MANILA, Philippines - Global beverage producer and distributor Coca-Cola FEMSA is investing more than P1 billion to improve its manufacturing capability in the Philippines.
The capital spending includes the acquisition of the San Miguel Group’s manufacturing facility in line with the company’s plan to grow its footprint in Mindanao, the firm said in a statement.
“Coca-Cola FEMSA Philippines is investing an initial P1.2 billion towards increasing its manufacturing capability in the country,” the company said.
The beverage maker recently acquired a non-alcoholic beverage facility, warehouse and real estate property of diversified conglomerate San Miguel Corp.
“We remain very optimistic about the opportunities that the Mindanao region has to offer. With this acquisition, we confirm our confidence in the economic growth of the Philippines,” said Coca-Cola FEMSA Philippines CEO Juan Ramón Felix.
The softdrinks giant said the newly-acquired plant, along with existing manufacturing facilities in Mindanao, will contribute to expanding sales and distribution network in the region.
“This will provide us with the flexibility to expand our operations as demand increases,” said Juan Dominguez, corporate affairs director of Coca-Cola FEMSA Philippines.
Coca-Cola FEMSA completed the construction of the megaplant in Misamis Oriental two years ago. It has since been expanded with the installation of a new bottling line, bringing the total number of lines to three.
In January, Coca-Cola FEMSA Philippines started its operations in the country after acquiring a 51-percent stake in Coca-Cola Bottlers Philippines for $688.5 million.
Coca-Cola FEMSA produces and distributes Coca-Cola, Fanta, Sprite, Del Valle, and other trademark beverages of Atlanta-based The Coca-Cola Co. in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, São Paulo, Argentina and the Philippines. It also distributes bottled water, juices, teas, isotonics, beer, and other beverages in some of these territories.