Coca-Cola acquires initial minority
shareholding in Nigeria’s leading value-added dairy, juices and
snacks business to expand its African stills beverage portfolio
The Coca-Cola Company (NYSE: KO) and Tropical General
Investments Group (TGI Group) – the holding company of Chi Ltd,
Nigeria’s leading dairy and juice company – today announced a
binding agreement for The Coca-Cola Company to acquire an initial
minority equity shareholding in Chi Ltd. The agreement creates a
strategic relationship between two beverage industry leaders within
Africa’s largest economy that together serve Nigeria’s most popular
sparkling soft drinks, juices, value-added dairy and water beverage
brands.
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Chi Limited’s leading value-added dairy
and juice beverage brands complement The Coca-Cola Company’s broad
beverage portfolio in Nigeria. (Photo: Business Wire)
Within the agreement, The Coca-Cola Company has made an initial
40 percent equity investment in Chi Ltd and intends to increase
ownership to 100 percent within three years, subject to regulatory
approvals, while working on other long-term commercial structures.
Additionally, the parties have agreed to jointly discuss and
explore other opportunities in the region to further develop this
relationship.
The investment in Nigeria’s leading value-added dairy and juice
beverage brands – which include Hollandia and Chivita – further
expands The Coca-Cola Company’s West African portfolio of still
beverages while establishing Coca-Cola’s presence in Africa’s
high-growth value-added dairy category. The agreement will allow
both companies to leverage their respective investments and
expertise to further drive innovation, optimize efficiency and
strengthen route-to-market to accelerate growth and increase
consumer availability and choice.
TGI Group’s relationship with The Coca-Cola Company will also
help Chi Ltd achieve its ambitious growth plans through access to
Coca-Cola’s broad product portfolio and integration into global
best practices in production, distribution and brand-building.
“For more than 30 years Chi’s leadership has built a greatly
admired business that has quickly grown to become Nigeria’s leading
producer and distributor of value-added dairy and juice products
and we are delighted to enter the next phase of our growth journey
together,” said Nathan Kalumbu, President, Coca-Cola Eurasia and
Africa. “Coca-Cola and Chi share the same commitment to Africa, to
investing in our operations and to continuous innovation, and our
relationship will allow us to continue to provide Nigerian
consumers the No. 1 beverage in each of the categories we
serve.”
“We strongly believe in this journey we are starting with The
Coca-Cola Company. The relationship will allow us to expand our
regional footprint and product portfolio. We stay firmly committed
to growing our investments in the Nigerian economy, increasing
employment and local content while supporting the communities we
operate in. Chi will continue to provide its consumers with
innovative products in the dairy, juices and snacks categories,”
said Cornelis Vink, Chairman of TGI Group and Chi Ltd.
“We are immensely proud of the success that Chi has achieved in
building the much-loved Hollandia and Chivita brands. We recognize
the unique opportunity that the relationship with The Coca-Cola
Company brings to further develop Chi as a strong regional company,
building on the tremendous progress achieved to date,” said Rahul
Savara, Group Managing Director of TGI Group.
“Coca-Cola has been investing in Nigeria for more than 60 years
and today’s announcement represents the latest significant step in
our commitment to growing our business and providing trusted
beverage brands for Nigerian consumers and communities,” said
Kelvin Balogun, President of Coca-Cola Central, East and West
Africa. “We are extremely optimistic about Africa’s continued
economic and social growth and recognize the importance of ensuring
we stay one step ahead of evolving consumer tastes by broadening
our portfolio and introducing new products. Today’s announcement
positions both Coca-Cola and Chi well for future growth in what is
an exciting time in the beverage industry in Africa.”
In 2014, the Coca-Cola system announced an increased investment
in Africa to a total of $17 billion from 2010 to 2020. This
investment, which is roughly three times the amount invested in the
last decade, is funding new manufacturing lines, distribution
capabilities and cold drink equipment while creating additional
jobs and opportunities on the continent.
Coca-Cola was first served in Johannesburg in 1928 and the
Company’s products are now present in every country in Africa with
its system employing more than 70,000 people in 145 bottling and
canning facilities.
About The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is the world’s largest beverage
company, refreshing consumers with more than 500 sparkling and
still brands. Led by Coca-Cola, the world’s most valuable brand,
our Company’s portfolio features 20 billion-dollar brands including
Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade,
Minute Maid, Simply, Georgia and Del Valle. Globally, we are the
No. 1 provider of sparkling beverages, ready-to-drink coffees, and
juices and juice drinks. Through the world’s largest beverage
distribution system, consumers in more than 200 countries enjoy our
beverages at a rate of more than 1.9 billion servings a day. With
an enduring commitment to building sustainable communities, our
Company is focused on initiatives that reduce our environmental
footprint, support active, healthy living, create a safe, inclusive
work environment for our associates, and enhance the economic
development of the communities where we operate. Together with our
bottling partners, we rank among the world’s top 10 private
employers with more than 700,000 system employees. For more
information, please visit www.coca-colacompany.com, follow us on
Twitter at twitter.com/CocaColaCo or visit our blog at
www.coca-colablog.com.
About Tropical General Investments Group (TGI Group)
Tropical General Investments Group (TGI Group) is the majority
shareholder of Chi Ltd. TGI Group invests in emerging economies,
adding value to locally available resources targeting an end
product both for local consumption and the global market. TGI has
over three decades of experience building local and regional
sustainable businesses in fast moving consumer goods (FMCG),
agriculture, agro-allied, healthcare, chemicals, etc. The Group's
global presence in manufacturing, farming and agro-processing,
distribution etc. spans 12 countries, with a staff of over 9,000.
For more information, please visit www.clicktgi.net
About Chi Limited
Incorporated in 1980, Chi Limited is one of the most admired
companies in the domain of Food & Beverages in Nigeria and has
market leadership positions in fruit juices, ice tea, value-added
dairy products and snacks in Nigeria. Chi operates in these
categories with several mega brands including CHIVITA 100%, CHIVITA
Active, CHI Exotic, CHI Happy Hour, CHI Ice Tea, Capri-Sonne,
Hollandia, Chi Super Bite, Beefie. Chi Limited has successfully
built its business through innovative product introductions, a
significant product portfolio, robust route to market structure and
a state of the art manufacturing facility.
The company has something to offer to almost everyone. Chi's
products help to cater to the diverse needs & palates of every
segment of this dynamic population, thus making Chi's brands most
admired and providing a range of choices to each socio-economic and
demographic consumer segment.
For more information please visit www.houseofchi.com, follow us
on Twitter at @Chivita100juice or @HollandiaYogh or Like us on
Facebook (https://www.facebook.com/ChivitaPremium)
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version on businesswire.com: http://www.businesswire.com/news/home/20160130005003/en/
The Coca-Cola CompanyDan Baxter, +971 565 017
110danbaxter@coca-cola.comorClement Ugorji, +234 803 978
0391cugorji@coca-cola.comorTGI GroupDr. Johannes Flosbach,
+234 903 885 6831Johannes.flosbach@clicktgi.net
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