In a landmark deal that signals a changing consumer goods sector, The Coca-Cola Company has reached an agreement to sell its entire stake in Chivita|Hollandia (CHI Limited) to UAC of Nigeria Plc.

The acquisition, subject to regulatory approval, will see UAC take ownership of one of the country’s leading food and beverage manufacturers with flagship brands dominating the juice and dairy markets.

Coca-Cola, had in 2016, acquired a 40 per cent stake in CHI Limited for about $240 million, before completing the full acquisition in 2019 for an undisclosed amount.

The divestment marks a strategic shift by the global beverage giant to focus on a more flexible and asset-light business model in emerging markets. In a statement released by CHI Limited yesterday, Coca-Cola said the move aligns with its strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale.

The company reiterated its commitment to Nigeria, where it recently pledged to invest $1 billion over five years, contingent on a stable and supportive business environment.

The acquiring firm, UAC, is a Nigerian conglomerate with deep roots in domestic manufacturing, marketing and distribution of consumer goods.The company operates nine factories and multiple distribution hubs across the country.

UAC and Chi Limited compete for Nigeria’s huge sausage market, where both are known leaders. Group Managing Director of UAC, Fola Aiyesimoju, described the acquisition as a strategic opportunity to deepen the company’s footprint in Nigeria’s fast-moving consumer goods (FMCG) landscape, the statement said.

“We are pleased to announce the acquisition of Chivita|Hollandia, a leading dairy and juice business in the region. This presents significant potential to build on its legacy of excellence and innovation.

“I would like to thank the management and staff of Chivita|Hollandia and look forward to working with the team to support the next phase of growth,” Aiyesimoju was quoted as saying.

Commenting on the development, Managing Director of CHI Limited, Eelco Weber, said the company has seen tremendous growth under Coca-Cola’s ownership and remains optimistic about the future under UAC.