In what could be described as a bold step to consolidate its hold in the beverage industry, global carbonated soft drink manufacturer, The Coca-Cola Company has completed the acquisition of Chi Nigeria Limited.
The acquisition of the remaining 60% stake, which went for an undisclosed amount, following an earlier ownership of 40% of the juice maker in January 29, 2016.
Speaking at a press conference held in Lagos on Thursday, January 31, 2019, the President of Coca-Cola West Africa, Mr. Peter Njonjo explained that the decision to acquire Chi Nigeria Limited is in line with the desire to evolve into a total beverage company as the diverse ranges of beverage products in Chi’s portfolios perfectly complement and fit that of the company, thus enabling it to expand into new categories and grow the business in Africa.
Njonjo further noted that the company remains committed to building on the heritage and the remarkable success achieved by Chi Nigeria Limited by investing heavily in its product portfolio using the scale of the Coca-Cola system to replicate its success in other markets particularly where it lacks any market footprints.Njonjo stated further that the low cost operating model of Chi limited that has enabled it to consistently offer quality beverages in a wide array of pack sizes at affordable price points would offer the Coca-Cola Company a better positioning to access Africa’s growing $10 billion NARTD opportunities at the bottom of the pyramid.
According to him, the acquisition represents a strategic opportunity to accelerate profitable growth in the company’s price sensitive region. While affirming Coca-Cola’s long-term commitment to Nigeria and Africa, Njonjo revealed that the deal underscores the company’s strong confidence in Africa’s rising profile as a global growth engine of which Nigeria is a pivot.
He said “There is huge opportunity for growth in Africa. For you to grow, you need to have products that are suitable to this market. For brand like Chi, it makes a lot of sense to take such decision because of how the brands resonate with consumers in the African market”.
He added that Coca-Cola Company was excited to be part of the deal having seen the commitment of Chi Nigeria Limited to be a total beverage company.
Njonjo stated that the growth of Chi Nigeria Limited, which had culminated in its acquisition by Coca-Cola Company, remains an inspiration to Africa’s emerging entrepreneurs particularly those who are striving against all odds to achieve success in their businesses.
In his remarks, Managing Director, Chi Nigeria Limited, Deepam Roy who has been steering the ship of the company in the last six years said it was wonderful opportunity to have been part and parcel of the deal which would see the business grow to become a world class brand.