Coca-Cola seems to see a lot of opportunities in Africa as they have taken full control of Nigerian juice maker CHI Limited in a deal that underlines its growing emphasis on low-sugar drinks and emerging markets.
The Cola-Cola Company on Wednesday, January 30 announced it has completed the acquisition of Chi Limited.
Three years ago, the US soft drinks giant acquired 40% and on Wednesday acquired the remaining 60%/of CHI. However, the amount was undisclosed.
“The acquisition gives us the platform that allows us to target more and more consumers’ disposable income on commercial beverages,” Peter Njonjo, President, Coca-Cola West Africa, said in an interview Thursday.
Nigerians spend more than ₦310 billion ($855 million) daily on food, with just 1.5 % of that going to non-alcoholic beverages, he said.
Also, Coca-Cola will be building a plant in Nigeria to meet rising demand locally and for exports to the rest of the continent and Asia, Njonjo emphasises. “This is a Nigerian brand that we will be scaling globally.”
It is pertinent to note that CHI Limited already exports to Togo and Ghana and has local partners in South Africa and according to Njonjo, they will be looking at Cameroon, Ghana, Democratic Republic of Congo, in the months to come.
Reports from Financial Times says in 2016 the 40% stake cost about $240 million.
Chi Limited was founded in Lagos in 1980. It produces juice under the Chivita brand, Caprisonne and value-added dairy under the Hollandia brand.