- Coca-Cola Acquires Nigerian Chi Limited
Coca-Cola has acquired 100 per cent stake in Nigeria-based dairy beverages and juice producer, Chi Limited.
Coca-Cola first acquired 40 per cent stake in Chi in 2016 from Tropical General Investment Group. On January 29, 2019, Coca-Cola acquired another 60 per cent to be the sole owner.
According to Peter Njonjo, President Coca-Cola West Africa, the acquisition was as a result of a shift in the taste of consumers. He noted that the majority of Coca-Cola customers were low-income earners, therefore, Chi is relevant in terms of low prices and brand penetration.
Njonjo, however, said that Chi Limited would continue to function as an independent firm, while its products would be distributed internationally.
Njonjo further said, “Our objective is to grow both the Chi and Hollandia units to a global multi-billion dollar brand.”
“This acquisition is a testament to how we will achieve our objectives and it is also a celebration of entrepreneurship.”
“We will not collapse the Chi brand or any of its products. Doing that will only make the company lose the attractiveness that it had before the acquisition.”
“Rather, we will continue to grow both brands and employees in order to grow our customer base and strengthen our market share.”
The acquisition would help the company expand its products and offer a wider range of beverages and snacks, Njonjo added.
Njonjo also believes the acquisition will motivate entrepreneurs across Africa.
