Coca-Cola HBC Eurasia plans to start construction in the Rostov Region, which has a population of 4.4 million, in May 2007, with production to be launched in a year.
Coca-Cola's 14th bottler in Russia will produce 300 million liters of one of the world's most popular soft drinks.
General Manager Keith Sanders said the plant would be the largest in Eastern Europe, and would cater to demand in the region - where it will also create 1,000 jobs - and in neighboring Ukraine.
Governor Vladimir Chub said local authorities would also invest in the infrastructure of the project, but gave no further details.
Moscow-based Coca-Cola HBC Eurasia owns and operates 13 bottling plants in Moscow, St Petersburg, Central Russia and the Far East.