Coca-Cola to open more bottling plants

Coca-Cola Femsa Philippines said it will pursue its $1.2-billion investment plan in the Philippines until 2020 with the opening of new bottling lines to support growing local demand.

Coca-Cola Femsa, the Mexican company that took over the bottling and distribution of Coca-Cola soft drink brands in the Philippines, made the commitment during a meeting with Trade Secretary Ramon Lopez during the launch of Trabaho, Negosyo, Kabuhayan Summit at Bonifacio Global City in Taguig Thursday.

The company is set to acquire and upgrade two polyethylene terephtalate lines this year and build two additional tetra lines next year.

“Coke Femsa group manifested strong investment confidence in the new Duterte Administration. These investments will go to funding new investment lines and distribution centers,” Lopez said.

The company is supporting the PET bottling format to encourage the “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.

Part of the investment is the allocation of $160 million to $180 million every year until 2020 to improve production and sales.

The company is still the single biggest industry shareholder of sparkling drinks at 65 percent.

Total sales grew 2 percent in 2015, and the company is optimistic that sales will grow 5 percent in 2016 due to moderately warm climate and as a result of the recent election spending.

Sales growth was partly due to the price reduction of the Coke Sakto size from P8 to P7 per 8-ounce bottle.

The company observed that Filipinos loved to have several price points for beverages to have more options.

Coca-Cola Femsa spent more than $150 million in 2013 for various programs to improve operations and sales in the Philippines after it acquired 51 percent of Coca-Cola Bottlers Philippines from The Coca-Cola Company of the US for $688.5 million.

The company operates 23 plants and 42 sales offices with over 7,800 direct employees and offers a wide selection of beverages such as soft drinks, water, juices, teas, sports and energy drinks.

Topics: Coca-Cola Femsa Philippines , bottling plants , investment plan
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