottled water and Minute Maid juices.

(John Ludwick can be reached at ludwick@businessedge.ca)