The Coca-Cola Company (TCCC) is set to invest US$1B more 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 courtesy call last February 26 with President Ferdinand R. Marcos Jr. at Malacañan, top Coca-Cola executives committed to increase operations, noting that the country’s domestic market is full of opportunity. This follows the joint acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI) by Aboitiz Equity Ventures, Inc. (AEV) and Coca-Cola Europacific Partners Plc (CCEP).
President Marcos hailed Coca-Cola’s plans and welcomed its continued investment in the Philippines.
“It's very encouraging that you have decided to expand your operations here. I can, I am sure to the success simply because we have the markets here, growing, the people are, our population is 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.
“We generate 100,000 plus (employees) throughout the distribution, through our supplies… And we’re very enthusiastic and we see, we need to invest in the Philippines, invest to grow the business. And in the next five years, we’re planning for US$1 billion investment, and in fact, we’ve even doing a new plant, which we are building in Tarlac,” Comadrán said during the meeting with President Marcos. She also highlighted the opportunities in environmental stewardship, highlighting the significant returnable glass bottle business in the country and existing recycling efforts for plastic bottles.
On February 23, AEV and its partner, CCEP, completed the acquisition of CCBPI, the bottling arm of Coca-Cola in the country. 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 & CEO Sabin M. 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.”
The acquisition was valued at US$1.8B and will have a 60-40 sharing arrangement between CCEP and AEV respectively. It would also build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021. PR