Coca-Cola Femsa Philippines Inc. is spending at least $800 million to expand operations in the Philippines from 2016 to 2020 with immediate plans to acquire two more polyethylene terephthalate lines this year.
Chief executive Fabricio Ponce said the company committed to invest annually in the Philippines on growing demand for Coca-Cola products.
“This year we’re putting in investments of $170 million. We’re investing into two more PT lines and probably another two tetra lines,” he told reporters at the sidelines of the company’s third year anniversary in the Philippines held at the Bonifacio Global City in Makati City.
The company is supporting its PET bottling format to encourage an “on-the-go” consumption behavior among consumers thereby increasing per capita consumption of sodas and other ready-to-drink beverages.
The additional infrastructure will increase the company’s production capacity by at least 20 percent.
The company every year spends about $160 million to $180 million to improve production and sales. The company remains the single biggest industry shareholder for sparkling drinks at 65 percent.
Sales in January 2016 grew 30 percent, said Ponce, citing initial data.
Total sales in 2015 rose 2 percent, with the company optimistic revenues will grow 5 percent in 2016 due to the hot weather pattern and rising public expenses amid an election year.
The company attributed the growth in sales to a price reduction scheme imposed in 2015. The company cut the price of the Sakto size from P8 to P7 per 8-ounce bottle.
It will soon launch another price point for its flagship beverage Coke soft drink—a 400 ml bottle.
Ponce noted that Filipinos love several price points for beverages to give them more options.
The company in 2013 spent over $150 million to improve operations and sales in the Philippines after the mother firm acquired 51 percent of Coca Cola Bottlers Philippines Inc. from The Coca-Cola Company of the US for $688.5 million.
The mother company operates 23 plants and 42 sales offices with over 7,800 direct employees. It offers the widest selection of beverages for different needs, like soft drinks, water, juices, teas, sports and energy drinks.
Coca-Cola Femsa is the largest franchise bottler of Coca-Cola trademark beverages in the world, with operations in Mexico, Guatemala, Nicaragua, Costal Rica, Panama, Colombia, Venezuela, Argentina, Brazil and the Philippines.
