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For Jenina P. Ibáñez, Reporter
THE Coca-Cola Company plans to invest an initial $ 63 million (about P3 billion) in its Philippine operations this year to expand Luzon-based production.
Coca-Cola Beverages Philippines, Inc. (CCBPI), the beverage giant’s local bottling partner, will invest in improving production capacity in Santa Rosa and Canlubang, as well as its logistics and returnable glass systems.
“This is our first tranche of investment in 2021, coming from more than $ 90 million that we spent last year,” CCBPI President and CEO Gareth McGeown said at a news conference Tuesday.
Last year, Coca-Cola’s investments were focused on expanding the company’s production capacity in Mindanao. Possible additional investment in manufacturing in Mindanao could occur in the third or fourth quarter of this year, he added.
“Assuming the business continues to grow and performs well, we will request further investment to continue to build capacity across our system. Most of them go to capacity and production capacity, primarily at our manufacturing sites, ”said McGeown.
Antonio V. Del Rosario, Jr., president of Coca-Cola Philippines and vice president of franchise operations for Coca-Cola’s eastern region, said the investments would also go to the company’s brands.
“When you look to 2021, we are going to grow investments in our brands with a long time, double digits compared to the previous year, with the belief that you invest now, you will go out and emerge stronger,” he said.
Last year, the company reported lower sales as it lost demand from restaurant customers. But McGeown said the company was able to “weather the storms” better than many other fast-moving consumer goods because of its scale.
Coca-Cola Philippines, Del Rosario said, performed slightly better than overall global sales, which he attributes to the distribution system.
“We have a very, very strong network of retailers that are close to (customers’) homes, particularly sari-sari stores,” he said.
The local firm is targeting sales that reflect this year’s pre-pandemic levels.
“Our link is to make sure that in 2021 we go back to pre-COVID levels, looking to 2019, and that will obviously show that we would be growing. It is a difficult goal, but we believe that we will be able to do it, ”said Del Rosario.
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