RC Cola bottler set for PH, Asia expansion

ARC Refreshments Corp., the country’s third largest soft drink bottler, is expanding its local operations to attain nationwide coverage by 2017 while looking to enter overseas markets within the region, like Vietnam and Burma (Myanmar).

ARC, the key operating unit of Macay Holdings led by Filipino-Chinese businessman Alfredo Yao, currently serves 70 percent of the domestic market. “We intend to grow the remaining 30 percent in the next two years,” ARC executive vice president and chief operating officer Gerry Garcia told reporters Friday.

To attain nationwide coverage, ARC needs to build two more plants to serve new areas, Garcia said. “By the end of 2017, we will have about 11 plants.”

The group has also increased the operating capacity of its nine existing plants by close to 20 percent.  The utilization rate of these plants is estimated at 70 to 80 percent, which peaks during summer months on increased demand.

Garcia said the group’s plan was to outpace the 5 to 6 percent average growth rate of the local soft drink industry.

ARC has an estimated market share of 13 to 15 percent in the domestic carbonated beverage market—making it the third largest player in the country next to Coca-Cola Bottlers Philippines Inc. and Pepsi Cola Products Philippines Inc., both of which have nationwide operations. But in Metro Manila, the group, which entered the market only 13 years ago, is the second biggest soft drink player.

ARC was an entity created in 2013 to consolidate the Yao-led group’s soft drink bottling and manufacturing operations using the RC Cola license. Its soft drink products include “RC Cola”, “Fruit Soda Orange”, “Juicy Lemon”, and “Arcy’s Rootbeer”.

ARC is not too worried about the influx of competition with the unification of Southeast Asian economies. “[We have] the capability to tailor-fit products to Filipino taste,” he said.

Since the group is the biggest bottler of RC Cola in the region, Royal Crown Cola of Georgia USA has reportedly expressed interest to give the group “anchor bottler” status in Southeast Asia.

While such commitment has yet to be formalized, Garcia said the group was given the first crack at entering new markets overseas, possibly Vietnam and Myanmar. Doris Dumlao-Abadilla