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Coca-Cola Femsa plans to invest $800m for expansion in Philippines

DBR Staff Writer Published 05 February 2016

Coca-Cola Femsa is planning to make an investment of around $800m from 2016 to 2020 to expand its operations in the Philippines.

Coca-Cola Femsa

Among the company's immediate plans include purchase of two extra polyethylene terephthalate (PET) lines and two tetra pack lines for $170m in 2016, Cola Femsa Philippines CEO Fabricio Ponce was quoted as saying by FoodBev.com.

These lines will bolster production capacity by 20% and further Coca-Cola's position in the Philippines' soft drinks market.

This move is expected to expand its on-the-go offerings, reported the website.

The company recently reduced prices of its 8oz Sakto format to PHP7 ($0.14) and also announced plans to launch Coca-Cola in a 400ml sized PET bottle.

Coca-Cola Femsa Philippines CEO Fabricio Ponce was quoted by FoodBev.com as saying: "We are trying to go to places where we need to improve our presence. We are trying to have different price points, [because] for that reason we have very good performance last year.

"This year we're putting in investments of $170 million. We're investing into two more PT lines and probably another two tetra lines.

This company in 2014 lost money and now [we will] turn it around and make it successful and generate more value...

"Our shareholders will reinvest all profits and they are [looking to invest] $800m up to 2020. Our strategy is to be able to create more value and reinvest."

Ponce also noted that Asia is important region for its growth strategy.

The latest development follows the company's recent acquisition of Nigerian juice maker Chi Ltd, a subsidiary of Tropical General Investments Group (TGI Group), for $240m cash.

Through this agreement, the companies intend to create a strategic partnership in the African country to offer sparkling soft drinks, value-added dairy, juices, and water beverage brands in the region.


Image: Coca-Cola Femsa plans to increase its focus in Asian market. Photo: Courtesy of Mister GC/FreeDigitalPhotos.net.