Soft drinks giant, Coca-Cola plans to buy out Nigeria’s Chi juice in 2019
Nigeria's largest juice maker, known for its Chivita and Hollandia juice, dairy and yoghurt drinks, Chi Juice, is set to be bought for an undisclosed amount in the first quarter of 2019.
Peter Njonjo, president of Coca-Cola’s West Africa business, confirmed the acquisition deal to Reuters in an interview at his office in Lagos, on Wednesday, September 19, 2018. “We are still on track to complete the acquisition (of Chi Ltd) by the end of the first quarter of 2019,” Reuters quoted Njonjo as saying.
According to Njonjo, the company is focusing on smaller bottles and cans which is another way the company is trying to woo cash-strapped consumers in Nigeria, which emerged from its first recession in 25 years in 2017 but continues to suffer from sluggish growth and high inflation. “Affordability will start becoming a bigger issue in this market than it was in the past. As a company, that is what we need to factor in as we are thinking about the future of our business in Nigeria.”
In 2016, Coca-Cola bought a 40% stake in the Nigerian juice and snack producer (Chi) with the aim to increase ownership within three years, subject to regulatory approvals while working on other long-term commercial structures.
Last month, Coca-Cola also bought Costa Coffee chain in a near - £4 billion ($5.2 billion) deal that underlines the scale of the global coffee revolution, according to the Guardian.
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