The Coca-Cola Company and Tropical General Investments Group (TGI Group), the holding company of Chi Ltd, Nigeria’s leading dairy and juice company, have signed a binding agreement for Coca-Cola Company to acquire an initial 40 per cent minority equity shareholding in Chi Ltd.
The agreement creates a strategic relationship between the two beverage industry leaders in Africa’s largest economy that together serve Nigeria’s most popular sparkling soft drinks, juices, value-added dairy and water beverage brands.
From the agreement, Coca-Cola intends to increase ownership to 100 per cent within three years, subject to regulatory approvals, while working on other long-term commercial structures.
Additionally, the parties have agreed to jointly discuss and explore other opportunities in the region to further develop this relationship.
The investment in Nigeria’s leading value-added dairy and juice beverage brands – which include Hollandia and Chivita–further expands Coca-Cola company’s West African portfolio of beverages, while establishing Coca-Cola’s presence in Africa’s high-growth, value-added dairy category.
The agreement will allow both companies to leverage their respective investments and expertise to further drive innovation, optimize efficiency and strengthen route-to-market to accelerate growth and increase consumer availability and choice.
TGI Group’s relationship with Coca-Cola company will also help Chi Ltd achieve its ambitious growth plans through access to Coca‑Cola’s broad product portfolio and integration into global best practices in production, distribution and brand-building. Nathan Kalumbu, President, Coca-Cola Eurasia and Africa said.
“For more than 30 years, Chi’s leadership has built a greatly admired business that has quickly grown to become Nigeria’s leading producer and distributor of value-added dairy and juice products and we are delighted to enter the next phase of our growth journey together.”
He said, “Coca-Cola and Chi share the same commitment to Africa, to investing in our operations and to continuous innovation and our relationship will allow us to continue to provide Nigerian consumers the number one beverage in each of the categories we serve.”
Cornelis Vink, Chairman of TGI Group and Chi Ltd said, “We strongly believe in this journey we are starting with the Coca‑Cola Company. The relationship will allow us to expand our regional footprint and product portfolio. We stay firmly committed to growing our investments in the Nigerian economy, increasing employment and local content while supporting the communities we operate in.”
-Leadership
