Sugar stakeholders upbeat on ending rift with Coca-Cola unit

MANILA, Philippines — Local sugar stakeholders expect to have a better relationship with beverage giant Coca-Cola following the exit of Mexican bottling giant Coca-Cola FEMSA.

The Confederation of Sugar Producers Association Inc. (Confed) the country’s biggest sugar group, welcomed the recent decision of the Atlanta-based Coca-Cola Co. to take full control of its Philippine unit after Coca-Cola FEMSA agreed to sell back its 51 percent stake in Coca-Cola Philippines.

“This will definitely mend the rift between the sugar producers and Coke under FEMSA,” Confed president Francis dela Rama said.

Coca-Cola FEMSA and sugar industry stakeholders had a long-standing conflict due to the former’s importation of high fructose corn syrup which deflated prices of local sugar.

Confed has already met with Winn Everhart, president and general manager of Coca Cola Philippines, to ensure enough production.

“Everhart already told us he would fix the problem and though there were initial skepticism, I personally feel we can sit down and work together in the future,” Dela Rama said.

“Coke has also indicated that they are ready to send a technical working group to sit down with sugar producers on how best they can resolve their sugar supply need,” he added.

Sugar Regulatory Administration board member Emilio Yulo, who represents the planters group, welcomed the recent development with “guarded optimism.”

“We’re hoping that there will be more transparency and collaboration between Coke and the sugar industry this time,” Yulo said.

Agriculture Secretary Emmanuel Piñol earlier said the unstable supply of sugar was among the reasons why Coca-Cola FEMSA exited the Philippines.

“Maybe this is a signal to the sugar industry that we should get our acts together and improve,” he said.

Local raw sugar production remains on a downtrend as it declined 11 percent to 2.58 million metric tons as of the end of July, one month before the crop year ends.

This despite local sugar demand increasing three percent to 2.28 million metric tons. In terms of refined sugar, production also slightly decreased two percent to 926,000 MT.

Sugar prices at the mill gate, however, jumped 70 percent to P1,950 per 50-kilogram bag. – Gilbert Bayoran