THE Coca-Cola Company has agreed to sell its Hollandia/Chivita (CHI Limited) brands to UAC of Nigeria Plc as the company weighs the Nigerian business environment.
UAC announced this in a regulatory disclosure to the Nigerian Exchange Limited (NGX) on Wednesday, July 30, noting that the transaction would be subject to regulatory approval.
According to UAC, the agreement supports the Coca-Cola company’s strategy to operate a flexible and asset-light model, focusing on brands that have the greatest potential for scaling.
“The Coca-Cola system recently announced it will invest $1 billion in Nigeria over five years and remains committed to these investments, provided a predictable and enabling environment is in place.
“This investment underscores the importance of Africa as a long-term growth opportunity for the Coca-Cola system,” it stated.
The Group Managing Director of UAC, Fola Aiyesimoju, while she announced the acquisition of Chivita/Hollandia brands, a leading dairy and juice business in the region, said the company remains strongly and deeply committed to Africa and the continent’s growth.
“This acquisition presents significant potential to build on ChivitaHollandia’s (CHI Limited’s) legacy of excellence and innovation. I would like to thank the management and staff of Chivita/Hollandia (CHI Limited) and look forward to working with the team to support the next phase of growth,” she said.
The Managing Director of CHI Limited, Eelco Weber, in his remarks, said the business has made significant progress over the past few years, with the Chivita and Hollandia brands becoming clear leaders in their categories.
“I would like to thank our over 5,000 employees for their hard work and dedication in bringing our business forward and earning us recognition as a Gold-rated Great Place to Work.
“We see a bright future for Chivita/Hollandia (CHI Limited),” Weber said.
Commenting on the company’s growth prospects, he added, “With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
The ICIR reported in September 2024 that the Nigerian government explained the reason why the renewed $1 billion investment by the Coca-Cola Hellenic Bottling Company and its local partner, Nigeria Bottling Company (NBC), faced a setback.
The presidency gave the reason in a statement titled ‘Explainer: Understanding Coca-Cola’s $1 billion investment’ issued by the special adviser to the President on Information and Strategy, Bayo Onanuga, on Thursday evening, September 19.
Meanwhile, the Coca-Cola Company had in 2021 pledged the $1 billion investment but later withdrew from executing the project, blaming its failure on Nigeria’s macroeconomic environment.