Coca-Cola acquires Chi Nigeria limited
In what could be described as a bold step to consolidate its hold in the beverage industry, the Coca-Cola Company has completed the acquisition of Chi Nigeria Limited. The acquisition of the remaining 60 per cent stake happened recently following an earlier ownership of 40 per cent of the juice maker in 2016.
President of Coca-Cola West Africa, Mr. Peter Njonjo, explained that the decision to acquire Chi was 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 stated further that the low cost operating model of Chi Nigeria 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.
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 brands 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 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, 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.
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