Coca Cola infusing another $1.2B in PH operations
Coca Cola Co., the largest beverage firm in the world, is spending $1.2 billion for the expansion of its Philippine operations, as it aims to strengthen its foothold in the local market.
The fresh capital outlay is being made on the back of the steady growth of the Philippine economy, conducive investment climate, rising consumption and disposable incomes, Coca Cola chair and chief executive officer Muhtar Kent said in an interview on Wednesday.
“We’re currently in a $1.2-billion (investment) program between now and 2020 in the Philippines. That investment means we will hire more people, add more factories, more lines, capacity, and (beef up our) distribution (network). We will also have this capital investment program to help our partners and that of course tells you that we still believe in the future here,” Kent told the Inquirer.
The planned investment will be on top of the $1.5 billion that the company has already spent in the Philippines from 2010 to 2014. The previous investment enhanced Coca Cola’s local distribution network and created more than 2,000 jobs for Filipinos, which brought the company’s total employment to more than 10,000.
The previous investment also led to the expansion of its facility in Canlubang, Laguna, the increase in the production capacity of the Misamis Oriental plant, the rehabilitation and improvement of the Coca Cola plant in Tacloban, and the purchase of a manufacturing plant in Davao del Sur from conglomerate San Miguel Corp.
“We are adding more production because we believe in the future of this country. Part of the reason why this investment is taking place is because the Philippines is one of the healthiest, fastest growing economies in Asia. Based on the current political leadership of the country, we, as investors, are certainly appreciative of the work that’s being done in terms of better governance,” Kent said.
“We believe the economy is prospering under the leadership of President Aquino and we feel this is going to continue. We believe this will generate more demand, more disposable income, and disposable income is directly linked to how our business grows,” he added.
The other factors affecting Coca Cola’s investment decisions for the Philippines, according to Kent, are the “very friendly” investment climate here and its “great workforce.” He said Filipino employees were highly motivated and had “very positive attitude.”
Kent, who is in the country for a three-day visit, paid a courtesy call to President Aquino to whom he emphasized the valuable role of the Philippine market in helping Coca Cola achieve its long term vision of reinvigorating growth, and creating shared value for the business and the communities.
