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 on President Ferdinand R. Marcos Jr. at Malacañang, 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,” Pres. 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.
About Aboitiz Equity Ventures
AEV is one of the leading conglomerates in the Philippines with over 100 years of business history. It has major investments in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence. AEV is recognized as one of the best-managed companies in the Philippines and the region, consistently cited for its commitment to good corporate governance and sustainability. Currently, the company is on its Great Transformation journey to become the Philippines’ first Techglomerate as it continues to shape the future by advancing business and communities.
AEV is a member of the United Nations Global Compact, Global Compact Network Philippines Board of Trustees, the APEC Business Advisory Council and the Council for Inclusive Capitalism, and helps champion sustainability initiatives on a regional level through policies, advocacies, and initiatives that contribute to the United Nations Sustainable Development Goals (UN SDGs). With a clear focus on ESG, the company is implementing its #OneAboitizSustainability Synergy model which transforms its life-essential businesses to improve sustainable practices and continue to create a positive impact on society and the environment.
Link to AEV’s website and release: https://aboitiz.com/investor-relations/disclosure/
About CCEP (LEI 549300LTH67W4GWMRF57)
CCEP is one of the leading consumer goods companies in the world. It makes, moves and sells some of the world’s most loved brands – serving 600 million consumers and helping 2 million customers across 30 countries grow their business. CCEP combines the strength and scale of a large, multinational business with an expert, local knowledge of the customers it serves and communities it supports. The Company is currently listed on Euronext Amsterdam, NASDAQ (and a constituent of the Nasdaq 100), London Stock Exchange and on the Spanish Stock Exchanges, trading under the symbol CCEP.
For more information about CCEP, please visit www.cocacolaep.com & follow CCEP on Twitter at @CocaColaEP.
