Pepsi-Cola Products Philippines to invest 3.5B pesos this year to continue expanding production, distribution capacities in bid to support projected double-digit growth, company executive says

Nevin Barich

Nevin Barich

January 22, 2014 () – Beverage maker Pepsi-Cola Products Philippines Inc. (PCPPI) will invest P3.5 billion this year to continue expanding production and distribution capacities in a bid to support projected double-digit growth.

(The amount will be spent) mainly to put up new lines because when you grow, you have to expand capacity. We would like to have a 20-percent manufacturing headroom which means volume should also grow 20 percent, PCPPI President Partho Chakrabati told reporters.

Chakrabati said the company will open its 12th manufacturing facility in Santo Tomas, Batangas early this year.

PCPPI is also targeting to expand its distribution network to meet the surging demand for beverages. It now serves over 500,000 outlets.

In 2013, the company spent P4 billion to establish facilities in existing plants in Muntinlupa City, La Union, Cebu and Davao.

Chakrabati was confident about sustaining a double-digit growth this year, banking on high economic growth fuelled by robust domestic consumption.

Normally, the year after elections tend to be a little bit lower but I don't think that will be the case in 2014. This year will have good economic growth and consumption and the beverage industry are expected to grow, he pointed out.

Chakrabati also believed that its non-carbonated segment would pick up faster than the industry growth in the medium to long term.

He said the segment is expected to increase share to the company's total revenues from 30 percent to 50 percent.

PCPPI, the exclusive distributor bottler of PepsiCo beverages in the country, grew its profit by 16 percent to P780 million in January to September last year.

It manufactures and sells well-known brands such as Pepsi-Cola, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade, Tropicana, Lipton, Sting and Premier. - PNA

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