Swire Beverages, a major shareholder of the Hangzhou BC Foods Company

Swire Pacific is the major shareholder (87.5%, with the Coca-Cola Company owning the other 12.5%) of Swire Beverages, which in turn is the major shareholder (51%) of the Hangzhou BC Foods Company (the Hangzhou bottling plant).

Swire Beverages is itself the operating company and should be directly responsible for the labor subcontracting practices at the Hangzhou plant and at the other bottling plants it operates in other cities in mainland China.

The following was the response from Swire Beverages, dated on 3 September 2009, which showed no commitment in reviewing its subcontracting practices.

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3 September 2009

Kathy Ho, Director of Public Affairs and Communications at Swire Beverages

Thank you for your [Jenny Chan of SACOM] offer to communicate with our Chairman. As stated previously, we have been monitoring the situation closely and we are satisfied that Hangzhou BC Foods has acted appropriately and responsibly.

Swire first established its office on the Mainland in 1866 and in Hong Kong in 1870. We firmly believe that a corporation can only ensure its longevity by getting things right and consistently enhancing it.

We note the work of SACOM and trust that any representation is treated with fairness to all parties concerned.