Coca-Cola pouring in $1 billion for 5-year Philippine expansion plan

February 28, 2024 | 12:00am

MANILA, Philippines — Global beverage giant The Coca-Cola Co. is pouring in $1 billion in the Philippines over a five-year period to expand its operations.

The expansion comes following the recent completion of Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners plc (CCEP)’s acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI), the bottling arm of Coca-Cola in the country, for $1.8 billion.

The Aboitiz family’s AEV, which is now the 40 percent owner of CCBPI, said top Coca-Cola executives met with President Marcos on Monday, where they committed to increase operations to serve its growing consumer base in the country.

CCEP chairperson Sol Daurella Comadrán said the additional investment is fueled by the group’s confidence in the Philippines’ business climate, seeing the domestic market as full of opportunity.

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,” Comadrán said.

“And in the next five years, we’re planning for $1 billion investment, and in fact, we’ve even doing a new plant, which we are building in Tarlac,” she said.

President Marcos lauded 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,” Marcos said.

Comadrán said Coca-Cola also sees opportunities in environmental stewardship in the Philippines, citing the significant returnable glass bottle business in the country and existing recycling efforts for plastic bottles.

AEV said 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.

It also has a wide supply chain footprint consisting of 73 production lines and 19 plants.

“This significant investment from The Coca-Cola Co. 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,” Aboitiz Group president and CEO Sabin Aboitiz said. – Alexis Romero