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Coke Amatil Faces Challenges in Indonesia

Coca-Cola Amatil Ltd. has profited from the rise of income growth in Indonesia in recent years, but competition and higher costs are taking the air out of the Australian drinks company's operations there. Coca-Cola Amatil, which is licensed to sell Coca-Cola Co. products and is 29%-owned by the U.S. beverage company, is spending more on marketing in the world's most Muslim-populous nation to fend off competition from rivals based in countries including Peru and Japan. Earnings in Coca-Cola Amatil's Indonesia and Papua New Guinea division fell more than 80% year-to-year in the six months through June. (WSJ)