UPDATE: Coca-Cola To Invest Over $1 Billion In Mexico In 2012

Coca-Cola Co. (KO) plans to invest more than $1 billion this year in Mexico, a key market for the soft drink maker, as part of a $5 billion, five-year investment plan.

President Felipe Calderon announced the investment after meeting with Coca-Cola Chief Executive Muhtar Kent in Davos, Switzerland, over the weekend. Kent said the investment is part of a five-year plan in which the company expects to invest a total of $5 billion in Mexico; the investment plan kicked in as of 2010, a Coca-Cola official said.

As part of the investment, Coca-Cola plans to increase the number of people it employs in Mexico to more than 100,000 from 90,000 currently. An estimated 800,000 additional jobs are generated via the company's supply and distribution channels.

"Without a doubt, this important investment will boost our economy and will create more and better jobs for Mexican workers," Calderon said.

Mexico is home to Latin America's two largest bottlers of Coca-Cola brand products, Coca-Cola Femsa SAB (KOF, KOF.MX) and Arca Continental SAB (AC.MX, EMBVF), as well as juice brand Jugos del Valle, Coca-Cola's 14th best-selling brand with annual sales above $1 billion.

Calderon cited Mexico's growing economy, expanding per capita income and young population as factors that attract global firms, especially those tapping the consumer market. The country added around 600,000 formal-sector jobs last year, while gross domestic product expanded 4% in the first nine months of 2011 and is expected to have ended the year with growth of just under 4%. Estimates for 2012 economic growth are around 3.2%

-By Amy Guthrie, Dow Jones Newswires; (5255) 5980-5177; [e-mail]