Coca-Cola Europacific Partners Plc (CCEP) is committing to invest $1 billion more into expanding the Coca-cola operations in the Philippines.
The commitment was made after CCEP successfully closed the acquisition of the Coca-Cola Beverage Philippines Inc. (CCBPI) in partnership with Aboitiz Equity Ventures Inc. (AEV), from New York Stock Exchange-listed The Coca-Cola Company (TCCC).
CCBPI produces and manufactures 17 non-alcoholic and alcoholic beverage brands including Coke, Royal, Sprite, Wilkins, Viva, and Nutri Boost.
Sol Daurella Comadrán, CCEP chairman, made the commitment to President Marcos when she and other Coca-Cola officials made a courtesy call to Malacanang recently, a statement of the AEV said yesterday.
AEV said Comadran expressed confidence in the country’s business climate, noting expansion plans will be well-supported by the local operation’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 need to invest in the Philippines, invest to grow the business. And in the next five years, we’re planning for $1 billion investment, and in fact, we’re even doing a new plant, which we are building in Tarlac,” Comadrán said.
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.
The 60-40 joint venture of CCEP and AEV, with CCEP holding the majority stake, concluded the $1.8 -billion acquisition of CCBPI in a debt-free, cash-free basis.
The acquisition also builds up on CCEP’s successful expansion into Australia, Pacific & Indonesia in 2021.
AEV said the acquisition “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.”
Sabin Aboitiz, Aboitiz Group president, 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 added. Ruelle Castro
