Coca-Cola has acquired an initial 40% stake in Nigerian dairy and juice company Chi, ahead of plans to raise its ownership to 100% over the next three years. The soft drinks manufacturer has agreed an undisclosed deal with the company’s holding group, Tropical General Investments (TGI Group). The deal creates a strategic relationship between the two beverage companies, covering some of Nigeria’s most popular sparkling soft drinks, juices, value-added dairy and water beverage brands.
The investment in Nigeria’s leading value-added dairy and juice beverage brands – including 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, Lagos-based TGI Group said.
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.
Coca-Cola Eurasia and Africa president Nathan Kalumbu said: “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. 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.”
TGI Group chairman Cornelis Vink said: “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.”
Kelvin Balogun, president of Coca-Cola Central, East and West Africa, continued: “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.