PH beverage firm all set for overseas expansion
Macay Holdings Inc. plans to bring its carbonated beverage business to other Southeast Asian markets while it expands its domestic footprint by diversifying its portfolio to add noncarbonated beverage, food and other non-food segments.
“We intend to capitalize on our expertise in downline, mass-based channels distribution across the country by growing our portfolio through investments in companies with … large market potential,” Macay president Antonio Panajon reported during the company’s annual stockholders meeting Friday.
“Our company will pursue growth based on core growth and value-based acquisitions and joint ventures,” Panajon explained.
Macay is led by businessman Alfredo Yao. It used to be the shell company for Maybank ATR Kim Eng Financial Corp. (MAKE).
In late 2013, MAKE incorporated ARC Refreshments Corp. (ARC) to engage in the business of trading goods, such as beverages, on wholesale basis. ARC in turn acquired all the operating units of Asiawide Refreshment Corp. and Mega Asia Bottling Corp.
Asiawide holds an exclusive license from RC Cola USA to manufacture and distribute RC Cola in the Philippines, while Mega Asia operates the RC Cola bottling and manufacturing operations in the Philippines. It is based in Caloocan City, but it also has operations in other areas like Pampanga and Davao.
Panajon said the expansion into “unserved” provincial markets would involve the opening of new manufacturing plants and the establishment of distribution capabilities. At present, there are nine RC Cola bottling plants in the country.
The group is now the biggest bottler of RC Cola in the region. Royal Crown Cola of Georgia USA has expressed interest to give the group “anchor bottler” status in Southeast Asia, said Gerardo Garcia, ARC executive vice president and chief operating officer.
“It’s just there for the asking,” said Panajon, who noted that the group would soon evaluate the different markets in the region. Given the integration of Southeast Asian economies by 2015, he said the group would be open to expand in the region through joint ventures.
In the next five years, Panajon said, Macay would have a more diversified business portfolio.
“We’re considering the whole range of beverage offering. If you look at our history in Asiawide, If we really want to expand the business, you have to consider these,” he said, referring to the water, juice and food businesses.