Softdrinks manufacturer Pepsi-Cola Products Philippines Inc. said Wednesday it will discontinue its snack production line to focus on and strengthen its beverage business.
PCPPI said in a disclosure to the stock exchange its board of directors approved the closure of its snacks production line. The company would also initiate the negotiations for the discontinuation of the locally-made Cheetos with PepsiCo to focus on and strengthen the company’s core business lines.
“PCPPI has decided to leverage on its core competency in the beverage space which has been the bottling giant’s core business for 70 years,” the company said.
“Employees of PCPPI’s snacks plant in Cabuyao, Laguna will be transitioned into their new roles in PCPPI following management’s thrust of leading its employees well. This transition allows PCPPI to further optimize and strengthen the production and distribution of carbonated and non-carbonated beverages to millions of Filipinos nationwide,” it said.
Meanwhile, PepsiCo will continue to import and sell Cheetos in the Philippines, along with its other brands of snacks such as Lays, Doritos, Ruffles, Red Rock Deli, Fritos, Tostitos, Sunchips, Smartfood, Munchies and Rold Gold.
“These brands will continue to be supplied and available in-store in the Philippines,” PCPPI said.
PCPPI reported in 2015 it would produce PepsiCo’s world-famous snacks brands locally in line with the company’s thrust of becoming a premier food and beverage company in the country.
PCPPI then constructed a P650-million snacks plant designed to be a world-class foods manufacturing facility located in a 9,800-square-meter lot in Cabuyao, Laguna.
PCPPI is a licensed bottler of PepsiCo and Pepsi Lipton International Limited in the Philippines.
Lotte Chilsung, one of the biggest beverage companies in South Korea, is the leading shareholder of PCPPI. It co-manages PCPPI with PepsiCo.
PCPPI reported a net income of P446 million in the first half, a turnaround from a net loss of P48.6 million a year ago.
First-half net sales increased 11.5 percent to P18.4 billion from P16.5 billion in the same period last year.
The share price of PCPPI fell 5.37 percent Wednesday to close at P1.97.