Global beverage giant, Coca Cola has acquired a 40 per cent stake in Nigerian juice maker, Chi Ltd.January 30 ,2016.
The local dairy and beverage maker, Chi owns popular brands as Chivita 100% juice, Hollandia Yoghourt, Hollandia Milk and some packaged snacks.
Coca-Cola Co said it would acquire a minority stake in the company as it seeks to expand its African portfolio.
“We are extremely optimistic about Africa’s continued economic and social growth and recognize the importance of ensuring we stay one step ahead of evolving consumer tastes by broadening our portfolio and introducing new products,” said Kelvin Balogun, president of Coca-Cola Central, East and West Africa, in a release by the company.
Analysts believe that a 40 per cent equity stake by Coca Cola is the first step towards a majority acquisition of the company by the global soft drinks maker. Coca Cola is not known to remain a minority equity holder in virtually all the businesses in which it invests. Typically, its goal is always the same – take over good businesses and leverage on them to expand its business dominance.
Chi’s Chivita Juice range has successfully competed against Coca Cola’s 5Alive juices for many years. The Chi/TGI Group owners of Chi Ltd is owned by an expatriate Syrian business family..