Swire Coca-Cola has introduced robotic technology to enhance order picking at its Zhengzhou factory in central China’s Henan province, reflecting the company’s response to evolving consumer preferences and growing demand for beverage variety. The move marks a significant step in Swire Coca-Cola’s broader strategy to modernize its supply chain amid shifting market dynamics.

The Zhengzhou facility, where the company has invested approximately 900 million yuan (HK$1.05 billion), deployed three robotic systems developed by Seth Robotics, a Hangzhou-based startup. These AI-driven robots can identify products from live orders, calculate optimal warehouse routes, and manage heavy lifting tasks, each capable of carrying up to 40 kilograms and processing around 600 cases per hour. According to Seth Robotics, this represents one of the highest payload capacities and fastest picking speeds among comparable global solutions.

Peter Mills, chief supply chain officer at Swire Coca-Cola, highlighted that automation addresses the challenges posed by traditionally manual order picking, which was less flexible and costlier. He noted that China’s rapidly changing consumer habits require a more agile supply chain, particularly to serve emerging sales channels such as convenience stores, vending machines, and snack shops. The company plans to extend the robotic system to other factories in China next year, with potential expansion to overseas markets thereafter.

Swire Coca-Cola, a subsidiary of Hong Kong-based Swire Pacific, operates extensively across mainland China, Taiwan, Vietnam, Cambodia, Laos, and Thailand. Mainland China remains its largest market despite shared franchising territory with the state-owned Cofco. The company reported a 12 percent increase in mainland sales volume in the first half of 2025, alongside a 24 percent rise in profit to HK$727 million, as demand recovered following a challenging previous year.

The company attributes continued growth to strong performances in emerging retail channels, including e-commerce and snack shops, as well as trends toward immediate, occasion-driven consumption. Maggie Xie, associate director at S&P Global Ratings, observed that while Chinese consumer spending remains cautious, increased focus on health and wellness is expected to support expansion within the beverage and supplement sectors.

Swire Coca-Cola’s strategic priorities in China include targeting emerging sales channels, enhancing digital platform engagement, and focusing on tourist destinations. It is also investing in expanding its portfolio of sparkling drinks, especially in low- and no-sugar categories. As part of a 12 billion yuan investment plan announced in 2023, the company is upgrading facilities and equipment over a 10-year period. Recent expansions include new plants that began operations in Kunshan, Jiangsu province, and Guangzhou in May, with another facility under construction in Haikou, Hainan, scheduled to open in December 2027.