The Coca-Cola Company has fully acquired Nigeria’s leading dairy and juice company, Chi Limited. The beverage company made the announcement through a press statement on Wednesday. This deal is in line with Coca Cola’s plan to expand across Africa by 2020 and redouble its effort to expand beyond soda.
In the statement, Coca-Cola revealed that it has completed the acquisition of the company exactly three years after acquiring its 40 percent minority shares. “Coca-Cola first announced a minority investment in Chi three years ago and, as planned, has now acquired full ownership of the company.”
Juices and value-added dairy categories rank among the fastest-growing beverage segments in Nigeria and Africa. Thus, this latest move proves that there are yet opportunities and untapped potential across the continent. It also reaffirms the company’s commitment to a long-term investment and growth plan in Africa, where it has been present for more than 90 years.
The company added in the statement that as it continues to evolve as a total beverage company, it recognises Chi’s diverse range of beverages to perfectly complement its existing portfolio, enabling it to accelerate expansion into new categories and grow its business in Africa.
In 2016, Coca-Cola acquired a 40 per cent stake from Tropical General Investments Group, the holding company for Chi Ltd. This came after it was reported in 2014 that TGI group was exploring options to sell its stake in Chi Limited for as much as $1 billion. It was also suggested that multinational drink makers such as Coca-Cola, Pepsi would find this deal attractive.
Chi is recognized in West Africa as an innovative, fast-growing leader in expanding beverage categories, including juices, value-added dairy and iced tea. The company, founded in Lagos, Nigeria, in 1980, produces juice under the Chivita brand and value-added dairy under the Hollandia brand, among many other products.