Coca-Cola Femsa plans to invest around $800m in the expansion of its Filipino operation, according to media reports in the region.
Coca-Cola Femsa Philippines chief executive Fabricio Ponce told reporters at a press event this week that the bottler would add two further polyethylene terephthalate (PET) lines, and two tetra pack lines, with a total spend of $170m in 2016 alone.
The additional lines will increase the company’s production capacity by around 20% and enhance its dominant position within the Philippines’ soft drinks market.
It will also allow Coca-Cola Femsa to widen consumers’ on-the-go options, after lowering the price of its 8oz Sakto format to PHP 7 ($0.14) and announcing plans to introduce a 400ml size of Coca-Cola.
“We are trying to go to places where we need to improve our presence,” Ponce was quoted as saying. “We are trying to have different price points, [because] for that reason we have very good performance last year.”
“This year we’re putting in investments of $170 million. We’re investing into two more PT lines and probably another two tetra lines.
“This company in 2014 lost money and now [we will] turn it around and make it successful and generate more value… Our shareholders will reinvest all profits and they are [looking to invest] $800m up to 2020. Our strategy is to be able to create more value and reinvest.”
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