The Coca-Cola Company has acquired a 40 percent stake in Chi Ltd, a Nigerian company that produces fruit juices, ice tea, value-added dairy products and snacks.
Per the agreement, Coca-Cola will be allowed to increase its ownership to 100 percent within three years. Terms of the transaction were not disclosed.
The investment in Nigeria’s leading value-added dairy and juice beverage brands – which include Hollandia and Chivita – further expands The Coca-Cola Company’s West African portfolio.
“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,” says Kelvin Balogun, president of Coca-Cola Central, East and West Africa. “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. Today’s announcement positions both Coca-Cola and Chi well for future growth in what is an exciting time in the beverage industry in Africa.”
In 2014, Coca-Cola increased its investment in Africa to a total of $17 billion from 2010 to 2020—roughly three times the amount invested in the last decade.