Coca Cola commits $1-B investments

MANILA, Philippines - Coca Cola Femsa remains committed to grow its business in the Philippines under the Duterte administration.

Trade Secretary Ramon Lopez said he met with Coca Cola Femsa director general and CEO John Santa Maria yesterday and the beverage giant official assured the company’s continued investment in the country.

Santa Maria had previously met with President Rodrigo Duterte on the sideline of the Asia-Pacific Economic Cooperation (APEC) meeting held in Lima last month.

Coca-Cola Femsa, a Mexico-based company, plans to invest $200 million annually or a total of $1 billion over the next five years in its Philippine operations.

“Gearing towards long-term investment and placing strong investor confidence in the Duterte administration, Coca-Cola Femsa’s capital infusion will go towards expanding and strengthening the company’s supply chain and commercial footprint throughout the country, therefore generating substantial employment and creating more micro-business opportunities,” Lopez said.

“Objectives of this new commitment are in line with the government’s poverty alleviation and inclusive growth agenda,” he added.

Last year, Coca-Cola group president for Asia Pacific Atul Singh announced the beverage giant would be investing $1.2 billion up to 2020 to expand its facilities and beef up distribution and operations in the country.

Singh said Coca-Cola has already invested $1.5 billion in the Philippines from 2010 to 2014.

He said the investment enhanced its distribution network and created over 2,000 new jobs for Filipinos.

The investment has also led to the expansion of the Coca-Cola Canlubang plant, increase in production of its Misamis Oriental plant, the rehabilitation of its plant in Tacloban, and the purchase of a manufacturing plant in Davao del Sur from San Miguel Corp.

Coca-Cola has 19 plants in the Philippines and competes in seven different beverage categories locally.

Trade Undesecretary Nora Terrado said the Coca Cola officials are in the country this week “to see what is happening in the Philippines.”