THE sugar industry stakeholders welcome with “guarded optimism” the recent reacquisition of Cola-Cola Company of the 51 percent stake of Coca-Cola Femsa in the Philippines.
Sugar Regulatory Board Member Emilio Yulo III, who represents the planters group, said he is “hoping that this will augur well for the industry and we are ready to work together” with Coke Atlanta.
“This will be guarded optimism,” Yulo said, but added that this time around, “we hope there will be more transparency and collaboration between Coke and the sugar industry.”
READ: Coca-Cola Company plans to take over bottling operations in PH
Francis de la Rama, national president of the Confederation of Sugar Workers, also said: “We are very happy with this development,” as he commended Winn Everhart, president and general manager of the Philippines for Coca-Cola Co., for the move.
“This will definitely mend the rift between the sugar producers and Coke under Femsa,” De la Rama said.
He added that a month ago, Everhart already told them that “he will fix the problem,” and though there was initial skepticism, “with this, I personally feel that we can sit down and work together in the future.”
De la Rama also said that Coke has indicated that they are ready to send a technical working group to sit down with sugar producers on how best they can resolve the sugar supply need of the beverage company “and we are ready to get down on it as soon as possible.”
During the 65th Annual National Philsutech Convention in Cebu City, Senator Cynthia Villar talked with the sugar producers to come up with measures to abate rising prices of sugar without resorting to more importation.
De la Rama said this is one challenge that they are willing to discuss with Coke, still one of the biggest buyers of sugar in the country, on what they can do to ensure ample supply at reasonable prices for the food and beverage industry.
De la Rama also said that sugar milling season will start as early as the end of August this crop year so they can address the perceived sugar scarcity in the market.
Last week, the Coca-Cola Company announced that its Bottling Investments Group plans to take over the bottling operations in the Philippines after Coca-Cola Femsa’s board has voted to exercise an option to sell its 51 percent stake in Coca-Cola Philippines back to The Coca-Cola Company.
“We respect Coca-Cola Femsa’s decision, and we appreciate the progress made during their five-year tenure in the Philippines,” said John Murphy, president of the Asia Pacific Group for The Coca-Cola Company.
“The market is better positioned than ever before for future success, and we are confident about the potential ahead. The Coca-Cola Company will work to ensure a smooth transition of the Philippines bottling operations, for all customers, business partners, consumers and, importantly, for all those who work in the bottling operations,” he said.