PHILIPPINES – American multinational beverage company Coca-Cola (TCC) is set to offload its Philippines bottling business to its UK-based bottling partner Coca-Cola Europacific Partners and Philippines conglomerate Aboitiz Equity Ventures (AEV).
Coca-Cola Beverages Philippines, Inc. (CCBPI) operates 18 manufacturing plants and approximately 80 sales offices and distribution centers in the country.
According to the company’s LinkedIn profile, CCPI employs close to 9,000 regular associates, and support and serve close to 1 million micro-retailers, generating over 70,000 opportunities across its value chain.
CCBPI’s current product portfolio includes 17 well-loved brands, such as Coke, Royal, Sprite, Wilkins, Schweppes, Viva, Minute Maid, Nutri Boost, Lemon Dou, and Jack & Coke.
In August, CCEP said CCBPI sold around 650m unit cases in its 2022 fiscal year, generating revenues of approximately US$1.7bn.
CCBPI accounts for 43% of the non-alcoholic RTD market in the Philippines and 69% of the sparkling segment, CCEP added, citing Nielsen data.
The company is now being sold to CCEP and its joint partner AEV in a deal valued at US$1.8 billion, according to a regulatory filing by AEV.
Once closed, CCEP will own 60% of CCBPI while AEV will get the remaining 40%. The transaction is expected to close in the first quarter of next year.
The acquisition will build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021, further strengthening the partnership with its significant shareholder KO.
It also strengthens CCEP position as the world’s largest Coca-Cola bottler by both revenue and volume while supporting its long-term growth strategy and focus on driving shareholder value.
It will also provide the opportunity to leverage best practice and talent, including supporting Indonesia’s transformation journey.
AEV said the transaction is undergoing various customary closing conditions, including the approval from the Philippine Competition Commission (PCC).
AEV is well positioned to support CCBPI’s growth ambition given its position as one of the leading conglomerates in the Philippines with over 100 years of business history.
Aside from the planned acquisition of CCBPI, AEV has an existing presence in the food business through subsidiaries Pilmico Foods Corp., Pilmico Animal Nutrition Corp., and Pilmico International Pte. Ltd.