ARC Refreshments, the exclusive distributor of RC Cola products in the Philippines owned by Macay Holdings Inc., said Friday it plans to build two manufacturing facilities by 2017 or 2018 to expand its capacity by 20 percent.
Macay Holdings chief operating officer Gerardo Garcia said the planned expansion would be in line with the company’s strategy of growing its business faster than the industry’s growth.
It said the construction of new plants would provide the company with provision for expansion, as the utilization rate of existing plants was now between 70 percent and 80 percent.
ARC Refreshments currently has nine production facilities. Among its softdrink brands are RC Cola, Zesto Fruit Soda and Arcy Rootbeer.
Meanwhile, the company said it was also preparing for the planned expansion in other Southeast Asian markets, particularly Vietnam and Myanmar.
Garcia said to strengthen its position in the domestic market, the company was focusing on improving distribution channels by penetrating modern retail channels such as supermarkets and convenience stores.
“Our distribution channels remain traditional like going to sari-sari stores. But the modern channels like supermarket and convenience stores are growing faster than traditional channels. So we want to participate in that,” Garcia said.
ARC Refreshments is also expanding its product offerings to cater to the demands of the consumers, he said.
The company is scouting for acquisitions and partners that will allow the company to expand its beverage offerings and venture into the food business as part of the plan to become a consumer-focused holding firm in the next five years, Garcia said.
Garcia said Macay Holdings’ planned $200-million secondary share sale was deferred because of current market conditions.
The company was originally set to conduct the share sale in the fourth quarter to widen its public float, but market conditions turned volatile due to possible rise in US interest rates.
Macay Holdings said it would review the share sale plan next year. The company hired HSBC, Deutsche Bank and Credit Swiss as underwriters for the offering.
Shares of Macay Holdings were lasted traded on Nov. 23 when it closed at P40.90.