Tuesday, June 12, 2007 Cola company mulls expansion
ALTHOUGH beverage consumers are showing a shift towards health-friendly products, an international beverage maker reported a strong demand for its carbonated drinks.
This, as Pepsi Cola Products Philippines Inc. is mulling plans to expand its plant capacity in the production of its softdrink products for distribution in the Visayas area by 2008.
Joseph Martin H. Borromeo, Pepsi-Cola Products Philippines Inc. assistant vice president and general manager, said its carbonated beverage, such as Pepsi Cola, is increasing its penetration in the Visayas market, since its plant in Minglanilla, Cebu is producing in “full capacity.”
“The strong demand outweighs our plant production in Minglanilla. We are getting supplies as far as Leyte,” Borromeo said. Its Minglanilla plant will double its monthly production starting next year.
“We are already producing at full capacity. But now, it can no longer keep up with the growing demand from the Visayas area alone,” he told a press conference.
Additional equipment
Borrromeo said the planned expansion of its production plant can be achieved through the acquisition of additional equipment and production facilities and much improved logistics.
He also said the expansion is expected to widen the company’s consumer-reach. Its plant is currently serving as far as Masbate in the North and Siquijor in the South.
In the Visayas, Pepsi has four plants located in Iloilo, Bacolod, Leyte and Cebu.
Meanwhile, Borromeo acknowledged that while its toughest competitor used to be Coca Cola Bottlers Philippines, health-friendly beverages, like herbal juices, are getting their share of the market at a faster pace.
Wellness promotion
“We are not only a softdrink company but a beverage firm,” he said.
Recognizing the trend towards wellness promotion, especially in the Philippine market, Pepsi currently inked a partnership with Unilever to include Lipton tea drink in its array of beverage products.
Borromeo acknowledged that while the company’s demand for carbonated products has grown at approximately 30 percent, the growth of its non-carbonated drinks has doubled in the last few years.
However, he said carbonated beverage products are still the company’s “bread-winner,” accounting for 90 percent of Pepsi’s revenues.
The increase in demand for its beverage products has led the company to aggressively strengthen its distribution network, to increase its visibility and accessibility, and to promote an active lifestyle among Filipinos, said Borromeo.
Pepsi’s line of carbonated drinks includes Pepsi Cola, 7-Up, Mirinda, Mountain Dew and Mug root-beer, while its non-carbonated drinks are Tropicana Twister, Lipton, Gatorade and Premier water.
Pepsi is also the maker of comfort snack foods like Frito Lays and Doritos. (MMM)
