MANILA, Philippines - Beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) is looking to spend at least P650 million for its initial entry into the snack food business in the country.
PCPPI intends to add snack food in its product offering in the Philippines which already includes a formidable beverage brand.
“The company plans to set up local manufacturing facility that will enable it to produce, sell and distribute snack food products in the Philippines while it continues to produce, sell and distribute its existing line of beverages,” the beverage maker said in a disclosure to the local bourse.
PCPPI said the snack food investment will allow the company to further build and expand its business and markets by venturing into a product line that is complementary to its existing beverage business.
The listed firm said proposed timetable for the implementation of the snack food investment is by the second half of next year.
“Capex requirements for the snack food investment is tentatively placed at not less than P650 million currently,” PCPPI said.
The beverage maker’s entry in the snack food business is expected to challenge existing players, including market leader Universal Robina Corp. of the Gokongwei family.
Last year, the exclusive bottler of PepsiCo beverages in the Philippines invested on a manufacturing plant in Sto.Tomas in Batangas and expanded facilities in Muntinlupa, Cebu and Davao.
PCPPI has earlier committed to invest P3.5 billion this year to continue expanding its production and distribution line given the rising demand.