Why we acquired Chi Nigeria —Coca Cola Nigeria

Global carbonated soft drink manufacturer, The Coca Cola Nigeria, has explained that its decision to acquire Chi Nigeria Limited is in line with the desire to evolve into a total beverage company.

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Speaking at a press conference held in Lagos to complete the acquisition process in Lagos, recently, the President of Coca-Cola West Africa, Mr. Peter Njonjo, stated that 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.

In what could be described as a bold step to consolidate its hold in the beverage industry,  carbonated soft drink manufacturer, recently completed the acquisition of the remaining 60% stake, which went for an undisclosed amount, following an earlier ownership of 40% of the juice maker, in January 29, 2016.

Njonjo further noted that the company remains committed to building on the heritage and the remarkable success achieved by Chi Nigeria Limited by investing heavily in its product portfolio, using the scale of the Coca-Cola system to replicate its success in other markets particularly where it lacks any market footprints.

He  stated further that the low cost operating model of Chi limited that has enabled it  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.

While affirming Coca-Cola’s long-term commitment to Nigeria and Africa, Njonjo revealed that the deal underscores the company’s strong confidence in Africa’s rising profile as a global growth engine of which Nigeria is a pivot.

“There is huge opportunity for growth in Africa. For you to grow, you need to have products that are suitable to this market. For brand 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 stated.

He added that Coca-Cola Company was excited to be part of the deal having seen the commitment of Chi Nigeria Limited to be a total beverage company.

In his remarks, Managing Director, Chi Nigeria Limited, Deepam Roy, who had been steering the ship of the company in the last six years, expressed his delight to part of a deal, which would see the business grow to become a world class brand.