BEVERLY HILLS, January 31, (THEWILL) – Coca-Cola has acquired 40 percent shareholding in Nigeria’s Chi Limited, manufacturer of Chivita brand and says it intends to increase ownership to 100 percent within three years subject to regulatory approvals.
The binding agreement for Coca Cola investment in Chi was jointly announced, in a statement, by the management of Coca Cola and Tropical General Investments Group (TGI Group), the holding company of Chi Limited, creating a strategic relationship between the two beverage industry leaders within Africa’s largest economy.
Additionally, the parties say they have agreed to jointly discuss and explore other opportunities in the region to further develop this relationship while working on other long-term commercial structures.
The investment expands Coca-Cola’s West African portfolio of still beverages while establishing its presence in Africa’s high-growth value-added dairy category as it allows both companies to leverage on their respective investments and expertise to further drive innovation, optimize efficiency and strengthen route-to-market to accelerate growth and increase consumer availability and choice.
“TGI Group’s relationship with the Coca-Cola Company will also help Chi Ltd achieve its ambitious growth plans through access to Coca‑Cola’s broad product portfolio and integration into global best practices in production, distribution and brand-building,” the statement said.
“Coca-Cola and Chi share the same commitment to Africa, to investing in our operations and to continuous innovation and our relationship will allow us to continue to provide Nigerian consumers the number one beverage in each of the categories we serve.
“We are extremely optimistic about Africa’s continued economic and social growth and recognize the importance of ensuring we stay one step ahead of evolving consumer tastes by broadening our portfolio and introducing new products.
“Today’s announcement positions both Coca-Cola and Chi well for future growth in what is an exciting time in the beverage industry in Africa.”
In 2014, Coca-Cola announced an increased investment in Africa to a total of $17 billion from 2010 to 2020. This investment, which is roughly three times the amount invested in the last decade, will be channelled into funding new manufacturing lines, distribution capabilities and cold drink equipment while creating additional jobs and opportunities on the continent.
Story by David Oputah
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