Soft drink makers yesterday said they are facing a shortage of premium refined sugar and are working with government to address the situation.
Premium refined sugar or bottlers’ grade sugar is a key ingredient in many of soft drinks.
In a joint statement, Coca-Cola Beverages Inc., ARC Refreshments Corp. and Pepsi-Cola Products Philippines Inc. (PCPPI) said they are working closely with other stakeholders of the industry and sought for the understanding of their customers.
In a text message, PCPPI president and chief officer Frederick Ong, said dialogues continue among stakeholders and government.
He did not elaborate.
The statement comes on the heels of the pronouncement go George Barcelon, president of the Philippine Chamber of Commerce and Industry, (PCCI) that member food processors are slowing down production because their sugar supply is only good until September this year.
Barcelon told a television interview yesterday some of its member-companies in agribusiness and food processing are using their supply in a very “controlled manner” and warned that should the supply crunch persist, this will have domino effect on other food products, such as beverages and processed food.
He said corn and flour are also exhibiting high prices.
With this scenario, Barcelon said more foreign food products could come in as this there is not enough local supply.
Barcelon expressed support to government’s move to allow the importation of 150,000 metric tons of sugar to ease the tight supply, saying this will give food processors some sort of assurance supply is forthcoming.