Coca-Cola Philippines says sugar shortage hampering operations

MANILA, Philippines — Coca-Cola Beverages Philippines Inc. (CCBPI) confirmed that the ongoing sugar supply shortage is disrupting their production lines. 

In a statement on Wednesday, the soda giant said the shortage of Bottler’s Grade sugar is hampering production. 

“CCBPI confirms that the supply shortage of Bottler’s Grade sugar has affected the capability of some of our bottling plants to continue producing some products,” it said.

A botched sugar import order dominated headlines in past weeks, compelling senators to mount a probe on who to blame and figure out if the shortage is artificial. The fallout resulted in the voluntary resignation of some top Agriculture officials, including the head of the Sugar Regulatory Administration, the agency tasked with promoting the domestic sugar industry’s welfare. 

Atty Juan Lorenzo Tañada, director for corporate & regulatory Affairs of CCBPI, told senators in the probe yesterday they received an allocation of 10,000 metric tons of sugar from Sugar Order No. 3. CCBPI needs premium refined sugar to operate at a “normal pace,” because as it stands, Tañada told senators they don’t have access to it right now. 

“We are doing everything we can to minimize supply disruption and the impact of supply shortage to our bottling operations,” CCBPI said. 

Former Agriculture undersecretary Leocadio Sebastian, who resigned in the wake of the import order mess, said that it was concluded that the national government needed to import 300,000 metric tons of sugar. This would have been possible through a new Sugar Order, following consultations with stakeholders, which include millers, planters and suppliers.

“We are also continuing to work with the government and the broader sugar industry sector to arrive at a sustainable solution for the benefit of the small retailers who also rely on product’s availability for their livelihoods,” CCBPI added.