THE Coca-Cola Company is set to invest an additional US$1 billion in the Philippines over a five-year period to fuel its expansion into the country and serve its growing and young consumer base.
In a statement sent, Coca-Cola executives committed to increasing operations, noting that the country’s domestic market is full of opportunity during a courtesy call with President Ferdinand “Bongbong” Marcos Jr. on Feb. 26, 2024.
Such expansion is also expected to generate additional jobs for Filipinos. The announcement also follows the joint acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI) by Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners PLC (CCEP).
“It’s very encouraging that you have decided to expand your operations here. I am sure of the success simply because we have the markets here, growing, the people are relatively young, and so they are still very much in your market and I can see how the expansion could work,” Marcos said.
CCEP chairperson Sol Daurella Comadrán expressed confidence in the country’s business climate. The expansion plans will be well-supported by CCBPI’s already substantial workforce that operates in the Philippines.
The company has 9,000 direct employees and an estimated 100,000 indirect employees.
“We generate 100,000 plus employees throughout the distribution, through our supplies... And we’re very enthusiastic and we see the need to invest in the Philippines, invest to grow the business. And in the next five years, we’re planning for a US$1 billion investment, and in fact, we’re even building a new plant in Tarlac,” Comadrán said.
She also highlighted the opportunities in environmental stewardship, emphasizing the significant returnable glass bottle business in the country and existing recycling efforts for plastic bottles.
On Feb. 23, AEV and its partner, CCEP, completed the acquisition of CCBPI, the bottling arm of Coca-Cola in the country.
The Philippine Competition Commision cleared the acquisition in January this year.
AEV adds consumer beverages to its portfolio, noting that it is well-positioned to support CCBPI’s growth targets with the synergies that its various business interests can offer the Coca-Cola brand.
CCBPI produces and manufactures both non-alcoholic and alcoholic beverages with 17 brands, including Coke, Royal, Sprite, Wilkins, Viva, and Nutri Boost.
Aboitiz Group president and chief executive officer Sabin Aboitiz highlighted the joint acquisition and its potential to flourish under the management of AEV and CCEP.
“This significant investment from The Coca-Cola Company highlights our shared commitment to the Philippines’ growth and development. We are confident that this partnership will create lasting value for our stakeholders and contribute positively to the Philippine economy,” he said.
The acquisition was valued at $1.8 billion and will have a 60-40 sharing arrangement between CCEP and AEV, respectively. It would also build on CCEP’s successful expansion into Australia, the Pacific, and Indonesia in 2021. / KOC with PR