Coca-Cola (Photo credit: Wikipedia)Coca-Cola Bottlers Philippines Inc. (CCBP) is on track to growing faster than the pace of the economy, an executive said.
Growth will be driven by higher consumer spending on the back of government-initiated activities and the approaching election season.
“We are happy to say that our Coca-Cola business is growing well and growing in all sectors of the country, which is exciting for us,” CCBP president and chief executive William Schulz said in a chance interview.
“It has been a good year so far but halfway still to go...we are on track to delivering our internal targets,” Schulz added.
Late in May, Guillermo Aponte, president and general manager of CCBP’s parent firm Coca-Cola Export Corp. (CCEC) said the company expects to “grow faster than the economy” this year.
The government targets a five to six percent growth in gross domestic product (GDP) this year, faster than the 3.7 percent uptick last year.
The country’s GDP climbed 6.4 percent in the first quarter, the fastest in the 10-member countries of the Association of South East Asian Nations and second only to China in the Asian region.
“We are certainly delighted that the government is investing in the economy because economic growth helps consumers to buy more products,” Schulz said.
The government has fast-tracked its spending to stimulate the economy despite the debt crisis in the Eurozone and timid growth in the US.
Furthermore, election spending will bring more growth to CCBP even in the second half this year. The mid-term senatorial election is scheduled in May next year.
“In the Philippines, during the election season there is economic activity,” Schulz said.
“We expect the equity of our brands to drive our business but it is always good for us when the economy is strong,” Schulz said.
The Philippines is now the company’s 10th largest market in the world in terms of sales volume.
Schulz said Coca-Cola is the top softdrinks brand in the Philippines, leading the nearest competitor by 15 to 1.
Last year, CCEC opened a manufacturing plant in Cagayan de Oro to cater to consumers in the region. It also expanded the capacity of its plants in Sta. Rosa Laguna and Cebu.
To date, the company currently has around 22 bottling lines nationwide, with its newest in Cebu that was opened early this year.
CCEC fully owns CCBP after it bought back the 60 percent share held by San Miguel Corp. four years ago.
The company manufactures carbonated beverages Coke, Sprite, Royal, as well as other non-carbonated beverages.
No comments:
Post a Comment