Palace announced that Coca-Cola is considering a substantial investment
Coca-Cola is poised to inject $1 billion into the Philippines over the next five years, signaling a significant expansion for the multinational beverage giant within the country. This announcement came following a meeting between President Ferdinand Marcos Jr. and key figures from Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners (CCEP), including Sabin Aboitiz and Sol Daurella Comadrán, respectively.
Last week, both companies finalized a hefty $1.8-billion acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI), which holds the exclusive rights for bottling and distributing Coca-Cola products in the Philippines, from The Coca-Cola Co.
During discussions, Comadrán expressed enthusiasm for investing in the Philippines to stimulate business growth, outlining plans for a $1 billion investment over the next half-decade. She also disclosed plans for constructing a new plant in Tarlac as part of this expansion.
President Marcos welcomed this news, highlighting the country’s conducive market conditions and youthful population as advantageous for such expansion endeavors.
Moreover, Comadrán emphasized Coca-Cola’s commitment to sustainable operations, particularly in plastic collection and recycling, citing the significant presence of returnable glass bottle business in the Philippines.
The acquisition of CCBPI by CCEP Aboitiz Beverages Philippines Inc., with CCEP holding a 60% stake and AEV 40%, was cleared by the Philippine Competition Commission (PCC) last month. With the necessary regulatory approvals secured, AEV and CCEP acquired CCBPI’s shares, solidifying their joint venture.
This strategic move is part of CCEP’s broader expansion efforts in the Asia-Pacific region, positioning the European firm as the world’s leading Coca-Cola bottler in terms of both revenue and volume.
Despite a slight drop in the benchmark Philippine Stock Exchange index, AEV shares closed positively on Tuesday, reflecting optimism surrounding the acquisition and expansion plans.
Business News: Palace announced that Coca-Cola is considering a substantial investment
