Coca-Cola Co. has been an Olympics supporter for nearly a century. It counts China as its third-largest market after the U.S. and Mexico. Coke’s challenges heading into the Winter Games are in some ways representative of those of other Western sponsors, and in some ways distinct. Here is a look at the company’s business dealings in China and its Olympic plans as the 2022 Winter Olympics are set to begin in Beijing this week.

Coke Deepens China Ties

Coca-Cola in 2019 struck a deal with China Mengniu Dairy Co. to share the designation of official nonalcoholic beverage sponsors of the Olympic Games through 2032. Chief Executive James Quincey hailed the marriage as a “profound partnership” as he stood beside the Chinese company’s CEO at a news conference in Switzerland. The Beijing Games kicking off Friday mark the first Olympiad in which the joint sponsorship takes effect. The 12-year pact links Coca-Cola to a Chinese business whose largest shareholder is a state-owned food giant. The deal cost the two companies more than $2 billion combined, including rights fees, marketing and other commitments, according to people familiar with the matter.