Chi is Nigeria’s largest juice maker, known for its Chivita and Hollandia juice, dairy and yoghurt drinks.
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.
Coca-Cola is considering consumer’s pocket
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.
The West Africa head said the company is looking for ways to present hot-coffee drinking to the Nigerian culture.
“There definitely could be an opportunity around ready-to-drink coffee here in Nigeria having iced coffee, blends of dairy and coffee, packaged in different formats,” he said.