MANILA, Philippines–Coca Cola Femsa S.A.B. de C.V. is set to further ramp up its investments in the Philippines to a total of $1.7 billion through the continued upgrade of existing facilities and the establishment of distribution centers in the country, President Aquino said on Monday.
Aquino, who led the inauguration of the $95-million expansion of Coca Cola Femsa Philippines’ manufacturing facility in Canlubang, Laguna, said an additional $500 million in investment would be poured by the parent firm into its Philippine operations by next year. This will enable the company to exceed its $1-billion investment commitment to the Aquino administration.
According to the President, the planned additional investments will be on top of the more than $1.2 billion already infused by the company to date into the country. The said investment has generated about 2,000 new jobs since January 2013.
Of the amount, $688 million was used by Femsa to acquire 51 percent of Coca-Cola Bottlers Philippines Inc. in January 2013. Another $600 million was spent to increase production capacities of its facilities in Canlubang and in Misamis Oriental, where two new PET lines were installed; to acquire a manufacturing facility in Davao del Sur; and rebuild the Tacloban plant, which previously served as a temporary shelter and a command center following the devastation brought about by Super Typhoon “Yolanda” in November last year.
Juan Dominguez, corporate affairs director of Coca Cola Femsa Asia division, said the additional $500 million in investment would be earmarked for the establishment of distribution centers in the Visayas and Mindanao; acquisition of market assets; and for market development.
The additional investment is expected to create another 1,000 new jobs by the end of next year, Dominguez said.
“We believe firmly in the Philippines, which is the biggest expanding market in Asia. Filipinos have loved our brand for many years. In terms of per capita consumption of soft drinks, the Philippines is also the biggest in Southeast Asia. We want to expand not only our geographical presence here but also our product line,” Dominguez explained.
The Philippines currently accounts for about 20 percent of the company’s global sales and production, he added.
Meanwhile, the $95-million (or roughly P4.2 billion) Canlubang expansion that was inaugurated on Monday will see the total capacity of the plant increasing to 265 million cases yearly. Prior to this expansion, the Canlubang plant was producing only 170 million cases yearly.
“When we established our operations in the Philippines in January 2013, following the acquisition of what was then Coca Cola Bottlers Philippines, we had one goal in mind, and that was to bring to Philippine shores our legacy of generating economic, social and environmental value for everyone who comes in contact with our business. Our continued investment reaffirms our commitment to the economic growth of the Philippines,” explained Juan Ramon Felix, chief executive officer of Coca Cola Femsa Asia division.